Variety (Jan 1933)

Tuesdaj, Joniuurj 31, 1933 PICTURES VARIETY 25 Stock Market (Continued from pase 6) tlon in the group to display a plus Kxtent of tbe losses was extreme, largest net decline coming Into the Fatbe 7's which lost 12 net to 60 after breaking to 47%, which Is an all-time bottom. Nervousness here Is understandable since one of tho equities behind the Pathe bonds consists of 6% gold notes given by KKO for the Pathe properties. Trade understanding was that these notes had been discounted and pre- sumed to have been sold to dealers In commercial paper. This might leavjs the JInal disposition of the notes open to doubt so that the sell- ing of the Pathe bonds may turn ouc to have been Ill-advised. However, when the two receiver- ships were 'announced, bondholders appeared to have rushed to liquidate throughout the group. There was nothing In the situation directly to affect Lioew, but there was an out- pouring of that company's bonds likewise, bringing on an extreme decline of 8 to 67% With a late rally of one point to 68 which prices compare with & bottom last year of 64 during the . banking crisis of early sumtner. The old Keith bonds, which go back to the days before the RKO regime and were the first listed se- curity of the Keith- company, lost about 6% at their eixtreme low of 29%, which Is BtlU more than 6 points above the extreme low of last . year. The Irregularity of the line of retreat In bonds probably Is explainable by the fact that hold- ings in several are of a more or less recent speculative . character and It was the outside Interests that were the urgent sellers. J>rob- ably the holdings of amusement bonds In the hands of banks was inconsiderable. In the Street the story is that the original under- writing syndicates and banking houses concerned in the Paramount Issues had got from under several years ago and the paper was widely scattered; See .Soaling Down of Liens There appears to be abundant ground for anxiety on the part of Paramount bondholders, since the Street looks to see a plan of reor- ganization offered by the equity re- ceivers within a few months revis- ing the capital structure by a gen- eral scaling down of claims such as has been witnessed in not a few railroad receiverships during, and even before the current depression. The Street's appraisal of what this reduction of claims Is likely to be was eloquently expressed in the prices paid for tiie two bonds, of- ferings of the BVi'a being particu- larly heavy Wednesday, Thurfiiday And Friday. Saturday volume'^as greatly reduced and the more ur- gent selling appeared to have been completed, but even under lighter offerings the two Issues could not organize any Impressive defense. Sales were not Important In the RKO debentures, either, on that day, but even on minor sales the price continued to slide with final quotations for the part paid paper ■ending the week at the level of 10, bottom since Issue. For some unexplained reason there seemed to be no urgency In the disposition of Warner convert- ibles until the flurry in the other amusements was nearly over. The Warner obligations had given way gradually from a high of 20, where they have been maintained stub- bornly for the last few weeks, to around 16-16, but on Saturday, ap- parently Inspired by an accumula- tion of nervousness, relatively heavy selling broke out In this issue, which gave way to a new low on the move- ment at liM, where it finished the week. This represented a loss on .the day of nearly 2, compared to fractions in most of the other amusement liens, selling elsewhere apparently having been completed at least for the time being. Minor Stock Losses Situation among the equity stocks seemed much less strained than In the bond department, probably be- cause most of the stocks already had been pretty thoroughly deflated and because ispeculatlve Interest in the share market has for weeks been at low ebb. Nevertheless there' were a few drastic mark-downS suoh as those in Paramount, which broke through a dollar on the enormous volume of 193,000 shares, and In the old Keith and Orpfaeum senior Issues. All three of these stocks