Variety (May 1939)

• 4 VARIETY PICTURES Wednesday, Maj 3, 1939 Par sIstlMerSSOOjl Above'38; M-Fox s $400,000 Less Ulan Last Yr. INSIDE 'PHILLY STORY' Several Ancles t« WUy Mlu Hepboni First Bonclit the Bighta Paramount Pictures showed an im- provement of nearly $500,000, while 20th-Fox showed a decline ot more than $400,000 in the first quarter this year as compared with the initial quarter ot 1936, both companies re- porting their net prqftts last 'week. Paramount estiinated its earnings officially at $1,300,000, as against $030,866 in the first quarter last year. Surprising thing about Par's report %vas that there was a tremendous pickup (approximately $600,000) ini income from picture distribution, while at the same time there was a dip in revenue from theatre opera- tions of partially owned non-consoli- dated subsids. The first quarter this year showed Par getting $676,000 Irom this* source, while in the com- parable quarter of 1938 the company received $806,000 from partially owned non-consolidated subsidiaries. An idea of the improved Par earn- ings' is seen in the per share earnings on the common. Jn the first quarter this year, even after paying out $300,268 in preferred dividends, im- distributed earnings amounted to 4Ic per sharers against 22c in the initial quarter of last year, when only $296,- 523 was paid in' preferred dividends.. Paramount statement showed 144,- 672 shares Of 6%. preferred shares outstanding on AprU 1 last, indicat- ing that the company's conversion program was at a virtual standstill. Par at one. time was manifesting great strides in getting holders of both first and second preferred stock to convert them into common shares. Failure to pay any common dividend or indicate little prospect for such payment in the immediate future ap- parently slowed down tliis operation, according to informed 'Wall Street opinion. The first quarter for 20th-Foxr which incidentally showed almost the. same total as Par ($1,224,250), was about in line with .predictions in financial circles, which iiad been ex- pecting a decline of several hundred thousand as against last year. In contrast to $1,224,250 for the first 13 weeks, ending April 1 last, company showed net profit of $1,641,537 in the first quarter of 1638. This compares with $2,630,374, including $882,000 re- ceived in dividends from National Theatres Corp., shown for the fourth quarter of last year. The net profits for the first quarter this year for 20th-Fox amoimted to 50c per com- moii share. Gross income from sales and rent- als of film and literature in the ini- tial quarter of this year totaled $14,- 283,813. Amortization of production costs was placed at ^,476,252. Pro- vision for Federal income tax amounted to $220,000. PAR'S ANNUAL PROFIT ENDING '3&-H105,675 Lloyd at RKO Set Hollywood, May 2. Deal for one or more pictures by Harold Lloyd Productions for RKO is ready to be inked this week. Iiloyd will retain his present of- fices at General Service studio while producing on the RKO lot SEE PATHE LABS' CASHWWY INISTYR. Pathe Laboratories, the operating company formed by Pathe Films when it put through its plan earlier this year, probably will declare a cash dividend its initial year of ex- istence and will show a nice profit the first year. O. Henry 'Briggs, newly elected president, admitted this at the stockholders' meeting last week. Briggs, who was president of Pathe Film Corp., resigned last week to head Pathe with Kenneth M. Young, brother of Robert Young, who has been director and active in the affairs of the company for years, named new president of Pathe Film. He is a l>enker. Briggs also repealed that the new laboratory operating company was on a profitable basis as early as last March. Mechanical film gadget, be- ing sold at both world's fairs, is re- sponsible for the fine showing made to date by Pathe Lab. He also reported that the com- pany's micro-film device for record- ing legal documents and checks may soon be placed on the market Its cliief competition just now is Re- cordex, the Eastman Kodak device. As soon as a deal is worked out for renting them out on a monthly basis it is likely that a loan needed for manufacturing them will be set Company already has had a $250,000 offer for 75% interest in the ma- chine. Meeting was informed that Pathe Film would