The Exhibitor (1959)

June 10, 1959 MOTION PICTURE EXHIBITOR 5 Flexible Para. Plans Diversification No Limits On Production; Balaban Sees Toll-TV In Several Thousand Homes, Enhancing Post-'48 Films NEW YORK — At the 22nd successive an¬ nual meeting of Paramount stockholders presided over by Barney Balaban, president, held last fortnight at the home office, he re¬ viewed current and planned Paramount ac¬ tivities in general, and described the company as “a flexible growth” corporation. Balaban foresaw expanded diversification of its com¬ mercial interests. He emphasized that the policy of the com¬ pany would be to augment and expand the creative activities of the studio. Discussing the recent “change of command” at the Hol¬ lywood studio, Balaban reiterated that “we have placed no limitation upon our produc¬ tion department with regard to the acquisi¬ tion of story material of superior merit, the number of pictures to be produced, or the talent required in producing them.” The company’s primary objective, the Par¬ amount chief executive said is “to furnish our exhibitor customers with a sufficient volume of boxoffice attractions to keep the public coming back to their theatres.” He paid trib¬ ute to Y. Frank Freeman, who recently re¬ signed as vice-president and studio head; and at the same time expressed gratification at having as new administrative head of the studio Jacob H. Karp, whose “long experience with all aspects of studio operations and his tested administrative ability combine to make his selection a logical one.” “While in the past our diversification pro¬ gram has been related directly or indirectly to motion pictures and the entertainment in¬ dustry,” Balaban said, “our minds are now open to the acquisition of additional interests not necessarily related to our traditional area of activity. . . . As a matter of fact, we are studying a number of such situations at this time.” In connection with toll TV, it was an¬ nounced that the headquarters of Paramount’s International Telemeter Company would be moved from Los Angeles to New York within the next month or two. Balaban stated “with confidence” that he expected pay television to be in operation in several thousand homes by 1960. It was revealed that since January 1, 1959, the corporation bought up approximately 43,000 shares of its own stock at a cost of about $2,000,000, but it was not expected that stock purchases would continue at the same rate as in 1958 when more than 200,000 shares were acquired at a cost of about $8,000,000. “As a direct result of the stock retirement program,” Balaban told the stockholders, “your equity has been increased by about 48 per cent over what it would have been had we not conducted this program since the be¬ ginning of 1950.” As to the sale of post-1948 films to tele¬ vision, Balaban said, “Except for a few mul¬ tiple station markets where the play-off is necessarily much faster, it would seem that the supply of pre-1948 film would last for another two or three years or possibly longer. Under these circumstances,” he said, “it would be premature to give this matter ser¬ ious consideration at this time. As the supply of pre-’48 diminishes, we can expect that tele¬ vision’s demand for feature films would in¬ crease accordingly, enhancing the value of TOA's Technical Survey Gets First "Customer" NEW YORK — S. C. Sunness, general manager, Sunness Theatres, Binghamton, N. Y., last week became the first “cus¬ tomer” of the Council for the Improvement of Theatres and Motion Picture Projection when he requested technical inspection of his Jarvis, Crest and Art theatres. He asked that projection and auditorium acoustics be checked without charge to the theatres. The TOA, which is administering the program for the council, immediately for¬ warded the request to the National Theatre Supply Company, Buffalo, N. Y., since Sunness had indicated on his questionnaire that he deals with this firm, which is on the list of about 150 dealers and suppliers who have been certified by the Theatre Equipment Dealers Association as ready to cooperate in the program. Ephrons Sign With Para. HOLLYWOOD — A further step in the Paramount Studio’s accelerated production program has been taken with the signing of Henry and Phoebe Ephron, producerwriter team, to a long term contract, it was announced by Jack Karp, vice-president and administrative head of the studio. The husband-and-wife team has many outstanding writing credits, including the films “There’s No Business Like Show Busi¬ ness,” “Daddy