Salt Lake Telegram | 1934-08-14 | Page 1 | Court Upholds Publix Option

COURT UPHOLDS OPTION Order Grants Tr Trustees Right to Repurchase Stock in Marcus arcus ChainS Chain I S ll iTlie T l NEW Y YORK 9 Aug order 14 An 5 P r s h ruste s sot of ot ih the par Paramount mOunt corpor corporation t onas on as as' owners of all the common tock of ot the he subsidiary Famous Theatres corporation to exercise an option effecting effecting ef ct the repurchase of or the shares hares of class A stock of or the Salt Lake Inc mc now owned by Mayor Louis Marcus of Salt Lake City signed August y Judge Alfred p. p C. C Coxe on vacation was entered In the federal court here today Approving and Ci confirming th the report report re port submitted to the court by the thc special special master master in bankruptcy cy John E. E Joyce following a hearing August 9 Judge Coxe fully granted the tion lioa of Trustees Charles D. D Hues Hilles Eugene W. W Leake and Charles P. P Richardson which stipulated that the purchase of the stock from M Mayor Marcus entails the payment of ol 50 plus plug one half of the net profits proms lof of the Salt Lake Inc f from om June 9 1933 until the date upon which the option e all be exercised Trustees Trustees St ay Order OrderA A Paramount official this afternoon said that Judge Coxes Coxe's order would be presented before belore a meeting of the toe trustees some time today and that consideration to the matter mailer would be given at that time As outlined in m an agreement entered en between Mayor Marcus and the Ir Irving in Trust company as trustees for lor Enterprise Inc o on 01 June 9 1933 when the shares of ol class classA A A. stock were sold to th the Salt Sail Lake City official th the profits to b be divided from that time lime on should the option Continued on Pare Pue T Two o COURT COU T UPHOLDS OPTION Continued from Pare Pate One be taken up within the year three-year period period pe pe- nod allowed are to be computed on ona a cash basis basi without any deduction for or depreciation Must Meet Agreement In his order Judge Coxe further dIrected directed di dl that the payment for th the repurchase repurchase repurchase re re- re- re purchase of ot the stock should concur with the terms of ot the agreement providing providing providing pro pro- viding that of oC the cash payment is to be made immediate immediately with the balance payable in three promissory ory notes of ot equal amounts due in six twelve and eighteen month p periods The petition for tor the order pointed out that on December 29 1933 the Famous Theatres corporation had acquired acquired ac ac- ac shares of class B stock in the Salt Lake Inc which with the exception of ot the class A Astock Astock Astock stock owned by Mayor Marcus comprised comprised com corn the total outstanding capital of the Salt Lake City company On the same date the rights to the agreement containing th the option to repurchase the class A stock was assigned to the theamous Famous amous unit Leases Utah Theaters According to the petit petition on the Salt Lake leases and operates the Paramount Capitol and Victory theaters theaters the the- aters in Salt Sail Lake City the Paramount Paramount Para Para- Paramount mount theater in Provo Utah and the Orpheum and Idaho theaters in Twin Falls Falls- Idaho The company it was stated also owns per 50 cent of the capital stock stoc in the Theatre company which leases and operates the Fox Granada and Pinney theaters in Boise olse Idaho as well as 50 per cent of the capital stock of the Theatre company which leases and operates the Orpheum Lyceum and Waller WaIler theaters in Ogden Utah