cost only about $25,000 per year to operate under the pres- ent setup. The DuPont Film Mfg. Co., for whiclt Pathe Film was es- tablished as a holding firm for its substantial stock interest, showed earnings of about $150;000 in the first two months tliis year as against $117,000 in initial two months last year. DuPont now is on a $40 an- nual dividend basis, with an extra diwy declared usually at the end of each year. The company declared $30 extra at the close of 1938. Several major film companies are bidding for the screen rights to The Philadelphia Story' and a deal may be consummated within the next week or so. Understood all the offers call for Katharine Hepburn to repeat the leading part she is currently playing in the Philip Barry play at the Shubert, N. Y, under Theatre Guild management Despite widespread reports that Howard Hu^es has the film rights to the comedy. Miss Hepburn is the actual' owner. Contract for the rights is in her name and it is believed she used her own money tor the advance payment on the deal. Whether or not Hughes is in on the proposition is a matter of speculation, but those close to Miss Hepburn state that the millionaire aviator merely guaran- teed the actress against loss in case no major studio bought up her rights to the play. Lively interest by the companies in obtaining the show from Miss Hepburn would seem to indicate that neither she nor Hughes will be left to produce it on their own. Just what kind of bids have been forthcoming isn't known. Miss Hep- bum acquired the screen rights on a pre-production deal, with, the price a flat advance plus a sliding scale of royalties based on the picture's-gross. Since no other sale of the sort has ever been'made, it is a question of whether the. actress would transfer her right for .a flat price, on a per- centage basis or a combination ot the two. Besides owning the film rights to Story,' Miss Hepburn also has a sub- stantial share of the legit production. Actual percentages are unknown, but are supposed to be on an approxi- mate basis of 40% each by the actress and Barry, and 20% by the Guild. Actress bought the screen rights merely to insure her playing the part in the picture. Paramount Pictures annual report for the year en.ded Jan. 1 last showed combined consolidated profit of $4,105,675 when share of undis- turbed earnings ot partially owned companies, were 'included. Net profit without these earnings totaled $2,- 865,675. Both figures are in line with official estimates made early in March. The larger total, taking in undistributed earnings, amounted to $1.18 per common share. Paramount report shows that reve- nues from subsidiaries operating in foreign countries having currency restrictions are included only to the extent that dollars have actually been received. Ijn the total earnings. Par showed a profit of $332,367 on the purchase of company debentures. Consolidated earnings also include $^2,361 of net capital and non-recurring income. Totals show that the company's net interest, as a stockholder in the com- bined undistributed earnings for the year for partially owned companies, totaled about $1,240,000. Company's statement signed by Barney Balaban showed that $4,993,- SOO worth ot 20-year sinking tund debentures were redeemed on Feb. 20 last and that an additional $2,750,- 000 worth were redeemed last April 17. 'With these and issuance of $250,- 000 principal amount of debentures In settlement of claims filed, by the Prudence Co., Inc., there were out- standiog in the hands of the public $1,938,676 worth of these bonds. Report shows that to get funds needed to swing this refinancing, the company and several of its wholly owne.d susids borrowed about $5,- Notarios' New Exec Berth at Par Studio For many years with Paramount in theatre operation and film buy' ing-booking, Louis Notarius is transferring to the Paramount studio in an executive capacity under Y. Frank Freeman, v.p. in charge of studio administration. He leaves May 12. Notarius has tteen with Paramount 14 years in a variety ot posts. He has been the h.o. theatre depart- ment's official reviewer of films for several years. His new duties on the Coast will have important l>earin£ on theatres, Leon Netter, under whom Notarius has functioned, has not set a suc^ cesEor but niay do so by the end of the week. Ginger Rogers' Next Hollywood, May 2, Ginger Rogers, who finished 'Little Mother' last week, goes into 'My Fifth Avenue Girl' at RKO in three weeksL Gregory LaCava directs. 