Motion Picture Daily (Apr-Jun 1953)

Wednesday, May 20, 1953 Motion Picture Daily 7 Barnett (Continued from page 1) Again Back 20th-Fox six other studios get together on a less spectacular screen ?" he asked, adding that "no one who knows the gentlemen could be so naive." After giving a summary of the operational factors of 3-D, panoramic screen and stereophonic sound, Barnett switched to the subject of standardization, describing it as "one of the loudest battle cries since the war." Said Barnett : "Three Different Things" "Standardization means, however, three different things to as many different groups of people. To one populous segment of the industry it means freezing new development at a point where they will cost the least money. They see improved methods from the standpoint of cost — instead of benefits. "The second group wants and expects all producers to agree on a single standard for screen aspect ratio, for sound, for projection and so on. They think the producers should return to the old policy of making identical products. If this happens, you and the production people aren't as smart as I have been giving you credit for these many years. "The third group wants interchangeability standards for basic equipment and techniques. For instance, they expect stereoscopic sound standards that will allow them to present any stereo sound film from any studio, at a reasonable cost in equipment and operation. Beyond this standardization of essential equipment, they want producers to have every possible latitude in making pictures that will be irresistible magnets to straying customers. Introduced by Mervis Norman Mervis, vice-president of the organization, introduced the speakers who included, in addition to Barnett, R. H. Haycock, of RCA ; Charles Blatt, chairman of the legislative committee ; Leon Bamberger, sales and promotion manager of RKO, and Richard P. Morgan, general chairman of the convention. Haycock discussed problems facing the small theatre operator with ideas of changing to three-dimensional ideas. Morris Finkel, chairman of the AMPTO board of governors, read a telegram from Abram Myers, Allied's general counsel, and Trueman Rembusch in Washington, D. C, that National Allied had completed a deal with the Ballantyne Company of Omaha, to supply a complete three-dimensional operating outfit to members of Allied or independent exhibitors for prices ranging from $5,700 for the smaller package to $7,000 for the larger machines. 300 Attend Almost 300 delegates sat in on the opening day luncheon, the open meeting and the cocktail party in the Variety Club and also attended a showing of the three-dimensional "Fort Ti," in the Stanley Theatre at midnight. At tomorrow's closing day session which will be closed to the press, Wilbur A. Snaper, National Allied president, will be the principal speaker. He was in Washington today together with Myers and Rembusch working on the deal with Ballantyne. Officers will be elected and Simon Fabian, president of the newly organized Stanley-Warner Corp., will be the principal speaker at the banquet which will bring the two-day affair to a close. (Continued from page 1) board, which management had favored. One of the rejected Green resolutions would have restricted management's right to enter into certain contracts and the other would have required submission to stockholders of salary commitments in excess of $100,000 annually. The vote for management's slate of directors was led by Spyros Skouras, company president, with 1,863,262, closely followed by his other nine nominees. The high vote for a Green nominee was 383,001 for Harry T. Silverman, with the other four on the Green slate closely approximating that total. Green himself polled 382,921 votes. A total of 2,259,490 proxies were voted out of a total of 2,769,146, indicating the unusual interest displayed by the stockholders. The directors elected are : L. Sherman Adams, Colby M. Chester, Jr., Robert L. Clarkson, Daniel O. Hastings, Robert Lehman, Kevin C. McCann, William C. Michel, B. Earl Puckett, Spyros P. Skouras, and Gen. James A. Van Fleet (Ret.). New Board Convenes The new board met immediately after the stockholders' session and reelected Skouras president, along with the following other officers : Michel, executive vice-president ; Darryl F. Zanuck, vice-president in charge of production ; Murray Silverstone, vice-president ; Joseph H. Moskowitz, vice-president ; S. Charles Einfeld, vice-president in charge of advertising, publicity and exploitation ; Donald Henderson, treasurer and secretary ; Wilfred Eadie, comptroller and assistant treasurer ; Francis Kelly and Fred L. Metzler, assistant treasurers ; C. E. McCartney, assistant comptroller ; Frank Ferguson, J. Harold Lang, Norman Steinberg and