Motion Picture Daily (Apr-Jun 1954)

4 Motion Picture Daily Monday, April 12, 1954 Yates Tells of Republic's TV Planning ter pictures, the requirement to cut overhead costs and the opening up for Republic of the TV market. Yates related that he has been in the business for 45 years, seeing many ups and downs, from which the industry always recovered. Quotes Tax and Union Figures The Republic president, answering criticism on the company's neglect in reducing its funded debt, said that Republic is still a young company and in order to meet competition, it had to expand its business all over the world. Over a three-year period, he went on, hitting at taxes and union demands, the company paid $5,174,000 in taxes and union welfare funds. Bernard H. Smith, the father of the newly elected director, pledged that his son would take up the funded debt problem with the board. In response to another question, the book value of the stock was put at $1.25. In addition to Smith, the following were elected to the board to serve three-year terms : Yates, Richard W. Altschuler, Albert W. Lind, and Franklin A. McCarthy. Officers Elected Subsequently, at a meeting of the board of directors, the following officers were elected: Herbert J. Yates, president; Walter L. Titus, Jr., Richard W. Altschuler, John J. O'Connell, and Arthur J. Miller, vice-presidents ; John Petrauskas, Jr., treasurer ; Joseph E. McMahon, secretary ; Richard S. Rodgers and Harold Lange, assistant treasurers ; Albert E. Schiller and Ira M. Johnson, assistant secretaries; and H. J. Click and Gordon T. Kay, assistant secertary-treas Schlaifer Opposes Standardization Of Processes Now Exhibitors who have been asking for new and fresh ideas in motion pictures should not, at the same time, be asking for standardization of new film procceses, Charles Schlaifer, former director of advertising, publicity and exploitation for 20th Century-Fox and now head of his own public relations firm declared at the weekend. "The progress of the industry in development of new techniques should be applauded instead of criticized," Schlaifer stated. Urges Research Institute Schlaifer, an industry veteran who once was the permanent chairman of the first Motion Picture Association of America public relations committee, said that "a drive should be spearheaded to set up a research institute of motion pictures so that new ideas and techniques could be developed." Hitting at those who are critical of new media, Schlaifer charged that "people who have been speaking out against the new developments have not contributed toward industry progress." "The public is confused, as all they hear is bad tidings instead of the good," Schlaifer said. "Standardization at this time will not help motion pictures," he stated. Lauds Production Code Paying tribute to the Production Code, Schlaifer said that "too many people have used attacks on the Code as a method of self-seeking publicity. The Code has been an instrument of good, for the industry would have nothing but difficulties without it." Schlaifer concluded by saying that people should stop finding faults with the motion picture industry. "The progress that the industry has made should be highly praised," he declared. Leases Fla. Drive-in ATLANTA, April 11.— Floyd Theatres of Florida has leased the Boulevard-Drive-In at Deland, Fla., from Glenn Lane. Ernie Reid, former manager of the circuit's house in Wauchula, will manage the newly acquired property. (Continued from page 1) eventual use in the broadcasting of color television. Other highlights of the meeting were : Bruce Newbery, sales manager, withdrew his candidacy as a director following the objections of stockholders that he did not own any stock in the company. Bernard H. Smith, Jr., owner of 100,000 shares, was nominated by management in his stead, and, along with four other management nominees, was overwhelmingly elected to the board. Will Increase Holdings Yates, underscoring his confidence in Republic, told the meeting that he is placing an order to increase his common stock holdings, ordering the purchase of 50,000 shares at a price up to $3 per share. The current stock market quotation is about $3.25 per share. A forecast was made by Yates that foreign business of the company will double this year. Yates estimated that the resale to television rights of old Roy Rogers and Gene Autry pictures is worth from $3,000,000 to $4,000,000. The rights, he explained, are now the subject of litigation, with May 20 as the date set for opening of arguments in the Rogers suit on the Coast. "We can expect a decision in 60 days," he added. Yates expressed the hope that "in the not too distant future," Republic will be in a position to declare a dividend. Yates Backs Objection The meeting started, with one stockholder objecting to the nomination of Newbery, citing his lack of stock ownership. Yates, following conferences with advisors, said he sup Cochran to Produce CinemaScope Short A two-reel short entitled "Location Arkansas," to be made in CinemaScope and Eastman Color, will be the first film produced by Robert Alexander Productions, Steve Cochran, president, announced. Shooting will get under way in May. The company will begin production of a full-length feature film immediately after the short is completed, Cochran reported. Apr. 15 Debut for 1st Neb. 