The Exhibitor (May-Aug 1948)

THE EXHIBITOR 11 Allied Hits At Theatre Ownership By Branch Managers , Employes Denver — Ownership of or partnership in theatres by film exchange managers or employes was attacked last fortnight by Allied States’ board of directors. In a three-day spring meeting, the directors asserted that this type of situation could easily lead to discrimina¬ tion against other houses in film deals. "Tele On Wrong Foot," Dietz Tells Women NEW YORK— Howard Dietz, MGM advertising publicity vice president, told a luncheon meeting of the Wo¬ men’s Advertising Club last fortnight that television started on the wrong foot by allowing sponsorship of its entertainment offerings. Dietz said that a “slot machine” method of pay¬ ing for programs would have been more successful. Dietz doubted that television and motion pictures will ever get together because the sponsor is a barrier to such a merger. He said that with sponsors in. a dominating position, the result is often an unbalanced entertainment program. Skouras Again 20thFox Prexy New York — The board of directors last week reelected Spyros P. Skouras, 20th Century-Fox, president following the election of 13 directors at the corporation’s annual meeting. Members of the Board elected by the stockholders to serve until 1949 included: L. Sherman Adams, Robert L. Clarkson, John R. Dillon, Wilfred J. Eadie, Daniel O. Hasting, Donald A. Henderson, Robert Lehman, William C. Michel, William P. Philips, Seton Porter, Murray Silverstone, Skouras, and Darryl F. Zanuck. Elected with Skouras, to serve as officers for the next year, were the following: Michel, executive vice-president; Zanuck, vice-president in charge of production; Silverstone, vice-president; Joseph H. Moskowitz, vice-president; Henderson, treasurer-secretary; Eadie, comptroller and assistant treasurer; Francis T. Kelly, assistant treasurer; Fred L. Metzler, as¬ sistant treasurer; Read B. Simonson, as¬ sistant treasurer; C. Elwood McCartney, assistant comptroller; J. Harold Lang, assistant secretary; Norman B. Steinberg, assistant secretary; George F. Wasson, Jr., assistant secretary, and William Werner, assistant secretary. The company and all subsidiaries, in¬ cluding National Theatres Corporation and Roxy Theatre, Inc., reported a con¬ solidated net profit of $2,926,842 after all charges for the first quarter ended on March 27, 1948. After deducting dividends on prior preferred and convertible pre¬ ferred stocks, the consolidated net profit amounted to $1 per share on the 2,769,024 shares of common stock outstanding. The consolidated net profit after all charges reported by the corporation for the first quarter of 1947 was $5,897,603, which, after deducting preferred dividends, amounted to $2.07 a share on the 2,765,813 shares of common stock then outstanding. The profit for the fourth quarter of 1947 was $3,395,541. The board declared a quarterly cash dividend of $1.12 14 per share on the out¬ standing prior preferred stock of the cor¬ poration, payable on June 15, 1948 to the stockholders of record at the close of business on June 1, 1948. A quarterly cash dividend of $.3714 per share on the out¬ standing convertible preferred stock has The directors warned local units to keep a close watch for violations or court action that might tend to go against the U. S. Supreme Court decision in the anti¬ trust case. A resolution was passed thank¬ ing board chairman and general counsel Abram F. Myers for his work in the gov¬ ernment’s case. Television was reported on by True¬ man Rembusch, president, Indiana ATO. The meeting was presided over by national Allied head William Ainsworth, and 17 board members attended. Maryland Suit Threatens Salisbury, Md. — Prospects of a possible federal restraining order and a quarterof-a-million dollar damage suit appeared last fortnight as major hurdles in the path of Schine Theatres’ proposed 1,800-seat theatre here. Ulman Theatre Corporation asked the Department of Justice to insti¬ tute proceedings to restrain Schine from beginning construction work on a theatre at South Division and Market Streets. In a letter to the Department of Justice, signed by Newell T. Howard, manager, Ulman Corporation, the complaint was set down this way: “Since the Supreme Court also gave the green light on right to damage by inde¬ pendent theatre operators, our community is determined to stand for no more perse¬ cution through monopolistic practices, either by Schine or the film companies. If they continue, we will sue for a mini¬ mum of a quarter of a million dollars dam¬ ages suffered by us during the past six years, this being the bounds defined by the statute of limitations.” Raymond C. Todd, joint manager, Ul¬ man, said his company had been unable to acquire many of the best films in recent years. WB Drive Announced New York — Warners has set its annual sales drive for 1948 for the 14-week period from May 23-Aug. 28, according to an an¬ nouncement by Ben Kalmenson, vicepresident in charge of distribution, last week. Exactly $35,000 in cash prizes will be awarded the winners in the various fields. Once again the company’s Canadian ex¬ changes will join in the sales drive. A series of regional meetings will be con¬ ducted by the company’s divisional sales managers, Roy Haines for the western territory; Jules Lapidus, eastern and Can¬ adian, and Norman Ayres, southern. been declared payable on June 30, 1948 to stockholders of record at the close of business on June 7, 1948. A quarterly cash dividend of $.50 per share on the outstanding common stock has been declared payable on June 30, 1948 to stockholders of record at the close of business on June 7, 1948. Sullivan Renamed Kansas Unit Head Kansas City — The Kansas-Missouri ITO last fortnight reelected C. F. Sullivan, Wichita, Kans., president; Larry Larsen, Webb City, Mo., vice-president, and V. R. Stamm, Kansas City, secretary-treasurer. National Allied general counsel Abram F. Myers told the convention that the U. S. Supreme Court decision dooms the distributor-affiliated theatre organizations, and said that the final steps in the suit may be expected in six months. Delegates voted to form a buying-booking service under the supervision of Jack Stewart, general manager, KMITO. Cost to Allied members will be $10 per week. Announcement was made at the conven¬ tion that directors of National Allied and National Film Carriers, Inc., were to meet in Denver to talk over rate reduction de¬ mands. Also speaking to the delegates was William Ainsworth, national Allied president. The Pioneers’ banquet wound up the convention. RKO Appeal Granted Buffalo — Judge Harold P. Burke last fort¬ night granted the appeal of RKO from a federal court jury verdict in anti-trust suit of Bordonaro brothers. The judge found insufficient evidence that the advent of Warner Brothers Circuit Management Corp., into Olean, N. Y., led to any change in RKO’s choice of an outlet for its better productions. Similar motions by Paramount and War¬ ners to annul the verdict were rejected. According to Judge Burke, RKO consist¬ ently chose the Haven, both before and after the house was purchased by War¬ ners. RKO was represented by Harry M. Pimstein, home office, and Sidney B. Pfeifer, Buffalo. 20th-Fox Sales Hit New High New York — A new company all-time record for volume of feature sales to the¬ atrical accounts during the first 18 weeks of this year has been established by the 20th Century-Fox domestic sales organ¬ ization, it was announced last week by Andy W. Smith, general sales manager. Not only did the 31 branches of the com¬ pany in the United States and six in Canada surpass by 52 per cent the volume of feature contracts negotiated in 1947 for a corresponding period, but they also top¬ ped by far the previous all-time record established in the first 18 weeks of 1946. Illinois Group To Meet La Salle, III. — United Theatre Owners of Illinois will hold a meeting at the Kaskaskia Hotel on June 3-4. A galaxy of important speakers is expected, accord¬ ing to President Edward G. Zorn, includ¬ ing Gael Sullivan, new executive director, TOA, and Herman Levy, general counsel, TOA. ' T ' ' 79 4ft