Variety (April 1932)

TuesJay, April 5, 1932 P ■ CT R E S VARIETV 21 Stock Market N. Y. SIGN WRITERS WALK Without . (Continued from page 7) Improvement now appears to have ijeCn merely temporary, the . quar- ter shoving no enduring change in the state of distributing and ex- hibiting trade. • pos'ition of Pariamount was fur- ther complicated by thfe curt an- nouncement that the* Company had juBt negotiated with a syndicate In Chicago as well, as New York a loan of between $13,000,000 and $15,000,- 000 on six rhonths': notes,- subject to a like renewsil, with which to pay off lj«nlc loans of $9,000,000 and to supply additional- working capital* A notation in the annual balance sheet for 1931, just Issued, declared the company had no further stock repurchase obligations to. meet and th6 new flnanclng was difflcult to figure out. At any rate Par stock dipped to a new low for the year at 6 flat; go- ing through Its prevloufl 1932 low at 6%. volume being moderate at a little more than 40,000 shares for the week, closing prices being'close, to the bottom. The company's bonds rnade a better, sho.wlnf, moving up oh small; dealings for net gains on the week and getting away from their former bottoms. Action of . thie liens was favorable here, for acute weakness in other parts of the amusement bond list might easily have contributed to lower prices for the whole group. Warner Bonds Crack , Warner Bros, convertibles, for tar stance, cracked wide open, crashing through their long defended bottom at 25, broke more than 6 points net to 2i and closed the week on the bottom at Paralleling Par'a Hen action the Loew bonds broke badly, thrown for a net loss on the week of 6 points and closing on. the bottom o£ 81, a, sudden reversal of its progress during . January and Fetiruary from 75 to 90. The old Keith bonds and the Pathe loans steadied during the confusion and ended the week two points up each There was nothing in the action of the Loew stock to suggest the extreme weakness of the company's bonds. The equity securities slipped with the rest of the collapsing mar. ket> but the'declinei was orderly and volume nev6r became impor tant Trade reports ot economies being worked Out within the company give some promise, of distant construe tive effect, but the set policy of Ix)ew'3 in' respect to expensive ' film production seems to have put it on the speculative spot for the pres- ent However, there is reason to believe that with a reformed pro- duction cost schedule and other economies, :.Lioew could be built into a long pull favorite.. The company's-persistence diijlng . the last twelve • months in making high class but oo^tly: pictures has led to embarrassriKent, but also it has put the- company in a pdsltipn of eminence in the Industry for qual- ity output and when the turn in the general business tide comes, it might easily capitalize quality reputation built at great cost while its 'com petitors were perforce compelled to market indifferent releases. > . At any rate, the stock showed up comparatively well during times of pressure. There were signs of ur- gent belated selling, but undoubted- ly Loew was getting some sort of support on a scale down, while other leading Issues In the main list were cracking through to new bear market lows, among them being General Motors, Eastman. Kodak, Du Pont, practically all the rail- roads and many of the principal utilities, like Atchinson and Stand- ard Gas. Some Amusements Go Through Several of the amusement stocks went Into new low territory on the down side, principal interest attach- ing to Fox, which was sold at .2%, a fractional new bottom, comparing to the previous low of 2%. Market apparently didn't like the recent re- port, which-, proposed a marking down of stated values of the stock and a revaluation of properties and Investments. Also recital of some of the hew financing over the past year did not encourage enthusiasm. That the company reported net loss of more than $4,000,000 was not es- pecially significant, ^since that had long been forecast and was in the nature of water that had passed under the bridge. Consolidated Film preferredi which has so far continued to pay its %i dividend and has valiantly de- fended the level of 10 in times of stress, at length broke to a new bottom of . 