Variety (Feb 1936)

VARIEfy By MIKE WEAR . Purchaelnsr ak ii^dtse. against In- flation continued in stock market yesterday (Tues.J, with several gllt- <eiclee securities hitting new peak prices for last tWp years and lonjffer. Considerahle. p^Qflt-taklng developed neaf etose and other hints were discernible that market might run Into further selling^ Amusements went no place in par- ticqlar, soft spots about balancing strong: ones. New highs recorded by Westlnghouse^at. 120, gain of 1%, and General iJlectrlc, at 41. Other best actors were both Issues of Con- solidated Pllm, fractionally higher wear 1935-6 peaks; and 20th Cent;- ■Foi stocks.. .Common of 2Pth-Poi equalled fprirtev peak at 27, an ad- vance of. point, and preferred climbed 1^ to 8Gi Cblumbla Pic- tures ctfs. were, flrmer ftnd Radio B liushed . 9i, gain of ,1 point. Warner . Biros., parambiiht issues (e;)|;ceptlnig coimr on). Radio, Tephnl- coidr and RKO were off fractionally. Warner Bros^- 'hon ls° inade a; hew iblgh at-?3^. Stock. prices . reached Into . new high ground In .last week's market With; trading; becoming extremely seiectiye hear clbse. Although the Aihusement Grolip touched a hew hijsrh ifoir the: past twa years or longer, , ad jmeasiired by thcc avert- ages,-, g:roup.'lagged "behind- three, lidding, groups-.; Acmusements , Weire a shade off 44%, with the close at 4fi\ii. - At this JeVel, grouipi' was up ICbn^h^ed.on page 31) BriL Fibn Stocks 's Net Income for at $|l(Npi^ liim Net Inedihe of Itadlb Corpi. of America,;* and subsidiary companies was 'i&;l<)iO;OjQd in IS46, according to estimate' ai4Abiinc«id by i>avld Sarn- off, -RdA i»rdsldeht. this Is 0- pt:oxlmate1y $860,000 more thaii thft preViouE^ year. • ' <3rosii Income, which ;*rasr -||7,56y,- (146 In past year, rei>reBented^^n Ih- crease of 1>l«,260,e34 t>ver 1S34. ©ost of sales, Operations' and other ex- penses also: rose; figure being: f78,- 891.88C! for 1936. Company estjlmated that vhet income before deductions f or char|;es; texes, • etc., totalled $10,*: {254,267 or an increase over 19^4 of J$763,812; . . BiggeiBt deductible Item Is for. de- preciation, $2,962,489. Provision for federal taxes, $890,^00^.. With KBC Income figrured around $39,000,000, It Is estimated that bulk of income was provided by this sub sldiaryoperating'Company Kennedy's Plan -■^ith virtually, every- phase of. the new recapitalization set-Up fulflUlng espeetatlons of Wall Street, the Joe Kennedy plan which was approved by illOA dlr(BCtors last Friday (31) np.w, goes ibefore. stockholders fot; action at a special: session'called for April 7. .. ■ A^ had., been expected by flna,ncial observers, the Radio. B;., preferred jatOcJcholders are,Well-taken caire, of, and. the denlands of Preferred A holders are app.eased .by galling: enr ilre-issUe,..at $56,; with accrued and past dividends- paid off. P'lan adopted by RCA directors calls for retii'em.ent- of aH outstand- ing; Preferred A at $65 In.cash, plus accrued , dlvvys. Since stock has been aroiind $56 andV$6.6 per'share- ■ for months, •this -is ■ not regArded as working. • ahiy particular hardship. Will cost company $27,000,000 to call , lii this issue of about 49G,0QQ ^hares. Company took advantage of cur- rent money market by "figuring on a loan of $10,000,000 at 2%% interest for five years but repayable in whole or in part prior to maturity. RCA officials regarded this was essential to'maintain firm cash position of compa,ny. Even after the Preferred A has been provided for, RCA will have approximately $16,000,000 In cash and negotiable securities on hand. preferred B stockholders, which are not now receiving any dividends, would get 11-6 shares of a new first $3.60 cumulative convertible pre- ferred .(callable at' $100), and - one share of common stock immediately. He also is given right to acquire five addltlorval shares of common by conversion within five years. Flg- xired also that he would obtain iad- dltional share for each five of new preferred held. Xondon, Jan. Gaumont-Brltlah stock Is ^attract- In^ speculative Interest Ih local ex- changes. Until this isreek leadership of the amusement stook field was held by Associated British, whose dividend on ordinary stock this' year Is now; likely to be a:s;high as 15^d, Associated $1.75 sharea have Climbed steadily In the last year, from $1.75 to $2,26, and are now fairly steady" at that figure. Fort- night ago, on the last clearing day, they were 6c cheaper, and on the previous clearing, a month back, lie