went to new low levels except Keith pf. Orpheum pf. was sold at 3 flat. One trade of 200 shares in the senior Keith issue was recorded at 8, which is still a point above the record low of 7. RKO common broke through its previous bottom of 1%, going to 1%, where it ended the week. Volume here looked important, in view of the fact that there is. available for trading only a quarter of the old issue of about 2,340,000 shares. dulk of the Outstanding RKO stock is in the form of voting trust certlflcates attached and inseparable from the new debentures at the rate of three-quarters of a share to each $6 of principal amount. In view of this situation a week's turnover of 22,800 looked-like major dumping. Dealings in Orpheum were small, the bulk of that issue being in a few hands, holders probably feeling they had to stand pat, since in all prob ability there would be no market for any considerable amount of stock under the circumstances, Or- pheum having been petitioned into bankruptcy. There waa some selling of Loew common, which penetrated its low on the movement, going through 16 to 16%, but there was evidence of cautious support here. Turnover on the we^k was 21,400 shares, which is by no means abnormal The puzzle was why there should be only moderate retreat from the stock while the bonds wero-breaklng badly. If anything in the amuse- ment bond group should have stood fast, it ought to have been Loew, since that company,-of the Ave ma- pors, is least fettOTed wlth^rhlgh rents and leases, entared into during boom times and in competitive bid- ding for theatres. Iioew's got its lesson nearly 10 yfearo before. the present crisis, and its policy In ex- panding theatre holdings had been more conservative than any of its rivals. Columbia Pictures gave a good showing, ending the week with one of the few plus signs in the group and holding its recent defense line at 10. Reason here may be that there Is small speculative interest in the stock and holdings are sup- posed to be so concentrated that short selling might be dangerous, even if the Exchange itself was not Just now frowning upon speculative selling operations of any extent. The new shock to theatre stocks was of sufficient violence generally .to Interrupt the bull campaign in Consolidated Film Industries, which had reached some magnitude. The preferred dropped from 11%, new high since September, to 9 flat, and closed at 9%, net down 1%. Volume attracted attention, reaching the re- spectable total of 23,300 shares. The common was also weak but on minor turnover. Cohmbia Propositions FovAir-Heclit-ftrown As a Production Trio Paramount and Puhlix Hollywood, Jan. 30. Columbia is figuring on a unit consisting of Gene Fowler, Ben Hecht and Rowland Brown to make two to throe pictures a year. Prop- osition calls for Brown to direct, aided by other two who will do the writing. Peal for the 'dynamite' trio calls for a nominal drawing account until story is accepted, after which they are to go on salary and get a per- centage of the profit. Also wanted by the trio is, after acceptance of the script, a proviso that the studio keep hands off the ^production until it is previewed. I'llfey ^ant to..make pictures to cost around $75,000 each. COCKSELL BEJOnfS SAOIO Hollywood, Jan. 30. Frances Cockrell goes back to the Radio writing payroll on a week- to-week basis to script The Fail- ure.' This is new title for the play, 'A Country Doctor,' which John Rob- ertson will direct. Nevinan on 'Jones' Takes Hollywood, Jan. 30. With Russell Mack having gone to Metro, Kurt Neuman will direct retakes and added scenes on 'Pri- vate Jones* for U. Neuman Just finished megglng 'The Big Cage.' (Continued from page 5) cal charge. This is the group over which Harry Katz sought control early this winter through a deal with Publix on Its 75% Interest. An important point in connection with receiverships over subsidiary theatre companies of Paramount, of which there are hundreds, with sep- arate corporations over many Indi- vidual theatres, has no bearing on Publix Theatres Corp. Publix Theatres, a separate sub- sidiary of P-P, does not Itself con- trol theatres or