Motion Picture Daily (Oct-Dec 1958)

2 Motion Picture Daily Friday, October 24, PERSONAL MENTION SID BLUMENSTOCK, coordinator of M'PAA promotional activities for the 1959 Academy Awards telecast, left here yesterday for Miami Beach to report to the TOA convention on plans for the broadcast. • Kenneth N. Hargreaves, president of Rank Film Distributors of America, and Foster M. Blake, general sales manager, will return to New York today from Miami Beach. • Cecil B. DeMille has accepted the invitation of the City of New Orleans to attend the premiere of 'The Buccaneer" there on Dec. 11. • Alan Brown, producer, has returned to New York from Europe. • Louis Strickland, president of Strickland Films, Atlanta, has returned to his home there following hospitalization. • Charles Zagrans, Jr., son of the NTA representative in Philadelphia, has passed his bar examinations at Elyria, O., and has joined the law firm of Hyman and Hyman in that city. • Evelyn Seeff and Helen Cohen, of the Paramount home office secretarial staff here, are on a two-week cruise to the West Indies. • R. W. Graber, Allied Artists special representative in Atlanta, has entered the hospital there. • Marcel Hamel, Paramount's Paris transportation manager, has left New York for Hollywood. • Warren Low, film editor for Hal Wallis, has returned to Hollywood from New York. Vogel Reports Earnings Up Marine Fathers' Unit To Attend 'War' Bow A large contingent of members from the Marine Corps Fathers' Association of New York will salute Jerry Wald's "In Love and War," a story of Marine heroism in the South Pacific, Thursday night at the Paramount Theatre here during a gala preview-premiere. The distinguished group, which reserves membership for fathers of Marines now serving in the United States and abroad, will attend the special showing en masse, and join producer Wald in viewing the initial showing of the 20th Century-Fox release. ( Continued parry's operations are in the black, the most important factor in the favorable results is the showing made by the MGM studios. He related that Booz, Allen & Hamilton, management consulting firm retained by Loew's last year, predicted the pictures produced for release from September. 1956, to September, 1957 would lose $17 millions. Actually, Vogel said, they lost $15,500,000. The pictures made during his regime, for release from September, 1957, to September, 1958, will show an estimated profit of $1,500,000, or an improvement of approximately $17 millions in studio operations. ' Shooting for 10% Increase" He said the entire Loew's organization is shooting for a 10 per cent increase in gross revenues in this fiscal year over last, and expressed confidence that the present rate of earnings will be maintained. He disclosed that his administration has effected an $8,000,000 per year reduction of fixed costs and expenses in the overall company. He spoke enthusiastically of the company's forthcoming product and predicted that "Ben Hur," which will be ready late next year, will be "one of the biggest money-makers in the history of the business." "It is not true," he said, "that its production costs are running away, or are greatly exceeding expectations." He said it may be a few hundred thousands over its $13,000,000 budget. In a question-and-answer period which followed his talk, Vogel said the proposal of Louis Green and Jerome Newman, directors, to spin off the picture company instead of the theatre company in effecting the company's consent decree divorcement is receiving careful attention. To Be Presented Wednesday Management's plan, providing for the separation of the theatre company, and a formula for dividing the assets and liabilities of the parent, has now been completed and will be presented to the board at its meeting next Wednesday. At the same time, a committee which has had the Green-Newman plan under study, is scheduled to make a report, on it to the board. Indications are management's plan will be referred to the committee for study, also. Vogel said the board is agreed that the divorcement should be completed as soon as possible, without considering an extension of the August, 1959, deadline. He said indications are onehalf share of stock in the new picture company and the new theatre company