cheaper. Now, Gaumont-Brltlsh stock has risen. Its $2.50 ordIha,ries, paying 5% recently, have - been around parity, but this w^Tt rose to $2.79, jum.piiie 9c. Jan.; 23. C^B ordinaity ill.Sfi shares are. still belflW'par*, . Gainsborough:. Pictures, one. of. G-B<'s miany subsidiaries, has just declared la y^r's proiBfr of $135,000 and a dividend On commOn' stock., tn tiiB .balance cAieet Gainsborough lists the value of estimated outs standing- fiim hbbklngs on. plctiires now- going ihe rounds at over- $i,- 006,0061, Films not released are list- ed at coist-raiOOjOOO. ' rssue of 136,000 6%: cumulaitlye prief- erence shareis of $5 each and 136,000 ordinary shares at $1,25 by. Sound City (Films), Limited^ postponed through the death of the King, will be made Feh, 4, Work- is now .adyiajiced on the building of four more sound, stages at the Lilttletpn Park plants- owned by the' company, situated about 16 miles' out .of. L,ondon.' On cOm pie tlon 70,006 cubic feet o£ stiidlo spac^ will he available. New situdips. have already' beeff leased to . J. CJ. and R. B» Walnwrlght* Universal . Pic- tures and Stafford, studios, all Indies, in. this field,, at .rentals, aggregating. $150,000 -.a 'year, exclusive of, x)Ver/- heids.. .'Company states its'advance :StudIo'lets fully occupy ail.siiace at Littleton'iTbr nine , months ahead. . Pufay.'Chromex, Ltd., was reglisr tered as a jpubllc company Jan. 22, with a caj^Ital of $3,760,000. The ojjj^ ■Jects of the. ne-w concern are to ac- iqulre and amalgamate Bufray^ Cplor, iLtd, and Chrome, Ltd., and to catry on .'.the business of manufacturing and dealing in photographic films and apparatuis. Net Bttleo. -. Hlth.I^ow.tfUt, cbK«. 400 Col, Plot.. 4i>i i2% 42%+ Vt flOO Baet^ K...1671il67 .167 , \ 22.300 aen. El..^*41 40% 40% + U 2,20ff lM)ew .... 68% 52% ^ "7 }4 10,000 F^mount 11)6 11% 11% + H 2.700' Do, 2dpf. m 12% 12%- % 1,000 Pathe .... 7% t% J% 80,400 BCA 18 12%'12% -% 11,800 Radio B,.. W% »2% 03 . +1 . 4,600 RKO ..... ^^:3t «I*T,^ 18,000 W, Bi.... 12% 12% 12%- % CURB i. 1.200 Tech, .... 21% 21% 21% - % «,700 TranB-I* . . 8% 5 0% BONDS . • $120.600aen, Th.. 24- 22 24 ■ 9,000i.oew ....io3%lM%ioa% M,000 Parartount 06% 86% M% 88.000 W. B..v..*B3% 92%. tM% + %, • New 1985-6 Wgh. Hoefflers Divorcing Denver, Feb, 4. Paul L. Koeffler, who made ,the film 'Africa Speaks,* Is being sued for divorce by Mrs. Maudle C- Hoeffler,- In Denver, alleging, mental cruelty. Hoeffler has made'-a picture In India, about ready tp . market. Patlie's Special DiYidend From DoPont Pathe nim Corp., benefited tp the extent of $176,000 In recent weeks throwgh the declaration of a special dividend by DuPont, Film Mfg. Co,^ Pathe has an investment of about 36% In the capital stock of DuPont, holdings formerly being 49% until part of stock was disposed Of Ih or4er to handle reorganization setUtp. in ad.dltion to the sum obtained through this special, divvy, the Pathe flhahdal statement expected shortly .also wUi show $86,600 item {IS a >esuli^ Of regular quarterly dividend declared by DuPont. Only other atatement Issiied by Pathe since, reorgahlzed uiideir the title of Pathe Film "Was one for seven weeks ending? Oct. A\ when profit was ;$6,668. No dividends were received by coihpany from: -DuPont 'In period tpVered by tiiia^^ statement. last 61 'Itaizans' for H(} Hpllywobdi Feb, 4'. Current 'Tarzah' production will be the last of the' series by Metro, ''isi hp-w being rewritten. iJdgai' Rice BurroUirhs, who au- ithbredi will produce the "tfee'SWing- eirs independently. L. ANTONY. ;ijary Plckfprdv Charles: jMcCarthy^ ' George. T^f^ood., ■; Mrs. Ahe jLastifogeL Mli^na Wallin; Tied Lewis. Barry Rlchman. ■Bernle Hyman. -Anita" LOos. Myrt Blum. I^ay Brown. , -Dorothy, Mppllsett. Dan Kelly. '■■ ..Harry Conn, N. Y. to L. A. Beulah Livingstone. Harry Moses. ^ K;ay Francis. • belmar Daves. Jules Levy. -.Boris Karloff. Producers Backing N. ¥. Tkeatre 6% Coile Changes; FOm Handling '■■ The Motion Picture Producers & Distiibutors of America is iteenly In-terested In revisions to the build- ing code of New York City^ :aa pro- posedi last week, and in an . amend- ment to fire regulations coric'em- ing the. atprage ahd handling of flim. Hays pfflce-faivbrs"; the-building Code; revision-160.