theatre leases. It is an operating company, and as such is a parent or holding company over the vast number of theatre corpora- tions and partnerships in the United States and Canada. Under a receivership in bank- ruptcy, as over Publix Enterprises, the corporation in question admits or the court decides that the pro- cedure shall be liquidation, with a trustee appointed to survey the en- tire situation and either auction off or In other ways dispose of ^the property. Licuidation The Irving Trust, which seems to have a monopoly on receiverships In New York, has a large bankruptcy department, including statistlcians,- englneers, etc. The first step In connection with Publix Enterprises, It is Indicated, will, probably be a complete survey of tha. situation to determine what action will be taken in direction of liquidation. Depending on the liabilities as against assets, bankruptcy receiv- ers may eventually settle all exist- ing claims on a basis of a;nythlng from 100c on the dollar down to Ic. Under the receivership In equity. Summary for week ending Saturday, Jan. 28: STOCK EXCHANGE Issue and rate. American Seat Consol. Film Columbia P. vtc Consol. Film pfd Eastman Kodak (3) Fox, Class A Oen. ISIec. (40c.) Keith pfd Loew (3) Do prct. (eVi) , Madison Sq. Garden Mct-O-M pref. (1.89) Orpheum pfd Paramount Pathe Exchange Pathe, Class A Radio Corp RKO Universal pref Wnrncr Bros Do pfd Westlngliouse CURB 1% 2% 4% 3% 7% «3 90 80\i 60i>, 65 in 0 40 4% % % % % 1 24 04 40 8% 0% 10 % 0% Columbia Plcts 3,600 De Forest Radio.... Gen. Thea. E. pfd. 2,800 Technicolor 8,400 Trans Lux BONDS $11,000 Oen. Thea. Eq. '40., 04.000 Keith O's, '40 219,000 I^ew O's, '41 , 44,000 Pathe 7's, '87 172,000 Par-Fam-Laskr O's, Par-Pub 6%'B. '60. 406,000 16,000 1,000 238.000 '47... RKO debs O's 12 Shubert C's Warner Bros. Vb, '30 Over the Counter, N. Rozy, Class A (3.90) Gen. Theatr* Bdulp. efs. sold M.OOO, 1% high, 1 low, 1% lost, net up %. Incorporations New Torit Albaajr, Jan. 30. S. F. O. AmiiflcnMBt Corp., Kings; the- atrical; 200 shares no jMtr. Sixth AvMine' Amnsement Corp., Man- hattap, theatrical, 20^ sbarea no par. HMnmer Vletares, Ine., Manhattan; pictures; 200 shares no par. ' UtIbs JkHhtoiis, Inc., New Tork; pic- tures; 110.000. Bam IDitCTprlBS Corp., Manhattan; theatrical: $6,000. West nth Street PUrhoiue, Ine.'. Man- hattan: hotels, theatres, restaurants; $30,000. Hotel St. Becla. Inc., Manhattan; hotels, theatres^ restaurants; $20,000. Bast BMh Street Bealty Corp., Manhat- tan; hotels, theatres, restaurants; $20,000. : Cavalcade'8lsfat^4aiiBd Corp.* Manhat- tan;, pictures; 806 shares no par. Associated Stadias' of America, Inc., New Tork: theatrical, enterprises; 200 shares no par. BUcfophMie Osnanitloa aC America, Kings; general tmdlo huslness: $S0,000. Broclnnna Fiodaetlons, Ine., New Tork; theatrical; 166 shares no p&r. Reseat Plotnres* bo., Manhattan-; re- produclns and recording machines; $6,000. Snarlsa Plctarss^ 1m«^ New Tork; the- atrical; $76,000. OnadeU Theates Oo>p.« Chatham; the- atrical; 1,000 shares no par. Beaeoa Theatre Gorporatloa, Manhat- tan; theatrical; 20 shares no par. Base Beade, lac, Manhattan; the- atrical; 200 sharea no par. New Tork T tis a ti egoers* Assodatlon, Inc., Manhattan; theatHcal; $1,100; $10—100; 'B.' $1. l4>SaIle rlctnres Corp., New Tork; pic- tures; 100 sharte BO par. Hangman's Whip, Inc., New Tork; the- atrical; 100 shares no par. . Edjomae Amusement Obip., Manhat- tan; theatrical: $6,000. Invincible Playhonsesk Inc., Queens; theatrical: $20,000. Management Charles I.. Wagner, Inc., New Tork; theatrical; 100 shares no par. State Broadcasting Corp., Kings; gear eral radio broadcasting; 3,000 shares no par. Peters ft SpIIIer, Inc., Manhattan; the- atrical; $10,000. T. Z. B. Amusement Corp., Kings; the- atrical; $10,000. Interworld Production, Inc., Manhat- tan ; theatrical; $ 10,000. IaTodt and TIetsort, Inc., Manhattan; theatrical; 600 shares no par. Telephone Specialty Company, Inc., New Tork; deal In radio apparatus. Audio Research, Inc., Manhattan; pic- ture sound apparatus; 10 shares no par. North Park Theatre, Inc.; theatrical; 100 shares no par. Union