Variety (February 1921)

|«!P*P!PPPIK*m!iV«|i mi i iii.iiir Friday, February 4, 1921 VAUDEVILLE 3= ORPHEUM EARNS $4.25 A SHARE; AMUSEMENT ISSUES ARE WEAK ■ Beck Circuit Does Gross Business of $15,563,814, Shown by Annual Financial Statement—Famous Off 56 1-4—Look for Lower Prices Between Now and March 4, Then Long Bull Campaign. r BILL BARRING "SPECS" FROM SIDEWALKS PASSES N. Y. SENATE Walton Measure Makes Outdoor "Barking" Misde- meanor—Another One to Limit Profits to 50 Cents—Tax on White Way Signs Planned. The annual financial report of the Orpbeum Circuit, sent out to stockholders this week, showed net earnings after payment of 8 per cent, on the $6,000,000 of outstand- ing preferred, all charges and Fed- eral taxes of $2,336,958, which means a net profit applicable to dividends on the 550,000 shares of common double that at the time of its acqui- sition by Loew's, Inc. "It is our experience that even In periods of drastic reduction in other lines of business low price amuse- ments such as ours have continue^ to do business profitably. There Is every indication that the present year will be one of continued and in- stock outstanding of about $125.' creasing prosperity for this com- Variety predicted this item of profits last week at $4 a share of common or $2,200,000. The company showed a gross income of $13,563,S14. and paid out in artists' salaries and Him service a total of $5,575,569. In spite of this showing—more than twice the amount of the regu- lar dividend disbursement on the common — Orpheum was barely steady in the early part of the week going from better than 28 last week* to 27 on Tuesday. Trading was dull in pretty much all the amuse- ment shares, with Famous Players- lAsky common displaying special weakness. Wednesday just at noon the quotation was 66*^, as again* 4 , the high last week of 59. Loew held steady around Mtt 01141 • after moving up to better than 18 last week. The Loew people sent out an an- nual balance sheet and income ac- count to its stockholders disclos- ing the situation in the treasurer's office as of date Aug. 31, 1920. It showed earnings well in excess of the regular common stock dividend, but was unsatisfactory in that it re- flected only the condition of five months ago. A good deal of water has gone over Niagara Falls since then, and the stockholders probably wished to have more definite infor- mation of the Jan. 1, 1921, state of affairs. However, the report is entirely regular. If Loew chooses to hold its annual stockholders' meeting in midsummer the conventional method Is to make its fiscal year in relation to that date and its annual report of financial conditions would coincide. The statement shows a consoli- dated net income, besides all charges and estimated income and excess profit taxes, of $2,868,360 covering the period between Oct. 19. 1919, and Aug. 21, 1920, approximately nine months. This would indicate a rate of $3 60 per share applicable to dividends on the 1.050,000 shares of common, as against the regular divi- dend rate of $2 a year. / Total gross income for the nine months was $21,060,672. and total expenditures were $16,684,869. The cost of operating theatres, which presumably includes the salaries Paid to artists, Is shown as $13,101,- I 441. The net Loew, Inc., income ^previously quoted does not include the item of $810,000 net profit which belongs to "co-operative interests," Including Canadian and other cor- porations in which lyoew's, Tnc, Is a ■tockholder. Accompanying the financial state- ment Is a letter from the company, which says In part: "It will be noted that the earnings of the corporation since its organi- zation Oct. 18. 1919. have been ap- proximately twice the amount of tire dividends paid at the rate of 50 cents each quarter declared on the ■tock. "In spite of the present financial and Industrial depression, the busi- ness for the current year fs showing a healthy increase over the corre- «Pondlng period of last year. Com- parative operations of Hie same theatres for 1019 and lf»?n show a gain of 26 per cent, in net profit The newly acquired theatres are showing satisfactory increases in their current business. "Metro Pictures Corporation has proven to ho a very valuable acqui- sition to T.oow's, Tnc. It has placed Loew's in a position of controlHnff «n Important portion* of i's products from t!ie source to the ultimate con- ■uitter, Independent of outside con- editions. The current earnings of the Metro corporation are more than JEOOY WALDMAN "hi Si*** Harmonica Player, Assisting . K V A T A N (1 IT A Y I -N Jl K R, NEW ACT pany. Practically nothing has come out regarding the movements in Cold- »vyn, and the stock has not been re- ported in the commercial reporting company's lists for a week. Triangle is sluggish, with sales in minor blocks steady at 7-16, or about 44 cents a share. In a letter to the Orpheum stock- holders, sent out as part of the an- nual rei>ort, Martin Beck, president, says: "The present year will see the completion and opening of the new theatres of large seating capacity at San J^rancisco, Los Angeles, Kansas City, Minneapolis and Oakland. Trtiese additional theatres, to be known as Junior Orpheum houses, will not only greatly increase our