Motion Picture Herald (Sep-Dec 1933)

24 MOTION PICTURE HERALD November 4, 1933 ANNUAL PAYROLL REDUCED $3,000,000 (Continued from Italic 15) retained by them, nor have any fees been paid to the equity receivers or their attorneys or accountants. The trustees said they propose to take such further steps as may be found advisable to improve theatre operation. Principal management changes effected since the second report were promotion of Ralph A. Kohn from treasurer to vice-president in charge of theatre operations, and his election as an executive ofificer in most of the theatre companies. They also caused Walter B. Cokell, previously assistant treasurer, to be elected treasurer. Salary Adjustments Reported The trustees said they had completed a study of salarv adjustments which, in the period between May 31, 1931 and March 14, 1933, were reduced as follows : (a) June, 1931: All salaries of home office and field employees were reduced from 5 per cent to 25 per cent. (b) January, 1932: All salaries above $50 per week were reduced from 5 per cent to 10 per cent. (c) April. 1932: There was a reduction of 5 per cent on the first $50 of all salaries. (d) Summer of 1932: All home office and field employees were given two weeks' vacation without pay. (e| Spring of 1933: All employees receiving over $50 per week were given half salary for a seven-weeks period. The effect of the application of these reductions upon the rates of pay in May, 1931, according to the third report, was as follows : % of decrease in annual salary allowing for seven weeks at half pay in Spring, 193.1, on salaries above $50 weekly 34.8 34.0 33.4 32.5 31.0 29.5 28.0 26.8 24.7 22.0 17.6 16.6 9.7 9.7 Weekly Salary May, 1931 $2,000.00 1,500.00 1,250.00 ! ,000.0Ct 750.00 600.00 500.00 400.00 300.00 200.00 100.00 75.00 50.00 25.00 Weekly Salary after reductions $1,398.57 1,061.07 892.32 723.57 554.82 453.57 386.07 314.07 242.07 167.28 88.48 67.10 45.13 22.57 In addition to the foregoing reductions, since bankruptcy, reductions totaling $2,385 a week, affecting 36 employees, have been made. In the period between January, 1933, and August, 1933, the average home office payroll reduction, resulting both from reduced salaries and reduced number of employees, amounted to 25 per cent. The present home office payroll, as compared with that of May^ 1931, shows a week'v reduction amounting to $57,186 (or nearly $3,000,000 a year). Reductions in Rentals The trustees said they were making continuous efforts to obtain reductions in rentals under existing leases (whether of the bankrupt or of former subsidiaries of the bankrupt), and were endeavoring to obtain new leases wherever possible, based upon reduced rentals. Publix Enterprises, Inc., and Subsidiaries Considerable progress was reported in negotiations for adusting various matters of Publix Enterprises which are in controversy, and the trustees "confidently expect" that Publix theatre properties and those of subsidiaries will soon be so reorganized as to be included under the same administration as the other theatre subsidiaries. "Thereby considerable savings in expense and gains in the efficiency of the administration will be achieved." The advisory committee on theatre reorganization, working with Irving Trust, trustee in bankruptcy for Publix Enterprises, concluded negotiations, according to the Paramount trustees, for reorganizing A. H. Blank Theatres Corp., bankrupt, and its subsidiaries, operating in Iowa and Nebraska. The court approved tlie agreement, it was said. Negotiations for reorganizing Southern Enterprises have resulted in an agreement with Karl Hoblitzelle, providing for reorganization of theatres in Texas. The court also has approved this agreement. Irving Trust has secured court approval of an agreement with Hunter Perry, for reorganizing Publix Newport News Theatres, Virginian-Tennessee Theatres, Publix Virginia, operating in Newport News, Charlottesville and L\nchburg, Virginia. Irving Trust has concluded negotiations for reorganization of August Amusements, Augusta. Ga.. which agreement likewise was confirmed by the court. Dent Theatres, Inc. The court, it was said, has approved a deal wherebv Dent Theatres has entered an agreement with Karl Hoblitzelle, providing for transfer to a new corporation of all stocks of subsidiaries owned by Dent Theatres. The estate of Paramount Publix owns 75 per cent of capital stock of Dent ; Saenger Theatres owns the remaining 25 per cent. This agreement also provides for sale to Hoblitzelle of all Class A stock, being 50 per cent of