8%, at which price it would yield nearly 26%,, enough to caat doiibt on the continuance of its disbursement. Common stock al^o. broke through, selling rt a new all- time low of 2%. The junior Issue discontinued ltd $2 dividend more than a year ago. Eastman Kodak repeated its for mer bottom at 68% Saturday,. but short covering carried it up more than a point in the last half hour, leaving the stock, however, below 70, with a net loss on the week of A% Kodak has been a favorite target of the shorts right along, and especial ly since a special tax on cameras is now written Into the revenue bill At one time .It commanded a loan- ing premium of %, or $50 for use overnight on 100 shares. Several other stocks are in tlie same'cate gory, and their test will come when the loaining of stock returns to nor mal, as many believe it will in-a week or so after the new Stcfck Ex change rule became effective April 1. Kodak is the only one of the amusement group to command premium. The others are lending 'flat'; that Is, the lender of the stock has the use of its market value in cash-free of interest. Columbia Pictures certificates in negligible Volume touched a new low of 6% since Its Big Board list ing a fortnight ago. The old voting stock is still traded in on the Curb. .It did not change hands last week, Bid was .6%. It had been antlcl pated that the transfer '6f the cer tiflciates to the Exchange would bring In a demand, but surrounding weakness interfered'. Those who bought stock expecting the transfer would boom it, were out of luck. RKd did little, turnover being only 1,600 shares, while the new de bentures, with. stock attac'-.ed and listed among the bonds, was not re ported at all for the second straight Warner Bros, was active, practi cally all dealings being at the new bottom of the previous week of 2. General Theatres preferred (Curb) was another to hit a new low, d6al Ings being recorded at 25 cents a share, Trans-Lux, also on the Curb went to IVi ^nd stayed there or thereabouts. Without Opening negotiations looking to a . settlement on a new contract, the New York Sign Writers, Local No. 230, walked Fri- day (1). Their old agreement was up the previous day, and -when it became apparent thia circuits re- fused to dear individually on re- newal, the order to strike was given. . Sign writers are asking for the same .scale, $73 for a five-day week and $10,50 a day for. |ielpera, with; chains taking the attitude that this union must come down the same ias others have iii view of conditions. Majoi' chains were &II mailed copies of; the new - contract, but in- sisted on dealing thrrough the labor committee; of the major strings which negotiate with all other unions concerned with theatricals. Sign iVrlters balked, demanding the chains handle^^he situation Individ- ually. Outdoor advertisers and electric sign makers are also holding out against the sign writers. Com- mercial workers, who do gilt letter- ing and such work met the de- mands for a renewal. Most of the commercial men are shop owners and themselves are members of the local. Whether it has any connection ^Ith the st^ke or not^ ink was tossed oh the. Rivoll, New York, front, and one of the signs at the Mayfair vras kicked in, last week. Summary for. week ending Saturday, April 2: STOCK EXCHANGE Notice — Reprisals Rivoli, Mayfair? At HAWKS'AIR SHORT- Frank Hawks, speed flyer, is