Motion Picture Herald (Jan-Feb 1945)

niversaVs Profit f,412, 701 in Year \apital Increases he net profit of Universal Pictures for the year td Oct. 28, 1944, was $3,412,701 after provision Federal income and excess profits taxes of |7,i|900, with earnings equivalent to $5.15 per share pie 662,592 shares of common outstanding at the t. The new figures compare with a profit of '59,968 in the preceding fiscal year, and earnequivalent to $6.57 on the 571,942 shares of Smon outstanding on Oct. 30, 1943. leleased in the annual report of J. Cheever Cowchairman of the board, and N. J. Blumberg, iident, the information was contained in a 32>|e volume replete with photographic and chart iStrations of company personalities, productions II operations. "The basic costs of producing and Fiributing motion pictures have steadily inijised, in common with other industrial operaifs; but Universal is making every effort, Dugh its systems of budgetary control, to pre;|t undue increase in such costs," the report hted out. fross income from all sources for the 1944 pel increased to $51,561,504, the largest amount in i company's history. This compares with $46,1,527 in the preceding year. Of the total reves, $32,386,000 was derived from domestic operais, an increase of $3,323,000 over the preceding b, and $19,175,000 from operations in foreign ; tries, an increase of $1,760,000. he company's capital structure was strengthd and simplified during the past year as a result |lhe sale of $7,500,000 of 354 per cent debentures, March 1, 1959, through a nationwide investit banking group," the report added. "The ceeds from the sale of these debentures were jd to retire the company's outstanding bank loans I its five per cent convertible debentures, due HI 1, 1950. ;The net working capital position of the com[iy was further strengthened during the year, the il increasing from $16,094,906 to $18,798,687. e ratio of current and working assets to curt liabilities was 2.84 to one at the close of the al year." The charge to operations for the jrtization of films, royalties, etc., amoiinted to ,375,518, an increase of $4,101,870 over the preus year, described as the result of increased duction schedules and higher production costs, entories at the end of the fiscal year stood at 1,487,592, as compared with $19,161,801 at the I of the previous year. ■ointing out that the total taxes of $9,639,542 ing the year was equivalent to 74 per cent of earnings after deducting operating expenses 1 was equal to $14.55 per share of stock, Mr. (vdin and Mr. Blumberg called for a "sounder I'jthod" of taxation. "In revising our tax sys," the report held, "consideration should be givto the elimination of double taxation on the ckholder's share of his corporation's earnings, Sch is now levied upon first through taxes upon corporation's earnings themselves and then lin through individual income taxes when the laining earnings are paid out as dividends." isney Quarterly Net ises to $39 1 ,000 ^et income of Walt Disney Productions for f 13 weeks ended December 30 was $391,000 [ore income taxes and year-end adjustments, :ording to a report last week to stockholders their annual meeting in Hollywood. Net for corresponding period the previous year was 't)9,000. ^'referred stockholders elected George E. Jones I Harry E. Edington as directors representing f erred stock; common shareholders elected tj^lter E. Disney, Roy O. Disney, Gunther R. fusing and Edna F. Disney. Newly elected Ejectors elected Walter E. Disney, president; y O. Disney, vice-president, secretary and treasr; Gunther E. Lessing, vice-president; Paul Pease, comptroller and assistant treasurer, Morrell Elected President Of Toronto Managers George Morrell has been elected president of the Toronto Suburban Managers Association, which also selected Maurice Doyle as vice-president, Allan Easson, treasurer and Jay Smith, secretary. The • association passed unanimously a vote of thanks to Charles Querrie, retiring president, and created for him the title of honorary president. Clair Hague Dies; Was Universalis Canadian Agent Clair Hague, 60, Universal's Canadian representative, died in Toronto February 7 of pneumonia. Mr. Hague joined Universal in 1913 and was connected with the company until his death. Born in Brantford, Ontario, he spent his early years in show business with circuses, carnivals and road shows. Prior to his association with Universal, he was with the Allen Amusement Company and the Kleine Optical Company, one of the first distributors of motion picture proj ection equip ment. When Mr. Hague worked for the company George Kleine, its organizer and head, was ordering projection machines from Thomas A. Edison in one-twelfth dozen lots. Later he was associated with Mr. Kleine in exploiting what were then called educational pictures. Mr. Hague for many years was an outstandmg figure in the industry in Canada, both institutionally and socially. He was active in the Canadian Picture Pioneers and at one time was chairman of its executive committee. Funeral services were held in Toronto Saturday with the Universal home