Variety (Jan 1936)

28 VARIETY 1^ PICrVRES Wednesday, January 8^ 1936 Kennedy s Recapitalization Plan For RCA Expected Within 45 Days Joseph P. Kennedy, foi'nier head of the Securities Exchange Commission, who was named by Radio Corp, of America to devise a recapitalization plan, for that com-, pany, Is expected to have his report ready within tbio next 45 days, , according to Wall Street belief. Some are optimistic enough to think that his report will be ready for submission to the .company at the directors' meeting the latter part of this month. Former SEG chief plunges into taslt of piclcing a satisfactory pla;n with soijtie Ave or six tentative suggestions or propositions alreiady before him. Understa,ndlng Is that these were the. work of some Ave Qr six groups or factions within the RCA family, not one of which was satisfactory to the other four or five groups,. It was this difference of opinion as to what seemingly should have been ah easily solved problem that prompted the directors to call In a disinterested authority, and one fully, cognizant of all details. It Is not held a secret that every proposal by dlff^eht individual groups within the official family was always obstructed In the past. Part of Kennedy's task, it Is believed, will be that ot selling the Plan he devises to these various groups of stockholders. Although nothing ■yirlll be known about Kennedy's plan until It Is submitted to RCA directors, Wall strfeetere believe that the proposal will call for payment of part or all of back dividends on Radio B stock. There Is now more than $21 due to holders of this preferred Issue, and Wall Street considers it almost a certainty that Iladlo B stockholders will be ifavored primarily In the projected set-up. The S.E.C. Angle Another thing that seems certain Is that Kennedy will suggest a conservative, workable plan, one that will meet the most rigid SEC re qulrements. This would be only a logical development because he Is BO familiar with the rules and.workIngs of that body. While some RCA Interests have indicated that they would . like to reduce the number of outstanding common shares, the manner in which this is to be accomplished without bringing squawks from present stockholders Is a major problem confronting Kennedy. To some extent, the same holds true of any plan for Radio Preferred A. There appears to be small chance for retiring the whole issue, especially with the back dividends on Radio to be considered. Proposition of exchanging present Preference A Issue for one bearing smaller interest thus far looks to. be tough since It undoubtedly would bring protests from present liolders who currently are receiving $3.60 annually and don't want tlils divvy reduced. Leaders In the financial district view the recapitalization of. Radio Corp. of America as a comparatively easy problem. They point to fact that the company has between $26-30,000,000 in cash on hand, th&t the dividends on the Preferred A are paid up to date arid that tlie arrearages on Radio B are riot rated as highly formidable. Incorporations NEW YORK Albany. . Conlln«n(aI Newsreel Service, Inc., ManJiattan: general theatrical and motion picture' business: capital irtock, 1.300 shares — 1,000 shares at 1100, and .300 shares, nn par value. .Sidney Kramer, Arnold Dumey. and Herman M. Kaback, .an of 220 "West 42nd street, New York. jpower. CIt.v Broadoastlnff Corp., Niagara Falls; operation of ' radio broadcasting, (ttaiioh'; oBpUnl , stotlc, . JS0,o00— 2,000 shares preferred .at <25 and 100 common at J 5. Joliri V. Baltzly, Jr., 1138 Falrflpld avenue: .Harold . O. Humphrey, C26 10th street, and Franlt E. Lawrence, 747 Seventh street, all of Niagara Falls. Freclslon Film I.tiboratories, Inc.. New .Tork; flim.s, negatives, etc.; capital stock, 4,300 shares— 4,000 preferred at flOO and 300 common no par valu6. Boy C. "Wilson, Walter R. Barry and Francis C "Wells, all of 2 Rector street,' New Tork. VocnIUm Corp..: New Tork; sound recording, etc;; capital stock, 200 shares, no par value. Abraham C Herman, Milton Rosenborg and My.ron Engelman, all of 271 Madlsoh' nvenuc. New TorU... Social Theatre PuMicatlons, Inc., New York; general publishers and printers business ; .capital stock, 12 shares, no par valuf. Herbert Kline. David Crystal and! George Redfleld, all of 166 West 44th street. New York. BuSBlan Theatre In America', Inc., Manhattan: general motion picture and tlieatrlcal business; capital stock,' ^20.000. Paul Abbott, David Abramowltz and Harold Abbott, all of 730 Fifth avenue, New York. 