Motion Picture Daily (Jul-Sep 1957)

'Wednesday, July 24, 1957 Motion Picture Daily 3 NewSBALoan ■Plan Advised ill I In order to expedite and test new applications for Small Business Administration loans, Herman Levy, general counsel for Theatre Owners of \merica, has recommended a new procedure. He suggests that prospective ipplicants for loans have a letter from i real estate broker or insurance company stating that specific banks and nsurance companies have refused a oan. I This may not be in conformity with the SBA rules, he states, but no definition of policy has been made regarding this procedure. For those exhibitors who feel they would not be prejudiced in obtaining letters of re:usal of loans by lending institutions le suggests that exhibitors get these etters and submit them with their applications. Sent to TOA Members i i Levy's suggestions have gone out i,o TOA members as a result of happenings since the June 12 statement py Philip F. Harling, chairman of the TOA's Small Business Administration bommittee. At that time Harling listed four joints to be observed in making loan ipplications. They were: 1. The SBA would consider theatre .nortgage loans in accordance with the •ules and regulations of the SBA. 2. That they would accept them in unounts up to $250,000. 3. That the loans could be repaid in. 10 years. 4. That the collateral could consist iff real estate up to 90 per cent of die appraised value and a good earnings statement. The earnings statement and ability to pay must be flearly apparent to the SBA. Since that time the Senate Banking ■/ind Currency Committee has extended the SBA for one year, and, Levy states, it is almost certain there will be loint meeting of the House and Senate committees for the purpose of drafting compromise legislation. Has Five-Point Plan As a result of these developments, Levy suggests five new points to be observed, as follows: 1. Instead of obtaining a formal written refusal from a bank or insurance company, have a real estate broker furnish a letter to the effect that specific banks and insurance companies have refused to accept mortgage loans. 2. If the appraised value of the property is sufficiently high, a loan ip to 90 per cent of the appraised /alue will be granted. If it is not suficient to warrant a loan based upon in appraisal value, be prepared to submit a statement of operations for :he past five years, which should indicate a good record of earnings and he ability to repay a loan, if granted. 3. When filing an application with Producers Dispute with Unionists Threatens Film-Making in Mexico Special to THE DAILY MEXICO CITY, July 23— Unless producers and unionists make peace by July 31, there are prospects that Mexicans will thenceforth stop making pictures in Mexico. The producers insist the technical and manual workers locals of the Picture Production Work ers Union (STPC) must modify their wage increase and more and bigger economic benefits demands. The producers say these demands mean 59.25 per cent of what they are receiving and they will no longer be able to make pictures in their own country. The unionists threaten to strike tomorrow in a move to bring the producers to their terms. Production Costs Doubled Pointing out that production costs now are twice what they were in 1949, the producers aver that allowing the laborites demands would eliminate the necessary margin of profit by raising the minimum cost per picture 32.53 per cent. The producers cite as factors in higher production costs today the facts that technical and manual workers and wrtiers and adaptaters now command twice as much as they did eight years ago; musicians, 220 per cent more, while the pay scale of players is 25 to 76 per cent above that of 1949. The unionists are expected to reject the producers' request that the bi-annual revision of collective labor contracts, featuring the highest-ever pay hike and economic benefits demands, be put off until 1959. Some Hope Felt The producers representatives, Gregorio Wallerstein, president of their Association, and Santiago Reachi, aver there is reason for optimism in the stiuation, dark as it seems. They indicate that peace will yet be attained by labor appreciating concessions the producers have made. Felipe Palomino, secretary general of the locals, asserts that the producers can well afford to meet the unionists' demands because the producers made nearly $4,000,000 last year. The producers admit a good year in 1956 but contend that the cited earnings were gross, and there was much difference between that and the net. this additional information, suggest to the regional office that unless they know of the Administration's policy in regard to theatres, they should submit the application directly to Washington for processing. Do not accept a turndown from a regional office. 