Boxoffice-December.25.1948

Antitrust Hearing [Cont.]
(Continued from page 8)
with the 49-theatre Malco circuit, In which
it has a 50 per cent interest; with the 38-
theatre Central States Theatre Corp. in which
it shares a 50 per cent interest with A. H.
Blank. However, the association with Blank
in the extensive Ti-i-States circuit in Iowa
is not to be disturbed under the proposals.
The company also is willing to divest itself
of 36 theatres in the Netco circuit in New
England which involves its relationship with
the Mullin and Pinanski chain.
CIRCUITS NOT INCHIDED
A number of important jointly-owned circuits
are not included in the properties submitted
for divestiture. These include the 17
theatres in the Florida Inland circuit, which
it has with Frank Rogers and others; 30
theatres in the Maine and New Hampshire
circuit in which it has a 50 per cent interest;
20 theatres in the Western Massachusetts
Theatres circuit, held with Samuel Goldstein;
80 theatres in Pennsylvania and New
York, operated with the Commerford-J. J.
O'Leary interests; nor the 80 theatres operated
with E. V. Richards jr. in the New
Orleans area.
BREAKUP IN SOUTHEAST
Paramount proposed to break up some of
its relationships in the southeast. While the
plan does not propose divestiture of the
Wilby-Kincey Service Corp., which services
50 jointly-owned theatres in the Carolinas,
or the operating company itself, it proposed
an end to associations with six corporations
operating 17 theatres in which it has a joint
interest with Wilby-Kincey.
Paramount divided its theatre holdings
into five groups in presenting its arguments
for retention and disposition of theatres.
These were:
List of jointly-owned theatre interests
which Paramount is prepared to terminate
498 theatres.
List of theatres owned jointly wdth investors.
(It will argue for retention of these)
—37 theatres.
List of jointly-owned theatre interests
which arose as the fortuitous result of bankruptcies.
(It wUl argue for retention of these)
— 237 theatres.
List of jointly-owned theatre interests in
which the alleged "actual or potential operator"
owns 5 per cent or less of the capital
stock. (It will argue for retention or these)
—94 theatres.
List of theatres interests owned by:
Buffalo Theatres, Inc., 13 theatres, in which
Paramount has 43^3 per cent (Paramount
will keep eight and Loew's Inc., five).
90 BUTTERFIELD THEATRES
Butterfield Michigan Theatres Co., 21 theatres,
in which Paramount has 33 Vb per cent,
and W. S. Butterfield Theatres, Inc., 90 theatres
in which Paramount has 25 per cent.
(Paramount- will sell out to Butterfield).
Suirmiarized. this means that Paramount
is:
Definitely willing to give up.... Ill theatres
Tentatively willing to give up 498 theatres
Wants to retain
368 theatres
WOl keep in Buffalo
8 theatres
Paramount hopes to keep about half the
498 theatres listed as "tentatively willing to
give up," so that if its hopes are fulfilled it
will retain about 625 theatres, plus 500
(Continued on page 10)
Here Are the Details
Of 20th-Fox Settlement:
NEW YORK—The agreement between
the Department of Justice and National
Theatres Corp. for giving up a number of
theatres and rearranging the holdings of
others was signed by Robert L. Wright and
Dwight. Harris. Koegel & Caskey on December
17.
Most of the theatres involved are in California,
with 23 in the state of Washington
and two in Oregon, three in Montana, two
in Wisconsin and two in Iowa.
The big regional units. Fox Wisconsin, Fox
Midwest and Pox Intermountain, are left
practically undisturbed.
The splitups are divided into three groups.
Group A
National Theatres Corp. agrees to sell or
dispose of its stock in one year in these corporations
to persons not affiliated with any
defendant in the case, or to divide the assets:
Rubidoux Theatre Corp.: De Anza Theatre—Riverside,
Calif.
Sacramento Theatres, Inc.: Senator, Capitol,
Rio—Sacramento, Calif.
Principal Theatres, Inc.: Banning—Banning,
Calif.; Brawley and Circle—Brawley.
Calif.; Molino, Monache and Crystal—Porterville,
Calif; El Rey—Alhambra, Calif. (In the
Principal group National owns 51 per cent
and the other owners are Mike Rosenberg,
Sol Lesser and others').