'Vandolmar Theatre Corp.; general theatrical and motion picture bu.slness; capital stock, 450. shares— 3B0 shares at $100 and 100, no par value. Sidney Kramer, . Arnold Dumey and Herman 'M, Kaback, all of 220 West' 42nd street. New York. Dencose, . Inc.. Manhattan: deal In Instruments or devices for the recording and reproduction of ppeech, inuslc or other aounds; canltal stock, I'CO ^^hares, no par. valuel Enford A. Dennis, 167 Hopklnson avenue; Thoma.i A. Cook, 7 Park avenue,' and Charles E. Sedwich, 12 East. 86th street, all of New York. Cantonyers, Inc.; motion picture and theatrical business; capital stock, 250 shares — IBO preferred at $100' and. 100 common, no. par value. Arnold Dumey, .Sidney Kramer 'and Herman M. Kaback, all of 220 West '42hd street, New York. Inhibitors Confidential Inspeotlbn Service, Inc.; operate motion picture the atres: capital stock, 200 shares, no par value. Regina Hochberg, Bdw. S. Welch and Max .Oppenhelmei*, all of. 521 Fifth avenue. New York. Sweet Aloea, Inc.: theatrical buslne.<is; capital stock, 10 shares, no par. value. Bess Polotnick, Mathilda I.Cossack and and A. I>. Berman, all of BBl Fifth avenue. New York. Knelt Com.; motion picture buslneffiC" capital stock, 10 shares, no par value, liannah Fahrer, 2069 32nd street, Astoria, Ji. I.; Georgette. I.evy, 603 Isham street. New' York; and .Sadie Pearl, 478 Wes.t 158th street. New York Star Pndocers, " Inc. ; bonking agents for actors, orchestras, etc.: capital stock, 100 shares, no par value. Ben.1, Newman and George W. . I.ubow, both of 20B Madison avenne. New York, and Hermnn E. Bogdlah, Bol Fifth avenne, New York, Brown BnmberH Kxhlbltlnn Corp.; to manage and' promote amateur or professional athletic exhibition contests. and amusements of all klnd.i; canltal stock, ^20,000. How'ard Pay and llershel W Day, both of 1871 Sfeventh avenue. New York, "and Fritz Pollard, 42 West 138th street, New York. Theatre Interests Co., Inc.: to raise the standard of Amcrifian plavs and en courage the appreciation and .study of plays, music and art; general -theatrical business; capital stock, 600 shares, no bar value.. Blixaheth MIcln. Amy ,»ah mora Clark n.nd Plorenie Hnlsev, 11 of 234 West 44th street. New York. Statement and Designation Universal Fmductlong, Inc., 100 West 10th street, Wilmington, Del.; produc tlon and distribution of motion pictures New York offlco, 12B0 Sixth avenu^ Oharl'os B. Paine, treasqrer: 100 shares, no par value. Filed by Wlllard'S, Mc Kay, New York. Ross Federal Service. Tnc, 100 We.st 10th street, Wilmington, Del.; operate theatre's, etc. ; New York ofllce; 120 Broadway; Harry A. Roas, president «B,000— $100, , Filed by go-hne.shcim Berkson, Lautmann, I^evinson & Morse Chicago. Teleflaeli I.oudHpeuker Corp., 19-2 Dover Green, Dover, Del. : general broad Casting business; New York o/Hcp. IBO Broadway; Jos. E. llafner. president; 100 .shares, no pat value. Filed by U. ,s. Corp., Chicago. Change of Capital Pnlace Theatre & Realty Co.. Manhattan; $1,000,000— $100,000. Filed by Harry jr. Pinistein, l:;70 Sixth avenue. New York. Insplmtion Pictures, Inc.; 7,000 shares — 3,500 preferred at $100 and 3,500 com Dramatists fContinued from page sider the Question and has .ap^. pointed a committee to meet the Dramatists and talk things over with them; It depends on the Guild, now, whether it wants to okay such a flommlttee, though It admittedly doesn't have to. On the other hand, it Is pointed out, it would be practically impossible for the Guild to treat wUh each manager Indlyidually, Broadway managers Insist that a renewal of the pact wHI Be worked out with. no. radical changes. It is admitted that, despite frequient disputes on other matters, the picture rlishts coin Is thfe major •problem-. Belief on' Broadway is that this will probably be compromised to a straight percentage