Boxoffice (Jan-Mar 1962)

Ex-N.E. Unit of Allied Affiliates With TOA Vogel Reports to Stockholders: MGM Sets 15-Yr . Top Net; 30 Per Cent Above 1960 BOSTON — Independent Exhibitors, Inc., of New England has affiliated with Theatre Owners of America following a special meeting of the board of directors on February 26. The unit’s companion association, New England Drive-In Theatres Ass’n, is part of the package. Independent Exhibitors formerly was an affiliate of Allied States Ass’n. It withdrew from the national body following the 1959 convention in Miami Beach. The New England group is composed of exhibitors with conventional and drive-in theatres in the six New England states, most of which are based in the Boston area. Julian Rifkin, who was elected president on February 13, said that TOA had extended an invitation to the unit several months ago at a meeting attended by Albert Pickus, TOA president at the time, and John H. Stembler, current president, who explained TOA’s program and objectives. Rifkin succeeded Edward Lider, who had held the post for several years. NEW YORK — Affiliation of Independent exhibitors of New England with Theatre Owners of America was hailed here by John H. Stembler, TOA president, who pointed out that the action by the New Englanders followed by a week the formation and affiliation of Theatre Owners of Pennsylvania with TOA. “The New England unit is a progressive, sound organization composed of industry minded theatremen,” Stembler said. “By joining TOA, they have secured a national outlet for their activities, and we of TOA are pleased and proud to have an organization and men of this caliber in our theatre family.” Stembler said the New England affiliation marked another step forward in TOA’s continued growth during the last several years. He said that with this addition, TOA was even more representative of all exhibitors, independent as well as circuit, than ever before. Stembler said the new unit would name its delegate shortly to TOA’s national board of dix-ectors so that it would be i-epresented at TOA’s mid-winter board meeting in Washington March 18-20. Court Affirms Decision In Arkansas Pay TV Case LITTLE ROCK, ARK.— Judge Guy Amsler of tihe Arkansas Circuit Court issued a decree on February 27 reaffirming the court’s earlier opinion upholding the decision of the Arkansas Public Service Commission which had ordered the Southwestern Bell Telephone Co. to provide the necessary facilities for closed-circuit pay TV to Midwest Video Corp., which holds a Telemeter franchise. The decision denies the petition of the intervenors — Independent Theatre Owners of Arkansas, United Theatres Corp. and Rowley United Theatres — for -a rehearing of an appeal which sought to have the Public Sex-vice Commission’s x-uling vacated. An appeal by the intervenors now will be made to the state Supreme Coxxrt, later taking it to the U. S. Supx-eme Corn't, if necessary. NEW YORK — Metro-Goldwyn-Mayer set a 15-year-high mark for profits in 1961 and showed a 30 per cent increase over those of the px-evious year, Joseph R. Vogel, president, told the annual meeting of company stockholders February 23. This marks the third consecutive year in which there was an increase. The quarterly dividend also was x’aised fi'om 40 to 50 cents per share. Vogel indicated, however, that the cmrent fiscal year’s profit might be lower than the $12,600,000 earned last year because of the x-erelease of “Gone With the Wind,” which brought in domestic film rentals of $6,000,000 in 1961. The pi-incipal pui-poses of the meeting wex-e to reelect directors and to act on a proposal of stockholders John and Lewis Gilbert to adopt cumulative voting for directors— an annual event with the Gilbert bx-others at annual meetings. The dix-ectors were re-elected and the Gilberts’ proposal was voted down by a vote of 1,693,103 shares to 112,292. Vogel was optimistic over the prospects of earnings from MGM’s first two films to be made in Cinerama, “How the West Was Won” and “The Wonderful Woi’ld of the Brothers Grimm.” He said, however, that the company wanted to get the results of those two pictures before committing itself to more films in the px-ocess. He said MGM was protected in the Cinerama deal by retaining the x-ights to release the two pictux-es in 70mm, 35mm and 16mm versions after they had played out in the three -projector system. Reporting on the progress of MetroKalvar, Inc., Vogel said work was progi-essing to determine whether a revolutionary film created by Kalvar could be adapted on a commercial basis for motion picture and television film prints. He said exposed Kalvar film could be developed immediately by the application of heat, eliminating wet chemical processing and dax-krooms with a resultant saving in costs. In answer to questions, Vogel brought out that: • The newsreel company had been operating in the x-ed, but that pending government deals might put the newsreel division on a px-ofitable basis. • The company’s two oil wells brought in only $60,000 last year, but there wex-e prospects for better x-e turns. • The present dividend rate will be maintained. • The company was considering the purchase of the Loew’s State Bldg, in which the homeoffice is headquartered. • MGM spent $6,400,000 for advertising in 1961, compared with $5,300,000 the year before. The optimistic repoi’t was marred by personality clashes among some of the shareholders, but Vogel held order and his temper. He was the target of a barb only once when John J. Gilbert, a stockholder, accused the MGM president of having a stooge at the meeting in the form of a Nebx-aska stockholder and exhibitor. Vogel took exception to the statement, declaring he had never met the Nebraskan before in his life. STEMMED FROM DIFFERENCES The clashes of personalities stemmed fx-om diffex-ences of opinions on company operations, although there were no direct criticisms as such; one shareholder objected to the granting of stock options to officers. Two women, one owning ten shares and the other 150 shares, almost came to a name-calling stage. There were some cries of “sit down” at various times when John Gilbert got up to ask his timeworn questions. Vogel said that activities had been stepped up in TV syndication with the licensing of earlier network shows hex-e and abroad. The release of some post-1948 features to television was beginning to px-ovide additional revexxue, he said. He added that additional income was being generated from the featux-e film libi-ary by reissuing to theatx-es selected pictures not leased to TV. A special depai’tment has been set up to handle these films. The music and x-ecord depax-tments, he said, were opex-ating satisfactorily and that a deal was on to acquire a foreign company for the merchandising of classical records. ENTHUSIASTIC OVER PRODUCT In discussing product, Vogel was enthusiastic over “Mutiny on the Bounty,” which, he said, encountered difficulties in production but that he was confident it would stand as one of the important “milestones in the annals of the film industx-y.” Others which he said wex-e top-scale px-oductions were “The Four Horsemen of the Apocalypse,” “The Horizontal Lieutenant,” “Boys’ Night Out,” “Sweet Bird of Youth” and “Jumbo.” Vogel also reported a multiple -picture agx-eement with Seven Arts Px-oductions of which the first pictxxre would be “Lolita.” When asked how such a sensational book could be made into a pictux-e, Vogel said it had been skilfxxlly produced in good taste. Others in the pact will be Tennessee Williams’ “Night of the Iguana” and Nox-man Krasna’s “Sunday in New York.” Re-elected directors wex-e Ellswox-th C. Alvord, Gen. Omar N. Bradley, Bennett Cex-f, Nathan Cummings, Ira Guilden, George L. Killion, J. Howard McGrath, Benjamin Melniker, Robert H. O’Bx-ien, William A. Parker, Philip A. Roth, Chai’les H. Silver, John I. Snyder jr., John L. Sullivan and Vogel. Joseph R. Vogel BOXOFFICE :: March 5, 1962 5