500,000 from banks, most ot It on a 5-year basis with average interest 3,^% per annum. For the three- year period ending Dec. 31 last, rC' port reveals that the Interest-bear ing indebtedness of P^amount and subsids was reduced about $0,' 078,568. LOEWS 28-WEEK NET PROFIT UP, $7^347 Loew's, Inc., net profit rose ap- proximately $400,000 in the first 28 weeks ot its . fiscal year ended March 16 last as compared with the same period o' 1938. ReiMrt issued yes- terday (Tuesday) showed net- to be $7,268,847 as against $6,t87,678 in the 28-week period of last year. This showing was made despite the fact that directors recently approved set- ting up a reserve of ^00,000 for con- tingencies for the period whereas only $500,000 was set aside last year for the comparable half-year. After setting aside this amount, the net was figured as bein^ only $6,368,847 or $3.68 per common share. This is virtually the same amount as shown for the 28-week period of 1938 when $3.76 iwr common was shown. Stntfio Contracts Spartanburg, S. C, May 2. Melvin Godfrey, 25, and Bedford Collins, 32, were sentenced here to life imprisonment for armed hold-up of Mr. and Mrs. J. C. Holland, the- atre operators, night of March 1. Pair were convicted of first-degree burglary. 'Verdict minus mercy rec- ommendation, making life term man- datory. Hollands, operating Lyman, S. C, and Tucapau, S. C, theatres and a store, were stuck up with a gun, bound and robbed of $185 receipts in their home shortly after leaving the- atres about midnight Ticket Taker Held Up Detroit, May 2. Bandit knocked down Norman Powell, ticket taker at East End theatre here, and escaped with $30 in receipts last week.' Powell was car- rying money to manager's office after boxoffice closed. As he ascended a stairway, thug stepped out of rest room, knocked him unconscious and seized money bag. Hollywood, May 2. Metro signed Jacques Thery, scripter. 20th-Fox contracted Sybil Jason, moppet Don Castle's player pact renewed by Metro, AUred Schiller inked writer deal with Boris Morros Productions. RKO handed actor pact to John F, Hamilton. 20th-Fox signed Jacques Kapralik, artist James Hilton inked scripting pact at Warners. Eleanor Hansen handed slxmonth deal by 20th-Fox. Virginia Dale penned player ticket at Paramoimt 20th-Fbx renewed Walter Bullock, John Taintor Fobte and Owen Francis, .writers. Warners filed minor contract with Nanette Fabares, 18. Samuel Goldwyn asked court ap proval of minor pact with Virginia Poole, 19. Paramount handed player ticket to Betty McLaughlin. Edmund North signed writer deal at IParamount Paramount hoisted Kurt Neu- mann's director option. . Tom Kennedy inked new deal at 'Wamera. 20th-Fox renewed Milton Sperling's scripting ticket for one year. More Higher-Bracketed Pictures Inspires a Buyers' Pool Plan in NW Sennett on 'Cavalcade' Hollywood, May 2. Mack Sennett goes to 20th Cen- tury-Fox as an associate producer with Harry Joe Brown and techni- cal director on 'Hollywood Caval- cade.' Studio wants to utilize nls picture background during filmdom's forma- tive years for its $2,000,000 spectacle. LIFE SENTENCE INMATRE HOLDUP Pitt's SUekap Wave Pittsburgh, lAay 2.. New wave of theatre robberies has broken oiit here again despite fact that police some time ago captured bandit who had been responsible for several of them and sent him to prison for five years. John Stahl, Jr., son of Homestead theatre owner, is the latest victim. He was stuck up on the way to the bank by an armed thug and relieved of $200 in cash. Last week colored thief reached into ticket booth of Triangle, East Liberty, scooped up $10 in quarters from the hands ot Rita Kelly, cashier, and got away. Couple ot other stickups have been tried at nabe houses during past few days, but they were unsuccessful. Lenses Stolen Troy, N. Y., May 2. Two projection lenses, valued at $200, were stolen from the Palace by someone who entered the theatre with a key, manager Robert Rosen- thal reported to the police. WB H'wood a Victim Hollywood, May 2. Two bandits made off with $1,000 Sunday (30) at Warners' Hollywood, oh the boulevard, after forcing Manager William