% and' Is ready." tb. jsup-"^ port a suggested ordinance pertain- ing to handling! of film,^ with one excetitlon,- ^ In behalf-vOf its .major producer and' distributor member^ the H6.ys organization is urging that no more than two reels of film may be ex- posed at one time in exchanges or other'places of storsL^e or handling rather than 2,000 feet; as called for by the proposed ordinance. New law provides that in inspection, re- winding, shipping and other rooms where film is handled, eifccepting theatre booths, only 2,000 feet of film may be kept in the open at any one time. The suggested ordi- nance, backed by the Fh'e Depart- ment, also would prohibit the keep- ing of any 35 millimeter film any- where, including in the home, with- out a permit. Up to now anyone could keep 6,000 feet of film in the home or elsewhere without a permit. Under the new ordinance it would not only be necessary to 'get a" permit but the-film would have to. be kept In containers when not in use. Should the ordinance on storage of film in exchanges and elsewhere be changed to. read, a maximum of t-wb reels, rather than i2,0(iO feet,~ andvT^the .2,OCO-fopt; rebels came into existence,-'the footage then'sfllowed wbuld be 4,000, Despite certain ppi- position to the 2,000rfoot reels, in- cluding- from.'■operator unions, the Mppf)A believes this length of reel Win eventually come into use. Ac- cording to a survey made, only 2% of the .country's theatres are not equipped to handle the 2.000-footers. •The Fire Department is not only pressing for the passage of the new brdlnsuice to insure greater safety in handling of film in buildings, ex- changes and'home but is also behind the recommended changes in the building code to permit construction of building space directly over au- ditoriums, storage of scdhery below staige in vaults, elimination of eight- door open courts on. both sides of auditoriums, etc. Hearing will be held shortly pn the building code revisions at which the MPPDA is expected' to be repre- sented^ lUnegs of Fire. Commissioner Mc£lligott' is holding up the date tot the hearings. .J Decision of Judge Welsh In Federal Court, Philadelphia, In naming px-tiongressmah Ben Gplder to make investigation Into the Him industry In that locality In search of allegea anti-trust violations, came near establishing a precedent In such matters, in the pplnlon of counsel at« tached to picture company home offices In New Tork. Few lights could recall case» where similar action haid, been taken In the piist Probe by Golder, ^ho was attorney fi^r . plaintiff In. action seeking tp make double bill programs legal, would prlnclpaliy irevblve around Phases pf block booking; As such bis 4ulz would strike deepest at major companies, since t^ey ar© ,the only film .distributors who are able to sell that wiiy.. • ■ Hajor distributors have been In touch with the jPhlladelphIa situation for sbme weeks, and attorneys for various major companies are follow tag developments with heightened Interest now that the specially con- ducted Investigation by Golder Is getting under way. A new high In Over l6 years bf operation of Lbew's State, N. T,, with- out a .change to policy In all that time, yt^s rung- up last week by the Burns and'Allen tihlt on stage with .'Ah* Wilderness! ' on the screen. The tremendous business don© by this combination In view, of the fact "WU- derness' exhausted much, business bh a profitable four weeks' first-run engagement ait the Radio City Center, starting Xmas day <26), Is ac- cepted lurther as attesting tp the'.strbng ipull of stage shows. Burns- AlIen-*Wllderne8S' show gathered In $42,906 on the week, topping by. nearly $1,666 previous high established by Wight at Opera'. (MG) and Ed Sullivan, columnist, on sta^re New tear's week at $1;66 prices New Year's eve. Burns and Allen unit was offered th© "Txr, N. T., but turned down bepause it would have been necessary to go to the stage with a full stage hand-crew. Balked in his efforts to line np independent exchanges for handling of his plcture» due tp uncertainty of releases, Ben Zeldman has given assurance that 'Ahifelq in White' will be .produced with his own coin. Exchangemen have been wary pf Indie producers,: refusing to be tied down fbr product that-never, comes thrp.U£rh. . iProcedure seems to be to, arrange for; distribution, then £o out. and promote the wherewithal on th© strength of .the ile-ln, Zeldman is said to have eastern capital behind his hew producing outfit and has promised that releases will be avaliable as contracted. Sine© Prof. Walter B. Pitkin's book, "Lif© Begins at 40,' show biz In various phasea has elaborated largely on phrase. Fox bought the title and mad© a .Will Rogers starrer;' Shuberts' revue was labeled 'Life