William Werner, assistant secretaries. The board also declared a quarterly dividend of 25 cents per share on the common stock, payable June 27 to holders of record on June 10. The annual meeting of stockholders progressed smoothly through a two-hour session. An adjournment was taken while proxies were counted and the several hundred shareholders who attended yesterday's meeting were shown, in the interim, the MarcianoWalcott heavyweight fight picture in 3-D on a standard screen, after which, for contrast, they were asked to remove their 3-D viewing glasses and were shown the company's CinemaScope on large screen. To further occupy the interval there was a screening of "Titanic." There was no evidence of bitterness or other ill-feeling at the meeting as the proxy fight came to its close. In fact, Skouras made a conciliatory gesture toward Green, who sat with lawyers and publicity representatives near the rostrum. Skouras said the Green group had accepted the verdict "in a sportsmanlike manner." He said the management "feels a greater obligation than ever to safeguard the minority and every other interest" now that the cumulative voting method of electing directors has been eliminated. "We shall do everything in our power to justify your confidence," Skouras said, "and I ask you to close ranks and help this company go forward, reserving at all times your right to criticize and offer constructive suggestions." Green responded in kind, asserting that criticisms of Skouras and Zanuck made by him during the proxy fight had been made as statements are made "in a political campaign." This was the first proxy fight lost by Green of a number he has waged in corporations in other industries. "As at the end of a political campaign," Green continued, "when it is over and if it was fair, we can only say 'You won.' " "Not Sure" of Defeat Addressing the 2'0th-Fox president as "Spyros," Green then said he wasn't sure that his side had lost. "We have 10 mien on the board now aware of our complaints and wishes, we have Zanuck cutting production costs and reducing inventories, as I suggested to him should be done, and we know that Skouras will do his best. We wish them all the best of luck for another year." There was some conjecture at the meeting that Green's last remark was an indication that he planned to try again at next year's meeting of stockholders for representation on the board but there was nothing to confirm such a supposition. Theatre Boom (Continued from page 1) quarter of this year, ended March 28, amounted to $1,023,965. On a comparable basis, earnings for the first quarter of last year were $723,407, he said. Domestic and foreign film rental income for the first quarter this year was $25,158,343, almost $5,000,000 over the corresponding period last year. However, expenses were also up this year over last, leaving only $1,798,996 before taxes, which compared with a loss on a comparable basis a year ago of $1,485,000. Skouras said the second quarter will be "unfavorable" because of the necessity of reducing film inventories in preparation for CinemaScope and 3-D releases. He said the company's inventory of 2-D standard pictures is "dropping fast" and by the end of the year will be down to $8,329,000 from a high of $46,224,000 at the beginning of this year. A year from now, he said, the figure will be so small as to be "meaningless." Meanwhile, the company's inventory of CinemaScope pictures will be on the increase, he reminded, but within the next year or two it is expected the inventory will be $15,000,000 to $20,000,000 less than the present one. Sees Sound Foundation Skouras said this improvement in cash position will keep the company on an economically sound foundation and enable it to "fully promote Eidophor and CinemaScope." In addition, he said, after the company's long term debt of $6,600,000 has been retired, consideration will be given to "the buying in of our common stock on some basis equitable to all." In answer to another stockholder's question, Green did say he intended to hold onto his 20th-Fox stock ; had no intention of selling it. He reiterprevious statements of his that he "had not sought control" of the company. He said that perhaps some confusion had resulted from management's use of a single ballot or both the specal meeting of stockholders two weeks ago to end cumulative voting and for the annual meeting yesterday, but that he believed "we lost fair." Skouras observed that management has been trying to reduce costs and increase dividends "for a long time," rejecting Green's earlier suggestion that it had been alerted to such objectives only by his proxy fight. 9356 Santa Monica Blvd. Beverly Hills, Calif. THE FINEST 161 Sixth Avenue New York 13, N. Y. THEATRE LOUDSPEAKER SYSTEMS