making an avlatloii short in Flat biish for Warner Bros. Par's '31 Profit at $2 a Share, 1st Quarter Loss EXHIBS IN OHIO UNITE AGAINST FREE STUNTS Columbus, April 4. Film exhibitors throughout .Ohio and several adjoining states- are tak^ig part in a 'Save Columbus' movomenti The working is bring- ing them into, town severail days each week, with bull sessions run- ning at all hours. Idea is to obtain . agreements from, all theatre owners here not to put on carnival nights, give- away programs, free vaudeville and other drawing stunts. MIdnl.ijht previews are also oii. the ban list, but' this angle never clicked. Exhlbs' plan is to work oh this city until they get It to a; point where it can be. held up, ais shining example for state, Other Ohio cities, it Is ,admltted, now go in for, everything from, flea shows to three-ring circuses! to add to film drawing, power. .„■ TEXAN TRAILER CO. SUED Dallas, April 4. M. S. 'White, neighborhood exhib, asking for receivership of James P. Simpson Co;, screen ads. Petlsh based on. $921 bill for, trailers in his suburban stand, Dal-Sec, for which White wants a judgment. Simpson firm doimlnated the screen ad biz in the Southwest up to only a few years ago, when sound came. Fk M Loss for Fox Theatres Written town to $1 High. 2W B»i . U% .1% 87%- St 72 Z% .. 22%. 11^ 6% ■10% r :^ 2S-' 114 . Hi 21.; T-'^i 90 sou oo.-.j. ss .l>.v 40 -1032 IjOW. 8^ 0814 204 16% 17% 0 e % 2% ■ % 37 a . 9 10% % % H % 1% IVi 1 70 V4 no 42 37",4 I'/i • In.ilc'f »ult. '..t'-io,!; Salea. Issue and rate. 100 American Scat.. 2,000 Consol. Film.... 1,000 Consol. Kllm pfd. (2). 700 Col.- Plct. v.t.c 80,400 Eastman Kodak (S)... 0,400 Fox, Class A 170,000 Gen, Blec: (1) .2,200 Gen. Thea. Eq. n.;... ..... Keith pref. (7)....... 20,800 Loew (8)....-. 200 Do prof. (OVj)...... 600Madison Sq. Garden.. .100 Met-a-M pref. (1.80). 20 Orph; ..pref........... - 411300 Paramount 1,100' Pnthe Kxchanse. i.'... ...... Pathe, Class A ' CS,400 Jtadio Corp.... 1,600 RKO • Shubert 20 Universal pref. (S)..".. 26,300 Warner Bros... < Do pref......... >;••. 140,000. Westlnghouse (1)...... 1,000 Zenith' Radio CURB 0,000 Do Forest Iladlo...... 1,800 Fox Theatres......... 1,000 Gen. Thea. Eq. pf.... . 1,000 Technicolor COO Trans l.\xx. BONDS $70,000 •Gen. 'Thea. Eq. '40... 1,000 Keith U's, '40....i....^ 42,000, Loew Q's, '41......;.,.... 13.000 Pathe 7'b, '37.......... 18,000 Par-Fara-LoBky ' 6 iB, '-I 62.000 Par-Pub. 6V4's, 'CO.... 2,000 .«huhert C'a... 70,000 Warner Bros. C's, '30, . Over the Counter, N. V. Quoted for Saturday •••••■••« *••••*'•••■ >••••*«•• ••■•«■••• >••••»•>. Hlffh. .2y* z% -9',4 ■ T' ■ TOli 3% 18% % . 2814 00 V4 3 •18 , .8 ■. 7% .% 6% 8% 88Vi ■ 2814 % % '94 A ,1% 1% %. 'A % 1% i i % H "l^ 1% + % - W I'liiC ilij'. Fox Film published its annual statement for 1931, revealing a net loss for 1931, after taxes ,and. all charges, of $4,263,557, compared to profit for the previous year of $10,- 251,826. In connection with the statement President Edward R , Tinker ad- dressed a letter to the stockholders notifying them of a proposal to come up, at the annual meeting April 15 to change the stated value of all stock outstanding to $5 a share, putting it on the books, at $12,628,300 instead of the total, of $90,780,000 as now carried on the balance sheet. Th,us the stated worth of stock •A' and 'B' is reduced by $78,154,000 on the books. The bulk of this sum it is proposed to transfer Into two other accounts, one a 'reserve for revaluation of Investments* _ and other purposes, which is increased from $2,233,095 to $40,030,525; and setting up another item designated 'paid in surplus,' $36,062,396. An-, other operation Involved in the same accounting revision is the •writing, down of the Pox Film in- vestment in Fox Theatres to $1, in- stead of being carried on the bal ance sheet as an asset