The Exhibitor (1953)

12 EXHIBITOR Howard Hughes Gets Back Management Wins At Columbia Meeting New York — Management won an easy victory at last week’s annual meeting of Columbia Pictures. The management’s slate of nine directors was elected and a new four-year contract for Jack Cohn, executive vice-president and director, was approved, as was a new five-year con¬ tract and a 10,000-share stock option plan for A. Montague, vice-president, director, and distribution head, and a 1,000-share stock option plan for Gerald Rackett, gen¬ eral laboratory supervisor. The stockhold¬ ers also voted to keep Price Waterhouse and Company as the independent account¬ ant and auditor. Directors reelected were Harry Cohn, president; Jack Cohn; A. Schneider, vicepresident and director; N. B. Spingold, vice-president in charge of advertising and publicity; Leo M. Blancke; Alfred Hart, and Donald S. S. Starlem. Abraham M. Sonnabend was elected to the board for the first time, replacing Col. Henry Crown. The meeting was punctuated by some criticism of management, particularly by Lester Martin, an investment broker, who had failed in his attempts to have the meeting adjourned for two weeks. He had earlier attempted to get a list of stock¬ holders from the company. When that was denied him, a court order approved his petition. The okeh came too late for the Martin group to contact stockholders in reference to protests against granting the stock option to Montague. Martin pro¬ posed at the meeting that three directors be added to represent common stock¬ holders, but the proposal did not come to a vote. Both Jack Cohn and A. Schneider brought stockholders up to date on three-dimen¬ sional developments and wide-screen pictures. They explained that Columbia would join the parade to three-dimensional production, but had not yet decided which system to use. Jack Cohn told stockholders that the company has no plans at present for licensing any of the several wide screen processes now receiving industry atten¬ tion. He said that while the company was committed to the production of three three-dimensional features, no decision has been reached as to the process to be used. He stressed the need for quick standardization, but added that the com¬ pany might build its own process, joining Paramount, Warners, and 20th-Fox. He termed the industry three-dimen¬ sional furor “one of the quick shuffles which comes along from time to time, acting as a hypo to the industry,” and made it plain he believed this hypo would be effective. He predicted that the next four months would see 30 to 40 pictures started in one of the new processes, and that within six months the trend would be well underway. He also told the stockholders that the company was not overly concerned about a falling-off in attendance for two dimen¬ sional features, but stressed that the situa¬ tion calls for daily watching. Board Meeting to Follow, With James R. Grainger Set For Presidency; Depinet Also Secures His Shares Hollywood — Howard Hughes, chairman of the board, RKO Pictures Corporation, issued the following statement last week: “In reply to queries concerning the stock in RKO Pictures Corporation which I previously owned, and which was pur¬ chased from me last September by a syndicate headed by Ralph Stolkin, of Chicago, I have just learned from Stolkin that his syndicate has decided to return this stock to me. The stock is still owned by Mr. Stolkin’s syndicate, but Mr. Stol¬ kin has just now informed me that his syndicate is issuing the necessary instruc¬ tions to accomplish transference of the stock back to me. “After receipt of the stock, it is my intention to request that a meeting of the board of directors of RKO be held as soon as practicable. At this meeting, I intend to nominate Mr. James R. Grainger for the office of president of RKO, and it is my sincere hope that the directors will see fit to elect him to this position. It fol¬ lows automatically that, when the stock in RKO mentioned above is returned to me, the stock purchased from Mr. Ned E. Depinet will likewise be returned to him.” Hughes sold the stock to the Stolkin group on Sept. 22, 1952, disposing of 1,013,420 and Depinet selling 36,000 shares. Together, they owned 26.8 per cent of the total stock outstanding. It was reported that Hughes and Depinet, as part of the deal, will be entitled to keep the $1,250,000 deposit advanced by the Stolkin group, and the latter will be released from further obligations. Schneider, vice-president and treas¬ urer, disclosed that Columbia had con¬ sidered shooting “From Here To Eternity” in a new process, but decided against it. He added that Columbia will experiment with the 20th-Fox process. Cohn said that for a time dual shoot¬ ing of pictures would be advisable, and suggested that theatres might install flat screens in front of the curved screen which is required for wide screen projection. Another stockholder inquiry brought the assurance that Jerry Wald was in “full accord” with the company viewpoint on production with the new processes. Schneider assured stockholders that they will be informed before the com¬ pany sells any old films to television. Schneider said the company was watch¬ ing the TV situation carefuly as it applies to films, and referred to both Telemeter, half owned by Paramount, and Zenith’s Phonevision. Potentially, it was said, such systems hold out greater financial returns for feature films than did commercial television. Stockholders also expressed interest in Screen Gems, wholly owned subsidiary Stolkin Stock Hearings Recessed On Theatre TV Washington — The Federal Communica¬ tions Commission last week recessed hearings on theatre television to an unde¬ termined date after intensive questioning on the industry’s specific proposals. Marcus Cohn, attorney for the NETC, and Vincent Welch, MPAA attorney, bore the brunt of the commission’s questions. Cohn assured chairman Walker it would not take anything away from home tele¬ vision, as Walker wondered if the FCC were unwittingly building up a perpetual monopoly of news and events heretofore available to the public. Cohn estimated that within 10 years, there would be from two to five hours of theatre tele¬ vision programs available to theatres daily. He told the commission that he would present witnesses who would testify that they would participate in companies that would be applicants for theatre television channels. He further stated that the in¬ dustry would agree to have the commis¬ sion write into its rules a prohibition against the use of film on theatre tele¬ vision programs, “except incidentally,” and that it would prohibit the use of adver¬ tising on theatre television programs. Welch outlined the drawbacks involved if a common carrier should transmit theatre television programs, instead of exclusive channel allocations, saying there would be frequency conflicts, intercon¬ nection problems, and a poor quality of service. He said that witnesses would testify that AT and T could only pro¬ vide for 23 per cent of theatre television programs planned. Bert Sanford Mourned New York — Bert Sanford, Jr., 60, died last week of a heart attack. The industry veteran, in semi-retirement at the time of his death, was a member of the Motion Picture Pioneers, Variety Club, and the 25-30 Club, film projectionists. He is survived by his widow, two brothers, three sisters, a daughter, and two grandchildren. Cinerama In Technicolor Deal Hollywood — C. B. Whitney, member of the board of directors, Cinerama Produc¬ tions, Inc., and executive assistant to the president, announced last fortnight the signing of a 10 million dollar contract with Technicolor. Roxy Declares On Preferred New York — Directors of Roxy Theatres, Inc., last week declared a quarterly divi¬ dend of 37% cent per share on the out¬ standing preferred stock. which has entered the TV field. Schneider said the returns from the company were not lucrative, but added that the com¬ pany was “making a little money,” that it was gaining beneficial experience, and that its executives were working on addi¬ tional TV contracts. February 18, 1953