Harrison's Reports (1955)

Bntered aa secondokass matter January 4, 1981, at the post oOm at H«w York, New York, under the act of March 3, 18T9. Harrison's Reports Yearly Subscription Rates: 1270 SIXTH AVENUE Published Weekly by United States 115.00 M Y , „ v Harrison's Reports, Inc., U. S. Insular Possessions. 16.50 new lont^u.n. I. Publisher Canada .„ .. ••••••• 16 50 A Motion picture Reviewing Service P. S. HARRISON, Editor ™e™0',^ Spaln ]$i°n Devoted Chiefly to the Interests of the Exhibitors dreat Britain 17.50 ,_ , . ,. . . _ , Australia, New Zealand, Established July 1, 1919 India, Europe, Asia 17.50 its Editorial Policy: No Problem Too Big for Its Editorial _ ~ S5c a Copy Columns, if It is to Benefit the Exhibitor. Circle 7-4622 A REVIEWING SERVICE FREE FROM THE INFLUENCE OF FILM ADVERTISING Vol. XXXVII SATURDAY, JULY 23, 1955 N0T3O THE RKO SALE TO GENERAL TIRE The big news of the week is the announcement that the General Tire and Rubber Co., which has extensive interests in radio and television, has purchased RKO Radio Pictures, Inc., from Howard Hughes, its sole owner, for $25,000,000. The sale according to a press release, comprises the major motion picture producing company with extensive studio and production facilities in Hollywood and Culver City, Calif.; control of studios in New York City; access through part-ownership to producing facilities in Mexico City; 101 domestic and foreign motion picture exchanges, which RKO operates in a world-wide distributing system; the facilities of RKO-Pathe, Inc., and RKO Television, Inc. Included in the deal are all pictures in current release and in production, as well as two unreleased pictures, "The Conqueror" and "Jet Pilot," which according to studio claims represent a production investment of $10,000,000. One of the main factors of the deal, of course, is the inclusion also of the company's vast backlog of product, dating back to 1929, and estimated to number from 600 to 800 features, as well as several thousand shorts and documentaries. This backlog will be made available to the television facilities of General Teleradio, Inc., a subsidiary of General Tire, which owns the Mutual Broadcasting System, the Don Lee Broadcasting System and the Yankee Network, as well as stations WNAC and WN AC-TV in Boston; WOR and WOR-TV in New York City; KHJ and KHJ-TV in Los Angeles; WHBQ and WHBQ-TV in Memphis; and KFRC in San Francisco. Of concern to all exhibitors, of course, is whether or not the sale of RKO might eliminate the company as a source of product for the theatres. According to the official announcement, it was not made clear whether the company will continue to produce and distribute for theatrical release, but that it will do so is indicated by Thomas F. O'Neil, General Teleradio's president, who, after closing the deal with Hughes, stated in the announcement that "with the acquisition of RKO, General Tire becomes a major factor in the production and distribution of motion pictures." The belief that the company will continue theatrical production is further strengthened by O'NeiTs statement that RKO employees need have no fear for their jobs, according to the terms of the sale, and that he plans no changes in personnel "although policy changes will be made to accomplish more extensive use of facilities." It was inevitable that Howard Hughes would one day dispose of RKO's vast backlog of old pictures for marketing to television interests, because unlike the heads of the other major producing and distributing companies, he kept production at his studio at a very low ebb and was, therefore, not concerned about exhibitor opposition. Since such a sale was inevitable, perhaps it is for the best that the company, as well as its backlog, has come under the control of General Teleradio, for if that company is to continue RKOs theatrical production and distribution activities, it will in all probability market the old pictures to the television field in a way that will least hurt the greater investment and profit potential that lies in the theatrical field. At any rate, the fact remains that, so long as a product shortage exists, — and there is no indication that it will soon be alleviated — there is little the exhibitors can do about their antipathy to film companies that sell their old films to TV. It is to be hoped, therefore, that the new owners of RKO will revivify the studio and bring to the organization a new stability so that it might once again assume its rightful place as a truly major company. As to Howard Hughes, it is doubtful if his exit as head of a major motion picture company will be missed, for throughout his association with RKO, he not only kept the company on the downgrade but he himself has callously jeopardized the interests of the industry as a whole by the consistent production of pictures based on tawdry themes and an over-emphasis on sex, and by advertising and exploitation that more often than not exceeded the bounds of good taste. His was a regime of irresponsibility, a luxury he could apparently afford. Now that he has removed himself from the motion picture scene, his exit will be looked upon by most industryites with a feeling of good riddance. THE SECOND NOMINATING BALLOT The second exhibitor nominating ballot for the Audience Awards election has been printed and is being distributed to 19,000 theatres, Robert W. Coyne, special counsed for COMPO, announced this week. Distribution of the ballot, which covers pictures released between April 1 and June 30, 1955, is being made through the regional offices of National Screen Service. Coyne emphasized that it was urgent that all exhibitors fill and in mail their ballots as quickly as possible in the postage-paid envelope enclosed for that purpose. All ballots for the second series of nominations must be in the hands of Price Waterhouse ii Co. not later than August 15. The extended time for filing the first exhibitor nominating ballot expired last Monday. Exhibitor votes on the first ballot are now being tabulated. The 10 highest votes in each of the five categories on the first ballot will be made public by Elmer C. Rhoden, (Continued on bac\ page)