Motion Picture Daily (Jan-Mar 1953)

6 Motion Picture Daily Thursday, January 22, 1953 West Virginia OK's Allied 's Policies Cincinnati, Jan. 21. — A mail poll of the Allied of West Virginia membership resulted in a unanimous vote approving the entire policy program of national Allied, especially the portion rejecting the initial plan for a system of national arbitration, it is reported by Reuben Shor, local circuit operator, who is a director of the West Virginia unit. 5 -Man Warner Board (Continued from page 1) TOA Poll (Continued from page 1) of directors meeting here next week. While Levy has not indicated the official attitudes of the various units, it is reported that the poll shows a variety of opinions, with some favoring intervention and others advocating a "hands off" policy. While the new U. S. Attorney General Brownell has not had time to examine the merits of the anti-trust action, there appears to be a feeling among TOA leaders that the suit will be dropped before it comes to trial. Walter Reade, Jr., chairman of the TOA executive committee, said here yesterday that he had requested the opinions of the few TOA units that had not yet expressed themselves on the subject of intervention. It is expected that all units will have reported by the time the executive committee goes into session at New York's Pierre Hotel Sunday. Previously Revealed As previously revealed, research, including the latest developments in 1hree dimensional films, will occupy a top spot on the agenda of the board meeting, which will be attended by approximately 60 TOA leaders. The sessions will end Tuesday evening. Myron N. Blank, chairman of the TOA research committee, reported that Jack O'Brien, manager of the theatre equipment section of RCA, and seven other RCA engineers and production managers will join board members at a session devoted exclusively to research Tuesday afternoon. Other RCA leaders who will attend are : Barton Kreuzer, manager, theatre and industrial marketing division ; M. C. Batsel, chief engineer of the engineering products department ; G. L. Dimmick, manager of the optics, sound and special engineering section ; J. E. Volkman, manager of theatre equipment engineering section ; R. V. Little, Jr., design engineer of theatre television equipment ; A. J. Piatt, sales manager of the theatre equipment section, and R. H. Heacock, product manager of the theatre equipment section. Board members will attend a showing of Cinerama Monday night. They will be joined by RCA leaders at luncheon Tuesday. Representatives of Cinerama and Natural Vision also are expected to take part in the research discussions. Clooney Benefit Will Aid 'Dimes' The world premiere of Rosemary Clooney's first motion picture, "The Stars Are Singing," will be kicked off Jan. 28 in Maysville, Ky., with the Maysville Junior Chamber of Commerce's annual tobacco auction for the benefit of the March of Dimes. terprises, Inc.; David G. Baird, partner in the New York brokerage firm of Baird & Co. ; Harry M. Kalmine, president of Warner Brothers Theatres, Inc., and Maurice A. Silver, zone manager of Warner theatres in the Pittsburgh and Cleveland areas. Kalmine and Silver will serve for a cne-year term and the other designees for a two-year period, it was stated. The ascendancy of Fabian, Rosen and Baird to the board of the new theatre company, it was explained, is contingent upon the consummation of the deal under which Fabian Enterprises will purchase the controlling stock interest of the Brothers Warner and their families in the theatre company. The effective date of reorganization is expected to be on Feb. 28, it was stated, when the company will he split into production-distribution and exhibition firms, according to the terms of the consent decree. The directors of the parent company also will designate the board of the new picture company, slated to be called Warner Brothers Pictures, Inc. According to the proxy, the designees for a two-year term will be Harry M., Albert and Jack L. Warner, Waddill Catchings and Robert W. Perkins, while the designees for oneyear terms will be Samuel Carlisle, Stanleigh P. Friedman, Charles S. Guggenheimer and Samuel Schneider. All nine designees are present members of the board. Vacating their board posts with the new picture company will be Morris Wolf and John E. Bierwirth. The Feb. 17 annual meeting of stockholders, to be held in Wilmington, Del., will not elect directors since the corporation will be dissolved shortly after the meeting, it was stated. However, stockholders will be called upon to approve the amend ed, plan of reorganization and to authorize the reduction of the capital of the corporation by cancelling 669185 shares of common stock previously acquired by the corporation. The recent New York Statutory Court order providing for the divestiture of a number of additional theatres will also be up for stockholders ratification. The assets of the new theatre company would be $85,720,851, according to the pro forma consolidated balance sheet as of Aug. 31, 1952. Current assets were listed at $11,790,576, compared to current liabilities of $9,561,955. The total number of theatres to be operated will be 306, following divestiture, it was stated. According to the pro forma statement, the total assets of the new picture company as of the same date would be $70,112,858. Current and working assets were listed at $50,198,651, compared to total current liabilities of $23,515,747. In a comparison of yearly earnings of the new theatre company on a pro forma basis, the net profit for the year ended Aug. 31, 1952, was put at $145,112, compared to the previous year's earnings of $2,169,016. Film rentals paid by