Boxoffice (Oct-Dec 1962)

MPI Reports Profit; Stock Value Is Up First Full-Fledged Pay TV To Start in Santa Monica CLEVELAND — At the annual meeting of stockholders of Motion Pictui-e Investors, Inc., Walter Reade jr„ president, reported a forward move by the organization in that it showed an operational profit this year* and that the value of its stock had increased. He also stated that the outlook was enhanced for the company’s carrying out at least one of its initial plans, namely, to increase the output of film production. The meeting was held at the SheratonCleveland Hotel in conjunction with the Allied States convention. Reade reported MPI assets of $337,870.21 as of November 30, consisting primarily of shares in motion picture and related companies’ stocks amounting to $250,637.75. A note on Carousel Pi'oductions for $65,000 and one for $12,500 on Guild Studios 5, Inc., are included in the receivables. As was announced last week, MPI has taken over the distribution from PatheAlpha Corp. of “The Deadly Companions,’’ which it had helped to finance and will release it under a new title, “Trigger Happy.’’ This will be packaged with “The Checkered Flag,” an auto-racing story, for which it is providing completion money. This film will be ready for screenings by mid-December and January release of the combination is contemplated, on an area saturation booking plan. The stockholders reelected the 18 members of the board of directors. At the board meeting, which followed, Richard Orear, president of Commonwealth Theatres of Kansas City, who has served as MPI treasurer since its inception, and Beverly Miller, vice-president, an independent theatre operator, also of Kansas City, resigned, because of other duties. Charles E. Shafer was elected to succeed Orear, with Ed Bomberger as assistant treasm-er. Both are with the Commonwealth company. A successor to Miller’s post as vicepresident is under consideration. Reelected were Howard E. Jameyson, of Wichita, Kas., chairman of the board; Walter Reade jr., Walter Reade Enterprises, New York, president; Robert S. Ballantyne, Omaha, vice-president; Byron Spencer, secretai'y; and Robert P. Lyons, assistant secretary, both of Kansas City. The executive committee was reduced from six to five. Reelected were Hardy W. Hendi’en jr., Kansas City; Ben Marcus, Wisconsin circuit operator; Spencer, Reade and Ben Shlyen, publisher of Boxoffice. H&E Balaban Corp. Signs For TO A Membership NEW YORK— The H&E Balaban Corp. Theatres of Illinois and Michigan, and the Corral Drive-In Theatre of Eldon, Mo., have joined the Theatre Owners of America, it was announced by TOA’s New York headquarters. The Balaban circuit, which headquarters in Chicago, operates theatres in Chicago, Des Plaines and Rockford in Illinois, and in Detroit. The membership was signed by Elmer Balaban, vice-president. The Corral Drive-In is owned and operated by Tom E. Edwards of Eldon. Ark. High Court Denies Toll TV Case Rehearing Little Rock, Ark. — The state Supreme Court has denied the application of the Independent Theatre Owners of Arkansas for a rehearing of its case to prevent the projected Telemeter pay TV operation here. On November 5, the state court had unanimously upheld a prior decision by a lower court which affirmed the authority of the state Public Service Commission to direet Southwestern Bell Telephone Co. to provide the necessary facilities to conduct the pay-TV operation to Midwest Video Corp. Although the exhibitors are free to appeal to the U. S. Supreme Court, Howard Cockrill, attorney for Rowley United Theatres of Dallas which operates six theatres here, and Leon B. Catlett, attorney for the ITO, indicated they would not carry the action further, since any favorable ruling seemed unlikely. Insurance Program Of Allied Expands CLEVELAND — Allied States Ass’n has expanded its insurance service to include public liability and workmen’s compensation at substantial savings to Allied member theatres. Milton London, executive director of Allied, told the convention here Tuesday (^4) that by arrangement with the Consolidated Mutual Insurance Co. of New York, Allied was making available to its members the broadest public liability contract that money could buy, at rates considerably lower than theatres nonnally would pay. These savings, he said, ranged from 20 to 31 per cent. London explained that public liability rates for motion picture theatres had been rising constantly dm-ing the last several years and that most theatres would find that the renewal rates would increase when present policies expired. The new service for Allied members, London said, would effect a considerable saving and would guarantee the low rate for a period of three years. A year ago. Allied announced a low-cost life insurance program for Allied members and almost 1,000 members now are covered by approximately $5,000,000 in life insurance, London said. In the last year, Pnidential Insurance Co., which handles the program, has paid out benefits amounting to $35,000 to the families of seven Allied members. London said the insui’ance programs were only two services which “make it uneconomic and costly for any theatre not to belong to Allied.” SANTA MONICA— The first full-fledged pay television operation in the country, not to be launched on a test basis, is scheduled to start here in about 14 months for Home Entertainment Co. of Los Angeles. Plans for installation of the “cable electronic theatre” system were revealed Wednesday (5) night before a gathering of more than 500 persons from the entertainment and business world. Oliver A. Unger, president of the parent company and chairman of the board for the local franchise, announced that General Telephone Co. will begin laying coaxial cables for service to 20,000 customers early next year. He also revealed that actor Wendell Cory will be president of Home Entertainment Co. Corey is president of the Academy of Motion Picture Arts and Sciences and holds office in both the Screen Actors Guild and the Television Academy of Arts and Sciences. Jerry Gabriel has been appointed vicepresident of operations for the Los Angeles franchise, and Jack Orbison, former CBS director, is program director. Demonstration of the system was conducted by W. H. Sargent jr., a vice-president of Home Entertainment and inventor of the system. He introduced the executives and engineers from five collaborating companies engaged in developing and installing the system. Sargent said that Home Entertainment will have a three-channel system — two of the channels to be used for pay programs and the third as an information channel on which continuous previews of forthcoming programs will be shown. Facilities also will be provided for bringing into the home continuous performances of popular and classical high-fidelity music. Features of the system include meter installation outside of the house where it can be read at the end of each month, and monthly billing for only those programs viewed. A service charge of $1 per month will be levied. Under a multiple-pricing system per program fees will range from 15 or 25 cents to $1 or $1.50 for a new movie. A special event such as a championship fight would amount to the price of single theatre admission, Unger said. No charge will be made for repeated viewing of any program, he added. If a new movie is viewed by some members of a family, he said, those who missed it may see its repeat on the same set at any other time without the meter recording a charge. Theatreman Elected As Mayor of Toronto TORONTO — Don Summerville, theatre operator and realtor, was swept into the office of mayor by a landslide. Summerville, who has been the city council’s budget chief the last two years, handed Nathan Phillips, mayor the last eight years, his first political defeat in 36 years. Phillips was an alderman before winning the mayor’s office four times. Summerville advocated a businesslike handling of city affairs. BOXOFFICE :: December 10, 1962 9