of $2,591,587. Whole transaction is in the na- ture of an accounting department housecleaning such as that already repofted by RKO and Warner Bros. President Tinker's letter mentions that the new reserve fund also will permit the revaluation of other assets. Tinker's letter surveys the com pahy's inventory and aimoVtizatibn position: 'At the beginning of the year pic ture inventory, . . . amounted to $21,627,000. The cost of. production in 1931 was $19,861,000 as compared with $26,203,000 in 1930. The amor tlzation taken against picture costs during the year totaled $24,352,000 This left an inventory of $17,136,000. Special amortization was taken during the year amounting to $900,- OOO on account of 'a few high co.'^t pictures which experience indicated would not return enough of foreign rentals to give them adequate amortization.' It is pointed out that a large portion of film write-olfs it based on productions of the pre- vious year and the figures do not properly reflect reduced picture costs for 1931., Holdings in. Loew Concerning the Fox ownership of I.oew stock control, the prc'sid^nt'H iottor says: 'Tli'ft .investment of tii'; rot-iiora- tion in 6C'i;St00 sliaics ol' I,i»'".v">, Inc., common stock, which was pre- viously carried on the balance sheet at Its cost of $75,000,000, was trans- ferred on April 9, 1931, to Film Se- curities Corporation, a Delaware corporation, which was organized for th^ purpose of jacquiring this stock. Film Securities' Corporation issued 100,000 shares of $7 dividend cumulative'preferred stock and $20,- 000,000 of 2-year 6% secured gold notes.. The proceeds of these se- curities, namely, $28,800,000, was paid in cash to your corporation and applied in reduction of the value at which this Investment Was cai'i-led. Your corporation's equity in the above shares of LoeWs, Inc., Is rep- resented by 462,000 shares of the class 'A' stock of Film Securities Corporation, having a liquidation preference over, the common stock of $100 per share and which, while having no voice in the management of Film Securities Corporation, has the power to cause the sale of said shares of Loew's, Inc., by. Film Se- curities Corporation. 'Fifty-one thousand three hundred thirty-three shares of common stock of Film Securities Corpora- tion, which ranks pai-i passu with the corporation's class 'A' shares as to earnings and has the sole con- trol of the managemertt of the. cor- poration, was issued : and ' is now vested in three trustees appointed by the United States District Court in the anti-trust suit commenced in 1929 by the United States to cause the divestiture of this, stock. This arrangement has been approved by the Department of Justice and by the United States District Court for the Sbutiiern Dls.trict of New York, and the mariagenieht of your corporation feels that It provides a satisfactory disposition of this suit. "Tlie cash derived by your cprpo ra,tl6n from the sale of the preferred stock and secured notes of Film Sc curities Corporation, ' above men tioned, namely, $28,800,000, together with the proceeds of the sale of a hew issue of $30,000,000 5-year con vertible gold debentures of the l^ox Film Corporation, onaljled yr.<\\v cor- poration to discharge Its. oljllKullon of $55,000,000 on i.ts st?curc(l 6';i.goId notfii .wliich matured on April li 19I5I. ' ■ ■ 'At the same time Wcsco Corpo ration (through -vyhlrli nio.'-t of your theatre.<) are directly or InOireotly operated; repaid Its outstanding note of $10,000,000 from, tlio proceeds of an iH.suo of its $15,000,000. .2-yr-av 6%. golfl. notCfs, the balance )."