Motion Picture Daily (Oct-Dec 1948)

Tuesday, October 5, 1948 Motion Picture Daily 7 Rank's Profit (Continued from page 1) ended June 26, G-B showed a profit of $3,848,800, compared with a $4,539,272 profit for the 52 weeks ended March 31, 1947. G-B's 1948 dividend was 7l/2 per cent, against 12>4 per cent in 1947. Noteworthy in the balance sheet are liabilities totaling 354,359,432 representing bank ^-^bans and overdrafts covering temporary financing for production. In this connection, perhaps anticipating adverse criticism, Rank said: "We recognize the important part that temporary bank advances play in film production finance but we are mindful of the desirability as soon as possible of rearranging our finance on a longer term basis." Consolidated Assets The parent company's consolidated assets show a total book value of $267,239,196, including freehold property, etc., carried at $157,630,576; goodwill and patent rights, $29,564,968 ; trade investments, mainly in overseas theatres, $14,975,448, and film productions and rights, $4,972,440. Principal liabilities in addition to the production bank loans and overdrafts of a temporary nature, include: capital stock outstanding, capital reserves and stock held by outside stockholders, $95,652,408; mortgages, An noun ring... deluxe all-sleeper service NEW YORK 1. PARIS every Friday 4 P. M. EST Fly on world-proved TWA Constellations. Cocktails, champagne, vintage wines. Filet mignon dinner. Bed-s'ze berths! Hot breakfast! Call TWA or your travel agent. MITCHELL MAY, Jr. CO., INC. INSURANCE Specializing in requirements of the Motion Picture Industry 75 Maiden Lane, New York 510 W. 6th St., Los Angeles permanent loans, etc., $75,696,160. Reports of subsidiaries showed the following results : . Odeon Properties, Ltd. : Net profit of $3,145,736 for the year ended June 26, 1948, compared with net profit of $306,564 in the previous year ; Odeon Associated Theatres : $2,134804 profit, against $1,117,652 profit; British Dominions Films : Net profit of $1,902,344 for the year ended April 30, 1948, compared with a profit of $1,264,352 in the previous year, with a dividend of 12J/> per cent, less tax, against 6Y2 per cent in the previous six months. In view of the criticism last year following acquisition of the privatelyowned General Cinema Finance Corp. by the publicly-owned Odeon, Rank, though not required by law to do so, also issued the GCF accounts. They show that he values released films, less amounts already recovered, at $19,216,760, claiming this sum ultimately will be realized when exhibition of the films has been concluded. This doubtless will evoke criticism in the financial section but Rank again anticipates this and declares he is now devising a new valuation system. Rank states under this head the group made a profit of $88,608 which, after charging taxes, became a loss of $104,260. Nevertheless, a dividend from a subsidiary enabled $359,652 to be carried forward. "Bearing in mind the difficult year through which the industry has passed, I consider these results satisfactory," Rank said. An auditor's note to GCF's accounts shows the dividend unpaid since March, 1943, with arrears now amounting to $1,709,400. Rank claims he has adopted a consolidation policy, cutting wasteful and unnecessary expenditures and is doing all possible to simplify and strengthen the group's financial structure. He does not intend to embark on any new ventures nor to increase dividends over the 1947 figures. Admitting criticism had been received from independent exhibitors, he said he hopes to improve relationships with them. He claims to have made progress in reducing production costs without sacrificing quality. "We will not embark on production of films from which we cannot foresee from past experience a reasonable opportunity to recover costs in this market and such overseas markets as are available now," Rank said. Divestiture (Continued from page 1) some 1,300 similar cases, and that "if there is to be proper and uniform enforcement of the anti-trust laws and of the decree, without severe injury or penalty to any of the defendants," all of these cases should be handled under the same standards. K-B has asked for summary judgment in the case, while Stanley has countered with a motion to dismiss. Both motions will be argued here next Monday. Warner raised another apparently significant point in the brief, which it indicated it might raise again in the New York proceedings later this month. It pointed out that under the agreement, the MacArthur Corp. leases the theatre to K-B and Warner on a rental basis, with power of ultimate reversion after 33 years. "Under the Supreme Court's opinion," Warner asks, "is it necessary or appropriate in the interests of the proper enforcement of the general anti-trust problems before the three-judge court, to direct this defendant to dispose of its interest in the case of rentals and the reversion as well as its interests in the lease and operating agreement, or will divorcement of the leasehold and the operating arrangement be sufficient compliance by the defendant? Did the Supreme Court have reference to real estate or to theatre