Motion Picture Herald (Mar-Apr 1945)

arnoff Reports CA 1944 Profit Ts $10,263,291 Increased production of radio-electronic equipent vital to the war effort, establishment of new :cords in radio communications and completion : more than 100 research projects for the armed ■rvices were cited in the annual report of the adio Corporation of America for 1944, released [onday in New York by Brigadier General David arnoff, president. Net profit of RCA for the year was $10,263,291, spared with $10,192,452 in 1943. After payient of preferred dividends, earnings per share E common stock were 51.2 cents, compared with 3.5 cents per share in 1943. Total gross income from all sources amounted > $326,431,913, compared with $294,535,362 in 543, an increase of 10.8 per cent. According to eneral Sarnoff. the net earnings of the company re subject to renegotiation, specific provision aving been made in company reserves. ictor Deliveries Gain 16% Deliveries of radio and electronic products of CA Victor Division, chief manufacturing subdiary, were up 16 per cent in 1944, while those f Radiomarine Corporation of America, another lanufacturing unit, were up 17 per cent. RCA aboratories concentrated its engineering talent nd facilities on radio and electronics, including sw electron tubes, radar and other devices important to the war effort, General Sarnoff reorted. i.Billings of National Broadcasting Company in 344 exceeded those of any previous year, a no.ble feature of NBC's operations being its han.ing of a record total of 2,173 programs originatig in foreign countries. RCA Communications andled 150,000.000 words of radio traffic largely elated to the war. 1 In discussing wartime advances, General Saroff pointed out that as a result of the develop'ient of many types of miniature tubes, smaller I id more flexible radio sets and other electronic iroducts would be manufactured after the war. j.adar, television, electronic microscopy and radio■equency heating were mentioned as items RCA <pects to produce in great volume in the postar period. Issets at $190,629,493 Total current assets of RCA and subsidiaries ase during 1944 from $189,312,778 to $190,629,493. iabilities in the same period were reduced from 138,251,944 to $133,251,944. Borrowings under V-loan credit, which totaled 55,000,000 December 31, 1944, were decreased 10,000,000 during the year. On February 15, 345, an additional $20,000,000 was repaid, reduclg current borrowings under the V-loan credit '3 $35,000,000. The report indicated that the RCA retirement Ian, adopted by the board of directors and effecve since December 1, 1944, had been approved by le Treasury Department and that stockholders •ould be asked to approve the board's action at le annual meeting of stockholders to be held lay 1, 1945. Decency Legion Reviews ieven New Features The National Legion of Decency this week reiewed seven new films, approving four and findig three objectionable in part. In Class A-l, unobjectionable for general atronage, are: "The Enchanted Cottage" and Leave It to Blondie." In Class A-2, unobjecionable for adults : "Betrayal from the _ East," Circumstantial Evidence." In Class B, objectionble in part: "I Was Faithful," "The Phantom .ipeaks." "Tonight and Every Night." Last week the Legion reviewed five films, approving all. In Class A-l. was "See My Lawyer." In Class A-2 : "Flame of Barbarv Coast, ' |l Love a Mystery," "Life and Death of Colonel Jlimp." "Picture of Dorian Gray." Monogram's Net Profit Is $67,842 for Six Months Monogram's consolidated net profit, after all charges including Federal income and excess profit taxes, was $67,842 for the six months ended December 31, 1944, compared with $48,014 for the same period in 1943. The total consolidated net was $196,006 against $147,651, but taxes of $128,163 cut this figure. W. Ray Johnston, president, said domestic sales showed an increase of 43 per cent over the previous similar period, while foreign sales rose 61 per cent over the same period. He said the investment in 15 completed but unreleased negatives was "substantially higher" than at any previous time. Atlas Film Stock Holdings Totaled $13,140,448 in '44 Net assets of Atlas Corporation as of December 31, 1944, totaled $69,267,379, according to the annual report issued last week in New York by Floyd B. Odium, president. Film company securities in the $27,855,189 Atlas portfolio were valued at $13,140,448, with RKO holdings accounting for $12,662,273. Valuation compares with $17,112,621, aggregate of film securities in the $37,112,621 Atlas portfolio December 31, 1943. Holdings of amusement issues, as listed in the 1944 annual report, were restricted to 30,850 shares of Walt Disney Productions, six per cent cumulative convertible, valued at $478,175 ; 1,329,020 shares of RKO Corporation common, carried at $12,293,435, and 327,812 RKO Corporation option warrants valued at $368,788. Cash and TJ. S. Government securities held by Atlas December 31 last, amounted to $25,210,176, Mr. Odium reported, more than 36 per cent of the net assets of $69,267,379. As of December 31, 1943, Atlas held the following amusement issues : Preferred Stocks Shares Amounts 56,400 RKO Corp. 6% cum. conv $5,640,000 2,000 Twentieth Century-Fox cum. conv. 57,750 22,850 Walt Disney Prod. 6% conv.