Independent Exhibitors Film Bulletin (1952)

RALPH STOLKIN (Continued from Page 5) to tide it over in the domestic market for about nine months, and in foreign markets for about "a couple of years," but no early decision was likely on the thorny question of whether any of RKO's "oldies" would be released to TV. Grant, explaining how the new board came to be elected, said that at the decisive meeting all RKO's existing directors were asked to retire one by one, the vacancies being filled as they fell due. "We ilidn't need to have all the seats on the board filled by our nominees," he said. "Five seats would have been sufficient for our purposes. But now that we have the thing completely under our control, we are free to move in whatever direction we choose. I mean, we will be able to appoint one of two independent directors before the next stockholders' meeting. We think it is a good thing in business to have some independents on the board." Ned DepineVs Future There was no other very big single stockholding in the company, Grant said, except that controlled by David Greene, Wall-street figure who leads the group of dissidents who were so long a thorn in Howard Hughes' side. "We've seen Greene," added Grant, "and we're very glad to know he's decided to throw in with us." What about Ned E. Depinet, whose removal from the Presidency of RKO came as the biggest shock of all? "Ned will have an office in the building," Ralph Stolkin explained, "and will act as consultant and adviser. I personally have very great respect for him. I admire both his ability and his integrity. We plan to keep him much busier than he knows. Ned has told us he's quite happy with the new arrangement." Perhaps, however, Stolkin's character and business methods were best revealed when I asked him how it came about that Howard Hughes had sold his controlling interest in RKO to his group rather than to other interests which had offered at least as good terms. "What's Half a Million More or Less?" "The whole secret was that I dealt with Howard through people whom he knew and trusted," Ralph Stolkin said. "I didn't meet him for months. Our discussions took place, almost until the very last, over th>e telephone through intermediaries. Howard is mistrustful of people in general. He has a particularly meticulous mind. He'd i found in his negotiations with other groups that when the basis of a deal had been reached, they'd start to haggle over some minor detail. He detested that sort of thing. So we didn't haggle over anything. We didn't go through the balance-sheet item by item, evaluating this and estimating that. On a deal of this magnitude, half a million dollars .here or there isn't necessarily vital." Hughes, he pointed out, was still very much in the picture business as a stockholder of RKO theatres. "And he's free to make pictures whenever he wants to. I hope, if he does want to, he'll make them with us and let us distribute them." He'd spent several hours with Samuel Goldwyn, he added, and hoped RKO would continue to handle both Goldwyn and Disney productions, though there had been no renewal yet of the distribution contract with Roy Disney, which terminates with the forthcoming "Peter Pan." Altogether, the impression Stolkin and his associates gave on first acquaintance, was of a group of young men in a hurry. They seamed to be little interested in motion pictures except as an avenue of economic progress and financial gain, and still less in him. Wm FILM BULLETIN'S Leonard Coulter interviewing Gordon Youngman, new member of RKO board of directors, at press conference. terested in tradition. They were obviously not industry do-gooders, as such. They seemed yet uncertain of the path they would ultimately tread in lifting the RKO company out of the red. They were sure of only one thing: the motion picture industry had begun to pull out of its deep depression, and this was the time for alert minds to move in. The Lightning Strikes Since then they have shown something of their thrustful business methods. They have unloosed a flash of lightning by discarding some of RKO's top executives. They have also begun to realize that they need to develop more than a little industry goodwill if their investment is to pay off. And yet they have no time to dally on the way. Behind them stands the figure of Howard Hughes, who is by no means out of the RKO picture yet — and won't be until Stolkin and his comrades have paid off, or refinanced, the nearly $8,000,000 revolving credit granted them by Hughes at the time they assumed control of RKO's management. The new board's first move, after replacing the entire board with Stolkin men, was to hire an executive vice-president. They chose Arnold Picker, who has been in charge of United Artists foreign operations. UA released Picker from his contract, and his participating interest, issuing a stater which oozed friendship from every cor Picker's choice as executive vice-presic was followed swiftly by the dismissal! Bob Mochrie, general manager, Don Prij publicity chief, the recall of Phil Reisr head of the foreign department, and ot| changes. The Stolkin group, however, smart enough to make some of the repl;| ments from within the organization, insti of going to other companies. Charles B.| berg, who has been with the company sj 1937, was appointed general mana Walter Branson, Western division s| manager since 1941, was named as Bd berg's assistant. Bill Zimmerman, long RKO's legal department, became its hi Dick Condon, a former Disney publi | director, was brought in by Picker to over advertising, publicity and exploitat With these changes came a softening tread. The board announced them ii statement which "regretted that a thorc consideration of the company's affairs | quires the elimination of persons who 11 served the company faithfully. It i| source of satisfaction, however, that Board has been able to promote many ployees from within the ranks ..." was a smart thing to do, for with announcement a great wave of relief s\ through the RKO offices. Exhibitors, Warning There was a slight retreat to s ground, too, on the television issue members' bulletin, Allied Theatre Ow of Indiana had noted: "Mr. Stolkin m pick up a few fast bucks by selling his pictures to free TV, but he will find action will ruin his company's good exhi relationship ..." Arnold Grant, R chairman, commented, "If 'Snow W and 'King Kong' can go out and do heavy repeat trade in the theatres, wou we be foolish to unload to TV? . new sales force under Charlie Boasberg Walter Branson is keyed to exhibitor g will and strong theatre relations." That there is a great deal more new flow from the RKO building in the co month is obvious. The reorganization only begun. The studio position also haj be cleared up, and new product found needs a weekly billing of at least a mi dollars before it is out of trouble — and getting nothing like that. Undoubtedly s| of the present directors will be unloade The operation of a movie studio is not that requires business acumen alone successful industrialist like Mr. Hughes learned. It takes talent and a keen fed for what the public wants in the wai entertainment. M oney, by itself, cannot (luce this. However, Mr. Stolkin might very wel a man of talent and he might be a showr too. The intuitive shrewdness that brought him so far financially in so years could quality him to hoist RKO of the slough into which it slipped, duction-wise, during the Hughes reg While theatremen will be watching w; certainly they will be rooting for the yc Mr. Stolkin to deliver the goods. of Page 20 FILM BULLETIN October 20. 195;'.