The Exhibitor (1954)

EXHIBITOR 7 O’Scope Bottleneck Broken By March 1 5 U-l Profit Shows Healthy Increase New York — Universal Pictures Com¬ pany, Inc., last week reported consolidated net earnings for the fiscal year ended on Oct. 31, 1953, of $2,616,356 after provision of $3,863,000 for federal income and ex¬ cess profits taxes and after provision of $500,000 for contingent liabilities. After deducting dividends on the preferred stock, such consolidated net earnings amounted to $2.35 per share on the 1,010,411 shares of common stock out¬ standing on Oct. 31. For the preceding fiscal year, consoli¬ dated net earnings were $2,307,701 after provision of $4,309,924 for federal income and excess profits taxes and after pro¬ vision of $500,000 for contingent liabilities. After deducting dividends on the pre¬ ferred stock, these earnings were equiva¬ lent to $2.15 per share on the 961,698 shares of common stock outstanding on Nov. 1, 1952. Film rentals and sales for the fiscal year 1953, according to the company’s annual report, mailed to stockholders, were $70,490,254, compared with $64,128,719 for the previous fiscal year. It continues to be the practice of the company to reflect in its accounts the operating results of subsidiaries in for¬ eign countries having exchange restric¬ tions only to the extent that net earnings resulting therefrom have been realized in United States dollars, regardless of the period or periods in which such revenue may have accrued. The report also notes that during the calendar year 1953 two semi-annual divi¬ dends of 50 cent per share each and one extra dividend of 25 cents per share were paid on the common stock. WB Changes Revealed Washington — The Securities and Ex¬ change Commission reported last week that Harry M. Warner, Warner president, made gifts of 7,700 shares of common stock in December, reducing his holdings to 109,900 shares. Jack L. Warner, pro¬ duction vice-president, purchased 18,300 shares, bringing his total holdings to 247,299 shares. Terre Haute Actions Must Go To Trial INDIANAPOLIS— Federal Court Judge William E. Steckler last week denied a government motion for de¬ claratory judgment in a suit charging Terre Haute, Ind., theatre operators with violation of anti-trust laws. This means that the two-year-old suit alleging that operation of a the¬ atre pool stifles competition among first-run houses and restrains the flow of product must be tried. The govern¬ ment had asked that operation of the pool be declared automatically illegal. The ruling now makes it necessary for the government to prove its monopoly charges. Defendants in the suit include Alli¬ ance Theatre Corporation, Chicago; Fourth Avenue Amusement Corpora¬ tion, Louisville, Ky.; Grand Theatres Corporation, Tri-Theatres Corporation, and Terre Haute Amusement, Inc. De¬ fense attorneys asked the court to grant an extension of time before the case comes to trial. COMPO, Treasury Men In Talk Washington — The committee from COMPO, consisting of Colonel H. A. Cole, Pat McGee, Sam Pinanski, A1 Lichtman, Walter Reade, Jr., Wilbur Snaper, A1 Sindlinger, Alfred Starr, Abram F. Myers, and Robert W. Coyne called on the Sec¬ retary of the Treasury George Humphrey and Under-Secretary Marion Folsom last week to discuss industry problems with relations to the admission tax, and pre¬ sented to the Treasury officials additional data concerning the need for relief from the tax. M. J. Cullen Mourned New York — Michael J. Cullen, 55, southern and western division manager for Loew’s Theatres, died suddenly in Tucson, Ariz., from a coronary throm¬ bosis last week. He had been convalescing and vacationing. His home was in St. Louis. Cullen joined Loew’s in 1928 as man¬ ager, Loew’s State, Providnce, R. I. He is survived by his widow, Fay. Lichtman Tells Sales Staff Normal Supply Of Prints Will Be Available Then; 10,000 Houses Equipped By End Of Year, He Predicts New York — A1 Lichtman, 20th CenturyFox director of distribution, announced last week that the current CinemaScope print bottleneck will be broken by March 15 and that a normal supply of prints will be available to exhibitors equipping the¬ atres for CinemaScope following that date. Convening the opening session of a major sales meeting in New York, Licht¬ man said that stepped up production at the Technicolor Laboratories in California and DeLuxe Laboratories in New York will enable full servicing of prints by the middle of March. Increased print production will also be reflected in the greater availability of an array of short subjects to enable ex¬ hibitor programming of full CinemaScope shows. Some 1500 theatres in the United States and Canada are presently equipped for CinemaScope, Lichtman said, with 100 orders per week currently being received by equipment dealers. Lichtman further predicted that 10,000 theatres would be equipped for the process by the end of 1954. Reemphasizing the importance of stereo¬ phonic sound to CinemaScope, Lictman said it was an essential and necessary component. Lichtman also declared that he stood behind his pledge, made at the October sales conclave, that all exhibitors will, and must, profit by the showing of CinemaScope. (Meanwhile, it was learned that Indianalllinois Theatres had taken steps to with¬ draw from the Theatre Owners of Amer¬ ica as a protest against the action of TOA President Walter Reade, Jr., in having used a sound mixer instead of stereo¬ phonic sound in some engagements of “The Robe.” — Editor.) Merchandising plans on six 20th-Fox pictures, three filmed in CinemaScope, and three standard films made for company release by Panoramic Productions, were formulated. In discussions led by Licht¬ man; executive assistant general sales manager W. C. Gehring, western sales manager Edwin W. Aaron, and eastern sales manager Arthur Silverstone, distri¬ bution programs were formulated. CinemaScope pictures covered were “Hell And High Water,” “Night People,” and “Prince Valiant.” Panoramic Produc¬ tions covered were “Three Young Texans,” "The Siege At Red River,” and “Gorilla At Large.” The three Panoramic Productions are in color by Technicolor, and "Gorilla At Large” will be made available both in 2-D and 3-D. Reports reflecting current exhibition conditions were made at the sessions. The industry's trade press recently gathered in New York City to do honor to a former member of the craft, Bill Ornstein, on the occasion of the publication of his second collection of short stories, “Deep Currents." Silas F. Seadler, MGM advertising manager, was master of ceremonies, and seen on Seadler's right is Ornstein, also trade press representative for MGM. At the end seats are Ernest Emerling, Loew's Theatres, and Mandel Herbtsman. Many other trade press representatives were there. February 3, 1954