earnings, but will be important links in our chain. The new Orpheum at New Orleans will open Feb. 7, and with the advantage it will have over the old Orpheum in location and seating capacity should show de- cidedly increased earnings." The David Wark Griffith Com- pany has just paid its first dividend amounting to 1 per cent, quarterly. The stock ts not listed anywhere, but has been traded in on the Curb. It is understood that a financial re- port covering its operations since its organization early last fall will soon be put out. It is expected to show a large profit on "Way Down East." which has been placed among its as- sets. It Is pointed out that although the capitalization is large, every ef- fort has been made to protect in- vestors by life insurance policies on Griffith, who, of course, is the prin- cipal asset of riio organization. As to the present aspect and the Immediate future of the general stock market (discussed in this place because of its sympathetic ef- fect upon the amusement securities) there is a good deal of uncertainty as usual. As Variety figured it sev- eral weeks ago, the*short account has" been pretty well liquidated around current levels. Also old weak holders have been shaken out and the professional speculative community is almost entirely out of the market on the long side. Since that view was expressed, however, the list has advanced pretty substantially. As usurl the public does not quite realize that the price level is well over the pre- -holiday low. This is characteristic of the amateur who bases his views on the newspaper reports of busi- ness conditions. Having digested the current advance and become used to the advance he looks to the business reports for his ettimation of future market movements.* The news columns lately have been generously supplied with bull- ish argument in the settling down of the labor situation and th~ revival of numerous interests, and it is said that there is a public participation in to-day's market. The public being in It would seem that the bears would be likely to attempt another campaign on the short side. Probably the reasc a for tho shrew speculator beyng out of the market .just now is his belief that big Wall stree*. Interest* will make one more bear drive before tho market is allowed to begin a substantial upturn over a lo: t period. One keen successful specu- lative trader closely in touch with his own circle of operators lias ex- pressed this view to Variety, with the additional comment: "The bears will tako another profit before the market will be left free to take a;i upward course. it is going to take something sub- stantial on the bull side to f;et the start. As I see the situation, that will be an actual change of adminis- tration policy in Washington. This is due March i, when the new Re- publican president will be inaugu- rated and the new Congress will get under way. My guess is that the bears will bring their campaign* to its climax roughly about the second week in February. When they have Jockeyed the market down they cover and then jump to the long side and load up on stocks for a long pull. "To be sure I put the time of the probable end of the decline in Feb- ruary, but do not think prices will sink to the level touched before on a pure 'hunch/ When the drive wi'l begin I wouldn't dare guess. There are certain spots in the lis' which indicate that it has already got un- der way, but tlie big slam ma/ come to-morrow or may be delayed a' week. I've been playing the board for 10 years and I do not attempt to outguess Wall street any more, even if I am playing with their money. However, I do not believe prices will get down to the roc'., bot- tom they touched the day before Christmas." The summary of transactions Jan. 27 to Feb. 2 inclusive are as follows: 8TOCK EXCHANGE. Thursday— Sales. High. Low, Ijiat Ch*. Fam. Play-L.. 400 67^4 87 r.T — % Loew, Inc 1200 16% 16% lft\.. Orpheum 1100 27# 27Vs 27'i — ft Chi. ago sold 100 Orpheum at 27'-*.. Fnday— % Fam. Play-L..'800 57% 50% 57 .. Loew. Inc 2200 16% 16% 16%.. Saturday— Fam. Play-L.. 100 57% 57% 57% f % Loew. Inc 100 16% 16% 16%.. Orpheum 100 27% 27% ^7%.. Monday— Fam. Play-L.. 560 58% 57% r.7% + % Loew. Inc 2200 16% 16% \(l\ .. Orpheum* 400 27% 27% 27% — % Tuesday— Fnm. Play-L.. 300 57 56% 50% —1 Do. pf 200 80% 80 80 — % Loew, Inc 200 16% 16% 1«% .. Orpheum 100 27 27 27 — % Iloston sold 150 Orpheum at 27. "Wednesday— Fam. Play-L.. 400 56% 56 56% — % Loew. Inc 400 16% ]fi% lfl^.. Orpheum 100 27 27 27 .. THE CURB. Thursday— Sales. His*. Low. Last Chg\ Tnanjrle 100 A A i'« •• * ndsy— Triangle 1000 A A A-. Saturday— Triangle 1006 A A A .. Monday- No sale* reported. Tuesday- Triangle tee A A A .. Wednesdsy No sales reported. 