Motion Picture Daily (Jan-Mar 1957)

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day, March 1, 1957 Motion Picture Daily 5 Vogel Promises Quality Films, and Profits 'ledges Close Icrutiny of ]hangingTaste nd its Loew's oper ( Continued from page ] |' himself, the company jckholders." l/ogel, in discussing the Ins which embrace studio ft'iis, television activities and comliy reorganization incident to the lit of the stock, told stockholders It when he assumed the presidency jfr months ago, "I did so with the 1 full understanding that I was Us to be restrained by ties to the t;t. I shall insist at all times that I favoritism be shown to anyone." I said that he has conferred with liierous stockholders, large and ■all, in an endeavor to learn from fcm their complaints and hopes, and la result of these meetings, a group I independent business men has lied the company board whose pjor concern predicts for Loew's ■■. "a brighter future." Will Scan Product Closely I'lt is my duty to exercise close fcjutiny over the product planned I production. The investment in bh picture should be proportionate lits possible appeal. My experience Btheatre operations gives me a basis 1 gauging public taste and for obnving its changing appetite. While jUvision is unquestionably affecting latre attendance we, nevertheless, I] that when new motion pictures Ine along which have audience ap5[.il and merit, the public will patronI the theatre. fo'I think the harm done to theatre . jndance by television has pretty Burly reached its limit. The showing lold films on television is generating pater interest in the new product I)wn in our theatres. Today a good l| ture will do good business, a great Rtture will do great business, even Bater than at any time. But, of Birse, a picture without popular apjjll does less than ever before beIjse it cannot compete with free ■ ertainment on television." Vogel then told the stockholders ew's Annual Advertising penditures $6,611,000 Advertising expenditures for ew's Inc. during the fiscal year <ded Aug. 31, 1956 totaled $6,'1,000, according to Howard Dietz, ye-president in charge of advertisIJ, publicity and exploitation for the n company. Dietz, in reply to a ckholder query yesterday, said jit this expenditure is a $1,000,000 grease over previous years. Loew's Stockholders Cast 4,567,000 Votes To Elect Reorganized Board of Directors Stockholders of Loew's Inc. yesterday cast 4,567,000 votes in favor of the election of the company's reorganized board of directors which includes George A. Brownell, Fred F. Florence, Louis A. Johnson, K. T. Keller, George L. Killion, Ray Lawson, Stanley Meyer, William A. Parker, Frank Pace, Jr., Ogden R. Reid, John L. Sullivan, Joseph Tomlinson, and Joseph R. Vogel. Three of the above elected board members have been directors of Loew's Inc., previously. Brownell joined the board in 1951, Parker, in 1935, and Sullivan, in 1955. The directors, who met here yesterday afternoon following the stockholders meeting, elected company officers. They are Vogel, president; Benjamin Thau, Edgar J. Mannix, Marvin H. Schenck, Joseph J. Cohn, Charles C. Moskowitz, Charles M. Reagan, Howard Dietz, Benjamin Melniker, Jesse T. Mills, Charles C. Barry, and Frank B. Walker, vice-presidents; Irving H. Greenfield, secretary; Marvin Atlas and Saul N. Rittenberg, assistant secretaries, and Dolph Schadler and Charles H. Phelan, assistant treasurers. that Loew's will not produce as many films this coming year. "We will not make pictures just to eat up overhead," he said, putting emphasis on the fact that M-G-M is concerned with quality rather than quantity. "My recent weeks at the M-G-^M studios have made strong supervision there the order of the day. Already in effect are some changes and eliminations in top management and other areas. The primary objective is to bring our studio operations and production plans to the point where we make the most effective use of our facilities, eliminating unwarranted costs and reducing overhead, producing the kind of pictures which, above all, must have commercial appeal and produce profit for the company," Vogel stated. Steps leading to the reduction of overhead have been taken but the rising costs , of labor, talent and soaring prices of desirable story properties indicate that continued vigilance and rigid management must be practiced in order to bring the studio to a position in the forefront of the industry, Vogel said. Pacts for 21 Outside Films "Our release of Samuel Goldwyn's 'Guys and Dolls' has attracted other independent producers to us and in many cases we expect these independent producers to use our facilities. In this way we will supplement our own activities with those of worthwhile producers who can turn to us for financing