Theatre licainie. Inc., Manhat- tan: theatrical; $60,000. Uberty Concession . Company, Inc.; Manhattan: operate places of amuse- ment; $1,000. •nrananrafllm Corp., Manhattan; pic- tures: 260 shares no par. EcUpse Rent^ Department, Inc., Man- hattan; theatrical scenery, costumes; 100 shares no par. Statement and Designation Perfect Service, Inc., Dover, Del.: pic- tures; Now Tork olBca, 330 West 42d street. New Tork City; Jack O. Leo, secretary; 100 shares no par.. Paramount Amusement Co.. Inc., 931 Bergen avenue, Jersey City, N. J.; pro- motion of amusement enterprlnes; Npw York office, 60 Co.urt street, Brooklyn; James J. Conway, secretary; 2S shares no par. Cliange of Capitol Bye Playhouse, Inc., Rye: 12,000 dhares: 2,000 shares preferred $60: 10,- 000 common $1 Increased to 22,000 shares; 2,000 preferred $60; 20,000 com- mon $1. Dissolution Hertel Thea(«« Corp., Buffalo. Hembersl^ips The little Theatre Onlld, at Olean, Inc. Oklahoma Oklahoma City, Jan. 30. TrI-State Pictures, Ine.. Oklahoma City, Okla., capital stock $10,000. In- corporators C. J. Collingsworth, H. N. Walker and B. B. Collingsworth. Ada Amusement Co., Ada, capital ntock $16,000. Incorporators, Harry I.oewennlein, Bobby Boucher and Charles Trlggs. Hollywood Coin (Continued from page 4) ever, the receivership estate oan re fuse to hand out any money to the studios or other subslds from the parent company, a source to which the studios usually looked for funds when deficiencies arose on the Hol- lywood end. In glsto, the basic source of money supply for the studios Is cut off. The studios have to trim. If the studios figure on trimming the dlstrlb subslds for money, they are likely to be rebuffed in the same manner, although the distributing subslds are not affected at either Par and RKO by the receiverships. Distributing companies must live strictly within their Incomes as well. They're all in the same fix on that score. It is unlikely that un- der the conditions with the receiv- ership thing starting that the dls- trlbs are going to hand.out money as formerly; Getting money from affiliated the- atres is Just as remote. It 1b stated. All of which goes back to the wam- Ings which Sid Kent laid out to the biz on the Coast months ago, and which when seconded by M. H. Aylesworth some time later, after assuming the helm of RKO, were more or less snubbed by Hollywood and particularly by some affiliated sources on the fringe of the biz. Tho current receivership of both Par and RKO is the answer. CHILD AGTBESS FEATUBED Hollywood, Jan. 30. White King Soap company Is making a one-reel film for adver- tising purposes, featuring Marilyn Knowlton, the six-year-old girl who Is featured on the soap company's billboards. Child actress was recently in 'I'm Guilty of Love,' at Fox. NEUFELD'S 'BEFORM GIBU Hollywood, Jan. 30. Sig Neufeld of Premier Pictures is producing 'Reform Girl' at Edu- cational, with Sam Neufeld megging. Skects Gallagher and Noel Fran- cis have the top spots. LEAHY'S 'SONGS' CHANGES Hollywood, Jan. 30. Agnes Leahy is doctoring the .script in several sequences of 'Song of Songs,' Marlene Dietrich picture at Paramount. Picture gets going in two weeks. Judgments Katliryn Hattram; Columbia Pictures Corp.; $2C0. Broadcasters Advertising Co., Inc., and Stuart ISgRleston: R. Morrison; 11,302.' T>POnhar«lt Kntrrprlses, Inc.; Columbia Pictures Corp.; $116. DeLuze Trallrrs, Inc.; Imperial Dis- tributing Corp.; $1,500. Fortune (iiilln; Conlcw, Inc.; by sj"!- ulgnmont; $32,934. as declared over Paramount Publix, holding company, the procedure is somewhat different, although in the end the results so far as creditors are concerned can be synonymous. Principal differentiation Is that every creditor of P-P Is entitled to his claim. Whether or not, by mu- tual agreement with P-P, creditors are willing to take a settlement on the dollar is something else again. Creditors are likely to do this in some cases rather than accept the gamble, by their virtual lack of co- operation in reorganization, of eventually throwing P-P Into bank- ruptcy. Lease and contract read- justments figure as an important item. About Leases Improvident