arrangement, rather than outright buys, with the Initial payments as . they are at present, but acting as advance, royalty Instead of full oatlay. Safeguard for Pix Wliat the authors seek Is a safeguard against holding down of prices paid for picture rights to plays by Hollywood. They feel that^ 1th picture, money backing so many Broadway productions now, prices are being automatically cut down. Also they suspect a 'gentleman's agreement' among lllm firms riot to bid ftgalnist ealcii other Iri plays in which one of theni hds a financial production interest. Pointed out, too, that the film, producers don't necessarily have to have an aigreement and that the mere fact of a film firm owning a percentage of the stage rights makes it unwise or illogical for another film firm to bid against the rights, since the original picture company has that percentage leeway. Proponents of the percentage plan point oiit that this idea would be a protection for the scribblers and, at the sairie tlmei, would be an aid to producers, A weak play, in other words, wouldn't b'^ likely to bring much film coin under present conditions. But on a sliding scale a.rrangeriient, If the play turns out to be stronger Iri films -than, it was On the boards, it might conceivably do very, well indeed, with both the original producer iand author getting the breaks all around. Stock Market Gt. States Dividend Chicago; Jan. 7. Great States circuit Jast week resumed payment on Its regular and current dividends, with disbursement of $1.50 dividend for the final quarter of 1935. , In November Great' States paid oft Its back dividends for the past three and a half years. (Continued from page 6) changed compared to previous closing quotation. General Theatre Kqulpment bonds made a new iilgh at -22\<i and certificates of the same registered a new . top at 21 % • Advance by the bonds brought a net e:ain of $3 on the week. . Decision of the .,11. S. Suprerine Court Monday (6) in declaring the AAA act unconstitutional left the amusement Issries cold. Like numerous "industrials that have. been. lead.-, ing the pack In recent advances, many sold lower. It was the. food, packing and dairy stocks that sported the big gains in Monday's ((C) transactions.' AH ' " these benefit by riot " hiivlrif* to pay the government millions in pi'ocessing taxes. Majority of the companies had Impounded thisse taxes and thus in many cases now will, represent the difference between a profit and ai loss, which would have been shown had the act been upheld in many instances.' Short VVeck Short Week between Christmas and New Year's day ■w'as more or less a colorless affair, Avith.dribblirig selling and lack of Iriterest outstanding. Most amusements were irregular, only bad loss being sustained by Universal pfdi, Whicii dropped 8 points to 50. Pathe was one of better actors, pushing forward to a new high at 8^. Considerable short covering by professionals late Friday In advance of Preslderit Roosevelt's radio speech aided bulk of amusement stocks. Wall Street was not particularly disturbed by the speech, in fact seeing the bright side in the president's promise of no additional tax measures and an attempt to balance the nation's budget. Biggest advance of any amusement issue was .that scored' by Paramount 1st pfd., which shot up 4 points to 80%. Earlier In 'the week, It was up niore than 6 points at 82. Paramount coriiinon also was actively higher, reaching 10%. Par second preferred rose to; 12%. Both Issues were up fractionally on the week. Loew's common also was a strong feature much of the week, climbing to 54%, only fractionally away from 1935-36 top. It closed just off Jro.rri Its lowest price but 7oc, aliead on the weelc. ' Eastman Kodak common follgwtd the lead of many industrials, hitting 161 and wlndlrig up the week with an advance of 3 points. Stocks of RCA also were higher much of the time. The common got up to 13 ^^ and closed at 12%, for a fractional gain. Hadid A pushed u]i 50c. to 55. Radio B, always a sensational performer on both the upside and down path, spurted forward to 90 only ,to drop back to S2^*, in .Monday's .sell-off. It was down i point at the close, 65%. Both Issues of 20th Centuvywere comparatively inactive, wit the common holding near its year's peak much of the time. It hit 24 arid then reacted to finish sit L'3, up 50c. Thci preferred fluctuated betwccri 3i:9& and 31%, liatter being the close. At this level It M-a.