will be issued for each share of Loew's held. The outstanding stock from page 1 ) of each company then would be 2,650,000 shares. The long term earnings objective of the picture company, Vogel said, is $18-$19 millions before taxes. He said there are many ways of splitting the company to comply with the decree and some of them could work to the injury of the stockholders. "It is our duty," he said, "to effect a split-up that will result in making the company worth more and with the ability to earn more." Vogel disclaimed knowledge of a proxy contest over the divorcement issue, saying he wouldn't want one as it would be bad for the company. He said the company will receive about $8 millions from pre-1948 films leased to television, and that its income from that source over the next few years will amount to $33 millions. He said total contracts represented $52-$53 millions, of which Loew's has received to date about $20 millions. Vogel estimated MGM's post-'48 films at 250 and cited some of the major reasons for not disposing of them— participation claims of Hollywood guilds, their effects on theatre business, and the like. Theatre business this quarter, he said, is far ahead of a year ago. The theatres earned $4 millions last year before taxes but after a depreciation charge of $2 millions. An appraisal of the theatre properties made three years ago, put a valuation of $65 millions on them, which he called too high. "I feel from now on business will improve," he told his audience. i?. L. Friedman to NTA Robert L. Friedman, formerly a sales executive with Universal Pictures, has been named manager of the Mid-Atlantic division of NTA Pictures, Inc., it was announced yesterday by H. H. Greenblatt, general Two Disney Dividends HOLLYWOOD, Oct. 23.-Directors of Walt Disney Productions, at a special meeting today, declared a quarterly cash dividend of 10 cents per share on the company's common stock, together with three per cent stock dividend on the company's common stock, each payable Jan. 1, 1959 to stockholders of record Dec. 3, 1958. Skouras Services Set LOS ANGELES, Oct. 23. The fourth annual services in memory of the late Charles P. Skouras, will be conducted Sunday at Saint Sophia Greek Orthodox Cathedral here. Talk New MGM Pact for Ben Thau, Vogel Says Negotiations for a renewal of t jamin Thau's employment contra jjl^ an MGM studio vice-presidentn| 1"' in progress, Joseph R. Vogel, Llj president, disclosed yesterday, j Thau's present contract e>j Oct. 31, he said, and expresses hope that new terms can be aj] upon. loew's in Oil-Drilliml Pact on Studio Land Loew's will enter into an 3 ment, possibly this week, with tinental Oil Co. for drilling o: Culver City studio property, "v the company believes there is p: of oil," Joseph R. Vogel, presi told a meeting of the N.Y. So' of Security Analysts here yeste Vogel said the agreement call no cash outlay by Loew's, which participate in the revenue as earned. The agreement also inc oil which may be found on pro adjoining the MGM lot. He said the Loew's board fi selling some of the real estate oV by the company and a special now appraising the property invc which he did not identify. The he said, is to get an idea of pur for which it might be sold an value. To Film 'Zhivago9 "Dr. Zhivago," the controv novel which yesterday brought S author Boris Pasternak the 1958 bel Prize for Literature, will be I into a motion picture by Man Productions, Joshua Logan's pendent film company. NEW YORK MATH i — RADIO CITT MUSIC KILL Rockefeller Center • CI 6-4600 "CAT ON A HOT TIN ROOF"! ELIZABETH TAYLOR -PAUL NEWMANBUH. A JACK CARSON • JUDITH ANDERS! [ FROM M-G-M IN METR0COLOR and GAU NEW STAGE SPECTACLE for QUALITY and SPEED E w<aLt"raiue's Depe° dabW 630 Ninth Aye" New York, N.Y. SPEC FllMAC i; 1327 S. W CHICAGO MOTION PICTURE DAILY. Martin Quigley, Editor-in-Chief and Publisher; Sherwin Kane, Editor; James D. Ivers, Managing Editor; Richard Gertner, News Editor; Floyd E. 5)rie. Photo Editor; Herbert V. Fecke, Advertising Manager; Gus H. Fausel, Production Manager, TELEVISION TODAY, Charles S. Aaronson, Editorial Director; Pinky Herman, Viiens Canby, Eastern Editors. Hollywood Bureau, Yucca-Vine Building, Samuel D. 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