For Western Montana Theatre Corp.:
American, Rialto, Fox. Montana and Park
Butte, Mont.
Theatres Holding Co.: Lessee of Hollywood
Theatre. Los Angeles, with National owning
33 'i per cent and David Bershon and Earl
Sinks owning the remaining 66-i per cent.
San Luis Obispo Theatres, Inc.: Fremont,
Elmo and Obispo—San Luis Obispo, Calif.
National owns 51 per cent.
Group B
National Theatres Corp. agrees to dispose
of stock within a year to persons not defendants
in the case or to teiTninate joint
ownerships, but in the division of the assets
National may, with the approval of the court,
keep up to one-third of the total, not to exceed
one theatre in each community where
the corporations have theatres:
Anaheim Theatres, Inc.: Fox and Anaheim—Anaheim.
Calif., and through control
of Fullerton Theatre Corp.—Fox—Fullerton,
Calif. National owns 51 per cent.
Broadway Theatre Co. of Santa Ana:
Broadway—Santa Ana, Calif. National owns
51 per cent.
West Coast- Santa Ana Theatre Corp.: West
Coast—Santa Ana, Calif. National owtis 51
per cent.
Fullerton Building Corp.: Pox—Fullerton,
Calif. National owns 51 per cent.
West Coast- Wilmington Co.: Granada and
Avalon—Wilmington, CaUf. National owns
77.3332 per cent.
Valley Theatres Corp.: Grand and Wasau—
Wasau. Wis.
Muscatine Amusement Co.: Palace and Uptown—Muscatine,
Iowa.
West Coast-Compton Theatre Corp.: Tower
and Compton—Compton, Calif.
Group C
This section provides for a rearrangement
of stock interests with various circuits now
affiliated with National Theatres on the
coast, all to be done within one year.
National agrees to dispose of its interests
in United West Coast Theatres Corp. and to
end its joint interest with United Artists
Theatre Circuit, Inc. The theatres involved
in the joint operation wall revert to the individual
owners.
National will give up its interest in the
Egyptian, Hollywood, which is owned by a
subsidiary of United Artists Theatre Circuit,
Inc., and will acquire the Chinese Theatre in
Hollywood from the UA circuit.
Under the agreement National will split
the assets of Golden State Theatre & Realty
Co. and T&D Jr. Enterprises, retaining a
proportion of theatres equivalent to its present
stockholdings in the two groups. National
owns 75 per cent of Golden State. These two
companies operate 103 California theatres in
and around San Francisco, down the coast as
far as Paso Robles and across the San
Joachim Valley to Visalia. Five Reno, Nev.,
houses also are included.
The existing joint ownership of Golden
State and T&D will be terminated, as wiU the
joint ownership of Fresno Theatres, Inc., a
subsidiary. National owns 31.77 per cent of
T&D.
National also will dispose of its interests
in Cascade Theatres Corp., or will terminate
its joint interest with John Hamrick and the
stock will revert to the owners or lessees in
the individual houses of the circuit which
operates in Washington and Oregon.
Operations of Evergreen State Amusement
Coi-p.. which has interests in 34 theatres, 23
of which are in Washintgon and two in
Oregon, are not to be disturbed.
Cascade is a subsidiary of Evergreen and
in tm-n has two subsidiaries of its own
Multonomah Theatres Corp. and Rainier
Theatres Corp.
Evergreen State owns 60 per cent of Cascade
and John Hamrick owns 40 per cent.
The theatres covered in this group are Portland—Music
Box. Playhouse, Hollywood,
Oriental, Liberty, Orpheuni and Rivoli; Seattle—Fifth
Avenue, Paramount. Coliseum, Blue
Mouse, Music Box, Music Hall and Orpheum.
Because the stock of seven National subsidiaries
is not jointly owned the company
will retain ownership of the following; Fox
Salina Theatres, Ltd., Gateway Theatre Co.,
Marstrand Theatres Corp., Pico Theatres
Corp., Transbay Theatres, Inc., West Coast
Hollywood Theatres, Carlton-Rivoli Theatres.
BOXOFFICE :: December 25, 1948