Motion Picture Daily (Jan-Mar 1951)

4 MOTION PICTURE DAILY Friday, March 16, 1951 Loew's Sets Excess Profits Tax Floor On the basis of the present Federal tax laws, Loew's Inc., will be liable for excess profits tax payments when earnings surpass $1.80 per share of common stock. The estimate was made yesterday by J. Robert Rubin in reply to a stockholder's question at the company's annual meeting. Okay Loew's Stock Option (Continued from page 1) L. A. Protest (Continued from page 1) representatives will be in Washington then for the April 4 board meeting of the Theatre Owners of America, of which SCTOA is an affiliate. Gael Sullivan, TOA executive director, as well as representatives of the Coast unit will confer with Department officials. Simultaneous bookings on a broad scale and widespread price-cutting have contributed to the destruction of closed zoning in the Los Angeles area so that the 21 -day clearance to which the first-runs lay claim is now no more than a "technical" clearance, Corwin said. "If both distribution and exhibition will recognize the vast advantages and resultant gains inherent in arbitration," he said, "the Los Angeles problems can be solved." He said he hoped the Department of Justice could "see its way clear" to encourage arbitration of the Los Angeles "chaos." Under the simultaneous bookings setup applying to the L. A. first-runs at present, pictures are not given a chance to play themselves out for all they are worth in terms of revenue, Corwin said. Hence, he added, were the situation corrected the distributors would stand to increase their "take" on individual pictures. So convinced is the SCTOA membership that trade practices are responsible primarily for current poor business conditions in L. A. that the subjects of television and Phonevision weren't even broached during the recent four-hour meeting of the SCTOA board, Corwin said. And he emphasized that the organization will devote itself wholly to seeking trade practices improvements, even to the extent of excluding consideration of virtually all other matters such as ratification of the changes slated in the governing structure of the Council of Motion Picture Organizations. Corwin, who will remain here through the weekend before returning to the Coast, came to New York to set distribution arrangements for the film "The Man from Planet X," which he acquired recently. of the Treasury Department by deleting the provision that would permit the executives to borrow from the company the money to exercise the options. The option price, originally set at $16t7b per share, was to be changed to 95 per cent of yesterday's stock quotation, if the figure was higher, also a Treasury suggestion. The stock closed at 17 yesterday, or Y% less than the quotation on which the original figure was based. Some Opposition A number of stockholders took the ■ floor at the meeting to oppose the option plan, but the changes above, as announced by Rubin, removed the basic objections of most. Other speakers, including director F. Joseph Holleran, National City Bank vice-president, favored the option as a means of retaining key personnel described as being vital to the company's continued success. The following received the options, to be exercised within the next six years: Dore Schary, 100,000 shares; Arthur M. Loew, 40,000 shares, and Benjamin Thau, Joseph R. Vogel, Charles C. Moskowitz and Louis K. Sidney, 27,500 shares each. With the exception of Loew, who heads Loew's International, they are all vice-presidents. Rubin's report to the stockholders stressed the company's earnings record during the 27 years since its founding. He said there has never been a year of unprofitable operation and that during that time Loew's has earned over $239,000,000, after taxes. Among factors which adversely affected the company's earnings during this past 16-week period, Rubin mentioned the destruction of WMGM's broadcasting tower in the November, 1950, hurricane, reduced theatre attendance, and the inability to convert into dollars about $1,000,000 in Italian lira. On the positive side, Rubin pointed to the continued good position of operations abroad, the opening of four new theatres in Egypt and Australia, and to prospects for the best year to date for M-G-M Records, Inc., a subsidiary. Rubin said that theatre business could be expected to pick up as defense mobilization is speeded. On the basis of the experience during World War II, attendance would increase as more soldiers and their families were shifted about the country, and receipts would be higher in places of defense industry, he said. Loew's is going ahead to meet provisions of the anti-trust decision, Rubin said, but negotiations with the Department of Justice for a consent decree are just starting. Directors reelected at the meeting were Rubin, Holleran, Moskowitz, Vogel, Leopold Friedman, Eugene W. Leake, William A. Parker, William F. Rodgers, Nicholas M. Schenck, David Warfield and Henry Rogers Winthrop. QP Awards (Continued from page 1) Television Tax (Continued from page 1) Diamond to Film Abroad The cooperation of the British government will be sought by David Diamond, producer of Allied Artists' forthcoming 'Women of Britain," who sailed from New York on Wednesday for London. Variety Fete Tomorrow Albany, N. Y., March 15.