office in New York represented at the rites by F. J. A. McCarthy, southern and Canadian sales manager. Mr. Hague is survived by a wife, two daughters and a son. Robert L. Murray, ASCAP Publicity Director Robert L. Murray, director of public relations for the American Society of Composers, Authors and Publishers, died of a heart attack in Montreal, Canada, February 10. He was 55 years old. He joined ASCAP in 1940, having previously held executive posts with several Hearst newspapers, including the New York American, of which he had been editor at one time. Surviving are his wife, Mrs. Hermine Murray, and two stepsons, Pfc. Philip Welch and 1st Lt. Paul E. Welch. Clair Hague Al Dubin, Song Writer Al Dubin, writer of lyrics for more than 2,000 songs, died Sunday at Roosevelt Hospital, New York, following a short illness. He lived in Hollywood. In a nine-year period, Mr. Dubin had written more than 500 songs for Warner Bros. In 1935, with Harry Warren, he was awarded the Academy Award for "Lullaby of Broadway." Surviving is a brother, Joseph Dubin, of Hollywood. Mrs. Alta Griefer Mrs. Alta Griefer, 70, mother of Ben Griefer, managing director of the Adams and Paramount theatres, Newark, died February 8, at her home in Brooklyn. She was the widow of Charles Griefer. Surviving are three sons, five daughters and a sister. Goldman Verdict Is Hit by Wright At Appeal Hearing Federal Judge William H. Kirkpatrick's dismissal of a $1,350,000 triple damage suit brought by William Goldman Theatres, Inc., of Philadelphia, against Warner Brothers and 10 other producers and distributors, was assailed February 8 in the U. S. Circuit Court in Philadelphia by the Government, which intervened in the case. Robert L. Wright, special assistant U. S. Attorney General, told the court that if an earlier dismissal of the suit by U. S. District Court Judge William H. Kirkpatrick were upheld, the Government's whole power of prosecution under the Sherman anti-trust act would be imperiled. Judge Kirkpatrick dismissed the suit last April", denying that the defendants' refusal to lease first run films to William Goldman, operator of a circuit in Philadelphia, was in restraint of interstate commerce. Mr. Goldman appealed that decision, and the Government thereafter intervened in the case as a "friend of the court." Sees Trust Suits Imperiled Mr. Wright pointed out the Government already had brought suits under the Sherman act against other companies, and said those suits would collapse unless Judge Kirkpatrick's ruling were reversed. The same thing undoubtedly would happen to other anti-trust prosecutions, Mr. Wright told the court. The Government, Mr. Wright continued, "is not interested in the amount of damage Mr. Goldman claims he suffered, but only in the legal principles enunciated by Judge Kirkpatrick in his dismissal of the claim." He disputed Judge Kirkpatrick's contention there were enough first run houses in Philadelphia, holding that it is to the public's benefit to have as many as possible. He also argued against Judge Kirkpatrick's judicial power to hold that prices charged by Warners in Philadelphia were reasonable. William A. Gray and Robert Dechert, of counsel for Mr. Goldman, argued the reputed Warner monopoly was illegal. They charged that "the facts and circumstances surrounding the asserted monopoly showed it resulted from collusion with producers and distributors." Mr. Dechert declared motion pictures had great effect upon public opinion, and that a monopoly could "stifle" pictures. He cited the film, "Citizen Kane," as an example, saying Warners refused to show it there. Former U. S. Sen. George Wharton Pepper, former State Attorney General William A. Schnader and former Judge Joseph N. Proskauer. New York, of counsel for the defendants, contended Mr. Goldman failed to produce any evidence of illegality. Warners, they said, were given first run films because they had theatres in the best locations and were the "best customers" in the area. Proskauer Denies "Squeezed' Judge Proskauer said "this is not the case of a little man being squeezed," pointing out that Mr. Goldman formerly was Warners' general manager in Philadelphia at $74,000 a year and was well informed on trade practices and customs. He said he believed Mr. Goldman's litigation was an effort to "get into the inner circle himself." Mr. Goldman claimed he lost $450,000 through inability to get first run pictures for his Erlanger theatre, and claimed triple damages under the provisions of the Sherman Act. At the hearing's conclusion. Judges John J. Parker, Charlotte, N. C, substituting there; Paul C. Leahy, of the Wilmington (Del.) District Court, also substituting, and John Biggs, Jr., ordered both sides to file briefs. Defendants are: Warner Brothers Pictures, Inc., and its affiliates, Vitagraph, Stanley Company and Warner Brothers Circuit Management Corporation; Loew's, Inc.; Paramount Pictures; RKO Pictures; _20th Century-Fox Films; Columbia Pictures; Universal Corporation; Universal Film Exchanges and United Artists Corporation. )TION PICTURE HERALD, FEBRUARY 17, 1945 21