'Scope Drive-in OMAHA, April 11.— The first completely equipped drive-in for CinemaScope in Nebraska will premiere April 15, with 20th Century-Fox "Beneath the 12-Mile Reef," it was disclosed at the weekend by J. Robert Hoff, operator of the 750-car Airport Drive-In here. The Omaha debut marks the first complete drive-in installation of CinemaScope equipment by the Ballautyne Co. of which Hoff is general sales manager, and marks the entrance of the company into the increasing number of equipment organizations introducing stereophonic sound to the outdoor theatre market. Yates Cites 'Risks' In Film Business The motion picture business is a "very risky" one, according to Herbert J. Yates, Republic Pictures president. Yates told the annual meeting of stockholders here on Friday that of all the pictures made, 50 per cent lose money, 20 per cent break even, 20 per cent make a little profit, while 10 per cent are profitable. ported the objection, stating his belief that every director should own stock in the company. To the approval of stockholders present, Yates offered Smith's name instead. The Republic president added that any other director who doesn't now own stock will have some in the future, if "I have to give it to them," he added. Asked by one shareholder to comment on rumors that he has been offered $12 per share for his holdings in the company, Yates ruled the question out of order, adding "I don't know how the rumor got out." Questioned as to the value of Vera Ralston as an actress in Republic pictures, Yates replied that her pictures have always made money for the company. Stockholder questions also brought out that deferred payments of $100,000 on Yates' salary can continue to be deferred until the end of 1955 and that the company owes Yates $1,055,000 on a personal loan by him. 'Blessing in Disguise' Yates, countering expressions of gloom by some stockholders, said that the box-office dip in the past few years has "been a blessing in disguise," forcing the accent on the need for bet See Canada Tax Cut Helping Concessions OTTAWA, April 11. — Canadian Government's action in reducing the excise tax from 15 per cent to 10 per cent on soft drinks and candy as well as eliminating all excise taxes from vending machines is expected to increase sharply such sales in theatres if manufacturers pass on this benefit to consumers. Rising cost of production of soft drink and candy manufacturers has threatened to boost such retail prices so that, in any case, this cut in excise tax will definitely not bring any such increases and may even lower prices gradually. Commerce Dept. Film Post to Woodbury WASHINGTON, April 11.— Richard G. Woodbury, an executive of the American Optical Co., has been appointed deputy director of the Scientific, Motion Picture and Photographic Products Division of the Commerce Department's Business and Defense Services Administration. This is the division headed by Nathan D. Golden. The deputy director's post is being filled by a succession of industry executives loaned by their companies for a brief period. urers. Richard W. Altschuler was added to the Executive Committee, which includes Herbert J. Yates, Arthur J. Miller, John Petrauskas, Jr., and Douglas T. Yates. Compo Ad (Continued from page 1) "expenses of all theatres in the United States were $1,172,579,000, of which 51.6 per cent, or $605,400,000, represented outlays in local communities." The ad broke down this figure as follows: $160,400,000 for local staff payrolls with more than 122,500 people employed; $216,800,000 for rent and /or real estate taxes ; $103,200,000 for service and utility expenses , $72,300,000 for advertising and promotion ; $29,500,000 for local admission taxes ; $23,200,000 for licenses and other taxes, excluding Federal admission tax. "A healthy movie business is good for the economic health of any town," is the ad's conclusion. Seven-Year Contract To Marilyn Monroe HOLLYWOOD, April 11.— Marilyn Monroe has signed a new long term contract with 20th Century-Fox, it was disclosed on Friday by Darryl F. Zanuck, vice-president in charge of production. The term of the contract is for seven years. The first picture will be Irving Berlin's "There's No Business Like Show Business."