Boxoffice (Apr-Jun 1961)

Proxy Challenge Hurled At NT&T Management LOS ANGELES — A major proxy fight in the ranks of National Theatres & Television, Inc., loomed this week. Two New York shareholders began the fireworks by announcing in a letter to stockholders, that they are seeking election to the board of directors, to rectify what they termed a “shocking situation” in the management and to halt “staggering losses” sustained in the last two years. The management immediately accepted the challenge, and a lively battle for favor of the company’s 20,000 stockholders is in prospect. LETTERS TO STOCKHOLDERS The shareholders already have heard from both sides. First came a six-page “urgent message” from the two dissidents, Leonard Davis, a New York group insurance consultant and administrator, and Philip L. Handsman, a New York lawyer, calling for assistance in the proxy fight. This was followed by a defend-and-attack letter from B. Gerald Cantor, chairman of the board of NT&T, and Eugene V. Klein, who has just assumed the presidency of the company. Davis and Handsman accused the present management of being responsible for a drop in the company’s earned surplus from $21,000,000 to $8,000,000 in a twoyear period, characterized the company’s investment in National Telefilm Associates as a “debacle,” and charged Cantor and several directors with benefitting from NT&T dealings with companies in which they allegedly held an interest. Cantor and Klein, on the other hand, charged Davis with starting the proxy fight as a “means to get into TV and motion picture production” and revealed at the same time that Davis earlier in the year had been involved in negotiations with NT&T for an interest in National Telefilm Associates. Cantor and Klein asked shareholders to vote against Davis’ “attempt to ride in with a small holding to appease a whim.” Davis and Handsman’s combined 1,604 shares are out of a total of 2,816,247 shares outstanding. Present directors and their associates own a total of 355,303 shares, which Cantor’s letter called “evidence in faith of your company.” SEEKING NEW INTERESTS Davis, the letter stated, bought his 1,500 shares within the past eight months. Since that time, Davis was said to have indicated his insurance business offered him no challenge and he would like to get into production, with National Telefilm Associates appearing, to him, as the likely vehicle for these ambitions. Davis, the letter continued, suggested he buy 50,000 shares of National Telefilm and then become a director and financial vice-president of the company without compensation, but this offer was declined by the management. Cantor, on February 28, said he was MGM-GAUMONT PACT SIGNED— A long-term coproduction agreement between Metro-Goldwyn-Mayer and S. N. E. Gaumont has been concluded by Joseph R. Vogel, MGM president, and Jean Le Due, president of S. N. E. Gaumont. Pictured at the contract signing, seated, are Vogel and Le Due. Standing, left to right, are Roger Sallard, general manager of Gaumont; Alain Poire, production chief of Gaumont, and Dave Lewis. willing to recommend to the NT&T board that Davis be granted a 30-day option to purchase 620,000 shares of National Telefilm stock at $3 per share, the market price at that time, upon depositing a certified check for $180,000. Asked why he wanted to buy into the company, Davis was quoted as saying he “wanted to make a million dollars through options.” Davis stated he would consider lending National Telefilm $1,000,000, convertible at $1 per share, but he was advised the directors could not consider such a conversion price in view of the company’s book value being $2 per share. Cantor also stated that Davis, on March 2, 1961, suggested NT&T lend $1,000,000 of its cash to National Telefilm, a means to solve National Telefilm’s financial problems and permit it to retain ownership of WNTA-TV, AM and FM stations in New York City, where WNTA is an independent station in a seven TV-station market. Davis declined to go ahead with the stock purchase but said he would be willing to lend $100,000 if NT&T would lend $900,000. When the offers all came to no end, Davis requested to examine the books and asked for a stockholder list and took other steps indicating he plans a proxy contest, Cantor and Klein’s letter stated. AIP to Distribute Japanese Cartoon LOS ANGELES — American-International Pictures has secured the U. S. distribution rights to “The Enchanted Monkey,” Toei Pictures Corp. of Japan’s color cartoon. Area Distributor Chairmen Appointed by MPAA NEW YORK — Exchange area chairmen of the national distributors committee of the Motion Picture Ass’n of America have been appointed for 1961 by Henry (Hi) Martin, national chairman. Martin said that in connection with the current Academy Awards promotion activities, the exchange area chairmen were collating all income received from the sale of exhibitor promotion kits and reporting to the MPAA each Monday on kit sales and inventories within their areas. The chairmen and their areas are as follows: Albany, John Wilhelm, 20th Century-Fox; Atlanta, Woodrow Sherrill, MGM; Boston, Tom O'Brien, Columbia; Buffalo, Lewis Lieser, Allied Artists; Charlotte, Robert Capps, MGM; Chicago, G. R. Frank, Paramount; Cincinnati, Jack Finberg, United Artists; Cleveland, David Rosenthal, UA; Dallas, H. C. Vogelpohl, Warner Bros.; Denver, Jules Needelman, Columbia; Des Moines, Joe Jacobs, Columbia; Detroit, Thomas F. Duane, Paramount; Indianapolis, P. A. Sherman, Universal, Jacksonville, Robert Bowers, Allied Artists; Kansas City, J. R. Neger, 20thFox; Los Angeles, T. J. Aspell jr., MGM; Memphis, Daniel M. Coursey, 20th-Fox; Milwaukee, Frank Yablens, Buena Vista; Minneapolis, L. J. Miller, Universal. New Haven, Angelo Lombardi, Warner Bros.; New Orleans, William Holliday, Paramount; New York, Harry FeMerman, Universal; Oklahoma City, Don Tullius, Warner Bros.; Omaha, Frank Larson, 20thFox; Philadelphia, Mort Magi II, Buena Vista; Pittsburgh, Jack Kaimenson, Warner Bros.; Portland, E. Douglyn, MGM; St. Louis, T. E. Dunn, Universal; Salt Lake City, W. W. McKendrick, UA; San Francisco, Al Grubstick, Warner Bros.; Seattle, Jimmy Beale, Columbia, arvd Washington, Harold Saltz, Universal. Exclusive Int'l Handling Four Films in April-May NEW YORK — Exclusive International Films will distribute four features during April and May, according to Edward M. Gray, president. The four are: “King in Shadow,” a German picture dubbed into English, starring Horst Buchholtz, Odile Versois and O. W. Fischer; “The Price of Silence,” a British film starring Gordon Jackson and June Thorburn; “Young Love,” a Finnish picture dubbed into English, with Peter Weckstrom and Tia Ista, and the rerelease of “Mayerling,” French film starring Charles Boyer and Danielle Darrieux, which has not been shown in ten years. Exclusive distributor affiliates arrived in New York Thursday (23) for four days of conferences. They are: Joe Gins of Washington; Sam Seplowin, middle west; Ellis Gordon, New England; David Rosen, Philadelphia and Pittsburgh, and Ike Katz, southwest. Alan Villiers Signed to Aid In 'Billy Budd' Production HOLLYWOOD — Alan Villiers, the shipmaster-adventurer-author who brought the new Mayflower from Plymouth, England, to Plymouth Rock in 1957, has been set as commodore of the flotilla of three sailing vessels to be used in “Billy Budd,” the Peter Ustinov-Ronald Lubin filmization of Herman Melville’s sea classic which Allied Artists will release. Villiers will not appear in the film, which will star Robert Ryan and Ustinov and a third top actor. He is recognized as the foremost living authority on windships, their history and management. 20 BOXOFFICE :: April 3, 1961