Motion Picture Daily (Jan-Mar 1951)

VOL. 69. NO. 21 MOTION PICTURE DAILY NEW YORK, U. S. A., TUESDAY, JANUARY 30, 1951 TEN CENTS Univ. Reports 1950 Net of $1,355,886 Compares with Loss of $1,125,851 in 1949 Universal Pictures yesterday reported a net profit of $1,355,886 for the fiscal year ended last Oct. 28. The result compares with a loss of $1,125,851 for the preceding fiscal year. The company's annual report to stockholders showed income from operations of $55,591,085 for the 1950 fiscal year, compared with income of $56,738,335 in the preceding year. Current and working assets aggregated $35,264,344, and current liabilities amounted to $7,880,332, leaving net working capital of $27,384,012 or a ratio of four-and-one-half to one. The report showed inventories, production advances to outside producers, (Continued on page 2) Vote on Blumberg Pact March 14 Universal stockholders will be asked to approve the new five-year employment contract with provision for an additional five years of consultative services for Nate J. Blumberg, company president, at their annual meeting, to be held on March 14 in Wilmington, Del. The meeting will elect 13 directors, all present directors being up for reelection with the exception of Franklin Nevius, who resigned on Jan. 18. The other directors are : Robert Benjamin, Blumberg, Preston Davie, John G. _ Eidell, Albert A. Garthwaite, William German, Leon Gold (Continued on page 2) New Tax Threatens Georgia Theatres Washington, Jan. 29. — The Lower House of the Georgia legislature has approved a bill calling for a three per cent sales tax, including theatre admissions, according to Jack Bryson, legislative representative of the Motion Picture Association of America. The measure is now before the State Senate and is given an excellent chance of passage, it was said. Bry (Continued on page 2) Fox, Atlanta, Makes TV Fans Envious Atlanta, Jan. 29.— The Fox Theatre here has been making regular use of its "Magnascreen" for a period of years, as occasion warrants, but recently it added as a "gag" when the big screen was opened to its full 1,600 square feet of picture this question at the bottom of the screen: "Can your television set do this?" Teen-agers Invade B'way; Grosses Up; $110,000 at Para. High school students free from classes last week because of Regents' examinations gave Times Square a taste of youthful spirits and theatre daytime grosses were reminiscent of wartime and the days of industrial swing shifts. Teen-age tastes turned toward film houses with stage shows, giving the Paramount, with "At War with the Army," (Continued on page 6) City Investing Will Bid for FirstRuns An aggressive bidding policy for first-run product will be followed when City Entertainment Corp.'s new Syracuse Louse, the Astor, opens on Feb. 22, it was said here yesterday by Maurice Maurer, vice-president of the City Investing Corp. subsidiary. Maurer revealed that City Investing Corp., headed by Robert W. Dowling, Jr., is in the market for firstrun houses in all key cities and properties at present leased by the firm will be taken over as the leases run out. This method of expansion will replace the extensive building program contemplated by Dowling but necessarily put in abeyance because of de(Continued on page 6) Credit Curbs May Hit Film Building Washington, Jan. 29. — Federal Reserve Board officials here said theatres will be included if they decide to issue a regulation curbing credit for commercial construction, but that the impact would be small in view of~ the already-tight restrictions imposed by (Continued on page 2) Jap Quota of 150 American Pictures Seen Immediately upon signing of the American-Japanese peace treaty the Japanese government will declare a 150-picture-a-year quota on Hollywood product, it was predicted here yesterday by Robert M. Lury, veteran representative of U. S. film interests in Japan who now operates his own franchise organization in that country. Lury's prediction is viewed as the first indication of the extent to which Japan would apply a quota on American films. He reminded that John Foster Dulles, representing the U. S., has been in Japan with a view to setting the stage for peace negotiations and predicted further that a treaty would be signed between the two countries in about a year. On the basis of the number of U. S. pictures expected to be released in Japan during 1951, a quota of the size Lury foresees would represent a 120picture cut. He said Motion Picture Export Association companies would (Continued on page 6) Another Extension Expected for Loew's Another extension for Loew's to file its plans for divorcement and divestiture is expected to be granted in view of the Department of Justice's previous announcement that the company has indicated its willingness to seek a consent decree. Originally, Loew's was to have filed its plan by Dec. 30, 1950, but an extension until tomorrow was granted. On Jan. 4, when the Warner decree was entered, Justice attorney Philip Marcus told the N. Y. Statutory Court that Loew's would begin negotiations with Justice for a consent decree. Loew's officers have made no such public acknowledgement and were unavailable for comment on the possible development. Assume Wages Are Frozen, Gov't Advises Queries on Industry Deluge Wage Board Washington, Jan. 29. — Answers to half-a-dozen questions on the wage status of film industry workers may be forthcoming from the Wage Stabilization Board in the next few days. Meanwhile, government pricewage officials had one word of advice to the film industry and all other industries: Until you hear to the contrary assume that wages and salaries in your industry are frozen at January 25 levels. Board officials, deluged with queries, said they are working to answer "fringe" questions just as fast as they can. There are many questions before them affecting the future of the film industry. (Continued on page 3) OCD May Issue Theatre Plan Today Washington, Jan. 29. — The Office of Civilian Defense hopes to issue tomorrow its statement outlining its policies toward the nation's theatres. The statement, which is being prepared largely at the request of the Council of Motion Picture Organiza (Continued on page 6) WASHINGTON, Jan. 29. —In what is regarded as a test case, Hollywood writer Lester Cole took to the U. S. Supreme Court today his fight to enj oin Loew ' s from suspending his contract because of refusal to answer questions of the House Un-American Activities Committee during that group's Hollywood hearings in 1947. • A. Fuller Sams, Jr., of Statesville, N. C. , was elected president of the North and South Carolina Theatre Owners yesterday at a meeting of the board of directors held yesterday in Charlotte, it was reported here by the Theatre Owners of America. He succeeds H. D. Hearn who resigned. J. B. Harvey, of Clover, S. C. , was elected regional vice-president of TOA.