WB theatres to the parent company for its pictures in 1952 was 36.4 per cent of the total film rentals paid by WB theatres to all distributing companies. The pro forma summary of earnings for the new picture company stated that the net profit for 1952 was $7,084,570, compared to $7,258,328 for 1951. It is expected that the two new companies, which will be organized in Delaware, will each have an authorized capital stock consisting of 5,000,000 shares of common stock of a par value of $5 per share. Fabian to Pay (Continued from page 1) action, the proxy stated, the entire consideration will be paid in cash against delivery of the stock. It was also revealed that Fabian Enterprises, Inc., will obtain a portion of the funds from David G. Baird, a partner 'n the New York brokerage firm of Baird & Co., from its own resources and from a big bank loan. The bank was not identified but it is understood to be the First National Bank of Boston. It was stated that Fabian Enterprises has no present intention to merge or consolidate presently or in the future with the new theatre comany. The proxy added that the Warner brothers and members of their families are in no way involved in the financing of the deal. Subscription TV (Continued from page 1) Club of Boston, Bonfig said that although television channels have been allocated to 887 American cities with populations below 25,000, there have been applications for television grants in only 83 of these cities. Bonfig asserted that because of the high costs of television, national advertisers will not be able to use more U.K. Theatre TV (Continued from page 1) for these special collective licenses. The British Performing Rights Society also has agreed to forego any copyright claims in connection with the telecast. As of now, only about six theatre:, here are equipped with large screen television, but J. Arthur Rank's Cintel company stated following today's announcement that it has been "inundated" with inquiries from exhibitors. than the top 100 to 125 markets for their network programs. This, he said, would force the small market broadcasters to depend entirely upon local funds and "there just isn't enough advertiser money in the small markets to enable advertisers to operate on this basis." The only answer to this problem of making TV possible in small markets is the establishment of subscription television, Bonfig said. "The income from Phonevision," he said, "added to the income from sponsored programs sold to local advertisers could finance the profitable operation of television stations in hundreds of small markets that must otherwise depend upon the vagaries of fringe area reception or do without entirely." 2 Categories (Continued from page 1) Hotel. Block was the moderator of a ■ symposium on "Motion Pictures for Tomorrow." "After several years of rather uncertain trends," Bloch said, "there is now a marked tendency to buy stories that fall in two categories: those which can be fashioned into highlyexploitable, spectacular pictures, and those with generally intriguing qualities which can be given A-qualit_v treatment at low production cost." Bloch added that this would mean cutting down, for the time being, on the purchase of stories which might make good pictures but whose appeal ; is narrow and limited. He also pointed out that the studios are giving greater consideration to stories of wider appeal to overseas audiences — particularly in the area of musicals whose locale heretofore has been almost exclusively confined to Broad-1 way or Hollywood. Bloch referred to "The Robe," "Solomon and the Queen of Sheba," "The King of the Kyber Rifles" and "Desiree" as examples of top-budget film spectacles in production or being readied by 20th Century-Fox. Bloch used "The President's Lady" as a case-history in describing for the group the steps and considerations involved in the study and analysis of a literary property before it is recommended and finally purchased. Assisting Bloch in the symposium were Henry Klinger, associate editor, and Beth O'Shea, reader, of 20thFox's story department. Also speaking on yesterday's program was Richard Griffith, director of the Museum of Modern Art film library. The council's program for today includes a screening of Paramount's "Come Back, Little Shebt," an address by Daniel Mann, director of the stage version of the picture ; discussions of the production and advertising codes by Arthur DeBra and Gordon White, of the MPAA, and a dinner at which Ned Depinet will be chairman and MPAA president Eric Johnston the principal speaker. Skouras Urges World Leadership Via Films It is the direct responsibility of everyone associated with the motion picture industry to play an active part in carrying on the task of providing world leadership through the medium of films, Spyros P. Skouras, president of 20th Century-Fox, told the community relations conference of the Motion Picture Association of America, here last night. In welcoming the delegates at a special screening of 20th-Fox's "Tonight We Sing" at 20th's home office, Skouras discussed the direct relationship between motion picture exhibition and the raising of global cultural and educational standards. Greatly impressed by what he saw during his recent tour of the Far East, Skouras said there must be an immediate expansion of film outlets so that peoples everywhere can learn the meaning of democracy and see for themselves the many aspects of the American way of life. Prior to the showing of "Tonight We Sing," the delegates saw "Light in the Window," 20th-Fox Art Films production dealing with the work of Vermeer, which won a prize as the best picture in its category at the Venice Film Festival.