Motion Picture Herald (Jul-Aug 1943)

July 3 , 194 3 MOTION PICTURE HERALD 41 Vote Universal Merger Plan Approval Universal Corporation and Universal Pictures Company were merged last Friday at a special meeting in Wilmington, Del., when a majority of stockholders voted favorably on the merger and capitalization plan for the new Universal Pictures Company, Inc. Two unsuccessful attempts were made in Chancery Court in Washington by a group of minority stockholders to prevent the meeting. Applications for injunctions were made by the group before the meeting opened and while it was in session. The purpose of the merger plan was described by J. Cheever Cowdin, chairman of the board, as to increase the efficiency of operations, to simplify the corporate organization, and to make earnings more readily available to stockholders by eliminating arrears on two outstanding preferred stocks. The outstanding capitalization of the surviving corporation will be $2,000,000 of five per cent convertible debentures due 1950 ; and 581,697 shares of $1 par value common stock. Holders of voting trust certificates of 525,681 common shares of Universal Corporation will retain their certificates, which will represent the same number of shares in the surviving company. On Tuesday, Universal announced it had obtained new financing of more than $8,000,000 from the First National Bank of Boston and the Bank of the Manhattan Company. This involves a new $4,000,000 loan, continuation of an unused balance on a previous loan, and renewal of a revolving credit agreement with the two banks, which together aggregate more than $4,000,000 additional. Philadelphia House Sold Away from Warners The Sedgewick theatre in the Germantown section of Philadelphia is the latest house to be sold away from the Warner theatre circuit. Frank Blum, operator of the Stonehurst theatre at suburban Upper Darby, purchased the 1,650-seat Sedgewick, reportedly for $175,000. The property, assessed at $206,200, was built in 1928 and contains also four stores, two apartments and eight office suites. The theatre is being operated on a lease by the Warner circuit. The lease expires in 1948. On June 30th Warners' Karlton theatre, continued run house in the central city section, passed over to William Goldman, independent circuit head, who purchased the house along with Warners' Keith's theatre earlier in the year. Warners moved out of the house last Thursday to allow time for the installation of new equipment. With the News theatre, it makes a third central city house in operation by the Goldman circuit, which also holds the Erlanger theatre downtown, dark pending the outcome of an anti-trust suit for first run product. Blast Kills Projectionist An explosion believed to have been caused by a defect in the air-conditioning system in the Hyway theatre at Fair Lawn, N. J., this week killed Ronald Cooper, chief projectionist, and injured six patrons. A fire resulting from the explosipn was quickly put out by local firemen. Use Screen for Recruiting San Francisco district and neighborhood theatres have cooperated in the recruiting of war workers by running slides and trailers. At least 25 theatres participated in the venture. POWER SHORTAGE SHUTS THEATRES 3 WEEKS Three theatres in Martins Ferry, O., have been forced to close for three weeks following a disruption in the power system caused by the breakdown of one of the three generators in the municipal plant. Mayor Lee Woods issued the order, which also called for the use of only one light at a time in homes throughout the community. All street lights and outdoor signs were blacked out until repairs were made. The town has a population of approximately 15,000. Voluntary Power Saving Weighed The meeting of representatives of the country's electric utilities and officials of war utilities, held in Washington recently, brought expressions from both factions favoring a voluntary curtailment of power. Such a program, it was said, might achieve the desired results better than an enforced one. . The meeting primarily was called to discuss means of avoiding or deferring an extension of the nightly dimout now effective along both coasts, and to which theatre fronts, like other businesses, are subject. It was emphasized that the problem was not one of a power shortage but rather of saving fuel, materials, transportation and manpower. It was predicted in Washington that grave difficulties might arise in the power industry next winter in keeping present facilities operating at capacity. Officials are anxious to avoid the blacking-out of theatre and store lights and other inconveniences which are imposed by the present regulations under compulsory conservation. RKO Declares Preferred Stock Dividend of $2 The Radio Keith-Orpheum Corporation at a meeting of its board of directors last week declared a dividend of $2 per share on the six per cent preferred stock, payable August 2nd to stockholders of record on July 20, 1943. The dividend consists of $1 to complete payment of the accrual for the quarter ended July, 1940, and the remainder for the accrual ended October of the same year. Accrued and unpaid preferred dividends as of August 1, 1943, remains at $17 per share. Buy Monogram Franchise For Kansas City John L. Franconi and Edwin Blumenthal, present holders of the Monogram franchise for Dallas, and Lon T. Fidler, Monogram franchise holder in Denver and Salt Lake City, have acquired the company franchise in Kansas City. Leland Allen will supervise branch office activities with Ralph Heft as office manager and salesman. Mr. Fidler has resigned as film buyer for Commonwealth Theatres to devote ' his time td the Kansas City franchise. Willson to Vanguard Films Henry Willson, formerly vice-president of the Zeppo Marx Agency, has been appointed assistant to Daniel T. O'Shea, president of Vanguard Films. 20th-Fox to Buy Remaining Stock From Chase Twentieth Century-Fox Film Corporation announced this week that the corporation had filed with the Securities and Exchange Commission a registration statement covering the offering of 665,715 shares of convertible preferred stock. The stock being registered constitutes the entire remaining stock holdings of the Chase National Bank in the Twentieth Century-Fox Film Corporation. Early in the week, the corporation filed its first registration statement covering 100,000 shares of a new prior preferred stock. The proceeds of the latter issue are for acquisition by 20th-Fox of the $13,000,000 investment by the Chase Bank in National Theatres Corporation which would become a whollyowned subsidiary of the film company. The convertible preferred issue having a call value of $23,300,000 will be disposed of by Chase National through an underwriting group. Lehman Brothers, Hayden, Stone & Company and Blyth and Company are reported to be leaders of the syndicate. The issue involves approximately 75 per cent of the 905,802 shares of preferred outstanding, and the public offering price of the stock and the names of members of the underwriting group are to be supplied by amendment to the registration statement, according to Spyros Skouras, 20th-Fox president. The convertible preferred is entitled to cumulative dividends of $1.50 per year and is callable at $35 per share. The stock is convertible into common at the rate of 1J4 shares of common for each share of preferred. Consolidated net earnings for the first quarter of 1943 of Twentieth Century-Fox Film Corporation amounted to $1,752,000, and of National Theatres Corporation to $887,000, after provision for estimated Federal taxes, a total of $2,639,000. Colbert Leads Paramount Player List at $360,000 Claudette Colbert received the highest player salary from Paramount during 1942, the star earning $360,000, according to the company's report to the Securities and Exchange Commission. Fred McMurray was close behind with compensation of $347,333, while Bing Crosby was third with $336,111. He also received $298,946 from Decca Records, however. Sampson Takes Canadian Post for 20th-Fox Sydney Sampson has assumed the duties of general manager of Canadian 20th-Fox Corporation pending the return of James P. O'Loghlin, who is recuperating from an illness. Mr. Sampson was transferred to the new post from his position as branch manager of 20th-Fox's Buffalo exchange. He has been succeeded there by Ira H. Cohn, home office field representative. Television Society Elects The American Television Society at New York last week reelected Norman D. Waters, advertising agent, as president. Charles Kleinman was named vice-president; C. Matthew Dessner, treasurer, and Kay Reynolds, secretary. Lela Swift, C. Elizabeth Ayres and A. B. Cohen were elected to the board of directors. Robert B. Stone, program manager, and Willard J. Purcell, chief engineer of the General Electric television station at Schenectady, N. Y., addressed the meeting.