Long Legs,” “Carousel,” and “Desk Set.” Ephron also produced, among other pictures, “ Carousel,” “Desk Set,” and “A Certain Smile.” our product.” He reminded that Paramount was the last of the majors to dispose of its pre-’48 inventory, and benefitted thereby. “In any consideration of our past-’48 library, there is the ever alluring potential of pay television,” he said. “On May 25, the guaranteed portion of Paramount’s sale of its film backlog to TV, in the amount of $35,000,000, payable over a period of years beginning in 1960, has already been covered,” Balaban said. “In the additional phase of our agreement, upon which an additional $15,000,000 will be pay¬ able over a period of years, the prospects ap¬ pear favorable in view of the sales results thus far.” The 100 per cent Paramount owned “space age” science venture, Autometric Corporation, contemplates association with some of Amer¬ ica’s leading corporations in “classified” proj¬ ects in connection with defense programs, it was said. “Tellemeter Magnetics, Inc., formerly a sub¬ sidiary of International Telemeter Corpora¬ tion, has now befome a subsidiary of the par¬ ent company with Paramount holding an in¬ terest of more than 90 per cent,” Balaban stated. “Telemeter Magnetics has made very heartening progress during 1958 and this progress has continued during the first quar¬ ter of this year. We reaffirm our belief that Telemeter Magnetics will continue to expe¬ rience orderly growth in a vastly expanding field.” Balaban cited forthcoming Paramount prod¬ uct as testimony to the company’s determin¬ ation to furnish the exhibitors with boxoffice attractions in volume. In connection with “The Ten Command ( Continued on page 12) Chi Council Defeats Censor Compromise CHICAGO — Alderman Leon M. Despres was accused last fortnight of committing a fraud on the council’s police committee by submitting a proposed new motion picture censorship ordinance, which the committee voted to reject with only Despres dissenting. The present ordinance provides pre-cen¬ sorship of all motion pictures. But the censor board has quit labeling films “for adults only” under a federal District Court ruling March 24, invalidating portions of the ordinance. Under Despres’ proposed measure, pjre-censorship would be ended except for pictures to be shown to persons under 18 years old. William Kaska, assistant corporation coun¬ sel, said it is “just a subterfuge and an at¬ tempt to hoodwink the committee.” Another assistant corporation counsel, James Daley, said it is “an attempt to put a law before the committee which would easily be knocked out.” Alderman James A. Condon branded the ordinance “a fraud perpetrated on the committee.” Despres said he opposed all movie censor¬ ship, but proposed this measure as a com¬ promise. Kenneth Douty, executive director of the American Civil Liberties union, said the city should get out of the censorship business. Alderman Thomas Rosenberg said, “We don’t censor newspapers because they are es¬ tablished and responsible,” but he charged movie producers and directors “have no re¬ sponsibility to the public — are just interested in the box-office.” He said he thought it “un¬ fortunate that we have no censorship for tele¬ vision.” MPAA Welcomes S.F. Fete NEW YORK — Eric Johnston, president, Motion Picture Association of America, Inc., recently wrote to Irving M. Levin, director of the San Francisco International Film Festival, expressing best wishes for the suc¬ cess of the Festival which will be held Nov. 11-24. Johnston’s letter follows: “It is very encouraging to know that the San Francisco International Film Festival is continuing to grow, not only in the support of the citizens of San Francisco, but also in worldwide recognition. “I am pleased again this year to express the best wishes of the Motion Picture Asso¬ ciation and myself for the continuing success of the Festival. “The Festival is another demonstration cf the importance of the interchange of motion pictures among nations to the growth of common understanding and good feeling among the peoples of the world. “With best wishes for your success.” MGM Exec Returns To Stage NEW YORK — It was learned last fortnight that Kenneth MacKenna, head, MGM story department for the last 20 years, had resigned his post to return to Broadway in the leading role of Dore Schary’s new play, “The Highest Tree.” This will mark MacKenna’s first New York stage appearance since 1937. Schary formerly controlled production at MGM before his own return to Broadway.