Boxoffice (Oct 6, 1951)

20TH-FOX STOCKHOLDERS OKAY DIVORCEMENT PLAN Skouras Finds Earnings Definitely on Upbeat NEW YORK-—Stockholders of 20th Century-Fox approved the divorcement plan required by the antitrust consent decree Thursday (4) by a vote of 2,047,162 to 8,160 against. A two-thirds vote was necessary to make it effective. An amendment to the plan outlined in the proxy statement was offered so that, if a provision of the tax law now pending in congress should be passed, the company would be able to continue one company and form one new one, This would cut the reorganization expense, the stockholders were told. A WAY TO BUILD THEATRES Under the terms of the separation of exhibition from production and distribution, Spyros P. Skouras, president, stated, 20thFox can own no theatres, except in a case where exhibitors refuse to show the company’s pictures. This, however, would require the approval of a court. Stockholders in 20th-Fox will be able to hold stock in both of the new companies, unless they own one-half of one per cent of the outstanding stock or are officers. Discussing the earnings of the company, Skouras reminded that last May he had predicted that the first half of the year would be one of the most unsatisfactory periods in the history of the company. The results confirmed his statement at that time, he said, as the consolidated net was $1,071,000. The outlook has improved since then. The third quarter, he predicted, will show a consolidated net between $1,200,000 and $1,300,000 and the final figure will be more favorable than for the third quarter a year ago which ended with net earnings of $1,912,000, of which $876,000 was income of prior years from countries with currency restrictions. This item will not recur in the third quarter statement this year. In the 1951 third quarter earnings, federal income taxes have accumulated at the rate of 54 per cent since April 1. ANTICIPATES GOOD DIVIDEND For the fourth quarter, he said, he expected to exceed the $2 dividend by a fairly good margin. “It looks as if the business is definitely on the upgrade after a very disheartening start,” he said. Worldwide film rentals for the first 39 weeks of this year were only 2 per cent ahead of those for the same period in 1951, but for the third quarter alone the improvement was 8 per cent, he said. The theatre business has also shown recent improvements, he said. For the first half of the year receipts were off about 8 per cent. In the third quarter this had been reduced to 3 per cent. Economies have been continued, he reported, At the annual meeting in May Skouras estimated the average cost of releases in 1951 would be $1,430,000. The results show the average will be less than $1,400,000. The average cost in the current exhibition year is now estimated at $1,294,000, 14 Success Is Predicted For Color Theatre TV NEW YORK—Spyros P. Skouras, 20th Century-Fox president, told the stockholders at a special meeting Thursday (4) that he had flown directly from Zurich to report large-screen color television would be a success. The achievement was the result of 15 years of research and was full of significance, he said. Skouras revealed new details of the color arrangement with Columbia Broadcasting system. This agreement was reached after Dr. Peter Goldmark, head of CBS research, had visited Switzerland, to see the Eidophor projection system. The CBS color is a stopgap to speed up the process pending development of a full electronic system which has been promised by Eidophor engineers in from 18 months to two years. Skouras said the possibilities were immense because it would make it possible for the company to put on shows like the Roxy and Music Hall in as many as 1,000 or 2,000 theatres and would draw grosses that had never been thought possible. General stimulation of moviegoing will result, he predicted. ; The apparatus will not be larger than present film projectors, he promised. Fox has exclusive manufacturing and licensing rights in this country and has already made manufacturing arrangements with General Electric for manufacture and distribution everywhere, except Europe. It will have a 50 per cent interest in the European company with the Swiss interests holding the other 50 per cent. Spyros Skouras Martina Sues for $841,500; Says Decree Is Violated ALBION, N. Y.—Alleging that it has not been able to obtain its share of split product as ordered in the Schine decree, the Martina Theatre Corp. has filed suit for $841,500 triple damages against the Schine circuit and the eight major distributors. C. V. Martina, president of the Martina circuit, said that under the decree the Capitol Theatre in Oswego was to have received 3344 per cent of top product and the Pontiac at Ogdensburg 40 per cent of first run pictures, but that the theatres have received less than 5 per cent of the top films. In most of these instances, the company was required to bid for the pictures. New Remittance Paci Becomes Operative ORK—Although unsigned, the new Shoe nth remittance agreement became operative Monday (1), providing increased earnings for American companies. Minor revisions are still being made in it and the prospect is that representatives of both groups will sign it within a few weeks and make it retroactive. John G. McCarthy, vicepresident in charge of international affairs, Motion Picture Ass’n of America, has asked the British to send a representative here for the event, but it is possible that signed copies may be exchanged by mail. Ellis Arnall, president, will sign for the Society of Independent Motion Picture Producers. The pact runs two years. McCarthy has predicted that remittances may reach the $27,000,000 mark under the pact. He arrived at the figure by adding to the basic $17,000,000 annual guarantee a production bonus of about $4,000,000 under the new rate of 3314 per cent, and perhaps $6,000,000 under the Eady plan. London has estimated that there is about $5,500,000 in U.S. frozen funds in Britain. The method of unfreezing the money has not been made known and possibly has not yet been decided. Ten Distributors § Sign ECA Film Agreement WASHINGTON—The Economic Cooperation Administration on Tuesday (2) announced signing of motion picture convertibility contracts with ten distributors providing that the companies will be able to convert German mark earnings from film rentals in western Germany into dollars at the current rate of exchange. The agreements cover showings in the western zone of Germany between Sept. 1, 1950, and Aug. 31, 1951, and the contracts total $2,177,870. The films involved are the ones approved by ECA's film advisory committee for inclusion in the guarantee program. Conversion is limited to the amounts specified in the contract for the approved features and short subjects and a maximum of $25,000 per picture plus out-of-pocket dollar costs incurred in the preparation of German-language versions, and also may not exceed net receipts actually earned on the pictures. It has been found in practice that the amounts which may be converted are usually only a small part of boxoffice receipts. Companies covered and earnings which may be converted under the new contracts are: Columbia, $160,295 for five fea $25,000 for three shorts; Samuel Ragan $99,240 for three features; Loew’s, $363,300 for nine features, and $8,750 for six shorts: Paramount, $312,595 for eight features and $5,250 for seven shorts: Republic, $59,305 for two features and $5,000 for one short: RKO $304,570 for seven features; Selznick Releasing Corp., $110,555 for three features; 20th Century-Fox, $201,640 for five features and $11,000 for four shorts; Universal, $251,770 for nine features and $16,250 for ten shorts: and Warner Bros., $233,350 for seven features, BOXOFFICE :: October 6, 1951 . aGnunseiiee