and distribution. To date we have contracted for 21 outside pictures, and those already produced and on the market have shown gratifying results. We intend to expand in this independent production field witli the objective of keeping an active studio working full time and a distribution organization launching the maximum number of pictures it can handle," the Loew's head declared. Vogel, reporting that radio station WMGM, the phonograph division and the music corporations last year were highly satisfactory, told stockholders that "the company's foreign operations continue to be an important part of our business and almost half of our film rental income is earned overseas. We operate 45 theatres and drive-ins in many important world capitals, six of which were opened during the past year and it is expected that another dozen will be added in the next year." Vogel said that once the split with Loew's Theatres is accomplished the theatres overseas will remain under the operation of the film company. "Day by day there is a growing enthusiasm within our organization and it is felt that the long-range plans we are now making and actually putting into effect will be reflected favorably in the future financial results," the Loew's executive head said. Almost all of the stockholders in attendance at the meeting applauded Vogel and complimented him on his optimistic outlook. A vast number of them expressed confidence in Vogel and his directors. The election of directors and officers of Loew's are reported in another story elsewhere in this issue. Irving H. Greenfield, Loew's secretary, reported that of the 5,303,447 shares outstanding as of Jan. 11, 1956, over 4,200,000 shares were present at the meeting. He said that of the 25,413 stockholders, 19,700 were present in person or by proxy, roughly 80 per cent. Questioning Is Spirited Questions from stockholders flew fast and thick at Vogel. He was assisted in answering them by Leopold Friedman, president of Loew's Theatres, Inc., other company executives, and some board members. One stockholder asked why four of the proposed directors did not own shares in Loew's, to which Vogel replied that it is their intention to acquire stock following their election. Another asked why one management representative was on the board. Vogel said that he and the directors plan to have the whole management team on call at each board meeting for advisement. Another holder urged the adoption of a policy of doing away with stock options for company executives, but Vogel said that when and if such plans are undertaken, Points to Gains By Subsidiary Organizations stockholders are asked to approve them. Another stockholder asked what the holdings are of a number of former board members. Vogel said that Lehman Bros, own 233,000 shares, Lazard Freres, 78,000, and Arthur Loew, 23,000 shares. Among the sympathetic stockholder audience pledging support to the reorganized management was Judge Louis Goldstein, who represents the Lowenstein Foundation of 100,000 shares. Judge Goldstein urged Vogel to eliminate the "favoritism, mis-management of the old guard, and nepotism" and said he hopes that "1957 will not be a year of disappointment as 1955 and 1956 were." He asked Vosrel and the directors to reexamine the salary structure, pension plan and re-open the Dore Schary contract settlement as "it was wrong." In Red Last Year, He Says Vogel told stockholders, when asked for a breakdown on the profit and losses of each subsidiary and division of Loew's, that the film company was in the red last year, "more than $250,000, while the theatre company made about $5,000,000 before taxes and debt reduction. He disclosed that his weekly salary is $3,000. The Loew's Inc. head also said that the Booz, Allen & Hamilton survey on operations will be fully reported upon next week and that part of their recommendations are a consolidation of some studio departments. He also stated that the M-G-M and 20th Century-Fox agreement on mutual use of the M-G-M studio is "not finished.'' At the conclusion of the meeting, the management team and directors were urged "to raise the dividends" by a stockholder who said that she "did not care if you sell or keep the real estate." Vogel concluded by reporting that M-G-M proposes to reissue "Gone With The Wind" every four, five or six years. Says Loew's Won't Keen Unprofitable Theatres Loew's Theatres, Inc., which is operating independently of Loew's, Inc., will dispose of any theatre or piece of real estate which doesn't give the company a profit, Joseph R. Vogel, president of Loew's, Inc., told stockholders here yesterday. Vogel declared that the circuit, which now comprises 121 theatres, has already disposed of 26 theatres and sold five others in the past few years.