Independent Exhibitors Film Bulletin (1951)

LEO'S SCHARY Fulfilling a Promise TWO NEW PARA COMPANIES END PROFITABLE FIRST YEAR The two independent segments that once comprised Paramount, Paramount Pictures Corp. and United Paramount Theatres, were doing quite well, thank you, as they ended their first year of operation. Paramount Pictures president Barney Balaban, in a letter to stockholders, predicted that the last quarter of the year would be "g.reater than any one of the prior three quarters," and estimated the film company's net for the year at between S6 0C0 C00 and $7,000,000. From UPT head Leonard Goldenson, addressing a special meeting of company stockholders, came the prospect of at least a $12,000,000 net for the first year of operations. Eleven-month earnings were estimated at $11,560,000 and even though he pointed out that December's traditionally lower earnings would not keep pace with the monthly average for the first 11 months of 1950, it seemed certain that the new theatre company would top the 12 million mark. He reported October-November earnings at $2,126,000, including capital gains. Balaban's letter revealed that Paramount would receive a $15,000,000 loan from the Prudential Insurance Company of America. He also notified stockholders that 500,000 shares of common stock would be purchased on the open market fo.~ retirement purposes. M-G-M BREAKS OUT IN RASH OF NEW FILMS; NINE ON MARK Dore Schary's promise of more nrouuet in 1951 came a step closer to fulfillment last week when the M-G-M production chief announced that the studio will begin its new year's studio activity with nine new pictures set to go before the cameras. Schary arrived in the East for conferences with president Nicholas M. Schenck, sales v. p. William F. Rodgers, and other home office executives, after approving the nine new ones. Current BULLETIN Volume 19, Number 1 January 1, 1951 News and Opinion ly, he added, there are seven films on the stages, with twenty others in final phases of filming, editing or printing. The nine about to tee off are "Strictly Dishonorable" (Ezio Pinza-Janet Leigh); "The Law and Lady Loverly' (Greer Garson-Michael Wilding); "The People Against O'Hara" (Spencer Tracy); "Scaramouche" (Stewart Granger-Ava Gardner-Ricardo Montalban) ; "Texas Carnival" (Esther Williams-Red SkeltonHoward Keel); "The Bradley Mason Story" (Walter Pidgeon); "The StriD" (Mickey Rooney-Sally Forrest); "The Man on the Train" (Dick Powell), and "Man With a Cloak." Schary also revealed that "Quo Vadis," the company's biggest picture since GWTW, is being given top priority in preparation for its 1951 release. WARNER BROS. & GOV'T AGREE: DIVORCEMENT WITHIN 27 MOS. Warner Bros, and the Department of Justice finally saw eye to eye after months of negotiation for a consent decree. It calls for divorcement, patterned on the RKO and Paramount decrees, within 27 months and divestiture of at least 55 theatres, possibly as many as 80, of present holdings. The divorcement plan is to be submitted for approval by stockholders within 90 days of entry of the decree. The terms will be presented to the Statutory Court for its approval. If the tribunal gives it the nod, as it is almost certain to do, only Loew's and 20th-Fox will be left of the original eight defendants in the industry anti-trust suit. Fox is also reportedly on the verge of concluding a consent decree with the Government. As in the other consent judgments, controlling stockholders — in this case brothers Jack, Albert and Harry Warner must sell their holdings in one or the other of the two companies that will emerge from divorcement. It was expected that the brothers would elect to stick with the production-distribution company, while Harry Kalmine, WB theatres head, will probably become chief executive of the decimated circuit. Divestiture is ordered in some 56 cities, covering 13 states. Wording of the divestiture clause, however, contains qualifications that leave the exact number of houses vo be sold indeterminate. In some cases, Warners may divest either one theatre in a town, or two others that would relieve the same situation in that community. Half of the specified theatres must go within one year, the balance by the end of the second year. ALLIED'S KIRSCH "Partners In This Emergency" NCA PETITIONS DISTRIBUTORS FOR MEETING ON RENTALS Burdensome film rentals will be the main event at a proposed meeting between midwestern exhibitors and distribution toppers. Conceived and presented by a North Central Allied committee, headed by Henry Greene, a "fair rental plan" has been approved by NCA's board of directors and a proposal that distribution executives meet with the committee in New York on Jan. 8 to discuss the plan was submitted to the film companies. The NCA action followed a plea by Jack Kirsch, president of Allied Theatres of Illinois, for a conference between exhibitors and distributors "in order that some fruitful measures shall be developed for the alleviation of our suffering business . . . We are partners in this emergency. Distributors cannot live without us — neither can we live without them. The quicker we get together for specific remedies for the individual Chicago exhibitor in his presently burdensome state, the quicker our industry here will return to good health and normalcy. We cannot do it alone." The NCA plan was described as a yardstick for determining what is a "fair basis of rentals and to prevent the closing of theatres." The relief offered in the plan, it was said, would apply both to distributors and exhibitors. THREE MAJOR FILMS LAUNCH PHONEVISION TEST JAN. 1st Warner Brothers, M-G-M, and Paramount pictures, of comparatively recent vintage, featuring some top name stars, kick off the Phonevision test period beginning New Year's Day. The "premiere" of the oft postponed experiment to determine the value of "subscription television," to take place January 1, will have the three films. "April Showers," starring Jack Carson and Ann Sothern; "Welcome Stranger," Bing Crosby, Joan Caulfield and Barry Fitzgerald, and "Homecoming," Clark Gable and Lana Turner. Each will be 22 FILM BULLETIN