Be- gins at .8:40,' current White "Scandals' has a tun© tagged 'Life Begins at Sweet 16,' and forthcoming picture, 'Music Goes 'Routid and Around' (Cpl) a song is called 'Life Begins Whep You're In Love/ Several years< before '^the Pitkin bobk was published there was a drama bn Broadway^ 'Life Begins,' '<yhich Warner's later made tato a film. Ability of screen sleuth character, Charlie Chan,, to ib'arry oji is ac- counted for through fact that Fox lets several Of its story awd • continuity writers tak©-a-pra^c-at-materlal. With the' Oriental mysteryisolver as basic character; duty of scrlpters is to place him lii new sUrroUiidlngs and Soih© semblance of .original;mystery in each subsequent release. Conse- quently, the • Ciilnese detective carries. on though his creator, Earl Derr Biggers, Is dead. Picture company has^ a; deal, with the author's estate to permit sustatalng the. character fpr th^ screen. '-. Three , film' company proxies a^e -presently on :^he ,Cb^ R. Kent, of "20th Century-Fox; Nicholas 5W[, S'4henclti of Lbew's Metroj and John E. Ot'terson of F'aramiount. Both Kenj^'and Schencic. ^^av© several of the eastern execs and legal staffs with them. Appended by Harry. Cohn of Columbia, and Carl Laemml© of .Universal, th© preponderant top kicks of the biz are currently on the Pacific slope. . Other execs are now heading westward and others are In Florida and other southern points. Former Hollywood publicity director, hew freelancing, la In bad fbr faking yarn, about a client while on his honeymoon. Latter wrote to p.a. that he attended a party and heard of a murderous sortie In which 2p men were mowed down. P.a. dipped his pen tob deeply and wrote that his client -nritnessed the Wholesale massacre. Foreign government kicked Xo U. S. offlclals,. and nbw P-^ has tough time with several newspaper chains as well as the wire se^ices, who went fbr the imaginative yarn. NeWsreel shots of .bombed^ Swedish hospitals and other war scenes In southern Ethiopia, consigned to Universal, are due Thursday .(6). Shots obtained by Howard . Winner. British officials at London cut nearly 800 feet from original negative, leaving about' 400 feet comprising the- best bombing scenes,' Winner is now at Cairo, Egypt, catching neW troop movements. .Carpenters; were ordered to rush set for indie studio turning out state right,product, necessitating their working Sunday. When they called' for-.checks, they learned that; studio was not paying time and half for Sunday as provided in union regulations. Studio execs worked out bf gitUatioh by classifying men as laborers, clipping the extra tariff for overtime. Pioneer, on the Cpaat, Is trying to get around gamble with the ele- ments by .doing. 90% ,of scenes for 'Dancing Pirate' indoors, although script .calls for half the scenes pytslde. Large and expensive, sets depict early' pueblos pf' California; Execs figure to keep down overheadj by shooting Indoors rather than take cha:nces with inclement weather. ' Cowdln-Rogers syndicate's 90-day extension pf Its option to purchase Universal from Carl Laemml© has started. Original bptlon expired Jan. 29;.. with added time gi-ven: the syndicate for more complete audit of books and financial status of the company. R€;Vivals of Metro's 'Dancing Lady' now sees the marquees billing It with Fred Astaire, Joian Crawford and Clark Gab.le, In that sequent^. Officially It's a Crawford-Gable co-starrer and Astaire has one. dartce routine in it with Miss Crawford. Actor, who Is a big bettor at Santa, Anita, Calif., was called on ..the carpet recently by offlclals and threatened with disbarment frotA track unless he refrained from betting with bookies whp frequent track. In- stead of through the mutuels. Luclen Andrlot, cameraman, who was jugged In France for skipping military duty In 1912, has returned to Hollywood, Wlnfleld Sheehan and William K, Howard: were largely Instrumental In affecttag the ienSer's release. Undefined status of California law prohibiting minors or their guard- ians from entering Into managerial contracts -with 10%ers has rank and file of agents shyln^from kiddies Under the. legal age. Metro used 22,760 makeups from July to December of last year, accordr Ing to Jack Dawn* head of the department. 'Mutiny on the Bounty,' 'Tale of Two Cities' and 'Rose-Marie' topped list. Irving Thalberg, though one of the- top producers of pix, never permits iiis name on thc-title sheets. CredU always goes to one of tlie suppr- vlslrtg producers who works under him.