Brown to open the safe. They herded five others together and made a clean getaway.' Plenty of Film Trailers On N. Y. Fair's Premiere Paramount News devoted a full newsreel special to the New York World's Fair opening day festivities, getting it out early Monday morning so that it was playing Broadway theatres by the time they opened for the day. Paramount newsreel ex- ecutives believed there was enough interest around the country to justify devoting an entire issue to the 1639 exposition. It was the only newsreel to do this or to get its reel out a day ahead. Paramount reel stressed visiting foreign royalty and that all roads lead to N. Y.'s tair. Besides the dedicatory services, typical scenes and a graphic bird's-eye view ot the Flushing Meadows site, considerable footage was devoted to the night lighting and colorful fountain and fire displays. Pathe . is getting out a two-reel short on the fair, with RKO dis- tributing In about a week. Minneapolis, May 2, As a protest against distributors action in lifting more pictures into the higher brackets and thus raising film costs, demands will be made at the Northwest Allied convention here next month for organization of a buyers' pool to deal with the com- panles.* Independent. . exhibitors here charge that the increased number ot cancellations proposed under the new industry code has been more than offset by the crowding of upper classifications. They refuse to con- cede the possibility that the pictures will be of sufficiently higher quality and drawing power to justify the distributors' actions. Even with the additional cancellations, 'the inde- pendents will be worse off than ever because contracts will involve more money,' it's alleged. Some of the members will ask the organization to devote itself more to fighting for lower film rentals than hitherto, regardless of whether or not the buying. pool is organized. Th^re is-much opposition to the prac- tice of one prominent meml>er of buying 'runs' ot pictures. As a re- , stilt of it, they cbim, they've been having to pay more than otherwise tor' their film. RCA'S 1ST QUARTER NET AT $1,448,110 Daivid Samoff, president of Radio Corp.. of America, told stockholders at the .annual meeting yesterday (Tuesday) that net earnings of the company totalled $1,448,110 in tlie first quarter this year as against $1,- 437,801 in Initial three months lest year. Profits were equivalent to slightly less than 5c per common share after preferred payments. ' Samoff told stockholders' meeting that the company had $16,800,000 in cash on hand as ot April I despite the fact that bank loans were re- duced by $3,000,000, with resultant interest saying on that amount He pointed out that outstanding bank loans now amount to $5,000,000. on which the interest rate has been re-, duced from Vk to 1%%. The RCA president stressed the first public television program. He said that 12,000 visited the Radio Corp. building's television exhibit the opening day ot the N. Y. World's Fair. Cornelius N. Bliss, Bertram CuUer, Charles G. Dawes and James G. Harboard, chairman of the t>oaid, whose terms as directors expired, were re-elected for a term of three years. Metro Buys INaritza' For 6(Mi from Kalmann Paris, April 24. Metro has closed a deal for the soundfilm rights ot Emmerich Kal- mann's "Countess Maritza.' Although sale price paid tor the operetta could not be confirmed officially, it's said to be $60,000. This rhakes the second work Metro has acquired, from Kalmann, the other being "Sari,' bought some time ago. Although no final decision has yet been made, it's expected that Kalmann will go to Hollywood to act in an advisory capacity when the picture is made. Irvin Marks negotiated the sale. Extras' Big April Tak Hollywood, May 2. ' General upsurge in all lines' ot stu-. dio Employment spread $220,000 among extras during ApriL Calls for 21,000 jobs went out top- ping March by 5,000 placements. Back lot employment figures high- est in months, with expectancy of a brisk demand through June. SAa-Agents Beport Beady Hollywood, May 2. The Screen Actors Guild advised at a meeting last night (Monday) that the report on the licensing con- tract lor agents will be ready for s'lbmission to the Guild's Agency Committee on May 8. It will go to the board for final approval after the committee okays it