contracts, it is held under legal opinion, may be dropped, with the United Cigar Stores re- ceivership cited as a possible par- allel. Opinion is somewhat divided on this auestlon, with the law seem- ing to say that no claims in an equity rcceiverslilp can be destroyed unless It can be proved they were incurred by fraud, misrepresenta- tion or for similar reasons. For Instance, If among Para- mount's creditors Is one which may have taken undue advantage of the company, selling to It service or merchandise which was in excess of the same service or merchandise as sold to other companies, the law may permit a loophole. Any claims which in any way might be upheld as illegally con- tracted, are also subject to-possible cancellation or at least negotiation. It is explained that the procedure in such cases would probably be Paramount Publlx's determination by notlflcation that claims would be protested, with ultimate recourse of creditors a lawsuit. Contract Settlements Pending settlement of contracts^ such as those of Jesse Lasky, Sam Katz, and others, question Is brought up as to what complexion the equity receivership of P-P places upon their status. It Is pointed out that these un- paid contract settlements of execu- tives no longer with the company, will go along with creditor claims but that very likely a .question may be raised as to the legal duty of tbe executives to prove exactly what their damage has been. If any. This, it is held, would be ascertained through the same executives' rea- sonable effort to equal with another company or in other endeavors what had been their salary or other monetary value as P-P executives. It is strongly indicated that where actual damage has or Is not proved by such executives, all creditors with legitimate bills should be given preference In P-P's effort to straighten Itself out financially. There is also the point, over which difference of opinion may exist, that former Par execs with contract claims, proof will substantiate, were not forced from the company but resigned with consent. Natural step to be taken by the receivers as quickly as possible, it is authoritatively stated* Is for Par to call in the creditors to inform them of its present condition and to ask cooperation, by mutual in- terest. In safeguarding the Interests at stake. At the same time any cooperation from creditors under the equity receivership Is accepted as presumption P-P will avoid bankruptcy. Friendly Receivers Going into bankruptcy on top of receivership is held to be highly Improbable. A major factor Is that by virtue of Zukor and Hilles as apparently friendly receivers, P-P will be In a position to derive bene- fits that It otherwise could not hope for. It Is also pointed out that if in no other way P-P is benefited, that it Is under a supposedly friendly receivership with a showman (Zukor), president of all Paramount corporations, in virtual control, in itself will constitute an important benefit. This, hypothetlcally, is the benefit of protection to Paramount against 'sharpshooters who other- wise might file suits petitioning for receiverships.' It Is, also, stressed that a receiv- ership in bankruptcy on top of the equity petition which wa.s granted, would be unusual. Courts would not be expected to grant a petition in bankruptcy while an equity re- ceivership exists, if it appears nt all pos.sible tho latter can save the situation. Moreover, the equity receivers would normally be e.xpected to have at ifta.st six TDonths or so in which to prove a bunltruptcy petition. If aiJpIied for, Sihould not be granted. Appointment of Zukor and Hilles as temporary receivers over I'ar o(;curred late Thursday afternoon (26) following, a hearing in cham- Ijcrs of Judge Bondy. Action was precipitated on the P-P receivcr- .slilp by filing direct with Judge IJondy the complaint of the Cali- fornia and Twentieth Properties, Inc., San Francisco theatre unit in the P-P organization. Company declared Itself a creditor to the ex- tent of $29,106, and through its at- torneys filed a consent order. Zukor and Hllles were directed by .Tiirlf^e Bondy to file bonds of $50,000 each.