Independent Exhibitors Film Bulletin (1952)

Xvii-s find Opinion (Continued from Preceding Page) institutional message won unanimous approval. The MPAA advertising committee, made up of the advertising heads of all the major companies, and headed by Universal's Charles Simonelli, was due to meet last weekend to resolve the differences. "Instead of glorifying Hollywood as the source of the best entertainment" and making claims for the entire industry, it was recommended, "our public relations program should point to the local movie theatre as the possessor of these vast entertainment resources. For it is not Hollywood that is in competition with television. Nor is it the industry. The competition is between the local movie theatre and the living room television set." Stressing the need to show that the movie theatres offer enough "to outweight the comfort and convenience of staying home and watching a show in the living room," COM PC) urged the plugging of "the unparalleled entertainment resources at the command of the motion picture theatre. Companies cooperating in the ad program, according to the plan, would use one of two space schedules. One calls for 600 lines in 220 daily papers in 103 cities over 100,000 population, at a cost of $54,000; the other would use 1000 lines in the same papers at a $90,000 cost. It was also suggested that the new campaign be conducted over a period of several months, rather than one big ad with pictures from the ten companies listed, as in the October campaign. It was also suggested that participating companies would use the minimum space schedule and would agree to the same approximate space division between the industry message and a display of their top product. In recommending another series of Hollywood Star Tours, the Committee urged inclusion of "better known personalities" to lend strength to the tours themselves and supply "living proof of the claims . . . that the movie theatre commands the best of the world's talents." Kramer Strikes Back With Libel Suit, Gets Big Backing Stanley Kramer, whose unbroken series of quality films has earned him one of the top spots among Hollywood's production moguls, victim to the usual attacks upon success when a Los Angeles outfit named "The Wage Earners Committee" picketed ^his Columbia film as it attacked Kramer "for his Red-slanted, Red-starred films." The producer promptly slapped a million-dollar libel suit on the group and found a host of backers in the industry to help him fight the slander. Kramer's action and the prompt support by responsible industry elements served notice that movie people were no longer fair game for publicity hounds or pressure groups. I"irM of the group was the Producers As 5TANLEY KRAMER No More Open Season sociation, which blasted the "Wage Earners" group action as "vicious, unfounded attacks on the motion picture industry," and promised support for Kramer's suit. Immediately thereafter, the Council of Motion Picture Organizations went on record in a wire to Kramer as indorsing his "courageous action against Los Angeles pressure group" and pledging "wholehearted" support in the legal battle. "Combatting false accusations against patriotism of motion picture industry is one of COMPO's major activities notwithstanding partial reports of COMPO's public relations program which may have given contrary impression," the wire said. The reference was to COMPO's anti-Red program in its p. r. proposals. Warner Net Hacked by Taxes But Still Healthy $9,427,000 A whopping boost in taxes brought Warner Bros. 1951 fiscal year's profit below the previous year's net, but still gave the company a healthy $9,427,000 or the year ending Aug. 31, 1951. The current year's tax bite, $9,100,000, plus $700,000 for contingent liabilities, was almost $3 million above the 1950 figure despite a $10 million drop in grosses for '51. The figures, as disclosed in the annual report, showed the following for 1951: Cash, up $123,000 to $20,556,000; U. S. Gov't Securities, down $9,674,000 to holdings of $9,238,000; current assets less current liabilities, down $14,560,000 to $30,248,000; funded debt maturing after one year, down $3,041,000 to $8,061,000. Net worth (book value), down $13,885,000 to $116,277,000. Film rentals and theatre admissions went down from $126,944,000 in 1950 to $116,909,000; net on sales of capital assets dropped $272,000, from $1,461,000 to $1,189,000, and — here's the rub — provision for federal taxes increased from $6,300,000 in 1950 to $9,100, 000 in 1951. Common stock book value, however, moved up to $20.69 per share on 5,619,785 shares in 1951, compared with $18.60 on 6,997,300 shares. The report also disclosed that 24 theatres were sold during the year, including eight required to be divested under the Consent Judgment. Since August 31, eight more have been sold, two of which were ordered divested. Aggregate sales price for these theatres and other properties sold during the year was $7,106,000, representing a net profit of $2,208,000 before federal taxes. The report also said that the management is considering appropriation of approximately $15,000,000 to purchase about a million shares pursuant to invitations to tender stock to be mailed to stockholders shortly after the annual meeting next month. Because of changes in the industry since the Decree, a new Plan of Reorganization will be necessary, it was said, and will be recommended to the stockholders. Under the "spin-off" provisions of the Revenue Act of 1951, the report declared, benefits may be secured "which would not require the dissolution of this Company." The rate of decline in Warner theatre receipts during the last three months of 1951 has lessened since the same period the year before, although receipts were still below the 1950 final quarter. It was expected that the profit before taxes and capital gains will be "slightly larger" than the corresponding profit of $3,846,000 for the same quarter last year. A six-month extension from the Jan. 4 deadline set by the Department of Justice for Warner Bros, to divest themselves of 27 theatres in the divorcement order was granted the company. The consent agreement provided for the disposal of the 27 houses within the .first year after entry of the decree, but the Department of Justice, pursuant to its policy of "practical consideration," declared its willingness to permit the company an additional six months to meet the requirements of divestiture. Lippert Doubles Budget Sets Minimum of 22 For '52 At least 22 and possibly as many as 30 features will be on Lippert Pictures 1952 production schedule at a cost of more than $4,000,000 doubling the company's 1951 budget. The minimum of 22 was revealed by Robert L. Lippert, president, at the first national sales meeting in Chicago. The balance of the program will depend on negotiations currently in progress with independent producers. Among the top pictures to be released, as listed by ad-publicity director Marty Weiser, are: "The Tall Texan," "Massacre," "Galveston," "Dorothy in the Land of Oz," "City of Sin," "Pirates Gold," "Flanagan's Boy," and two George Raft pictures, as well as a Carl Foreman untitled story and "Loan Shark," currently before the cameras. FILM BULLETIN