operation? This particular problem was not presented to the Supreme Court. . . . The defendant wishes to be in the position of urging in the District court, at the hearings to begin Oct. 13, that if the situation requires the severance of the joint lease interests and operating agreement, the defendant still should not be required to dispose of its financial interest in the reversion." Weitman Appoints {Continued from page 1) mittee. Proceeds of the show will go to the United Jewish Appeal of Greater New York. Honorary chairmen include : Barney Balaban, Nate J. Blumberg, Jack Cohn and Albert Warner. Co-chairmen with Weitman are Marvin H. Schenck, Louis K. Sidney, Ed Sullivan and Arthur Knorr. Members of the committee include : Don Albert, Harry Anger, Milton Berger, Maurice Bergman, F. William Boettcher, Ben A. Boyar, Paul Bracco, Leo Cohen, Alan Corelli, Russell V. Downing, John Dugan. NEXT FROM WARNER BROS. / / Johnny Belinda / STATEMENT OF THE OWNERSHIP, MANAGEMENT, CIRCULATION, ETC., REQUIRED BY THE ACT OF CONGRESS OF AUGUST 24, 1912, AND AS AMENDED BY THE ACTS OF MARCH 3, 1933, AND JULY 2, 1946, Of Motion Picture Daily, published daily (except Saturdays, Sundays and holidays), at New York, New York, for October 1, 1948. State of New York | . County of New York | Before me, a Notary Public, in and for the State and county aforesaid, personally appeared Theo. J. Sullivan, who, having been duly sworn according to law, deposes and says that he is the Business Manager of the Motion Picture Daily and that the following is, to the best of his knowledge and belief, a true statement of the ownership, management (and if a daily, weekly, semi-weekly, or tri-weekly newspaper, the circulation), etc., of the aforesaid publication for the date shown in the above caption, required by the Act of August 24, 1912, as amended by the Acts of March 3, 1933, and July 2, 1946, embodied in section 537, Postal Laws and Regulations, printed on the reverse of this form, to wit: 1. That the names and addresses of the publisher, editor, managing editor, and business managers are: Publisher, and Editorin-Chief, Martin Quigley, 1270 Sixth Avenue, New York City; Editor, Sherwin Kane, 1270 Sixth Avenue, New York City; Managing Editor, Sherwin Kane, 1270 Sixth Avenue, New York City; Business Manager, Theo. J. Sullivan, 1270 Sixth Avenue, New York City. 2. That the owner is: (if owned by a corporation, its name and address must be stated and also immediately thereunder the names and addresses of stockholders owning or holding one per cent or more of total amount of stock. If not owned by a corporation, the names and addresses of the individual owners must be given. If owned by a firm, company, or other unincorporated concern, its name and address, as well as those of each individual member, must be given.): Quigley Publishing Company, Inc., 1270 Sixth Avenue, New York City; Martin J. Quigley, 1270 Sixth Avenue, New York City; Gertrude S. Quigley, 1270 Sixth Avenue, New York City; Martin S. Quigley, 1270 Sixth Avenue, New York City. 3. That the known bondholders, mortgagees, and other security holders owning or holding 1 per cent or more of the total amount of bonds, mortgages, or other securities are: (If there are none, so state.) None. 4. That the two paragraphs next above, giving the names of the owners, stockholders, and security holders, if any, contain not only the list of stockholders and security holders as they appear upon the books of the company but also, in cases where the stockholder or security holder appears upon the books of the company as trustee or in any other fiduciary relation, the name of the person or corporation for whom such trustee is acting, is given; also that the said two paragraphs contain statements embracing affiants' full knowledge and belief as to the circumstances and conditions under which stockholders and security holders who do not appear upon the books of the company as trustees, hold stock and securities in a capacity other than that of a bona fide owner; and this affiant has no reason to believe that any other person, association, or corporation has any interest, direct or indirect in the said stock, bonds, or other securities than as so stated by him. 5. That the average number of copies of each issue of this publication sold or distributed through the mails or otherwise, to paid subscribers during the twelve months preceding the date shown above is 5,178. (This information is required from daily, weekly, semi-weekly and tri-weekly newspapers only). (Signed) Theo. J. Sullivan, Business Manager Sworn to and subscribed before me this 24th day of September, 1948. (seal) Rose W. Hornstein. (My commission expires March 30, 1949). Lawson Reversal (Continued from Page 1) son's conviction in District Court here. Lawson's attorneys said they were taking the step because the case involved so many basic constitutional questions. In all probability, however, the high court will not take the case until there has been a Circuit Court ruling — and may not take it even then. The petition said that » similar case involving Dalton Trumbo would be appealed if the high court agreed to hear the Lawson case.