Motion Picture Herald (Sep-Oct 1939)

52 See Exhibitor A id In Business Rise Financial, governmental and general Ixisincss analysts this week viewed with mixed opinions the position of American motion pictures abroad as a result of the war, but saw a brighter outlook domestically as a result of a marked rise in industrial activity, bringing greater employment and higher consumer incomes, both of which would be reflected in greater theatre attendance. 300,000 More Workers A special survey by the United States Bureau of Labor Statistics disclosed that m the first month of the war expansion in industrial activity resulted in the hiring by American factories of more than 300,000 additional workers. Secretary of Labor Frances Perkins reported that only about one-third of this increase was attributable to the seasonal rise, indicating that the international situation brought immediate employment benefits to American labor. _ This rise in domestic industrial activities, said Poor's financial analysts, gave the domestic motion picture market a "somewhat brighter outlook." Poor's also predicted some admission price increases reflecting favorably on domestic box office receipts. The Wall Street Journal of Dow, Jones held virtually the identical opinion. Bei+er Business Reported Motion picture executives returning to their home offices in New York from the field reported bright prospects and better business. A strong optimistic note was struck Monday by Murray Silverstone, executive operating head of United Artists, on his return from California. Broadway theatre receipts have been riding at such high levels since September 1st that several New York newspapers gave reportorial attention to the condition. Spyros Skouras' National Theatres reported that business in the houses of its 450-theatre circuit in the west was running better than in 1938, with marked increases noted particularly in the last few weeks. Returning from a tour of the midwest, south central and middle Atlantic states, Harry A. Ross, president of Ross Federal Service, this week reported "encouraging developments in industry" noted in discussions with executives of key industries, of department stores, of hotels, of entertainment, show "true signs of permanent improvement." H. M. Richey, field exhibitor contact for RKO, returned to New York from a Michigan Allied States convention with word that several owners reported business on the upgrade at theatres. Walter Vincent, of Wilmer and Vincent, cited much new activity in the Virginia area. The "rebound" of theatre business also has been felt in Canada, important U. S. film customer and virtually considered a part of the domestic market. In the Dominion, reported N. L. Nathanson, head of Famous Players Canadian Theatres and one of the most important film executives in Canada, theatre business has rebounded after a period of recession following the outbreak of war. "Business now is moving along fairly normally and we look forward to improvement," said Mr. Nathanson last Friday while visiting New York. Dow, Jones' IVall Street Journal concluded that with virtually all European film production abandoned, all important world markets, both in the Americas and in Europe, lay open to Hollywood films. Poor's likewise noted improvements in film foreign markets growing out of the same condition, mentioning, in particular. Argentina. Brazil and Mexico. MOTION PICTURE HERALD October 21, 1939 13 Film Stocks Cain, 17 Suffer Losses in First Six Weeks of War of 30 stock and bond issues of motion picture companies and those in directly related fields traded on the New York Stock Exchange and New York Curb Market, 17 suffered price losses and 13 enjoyed gains at the end of the first six weeks of the war in Europe, during which there was wide speculation both within the trade and without over the actual extent of the markets lost at this time for Hollywood product and the eventual status when the warring nations are readjusted to the emergency and tbcatyes are reopened. The total overall net change for the 30 issues was down 24 '74; the losses ranging up to the 8 Yz drop in Eastman Kodak preferred, and the gains running up to the 9 J/2 increase in the price of U niversal's preferred. Gains of less than one point were made by American Seati^tg, Consolidated Film Industries common and preferred, Paramount common and second preferred, RKO common, Warner common— all on the Stock Exchange — and Monogram and Sonotone Corporation on the Curb. Other gains included the 2 Yz points by General Theatres Equipment; Pafhe Film, 1%; Universal preferred, 9Y2 — on the Stock Exchange — and a lYz-point gain by Technicolor on the Curb. The principal losses were: Eastman Kodak preferred, SYz; Paramount bonds {J>Ya^ '47), 6%; Kodak common, ^Yz; Columbia preferred, 4. Following is a comparison of the film and allied company stock and bond prices at the outbreak of the war and those of the beginning of the week, rounding out the sixth iveek of the war. New York Stock Market Prices at War Prices Six Declaration, Weeks Later, Net Issue September 5th October 16th Ch ange % American beating lO'/s 1 1 + y-l III 1^ 1^ Pl^^ll|.QC ^ lOl /» ^ / 1 Q 7IA '74 3A 74 99 1 ft A *T Consolidated Film Industries 1 l'/4 + '/2 3/8 Consolidated Flim Industries pfd 01/ 8 1/2 + Eastman Kodak 159 1541/2 41/2 Eastman Kodak pfd. 168 1/2 160 8I/2 General Theatres Equipment • . 9!/4 113/4 + 2'/2 1% Loew's Inc. 355/8 34 Loew's, Inc., pfd 1033/8 1023/4 % Paramount 71/4 + 3/8 Paramount 1st pfd 81 80 1 Paramount 2nd pfd. 8I/4 83/4 + '/2 Pathe Film 9 105/8 + 1% RKO l'/2 1% + '/8 Twentieth Century-Fox 15 13% 13/8 Twentieth Century-Fox pfd 26 24 2 Universal Pictures pfd ..... 571/2 67 + 91/2 Warner Brothers 4 4'/8 + '/8 Warner Brothers pfd 45 43 2 Total net change — O'/s New York Bond Market Keith, B. F. ref. 6s 46 991/2 1001/2 + 1 Loew's deb. 3'/2S 46 1001/4 98 2'/4 Paramount Broadway 3s 55 50 461/2 31/2 Paramount Pictures cv. B'/^s 47 87 8OI/4 63/4 Warner Brothers dbs. 6s 48 83 82 1 — i 2'/2 New York Curb Market Monogram Pictures l'/8 "/4 + '/8 Sonotone Corporation 11/4 1% + '/8 Technicolor 13 113/4 l'/4 Trans-Lux .... 11/4 l'/8 '/8 Universal Corporation vts. • : 31/8 2% '/2 Total overall net change for 30 issues -241/4