Motion Picture Herald (Jul-Aug 1936)

20 MOTION PICTURE HERALD August 8, I 936 HOYTS-CREATER UNION CROUPS TO REORGANIZE Stuart Doyle Arranges English Financing to Form New Circuit to Include Various Interests Upon his arrival in New York from London late last week, it was revealed that Stuart Doyle, head of Greater Union Theatres of Australia, had completed a deal with British financiers for $2,500,000 with which he will consolidate all his Australian theatrical interests into a separate corporation of his own. This does not mean a breakup of General Theatres Corporation of Australia, of which Mr. Doyle is the codirector with Sydney Munro of Hoyt's, the former explained. "It is an independent financial condition which means my own holdings will be more firmly consolidated," Mr. Doyle said. The British financing obtained by Mr. Doyle is said to be a straight stock flotation proposition, with the bankers subscribing on the condition that Mr. Doyle consolidate all his various Australian holdings and companies into one unit. There will be a 25-year debenture arrangement at a low rate of interest, with the Doyle company getting $500,000 for developments. The breakup of Hoyt's and Greater Union has been rumored for some time, but Mr. Doyle revealed that no action will be taken in this direction, if any at all, until after conferences which are scheduled to take place upon his arrival next month in Australia. The present operating set-up of General Theatres still has another year to run, Mr. Doyle said. Mr. Doyle is president of Greater Union Theatres, operating about 185 houses, Cinesound Productions, Cinesound Newsreel, Associated Distributors and British Empire Films. All of these companies would be combined under the new set-up. He also heads National Theatre Supply and Consolidated Broadcasting Corporation, but it is believed these would be outside the merger. Fox Agreement Continues Upon his arrival in New York, Mr. Doyle revealed that the five-year operating agreement by which General Theatres operates a combination of 200 Hoyts-Twentieth Century-Fox and Union Theatres houses in Australia is expected to be extended for another five years. Negotiations looking toward the renewal of the arrangement will not be discussed during Mr. Doyle's stay in Manhattan, he said, but will be taken up with Walter J. Hutchinson, foreign head for TwentiethCentury-Fox, aboard the Monterey, which sails for Australia from Los Angeles August 19 and on which both will be aboard. The Australian executive has taken a 99-year lease on a site in Piccadilly in London's West End, where he proposes to erect a theatre to serve as an outlet for his Australia produced pictures, he reported. The primary reason for his visit to New York, Mr. Doyle said, is to "shake hands" with friends and to set the American dis tribution of "Thoroughbreds," which Cinesound Studios made in Australia with Helen Twelvetrees as the star. Wardour Films have signed for the English rights and the rights to India and the Continent have still to be disposed of. Mrs. Doyle, who has been accompanying her husband, has been under a doctor's care since they left London, but is reported now to be in better health. They are scheduled to leave for Hollywood next week. Australian Business Fair "Conditions have vastly improved in Australia and the country is fairly out of the depression," Mr. Doyle commented. Theatre business is very fair, he said, and while the scale of admissions has not reached pre-depression days, the volume of patronage has come back to normal. Prices at the theatres are gradually being increased, but have some way still to go to reach the pre-depression scale. "It's easy to knock them down, but it's mighty difficult to raise admissions," Mr. Doyle said. "We are not planning to expand or develop the theatre situation," the managing director of General Theatres asserted. "Theatre development has reached its saturation point," he said, adding that many of the structures in Australia are comparable to the finest theatres in America. Amusement Levy Renewal Indicated Reports from Washington this week indicated that Administration fiscal authorities plan to seek Congressional approval for a continuance of the sales and nuisance taxes which are now producing about $425,000,000 annually. Amusement levies fall into the classification of nuisance taxes. Originally imposed in 1932 and renewed twice, the taxes are scheduled to expire next June. Treasury officials are said to have decided that the reenactment of the entire list of taxes is essential. Admission tax developments were reported from two states during the week. J. P. Wood, secretary of the Ohio Independent Theatre Owners, warned members of that group of the possibility of the reinstatement of the former 10 per cent straight admission tax in Ohio to make up part of the $12,000,000 loss in state revenue which will result from proposed exemption of food from the retail sales tax. The 10 per cent levy was repealed about a year ago and exhibitors since have been paying three per cent on grosses to conform to the retail sales tax. In New Orleans, La., the former tax of two per cent on admissions starting at 10 cents has been cut to 10 per cent on admissions over 15 cents. Premier J. Macdonald of the Province of Nova Scotia has declared a reduction of approximately 50 per cent in amusement levies, effective at once. The reduction was decided upon as a result of continued complaints from exhibitors and theatre patrons. FINE NEWSREEL FOR KING ATTACK CAPTION The iron hand of overseas government control of newsreel affairs was seen last week in London, where King's Bench division court fined Gaum on t British newsreel $2 50 and costs on a charge of contempt of court for supplying newsreel pictures of the recent alleged attempt on the life of King Edward which contained the caption — "Attempt on King's Life" — and a commentary stating that the revolver had been aimed. The charge also included the supplying of a poster stating that assassination had been attempted. J. H. Hutchinson and Hendon Central Cinemas, held for showing the film and poster, were not fined after an apology, but were ordered to pay costs. In the Gaumont case letters of apology were read from Mark Ostrer and David Ostrer and evidence was submitted showing that the caption and poster had been withdrawn from 26 theatres after a protest from solicitors for the accused man, but a letter to Hendon Cinema miscarried. In similar cases against the London Evening News and the Daily Express the editors and proprietors of each paper were ordered to pay $2,500 and costs. Johnston Contract At Republic Ends W. Ray Johnston's contract as president of Republic Pictures, an outgrowth of Monogram, has been terminated according to a story appearing Thursday in Motion Picture Daily. The move leaves Mr. Johnston free to pursue other plans which by persistent report, provide for a re-entry into the industry of his former company under its former name. His contract, which had until December 23, 1936, to run, has been settled following discussions with Herbert J. Yates, president of Consolidated Film Industries, Inc., and chief financial factor in Republic. For several months Mr. Johnston's sphere of active duty as head of Republic has been curtailed. For that length of time it has been more or less taken for granted in the New York trade that severance of his relations with the company was merely a matter of time plus discussions leading to an amicable settlement now reached. Theatre Permit Denied Supreme Court Justice Louis A. Valente in New York this week denied the application by Robert W. Goelet to compel License Commissioner Moss to approve the location of a motion picture theatre in a building to be erected by Mr. Goelet at 61 East 53 St., Manhattan.