4. State in a separate part of the application, in the form of a rider, that the money will be used to expand, improve and rehabilitate the theatre in order to make it really competitive with other forms of entertainment. 5. In making an application, make full disclosure to the regional office of all facets of the business. Do not withhold any pertinent information, no matter how confidential it may be deemed. '80 Days' Will Premiere In Rochester Tonight Special to THE DAILY ROCHESTER, July 23 Michael Todd's "Around the World in 80 Days" will open tomorrow night at the Schine Monroe theatre here. Expected to attend are George P. Skouras, chairman of the board of ToddAO and president of Magna Productions; Dr. Brian O'Brien, former University of Rochester scientist, now head of research for American Optical Co.; and Douglas Netter, vice-president of Todd-AO. Also on the list is J. Myer Schine, president of Schine Enterprises; G. David Schine and Donald Schine, vice-presidents of the theatre chain and Michael Todd Jr., who will represent his father. The Monroe is a former Schine community theatre which has been remodeled throughout and equipped with the Todd-AO projection system. Britain Spent £9,000,000 On U. S. Film Imports in '56 From THE DAILY Bureau LONDON, July 23 Over £9,000,000 ($25,200,000) were spent on importing films here from the United States in 1956, Chancellor of the Exchequer Peter Thorneycroft said today in answering questions in the House of Commons. This amount is limited by the Anglo-American Film Agreement, he pointed out. He said further that he had no comparable figures of the amount received from the U. S. in respect to British films exported there in the same period. Katz, IA Executive Dies in Harrisburg Lawrence J. Katz, 60, international representative of the I.A.T.S.E., died of a heart condition at his home in Harrisburg, Pa. A native of Hf.rrisburg, Katz entered the industry as an usher at the vaudeville theatre there and later became spotlight operator and projectionist. He helped form the first moving picture machine operators' union in that city in 1912 and served as secretary and business agent after it became I.A.T.S.E. Local 318 the next year. Since 1929, he has been president of Harrisburg Operators Local 488. Services will be held tomorrow at 2 P.M. at the Sourbrier Funeral Parlor, 1728 North Second Street, Harrisburg. 'Frankenstein' Popular Warner Brothers reports that "The Curse of Frankenstein" is scoring strongly in every one of the more than 100 situations in all parts of the country where it currently is playing. Highlights of the engagements included a 26-theatre, multiple Los Angeles area first run booking which scored a combined gross of $254,414 in its first five davs. Jack Le Vien in New Post With Metrotone News Jack Le Vien, former vice-president of Pathe News, has been appointed special productions director of Hearst Metrotone News, Inc., by C. B. Stratton, executive vice president. The comp a n y is i ncreasing its production of sponsored films for television and industrial use. It also turns out News of the Day, Telenews Jack Le Vien Daily, a weekly Sports Review and a weekly News Digest for TV. Le Vien was a colonel commanding press camps for war correspondents in Africa, Sicily, Italy, France and Germany during World War II. At Pathe he frequently represented the American Newsreel Ass'n on international stories, like the Olympics, the Big Four Conference and others. He left Pathe when Warner Brothers discontinued the newsreel. Max Klein Appointed Stratton also announced yesterday the appointment of Max Klein as thetarical newsreel make-up editor for News of the Day. Klein held a similar post at Paramount News until it was discontinued last February. He was with Paramount 30 years, starting as librarian and participating in the transition from silent to sound news films. Hub House First-Run BOSTON, July 23-The Trans-Lux, downtown theatre here, which has been experimenting with first-run product for the past two years, has now adopted it as a permanent policy. "I would like to say that coming to Saranac and visiting the Will Rogers Memorial Hospital is a highlight of my life. It certainly is inspiring to me to meet the people at the hospital . . . both the patients and the staff. I am going back to Portland with the idea of putting everything into it that I possibly can and I think we'll do a topnotch job out there this year." — Dick Colbert, Universal-International, Portland, Ore.