The Exhibitor (1953)

EXHIBITOR 9 “Fight Pre-Release Tactics”, Berger Says Skouras, 20th-Fox Victors In Voting Wilmington, Del. — President Spyros P. Skouras and 20th-Fox won a victory last week in the fight to keep control of the company. Stockholders supporting Skouras in his battle with Charles Green, New York City financier voted four to one in favor of a management proposal to amend the firm’s charter and by-laws and eliminate cumulative voting for directors. Under the new system, promoted by Skouras and adopted by a vote of 1,699,440 to 465,809 each shareholder will cast one vote only for one director. Ballots were cast at a four-hour spe¬ cial meeting called by Skouras to decide the cumulative voting issue. Stockholders are to elect directors at the annual meet¬ ing on May 19 in New York City. Green’s group is accorded little chance to elect anyone. The votes were counted by two spe¬ cially appointed tellers. Fireworks were absent at the initial session, which was devoted almost ex¬ clusively to discussion of the management proposal to eliminate cumulative voting. Green’s voice was virtually the only one loudly raised against the Skouras manage¬ ment, and indications that the manage¬ ment group had sufficient votes on its side came from the fact that it did not object to many proposals offered by Her¬ bert Einhorn, attorney for Green’s dissi¬ dent group, or by Green. The 20th-Fox management had to re¬ ceive approximately 1,385,000 votes to carry the resolution to eliminate cumula¬ tive voting. Chairman of the meeting was Aaron Finger, Wilmington attorney, and the judges of election counting the proxy votes on the proposed change in by¬ laws were Edward Steele and David An¬ derson, also local attorneys. Speaking in favor of management were Harry Brandt, Max A Cohen, and John Ferris, representing Texas stockholders, and others. A number of minority stock¬ holders also spoke in favor of the man¬ agement group. Morton Thalhimer, Rich¬ mond, Va., exhibitor, told the group that a change in management at this time would mean financial suicide for the com¬ pany and disaster for the stockholders. Opposing management, among others, was John Munro, investment broker. About 150 persons attended the meeting. Besides Brandt and Cohen, others from New York supporting management were Charles Schlaifer, Mike Todd, Matty Fox, Christy Wilbert, and Jake Starr. Representing management were Presi¬ dent Skouras, Don Henderson, Otto Koegel, W. C. Michel, L. Sherman Adams, Norman Steinberg, and Charles Einfeld. Also on hand were Samuel Diamond, 20th-Fox Philadelphia branch head; Jay Emanuel, Exhibitor publisher, Judge Jos¬ eph Varbalow, Camden, N. J.; Hal Mar¬ shall, and others. Philly Fire Commissioner Rules On Acetate Film PHILADELPHIA— Frank McNamec, Fire Commissioner of the city of Phila¬ delphia, last week notified Samuel Diamond, 20th-Fox branch manager, in response to the latter’s inquiry, that the Fire Department does not require acetate film to be stored in vaults. He pointed out that in the Fire Code there is reference only to nitrocellu¬ lose motion picture film in Article 17 in requiring film to be stored in vaults. No reference is made to ace¬ tate film being stored in vaults. This has been interpreted to mean that as soon as local exchanges no longer handle nitro-cellulose film, there will not be any need for vaults, but that film can be stored in racks. Gordon Chosen By Virginia MPT A Old Point Comfort, Va. — Leonard Gor¬ don, Newport News exhibitor, was elected president of the Virginia MPTA at its annual convention last week at the Hotel Chamberlin. He succeeds Sidney Bowden, Norfolk. Other officers are Sy Hoffman, Richmond, first vice-president; F. M. Westfall, Martinsville, second vice-presi¬ dent; Oliver Chandler, Jr., third vicepresident; Jack Rumsey, Covington, treas¬ urer, and Morton G Thalhimer, Jr., Rich¬ mond, secretary. Considerable time was devoted to dis¬ cussing new projection techniques, and drive-in operation was also discussed. Syd Gates and Leonard Gordon were conven¬ tion co-chairmen. Alfred Starr, TOA president, commented on the Senate hearings in Washington on trade practices, rapped competitive bid¬ ding and the pre-release system, and promised continued efforts toward deriv¬ ing an acceptable industry arbitration system, supplemented by a firm and aggressive Department of Justice policy. Robbins Aids Palsy Drive New York — Herman Robbins, president, National Screen Service, was last week appointed chairman of the distribution committee for the 1953 United Cerebral Palsy campaign. National Screen Service also handles distribution of the campaign appeal trailer, which stars Joan Crawford. More than 1400 prints have been supplied to National Screen branches. Edward L. Hyman and Sidney M. Markley, American Broadcasting-Paramount Theatres executives, are co-chairmen of the collections committee for the industry in the campaign to raise $7,500,000. "Pan", "Road" Honored New York — It was announced last week that Walt Disney’s “Peter Pan” and MGM’s “Bright Road” are among the Christopher Awards for the first 1953 quarter. Calls Acquiescence To Such Demands "Illegal And Crim¬ inal"; NCA Convention Also Hears Other Trade Chiefs Minneapolis — Benjamin Berger, presi¬ dent, speaking last week before North Central Allied at the annual convention, urged exhibitors to resist further road¬ show tactics of distributors, which insist upon advanced admission prices as a re¬ quirement of an approved contract, and stated that acquiescence to such demands was “illegal and criminal” for the exhibi¬ tor as well as the distributor. He also blasted pre-releases, and said the solution was Congressional action placing film companies in a public utilities category, with distribution methods ad¬ ministered for the good of all. Berger endorsed a trial period of 18 months for an all-inclusive arbitration plan, and expressed optimism over the progress made in the tax repeal fight. Stanley Kane, NCA executive secretary, revealed that the organization’s board is preparing to take court action against a major film company over its pre-release policy, and said the policy violated the terms of the consent decree setting up “reasonable clearance” for product. He added that the company “was not neces¬ sarily RKO”, although the company’s Minneapolis branch is currently negotia¬ ting second-runs for “Peter Pan” and “Hans Christian Andersen” on a bid basis with advanced admissions. The convention also heard addresses by Leon J. Bamberger, RKO sales promotion manager, and Herbert Barnett, SMPTE president. Henderson M. Richey, MGM public re¬ lations director, and Wilbur Snaper, National Allied president, were forced to cancel appearances because of illness. The convention reelected Berger to the presidency. Other officers are Earl Peaslee, Stillwater, Minn., first vice-president; Reno Risch, Appleton, Wis., second vicepresident; A1 Lee, Minneapolis, secretary, and Sim Heller, Grand Rapids, Minn., treasurer. New directors include Bill Clark, Mitchell, S. D.; Heller; Frank Mantzke; Charles Rubenstein, Minneapolis, and Clarence Quincer, Wadena, Minn. Honorary directorships were extended to Clem Jaunich, Ben Friedman, and Risch, who have been incapacitated by illness. Resolutions also recognize the services of members of the Senate and House from Minnesota and North and South Dakota in behalf of the Mason Bill, and Senators Hubert Humphrey, Demo¬ crat, and Edward Thye, Republican, both of Minnesota, for their work with the Senate Small Business Committee. Tax Collections Increase Washington — The Bureau of Internal Revenue reported last week that general admission tax collections in March, re¬ flecting February business, amounted to $21,031,715, against $19,863,940 in the same period a year ago. May 13, 1953