— The annual Variety Club dinner-dance will be held here tomorrow at the Ten Eyck Hotel. Leo Rosen is chief barker. Round Table during the year. The annual judging took place at the Waldorf Astoria Hotel here this week, followed by a luncheon at which Martin Quigley introduced Elmer Rhoden, president of Fox Midwest Theatres, who was guest speaker. After citing Motion Picture Herald and the Quigley Awards for "increasing showmanship values on the exhibition level," Rhoden declared that all sectors of the industry must concentrate on devising new methods of "packaging" and presenting their story to the public, and that the industry, while it is doing a good job individually in each of its three main branches, needs a "spokesman at the top industry level." Doctor's Grand Award covers theatre situations where the manager has had the assistance of a circuit or home office staff in promoting product, while Harrison's Award is for _ those situations where the manager is entirely on his own in his showmanship merchandising efforts. FTC Okays RTMA Bid for Trade Meet Washington, March 15. — The Federal Trade Commission has advised the Radio-Television Manufacturers Association that its request for a trade practice conference of the television receiver manufacturing industry has been granted. The date and the place of the hearing will be scheduled by the Commission after it receives recommendations from the Association. firm of consulting economists. He and other witnesses testified in opposition to the Treasury plan. Sprague stressed the "essential" character of radio and television, and said use of critical materials should be controlled through direct allocation and limitation orders and not taxes. Ralph W. Hardy, spokesman for the National Association of Broadcasters, argued that radio and television are communications media like newspapers and magazines, and should not be taxed. James B. Conkling, president of Columbia Records, opposed the Treasury's recommendation to boost the excise on phonograph records from 10 per cent to 25 per cent. He warned the impact of higher excises "will be keenly felt" in reduced sales or sharply curtailed profits. D. of J. 'Request' Aids Phonevision Metro Goldwyn Mayer product being used on the Phonevision test in Chicago was supplied "at the request of the Department of Justice," J. Robert Rubin told Loew's stockholders yesterday. Rubin said that Phonevision's future cannot be accurately gauged yet by the results of the test. In addition, he reminded, Phonevision still has to receive FCC approval for commercial operation. Radio, Film Panels Aid US Propaganda Washington, March 15. — The State Department today named a 13member panel of radio executives to help guide operations of its overseas radio propaganda program, and promised to name shortly a similar panel from the film industry to work on the motion picture program. The radio group is headed by Justin Miller, president of the National Association of Broadcasters, and includes CBS board chairman William S. Paley, NBC executive vice-president Charles Denny, ABC board chairman Edward Noble, Mutual board chairman Theodore S. Streibert, and others. Videofilm Test (Continued from page 1) manager, will be in charge of the theatre's participation in the test, which will start on the Fulton's screen at 10 P.M. and will run until midnight. Regular theatre admission prices will prevail. Attending the premiere from New York will be Shea executives Gerald Shea, Ray Smith and Andrew Grainger. GPL's equipment photographs, develops and projects the television signals on 16mm. film to the full-size theatre screen within 60 seconds after it is received, it was explained here today by Richard Armfield, GPL executive. Armfield stated that the Videofilm system consists of a combination receiver, camera, and rapid-speed processor, running in conjunction with what is described as the first "professional 16mm. projector ever built." The 16mm. system, according to Armfield, will cut operating costs to onefourth of comparable 35mm. equipment. Offers Phila. Theatre Philadelphia, March 15. — A. M. Ellis Theatres Co. has closed the Southern Theatre on Broad St. here and is offering it for sale. Ellis's nearby Dante Theatre will continue in operation. Set "GI" Studio Tours Hollywood, March 15. — Fr.ed S. Meyer, chairman of the Association of Motion Picture Producers' military affairs committee, has announced that arrangements have been completed for studio tours for servicemen who apply to the area USO. Procedure will be the same as that which prevailed during World War II. Title Bout on TV (Continued from page 1) ordered, compared with the "normal" 25 to 40 orders for a weekday night from the 300 test families. Observers were a little puzzled over the failure of last night's free telecast and broadcast of the fight to cut into commercial entertainment receipts. The commonest explanation was that most fight fans were expecting an easy, early victory for Bratton, and few had anticipated the spirited battle that it turned out to be. The night's experience, nevertheless, was one of the few instances in this area to date of the box-office being unaffected by a free telecast of a major sporting event.