-.. 251,350 Common Stocks 49,983 Paramount 1,187,097 1,329,078 RKO 11,795,567 327,81 I RKO warrants 49,716 37,991 Twentieth Century-Fox 821,556 In commenting on the financial position of RKO in 1944, Mr. Odium said the company had "a profitable year in all main branches of its business although its earnings available for stock were below like earnings for the year 1943. This decrease in earnings available for stock of 1944 was not unexpected because the 'loss carry over' which that company had available to it under the provisions of the Federal Income Tax Law was used up during the year 1943 and because the profits from the production of pictures in Hollywood before taxes were substantially below the record high profits from this source in 1943." Eastman Kodak Declares Two $1.50 Dividends Directors of Eastman Kodak, Rochester, N. Y., February 20 increased the regular annual dividend payment on common stock to $6 by declaring a regular quarterly dividend of $1.50 per share. Last year the company was on a regular $5 annual basis, augmented by an extra dividend of 75 cents in December. The regular quarterly dividend of $1.50 also was declared on six per cent preferred. Dividends are payable April 2 to stockholders of record March 5. GPE Declares Dividend The directors of General Precision Equipment Corporation Tuesday in New York declared a dividend of 25 cents on the company's capital stock, payable March 15 to holders of record March 9. Stockholders Will Act on Loew Stock Split March 29 Details of a proposed plan whereby Loew's, Inc., would split its common stock into three new shares for each share now outstanding, were made known last Thursday in New York when the company issued a report to its' stockholders, calling for action at the forthcoming stockholders special meeting March 29. Basic term extensions for personal service contracts for executives, recommendations for a new board of directors, further details of the Loew retirement plan and listing of 1944 salaries of board members and officers of the company also were contained in the report. It was pointed out that the board of directors believed the stock split would "broaden the market for the stock." Elimination of authorized preferred, none of which is currently outstanding, also is on the March 29 agenda. Would Increase Common Specifically, Loew's seeks to increase the present authorized 4,000,000 shares of common, of which 1,685,109 shares, with a par value of $44,609,050, are outstanding, to 6,000,000 shares, of which 5,055,327 would be outstanding, with the same par value. The aggregate 1944 remuneration paid to officers and directors, exclusive of Louis B. Mayer, was $2,749,852, of which $2,707,352 was paid to officers and the rest to directors who were not officers. Personal service contracts to be voted on include those of Nicholas M. Schenck, president, now under contract to December 31, 1946, at a weekly salary of $2,500, plus 2Y2 per cent of the net profit, with a limit of $200,000 total annually under the retirement plan. Edgar J. Mannix's contract at $3,000 weekly, plus 1 4/10 per cent of the profit, expires December 31, 1945. The proposed new contract would keep him with Loew's at the same salary, not to exceed $200,000 annually, until March 1, 1954. Alexander Lichtman's contract provides for $3,000 weekly, plus 1 1/20 per cent of the profits, not to exceed $200,000 annually, until December 31, 1944. The new contract would retain him until March 1, 1954. Thau Increase Approved Benjamin Thau receives $1,750 weekly, plus seven-tenths of one per cent of the profits, also not to exceed $200,000. His contract actually expired December 31, 1944. The new contract would hold him until March 1, 1954, but would raise his salary to $3,000 weekly. The report listed 1944 salaries of each Loew director, each nominee and company officer, with increases or decreases compared to 1943 salaries, as follows : David Bernstein $285,906 decrease, $47,528 Howard Dietz 78,000 Same Leopold Friedman 98,640 increase, 15,440 Sam Katz 298,125 decrease, 72,013 Eugene W. Leake 30,200 increase, 25,833 Alexander Lichtman 268,094 decrease, 48,509 Edgar J. Mannix 300,725 decrease, 72,013 Louis B. Mayer 908,069 decrease, 230,922 Jesse T. Mills 26,000 Same Charles C. Moskowitz 115,700 increase, 11,700 Wm. A. Parker 6,400 increase, 400 Wm. F. Rodgers 114,400 decrease, 1,000 J. Robert Rubin 279,755 decrease, 38,172 Nicholas M. Schenck 391,860 decrease, 120,530 Edward A. Schiller 26,000 Same Louis K. Sidney 78,000 increase, 1,250 Benjamin Thau 200,114 increase, 2,074 Joseph R. Vogel 97,500 increase, 19,500 David Warfield 1,400 increase, 100 Henry R. Winthrop 4,500 increase, 300 The 10 board members recommended to serve until the next annuaf meeting are: Nicholas M. Schenck, president ; David Bernstein, vice-president and treasurer ; Leopold Friedman, secretary and counsel; Eugene W. Leake, attorney; Charles C. Moskowitz, vice-president ; William A. Parker, president of Incorporated Investors, Inc. ; J. Robert Rubin, vice-president and counsel ; Joseph R. Vogel, vice-president ; David Warfield and Henry Rogers Winthrop. IOTION PICTURE HERALD, MARCH 3, 1945 23