The Exhibitor (1953)

EXHIBITOR 7 Stockholders Back 20th-Fox Regime Johnston Warns Committee On Foreign Policy Decision WASHINGTON— Eric A. Johnston, MPAA president, testifying before the House Ways and Means Committee in support of a one -year extension of the Reciprocal Trade Agreements Act, warned Congress last week that a re¬ treat from the liberal United States foreign trade policy of recent years “could seriously imperil the foreign market for our films.” He stated that nine out of 10 Ameri¬ can films do not pay their own way in the domestic market, and that more than 40 per cent of the revenues of film producing and distributing com¬ panies come from abroad. Push Tax Fight , Trade Is Advised Washington — The industry’s campaign for exemption from the admission tax will be pushed with all possible vigor, despite the President’s opposition to tax reduc¬ tion this year, it was made plain last week in a statement issued in Washington by Colonel H. A. Cole and Pat McGee, cochairmen, COMPO’s National Tax Repeal Campaign Committee. Cole and McGee called on all state and Congressional dis¬ trict tax campaign committees to con¬ tinue their fight to get the Mason Bill out of the House Ways and Means Com¬ mittee, and to push the tax drive without let-up. Cole, McGee and Robert W. Coyne, COMPO special counsel, appeared before the House Small Business Committee, and stated the industry’s case for tax relief, it was further revealed. Paramount TV Appeal Denied Washington — The Federal Communi¬ cations Commission last week refused to reconsider its earlier decision that Para¬ mount Pictures controls Allen B. DuMont Laboratories. DuMont had asked the Com¬ mission to reconsider this point, which arose in the United Paramount Theatres merger with ABC and anti-trust proceed¬ ings. Under FCC rules, no company or companies under common control can own more than five television stations. The FCC ruling means that only one more station can be allowed either Para¬ mount or DuMont, since Paramount now owns one and DuMont three. The FCC decision called Paramount’s position in DuMont “carefully devised to assure sub¬ stantial influence,” and “presenting a picture of consistent managerial coopera¬ tion between Paramount and DuMont.” Ohio Censor Fight Ends Columbus, O. — State Senator Charles Mosher last week dropped his fight to end all film censorship in Ohio following referral of his bill to committee. Mosher stated that, since he could count on only 13 favorable votes and 20 against, he would not try to get it recommended again. Instead, he will introduce legislation to end censorship of newsreels alone. President Skouras Expects Third Quarter To Be Banner One; Executives Praised For Support In Proxy Fight New York — Stockholders overwhelm¬ ingly supported management resolutions and proposals for directors at a 20th-Fox meeting last week, during which time Spyros Skouras, president, announced that the company’s final 1953 quarter is expected to be the best three months since 1947, and, perhaps, in the history of the company. The rise in income was mostly due to increased film rentals, which soared almost $5,000,000 over last year’s first quarter figures. Skouras described quarterly re¬ sults as satisfactory, but warned that the second quarter will be unfavorable be¬ cause of the company’s present transitional state. Skouras said the company wanted to release all its conventional pictures for flat screen to reduce its inventory before CinemaScope and 3-D are adopted, and stated that the inventory of 2-D pictures by the end of the year would be down to $8,329,000 from a high of $46,224,000 at the beginning of the year, and that a year from now, the figure would be so small as to be meaningless. Skouras predicted an improved cash position for the company, enabling pro¬ motion of Eidophor and CinemaScope. With any sizable amount of cash not needed for operations, management will consider purchasing common stock after the $6,600,000 in long-term debt has been retired. Supporting his prediction for the fourth quarter, Skouras pointed out that three CinemaScope productions will be in release during the period. The president hailed the reaction of the industry to CinemaScope, saying that a favorable response had been received from 95 per cent of those who viewed the process. Lenses are not being turned out as fast as had been hoped, but the bottle¬ neck will soon be cleared up, he said. Persons credited in the CinemaScope effort by Skouras were A1 Lichtman, for promoting sales; William Michel, for supervising technical developments; Earl Sponable, research head, and Herbert Bragg, assistant research director. He also commended Darryl Zanuck for his en¬ thusiasm and desire to plunge into CinemaScope production. Skouras reported drastic economies effected at the studio, and said more would be made possible by the transition to CinemaScope as personnel other than that required for the new medium are released. Skouras also said Zanuck had informed him that annual savings now amounted to $3,380,000, and the produc¬ tion budget has also been reduced. Begin¬ ning on May 1, the company will spend $30,000,000 against $44,165,000 last year. The company hopes to maintain this rate for two years so that it can reduce inventory. Stockholders approved, at management’s request, Rosalind Mia Copping’s resolu¬ tion that directors consider the appoint¬ ment of a woman to the board, but turned down resolutions by Charles Green to forbid the authorization of contracts be¬ tween 20th-Fox and directors of com¬ panies controlled by them and setting a limit of $100,000 on the compensation of Fox officers without approval of stock¬ holders. Management was supported in all votes by a four to one margin. Green, who led an unsuccessful proxy fight against man¬ agement shook hands across the table during the meeting, and said he was sure the 10 directors chosen at the meeting would work for the benefit of the com¬ pany. He pointed to the reported econo¬ mies and studio cost-trimming as benefits of the battle he waged. Skouras cited the following for their efforts in the proxy fight: Zanuck, Otto E. Koegel, W. C. Michel, Lichtman, Donald A. Henderson, Charles Einfeld, William C. Gehring, Norman Steinberg, Herman Wobbler, and Harry G. Ballance. Later Milton Paulson, New York at¬ torney for Green and his associates, an¬ nounced that New York State Supreme Court suit against 20th-Fox would be pressed despite the stockholders’ defeat of Green’s attempt to win a hand in the man¬ agement of the company. The consolidated net earnings of 20thFox and all of its subsidiaries for the first quarter ended on March 28, 1953, amounted to $1,023,965, equivalent to $.37 per share on the 2,769,486 shares of common stock outstanding. Comparable operations in the first quarter of 1952 showed a net loss of $723,407, exclusive of the domestic the¬ atre subsidiaries, which were separated on Sept. 27, 1952. A quarterly cash dividend of $.25 per share on the outstanding common stock was declared. Skouras Reelected 20th -Fox President New York — The board of directors re¬ elected Spyros P. Skouras president last week following the election of 10 direc¬ tors, by stockholders. Members of the board elected by the stockholders to serve until 1954 included: L. Sherman Adams, Colby M. Chester, Robert L. Clarkson, Daniel O. Hastings, Robert Lehman, Kevin C. McCann, William C. Michel, B. Earl Puckett, Skouras, and James A. Van Fleet. Elected with Skouras, to serve as officers for the next year, were the following: Michel, executive vice-president, Darryl F. Zanuck, vice-president in charge of production; Murray Silverstone, vicepresident; Joseph H. Moskowitz, vicepresident, S. Charles Einfeld, vice-presi¬ dent in charge of advertising, publicity, and exploitation; Donald A. Henderson, treasurer and secretary; Wilfred J. Eadie, comptroller and assistant treasurer; Fran¬ cis T. Kelly, assistant treasurer; Fred L. Metzler, assistant treasurer; C. Elwood McCartney, assistant comptroller; Frank H. Ferguson, assistant secretary; J. Harold Lang, assistant secretary; Norman B. Steinberg, assistant secretary, and William Werner, assistant secretary. May 27, 1953