Motion Picture News (Oct-Dec 1930)

November 2 2, 1930 Motion Picture News 25 DuPont and Raskob Control of Warners Scheduled by Dec. 8, Wilmington Hears Initials, Please Cincinnati — "Something has gone haywire with one of the machines. Notify Erpi immediately at Canal 6720," came a message over the house phone from the operator's booth to the office of Manager Yarbrough at the RKO Strand. A young man, just breaking into the theatre game with the idea of some day becoming a manager, took the message. Calling the designated number, he asked to speak with Mr. Erpi. It was several minutes before the telephone operator at Electrical Research Products was able to figure out what it was all about. 6J MoreConsolidatior Moves at Warners? Profits Drop 51% A hint that further consolidations among the various Warner enterprises is intimated by Harry M. Warner in submitting the annual financial report of Warner Brothers' Pictures, Inc., this week. Indicating that theatre expansion is not ended, he said: "While such acquisition and construction of additional theatres in various sections may become necessary . . ., the main effort of our company is now rather being devoted to coordinating the functions of the various departments and branches of our organization, consolidating them into one closely welded unit operating economically and advantageously." Profits for the year ending August 30, 1930, dropped from $14,514,628 the previous fiscal year to $7,074,621, a decrease of $7,440,007, or slightly over 51 per cent. The 1929-1930 net is, after depreciation, amortization, Federal taxes, special film inventories, write-down and "extraordinary expense" coincident with the coordination of newly acquired properties. These profits are equivalent after preferred dividend requirements to $1.77 a share on the 3,769,025 no-par shares of common now outstanding, but Warners state the earnings for 1930 do not include profits of affiliated companies prior to dates of their acquisition. On the basis of the 2,732,687 average number of shares outstanding during 1930, the 1929-1930 profits are computed at $2.44 a share, after preferred dividends and on the basis of 2,627,405 shares outstanding on August 31, 1929, at $2.21 per share. Fixed assets at cost, less depreciation and amortization, on August 30, were $163,767.356. as compared with $110,870,822 one year ago. Total assets were $230,185,444, as compared with $167,189,024 on August 31, 1929. Current assets as of August 30, 1930. were $42,498,290. including $5,133,337 (Continued on pag? 33) Per Cent of Stock Seen Held by Group at Annual Meeting Wilmington, Del. — Reports that control of Warner Brothers may pass to Pierre S. du Pont, John J. Raskob and other capitalists of this city, who control a large block of stock, and to the banking interests who recently underwrote the new $14,000,000 stock issue, are current in local financial circles as the date of the annual stockholders' meeting to be held here approaches. The meeting will be held in the duPont Building office of the company on Dec. S. The current reports in financial circles are that duPont and Raskob with their allied stockholders will control at least 64 per cent, of the stock at the company's meeting. Whether any change will be made in the board of directors is a matter of speculation. However, there are persistent rumors that changes will be made so as to give the Raskob-duPont interests complete financial control. Raskob and the duPonts are said to be buying Warner stock steadily through Hayden, Stone & Co., which arranged the new financing for Warners a few months ago. Some time ago it was reported that the duPont-Raskob-banking group had gained control of the company, but this was denied by Harry M. Warner. Abandon Buying Combine London — Establishment of an exhibitor buying circuit is being dropped by the British exhibitor organization, it is reported. Sponsors of the combine feel that if distributors give a break to small houses the proposed co-operative can be dropped. Out of Control? Harry M. Warner, who recently denied control of his company had passed from the Warner brothers. It's a Business Portland — Mel Kellar, Vitagraph manager, and Vete Stewart (F. N.) were in the midst of a hotly contested golf game on the Columbia course, and incidentally took time to boost the merits of the film of their respective organizations. In the midst of their physical and mental fight they were handed wires advising that they would both thereafter be under the same roof, and their services would be required as salesmen in the great Oregon territory. In spite of the unexpected news the game was finished with Vete on the long end of the score. Warner Holdings Spread Over 187 Towns, 19 States Warners are now operating theatres in 187 cities and towns in 19 states and the District of Columbia, the company outlines in its financial report for the year ending August 30, 1930. Pennsylvania heads the list with houses in 45 towns, while New Jersey is second with holdings in 39 towns. The report divides the line-up as follows, with no mention made of the total number of theatres : CALIFORNIA Fresno, Hollywood, Los Angeles, San Bernardino, Santa Barbara, Whittier. CONNECTICUT Ansonia, Bridgeport, Bristol, Danbury, Derby. Hartford, Middletown, New Britain, New Haven, New London, Norwich, South Manchester, South Norwalk, Torrington, Waterburv, West Hartford, Willimantic. DELAWARE Wilmington. DISTRICT OF COLUMBIA Washington. ILLINOIS Chicago, Granite City. INDIANA Elkhart, East Chicago, Goshen, Hammond. Indiana Harbor, Indianapolis, Whiting, MARYLAND Baltimore, Frederick, Hagerstown. MASSACHUSETTS Amesbury, Clinton, Everett, Lawrence, Lynn, Newburyport, Springfield, Waverly, Woburn, Worcester. MISSOURI Maplewood, St. Louis, University City, Webster Grove. NEW JERSEY Atlantic City, Bayonne, Bel-eville, Beverly. Bloom field, Bordentown, Bridgeton, Burlington, Camden, Clementon, Col lings wood, Cranford, Dover, East Orange, Elizabeth, Hackensack. Hoboken, Irvington. Jersey City. Kearney, Mapleshade, Millville. Mont ■ clair. Mt. Holly, Newark, Orange, Passaic, Paterson, Pennsgrove. Pleasantville, Ridgewood, Riverside, South Orange. Swedenboro, Union, Union City, Vineland, Westmont, Woodbury. NEW YORK New York City, Albany. Batavia. Dunkirk, Elmira. Hornell, Jamestown, Medina, Olean, Syracuse, Troy. Utica, Wellsville. NORTH CAROLINA Charlotte. OHIO Akron. Alliance, Canton, Chilicothe, Cleveland, Coshocton, Findlay, Kenton, Lima, Lorain, Mansfield. Massilon, Portsmouth, Sandusky, Steubenville, Springfield, Sydney, Youngstown. PENNSYLVANIA Allentown. Altoona, Ambler, Ambridge, Ardmore, Brookville. Butler, Chester, Darby, Donor. Dormont, Drexel Hill, East Liberty, Erie, Etna. Gettysbug, Greensburg, Hanover, Holmesburg, Johnstown, Lan (Continued on page 33)