^ 'off fractionally. Loew's, Inc., directors rtpclai<?(i the regular quarterly dividend of $1.62% on the preferred, payable ITeb. 15 to stock. on recbr.d Jan. 31. B. ''F. Keith Corp. notified ili N. Y. stock exchange that there ha.s been released from the lien of the first and general refunding mortgage, the premises described as the Keith Theatre and Aibee Building, 619 Fifteenth Street, N. Y., In \VashIngton, D. Ci and that $270,000 was deposited with the trustee in lieu of this property. Excellent earnings statement by Westihghouse was issued too late Monday (6) to ha.ve much effect , Iri trading. Company's preferred recently registered a new high at 126 at -vvhlch level It has reniairied .for about a week. Common stock went to. 98 V4 during the past week but felt plenty of pressure In late trading, dropping to 95% at tlie blowoff. . Besides the strength In General 'i'heatre liens. Paramount bonds also were, niuch higher. ParamountBroadAvay 5%s climbed 3% to 59%. Paramount Pictured 6s advanced to 93% and wound up at 93'.4, up 2% ori the week. Warner Bros. Os got to 87%, and even in late proiU-taking managed to show a gain of 1%. Keith 6s pushed ahead to 93, displaying an advance of l',a at the finish, 93%. mon, no par value, changed to 7,000 shares, no par value. Filed by Clark, Carr & Ellis, 120 Broadway, New York. Change of Name From Amosement Appliances Service Corp., to Amosements service Corporntlon I ot America. Filed by Haskell & Goldberg, 306 Broadway, New York. From N. A. N. A.. Inc., to North .American Newspaper Alliance, Inc. Filed by Moynihan, McKeown &^ Lorent^ieii, 400 Madison avenue. New 'Ifork. Surrender of Authority North American . Newspaper Alliance, Inc. Filed by same aa above. Dissolutions 'VccaflTm Corp. of America. lied by Abrahaih C. Berman, 271 Madison avenue. New York. Beacon Films Inc. Filed by Winthrop, Stimsho, Purnttm & Rpberts, 32 Liberty street. New York. Hy-Grade Radio Corp. Filed by Alfred Gross, 122 Bast. 42nd street, New York. Tjibor .Stage, SOUTH CAROL! Columbia. Strain anil 'Sparks Theatre Co., ot Pickens, .S. 0.;' general theatre buslnes.s; capital stock, $10,000. O. K. Strain, H. T. Strain and 'W. H. Sparks. , — ^1933 ■•30 — ; High. Low. Sales. 4% 1G,80U. 40% 40 1,900 V/j 3% 3,200 14% 2,000 50 48 800 17:; 14 110% 2,400 104 141 10 40% 20% 62,100 53% 31% 17; 600 ll'A 6% GOO 12 8 •. E7,400 101% 07 13,400 14VI 0% 23,700 8'A 4% 12,200 13% 4 262,200 02',4 60 2,800 1)2 84% 12,300 e C3.400 •J4% 18 3,. 100 :w% 24 8.300 78 29 200 10% 2% 88,900 r.2'4. 14% 800 32% 25,000 120 90 20 Issue and rale.. American Seat...; Col. P. vtc, (l)t Coosol. Film ; . ^. . . . . . Consol. Film ptd. (l%)t.... Col. Pict. pfd....... Kastman Kodak °(5) Do. pfd. Gen. Klec. <. Loew (2)t. '. Madison ^q. Garden (30c.)}.. Paramount Bo. 1st pfd........ Dd.. Sd pfd...... Pathe ". 'Radio Corp.... Radio pfd. A (3%).... Radio pfd. B RKO 20th Cent. " Do. pfd Universal pfd... ..I Warner . Bros Do. pfd ' AVe.stlnghouse (l)t. Do. pfd. (3!i)... • New high. t Plus iitock dividends. t Paid In 1035. i Plus cash extras. t New low. 27 4% 8 .22% 8% •«5 fi7% lua 10:1% OJ .'■.5% !)"% 84»i H8% 2B% 89% 48% nid. .4 .-iked. 44% 4(i% 08 100 $475,(100 Gen. Thea. Eq, 3,000 Keith «s, '40...... 14,000 Loew Cs, '41....... 25,000 Par-Bro,Tdwiiy .lie.. 834,000 Paramount Os, ''' 20,001) RKO aebf, (Is 221,000 "Warner Bros. Cs, '50.. • oni iiV 104. .-.11% 03% 78 87% 18 9:1 li 103% 57 ' 91'il-j, 83% OVER THE COUNTER, NEW YORK • New high. tPaid In . 1035. "THE MUSIC GOES 'ROUND AND AROUND" By RED HODGSON, MIKE RILEY and EDDIE FARLEY Published by SELECT MUSIC PUBLICATIONS, Inc. ALL STAGEi ICTURE AND COMMERCIAL USAGE PROHI ITED UNLES3 DULY AUTHORIZED BY SELECT MUSIC PUBLICATICNS. Inc. (SEORSE JOY. Mgr.) 1619 Broadway. New York The Writeris Who Started This Song to Internaticnal Fai Mike-^RILEY and FARLEY-i-Eddie And Their Orchestra, Under Exclusive Management ROCKWELL-O'KEEFE, Inc. RKO BUILDING, RADIO CITY, NEW YORK