2 CENSORSHIP BILLS UP IN HOOSIER STATE DENY PICKFORD LICENSE Arrested Three Times in California for Speeding During 1920. Los Angeles. Feb. I. An automobile license has been refused Jack Plckford for 1021. During 1020 he wai arrested three times for speeding In this state. Reform Forces Have Strong Support in Legislature. Indianapolis, Feb. 2. A second bill for the establish- ment of State censorship of pictures has een intro .uced in th„ Indiana General Asset* : ly, now in s. .slon here. The first bill, introduced last week, woulu create a State picture commission, composed of three members appointed by the Gov- ernor, with power to say whether or not a . . shall be exhibited in the State and to chart,, producers li- cense fees for examination of their films. The other bill provides prac- tically the e Kit nam s the State treasurer, the State super- intendent of public Instruction nnd the lieutenant governor as mem- bers, ex-ofilclo. An inkling of the strength of the "blue law" crowd with the Leg- islature was giver when a bill to prohibit the holding of athletic or sporting events to which admission is charged on Memorial Day failed of passage in the Senate b> the bare margin of one vote. 'This was all the more unexpected because it was an open secret that the bill was aimed at ihe suppression of the annual 500-mile sweepstakes held on tho Indianapolis Motor Speedway each Memorial Day. The Speedway people can wield a lot of influence, I Albany, N. Y. Feb. 2. Delegates of the Women's Na- tional Sabbath Alliance were in the New York State Capitol with \ bill to prevent persons from bathing on Sunday. Although several legisla Albany, Feb. 1. The Walton bill, making outdoor vending or "barking" illegal by ticket speculators, passed the Sen* ate to-day and Is to be followed at once by a twin measure, introduced by the same Senator, limiting profit on theatre tickets to 50 cents each. That it, too, will pass is practically a certainty. The second measure will be am amendment to the general business law and provides for one year or a fine of not more than $1,000 for any person or firm that sells tickets at more than 50 centa more than its face value. It has been reported favorably by the senate committee on the Judiciary. A new bill affecting the amuse- ment business has Just been intro- duced by Assemblyman Flynn* Democrat of the Bronx. It calls for a heavy Impost on out* of-door advertising such as bill- boards, wall or fences "and adver- tising devices." at a rate that would put a fearful crimp in the White : Light district. Theatre front electrio I signs or bills would be exempt on * display on the actual theatre ad- vertising its own show, but other show billing would be taxed. The rate of tax is set in these terms: "In a borough or city of the first class having by the last state census a population of 700,000 (this is the up-state nifty when it wants to pin the bee on New York City and no other town) such tax for the firet nine square feet shall be 60 cents a square foot, and for the next nine square feet or any portion thereof at the rate of 00 cents a square foot and for the next nine square feet or any portion thereof and for all In excess of such area at the rate of $1.20 cents a square foot" The rate for smaller cities Is graded downward according to pop- ulation, so that Middletown, N. Y, can erect a great white way of elec- trical novelties and blossom forth In collar and underwear 51 -sheets tHi were buttonholed, no solon was foolish enough to champion the , wUhout paying anything to the state latest cause of the "Blue lav" ad vocates. treasury CIRCUS SAVED FROM FIRE. St. Louis, Feb. 2. The quick work of Joe Mcdcalf, elephant trainer during a tire at Lancaster, Mo., where the Yankee Robinson Circus is wintering, re- sulted in much circus paraphernala and several wagons being saved from the flames. The fire had destroyed a black- smith shop and garage, and v/aa threatening the quarters occupied by the circus, when Medcalf, with the aid of two elephants, moved the circus' property to a safety zone. EASTMAN COMMON JUMPS FORTY POINTS Expected Dividend Causes* a Wild Scramble for Shares. Rochester, N. Y., Feb. 2. Common stock of the Eastman Kodak Co. Jumped 40 points on the local market the other day, from 540 to 600, and*next day it went up five points at a time to 625. Great excitement was caused In financial circles here as the price advanced under Insistent calls from New York for stock. The reason given for the demand Is said to be that at its an- nual meeting soon the company will declare a stock dividend. Kodak common is now paying 2% regular and 7V» per cent, extra quarterly and is regarded as the most consistent best paying stock in tho country. The highest point reached by it was in 11*14, when it went to 711. As the company le not In need of money it would look ae if this possible increase would be in the nature of a melon to stockholders In the form of large stock dividend. Alice SHELDON and DAILEY Lou "NIFTY SONGS AT THE PIANO" Appearing this week (Jan. .11 », at B. F. Keith's Jefferson Theatre, X. Next Week (l''eb.7>, B. F. Keith's Riverside. THOS. J. FITZrATUJCK. If taking care of our future. Y. LOEW TREASURER AND $2,000 MISSING St. Louk Pofc<;«Afe Hunting Young Box-Office Man. St. I.ouis, Feb. 2. The local police are seeking John Thlos, L'U, treasurer of Loew's Gar- rWk. With the discovery of the young man's disappearance, it also was found J'J.OOQ of the theatre's funds- arc mlHsing and, according to ♦he police, irregtilai tiles have been found lr» his books. A description of Thies. with a re- quest for his rfrrest, has been sent to Milwaukee, it being reported to the police that he went there to visit an actress. The tatter's name