-i,n^ viK"(I fur tliK- ll'iiiidatlon ,(ir oili<'^' llijliilitl'--; inid otlior- corporat'-- pur For the first time in the history of Paramount the company is ie's- pected to show a net loiss, for the first quarter of a calendar year, 1932. : Deficit Is estimated unoffi- cially at around: $46,000., Tliis, figure! while tentjitlve . is given as awaiting ifinai coniputation of earn- Ihgs after certain, foreign Incoming receipts are, checked, l^ast; year for the same period company showed a. profltof about $2,6bp,600.'' Paramounfa net for -1931 ran above $6,000,000, according to: the anmial report issued yesterday (Mon.) or around $2 a share for the 3,160,026 comnion outstanding. Income account for the first 1932 quarter is expected to be made: When the Paramount board meets April 11. The annual stockliolders' meet- ing is scheduled for April 19. Loss on the April quarter follows a net loss of $649,796 for the final quarter of .1931 ending Doc. 26 last; ; Ih presenting the balance sheet at the end of the, 1931 fi.scal period, the corporation departed from its usual custom by shoSvlng its assets and liabilities segregated as between domestic and foreign,companies. A.'jsets of foreign companies, as of December 26,. 1931, totaled $53,564,^ ■ 044, as compared wltli aggregate assets of the corporation of $298,- 30'1,108, or approximately 1'8 per cent. . of the corporation's total assets. Consolidated current assets on December 26, 1931, totaled $37,732,- 542, including cash of $4,949i283, and accounts receivable amounting to :i5,40 ',732. Current, liabilities: were $23,681,680. Net working capital was $14,050,861, and the ratio of ' current ass.ets to current liabilities at the end of the '-'orlod stood at 1.59 to 1. Cash of foreign companies at the end of the fiscal period was $1,755,^ 490, written down to the then exist- ing rate of exchange in terms of dollars. With the appreciation in ' exchange, the cash of foreign com- panies in terms of dollars has in-: creased materially since December 26, 1931. A notation on the balance sheet reveals that tlie corporation has completely fulfilled all obligations remaining at the year end for the repurcha.se of Its common' stock unr der agreements made some years ago for the acquiring of properties and has no further obligations of this nature, Stockholders at the end. of 1931 numbered approximately 30,500 as compared with 20,7'78 at the end of 1930, an inCrea.se of nearly 50%. UA RETIRES FROM MINN.; €IVES UP PAN APRIL 13 Minneapolis, April 4. irnited Artists is giving up the exhibiting giiost here and Publix and RKO again will have the loop first-run field to themselves. When its sl.x-month lease on Pantages ex- pires April 13, UA will retire from theatre operations here. He use will revert to Alexander Pantages and, probably, go dark again, as no other lessee is now in sight. Xo deal has been made yet by UA with Publix or RKO for Its product here. The Shubert, ain Indie, has it for St. Paul first-rims. • INCORPORATIONS CALIFORNIA ' .Sacramento, April 4, , ' AmbnBNa<1<>r Uooklop Ai;encr, Jnc. County ot LiM .VnKeloH. 'Capltal''i<tock, UH> slWrcH; none subscribed. Albert I.. Hersh- ninn,: Morrlp E. f'ohn, Carroll Whlloley. Iliiy. Amuitoinent Corp., County ot Los ■AnKcIe.s. fajillal stock, 7o,000, non"'pub- .scrlbeil. ' H.. C. VodUen, Nance Voddcn, M. P. MonlB'jinory. Judgments DiiruUi.v. Knulip; A. \V. renficld, "I al., coHtii,; Ji0;;.::s. ■ .■»u' I.jfciitn Thontre Co.; -William Harris, .7r.; ^S.-J.S'JT..'):'. ■.\<'w r.yceiiiil Tiieittre Co.; J\. Cohen; »3.-..K!i7.. , ■ Now r.yooiim TiieUtre Co.; G. .R. Sing'. Tiiuii); .$17.!i.'i';.26. Nfw ].yr<>uiii Tlieutrc Co."; Daniel rn.liiii.-in,: S)s<..',<:;.4,-.. >-<■«•.Ijcciiin Tlioiitcr Co.; Clia.'. Kroh- )»nn. 111-.; %l i;!, :.1>. \T,. NVd -tVuybiirn Studio ot Stage Duncln^f ■\V. .1. .^liinn-: %'.''.<:■ ~'.>. ■ .)iil'"<. K. f.<'\»>ntliiil, Inc.;. Stale In<lu9- ti'iii; I'.iiimiri : »l."Oi'. . <irnp Itur.K; l''.-.inic Gllliiiorc, a.s nres.; f.!.-' Ill ■ ' IM tiiiV.rc Tlioi'liT; lo*". i»>>d -MilUTlfP II, Vlllcr; f; >l I-.'-. Co.; ?3V1.»:.