the authorized capital stock, of the new corporation, and provision was made for the repurchase of the Class A stock on or before August 1, 1934. Olympia Theatres, Inc. Negotiations for reorganization of Olympia Theatres are continuing under supervision of the trustees, they pointed out. The advisory committee on theatre reorganization is in contact with the Boston reorganization committee, of which Charles Francis Adams is chairman. It was said that particular attention is being devoted to .Salem Realty, which own houses in Salem, Lynn. Averill, Newton and Brockton. Mass^ and 50 per cent of the capital stock of which is owned by Olympia Theatres, the remaining 50 per cent being owned by outside interests. Goldstein Brothers Theatres Negotiations for reorganizing the G-B Circuit in New England are progressing with representatives of Ijanks, noteholders and receivers having interests in the properties. Saenger Theatres, Inc. Trustees are negotiating for a reorganization of Saenger Theatres, the stock of which is owned by the trustees, and which operates throughout si.x southern states. Minnesota Amusement Company Negotiations for reorganizing Minnesota Amusement were said to be progressing, the trustees having sent representatives to Minneapolis to study the situation. Also, representatives of important creditor interests, it was said. have been discussing the situation with the trustees in New York. Seneca Holding Company This company, which owns a large assembled plot on Times Square, fronting on the east side of Broadway between 44th and 45th Streets ( present si^e of the Criterion theatre, et al; , covered the various plots with separate mortgages, all of which are now in default, the trustees said they endeavored to preserve this property as a unit to prevent this threatened loss. A payment of $40,000, authorized by the court, was made to prevent foreclosure qnd Joseph P. Day and Peter Grimm are now negotiating sale or lease of the property. Also, the trustees are working to prevent a sale of other Seneca property, including a studio and film depot and laboratory in Long Island City, which is subject to a substantial mortgage. The Detroit Situation A newly organized subsidiary is now operating theatres in Detroit. The trustees entered into a contract with George W. Trendle, for a period of about ten months, to head this group. Negotiations had been carried on by trustees with a view to a sale of part of the capital stock of the new; corporation. Kansas City Operating Company Holders of $35,000 principal of mortgage bonds have extended the bonds for three years, upon the payment of $1,000 a month amortization. Paramount Building, New York No concrete plan of reorganization has been arrived at with regards the home office building on Times Square, owned by Paramount Broadway Corporation, wholly-owned subsidiary of the bankrupt, and which is subject to the lien of a mortgage to secure bonds of Paramount Broadway, of which $8,875,000 are outstanding. Taxes for the first half of 1933, and interest and sinking fund payments due July 1, 1933, are in default, and the trustee under the mortgage has declared the entire outstanding amount of the bond issue to be due and payable. Various negotiations have been had with bondholders' representatives. Properties on the West Coast Associates of Root, Clark, Buckner and Ballantine, attorneys for the trustees, have remained in California since May, and a member of the firm has made a second trip to Los Angeles and San Francisco to deal with urgent situations. Final settlement of the controversy between Paramount Publix and Fox Film, arising out of a certain theatre agreement of Dec. 10, 1930, (and explained in detail in the second report) has not as yet been made. However, progress was reported by the trustees in the third report regarding problems relating to the various theatre properties involved. Individual negotiations are underway for settling the problems of each of these theatre properties— which include: Paramount theatre, stores and building, San Francisco; California theatre, stores and building, San Francisco; St, Francis theatre, stores and building, San Francisco; Paramount theatre and building, Oakland ; Paramount theatre, Portland, Ore. ; Rialto theatre, Portland, and the Paramount theatre in Seattle. West Coast Studio Trustees said they have conducted negotiations with a bondholders' committee holding $2,900,000 serial bonds on the studio and also the Paramount Theatre Building, Los Angeles, with respect to a possible revision of the terms of