Motion Picture Daily (Apr-Jun 1960)

sday, May 18, 1960 Motion Picture Daily 9 ii I Shareholders i e to 20th-Fox Toll -TV Seen as 'Inevitable {Continued from page 1) Telemeter experiment in Toronto and is now in negotiation with a company for the development of a similar system. "It can be a most useful instrument for the advance of our industry," he said, "provided we of the industry unite in seeking legislation which would restrict the showing of motion pictures on toll television to those which are from five to seven years old." He claimed that the Canadian experiment had shown that pictures that old received as good or better revenue than first run pictures. "If toll television is permitted to show first run pictures," he continued, "the American motion picture industry will be destroyed because the theatres would be forced to close. Only legislation can give the protection needed and if it ; — is not regulated the industry as we know it today will become a thing of the past." ■Lt ' C \ 1 1 f\ 1 fi ^e ma(*e tne additional point that "if home television charges admission i \ 9 Ol ULULlLr o the industry will receive greater revenue. Not only that but theatres will benefit because the free competition they now face will be eliminated." I management of Twentieth I -Fox and its president, SpyS jras, were given a plaque yesI; at the annual stockholders I fur "meritorious achievement h eld of industrial management." > que, an award from the United r lders of America, was pre|i I bv Ben Javits, president of t Janization. Continued from page 1) of stockholders yesterday \m is with the Kratter Corporad replaces the one approved jkholders last year with Wil■ekendorf of Webb & Knapp. jlorf last year created a Jry known as the 91091 Cor|( to purchase the studio prop! S56,000,000 payable over a hf ten years. This deal also inf a lease-back of the studio j;s for an annual rental of )00 but the lease was to run ' 20 years. In addition, under jients to the deal Fox had to take a second mortgage on to be built by Zeckendorf. it points of the new deal are: e total purchase price is $43,■ but against this will be cred,500,000 paid by the 91091 jpon the signing of the orig I plus the $1,000 a day penalf nents paid by 91091 since >r y 1, 1960, deadline for the ;ii deal. At the time of the ii of the new deal it is estimated II amount to approximately I the time of the signing of the I ;reement which it is hoped I J within a month, Kratter will '^additional $2,400,000 to make ■aftal of $5,000,000. i. |1 i die closing date, to be not srijan six months from the sign I the agreement, $38,000,000 I I paid in cash. IE the closing date Kratter will M in a Los Angeles bank $1,Wl in cash or securities for the M of constructing the Avenue ■ Itars Boulevard along the main diyroperty from Olympic BouleRjJthe third drill site which was ■ p for in the Zeckendorf agreeHtl ving the studio building front*.<j(two streets. Kratter also must 'V) adequate sewer facilities for d'^Iopments on the property. I ider the lease-back provision Ux will have the right to suba r part of the studio property < alter or demolish the present the event the stockholders cial meeting to be called soon f >ve the new deal Kratter will e right to proceed with the 'l< il which provided for the I of the $56,000,000 purchase price over a period of ten years. Skouras, outlining the plan to stockholders, said, "Let me emphasize that we regard no deal as certain until we get all the money. And I hope I don't have a heart attack when they hand me that $38,000,000." In answer to questions from the floor Skouras, Donald Henderson and Otto Koegel said that the $43,000,000 in cash was the equivalent from an actuarial standpoint of the $56,000,000 in deferred payments. Big Jump in Earnings The announcement of the real estate plan was the big news of stockholders meeting but Skouras had other good news for the shareholders. Consolidated earnings for the first quarter of 1960, he said, were $1,602,282 compared with $930,000 for the corresponding period last year. He predicted that productions now in release and those to come, particularly "The Story of Ruth" and "From the Terrace," would place the 1960 earnings among the best the company has had. He pointed out that the drop in gross income and in earnings shown in the annual report was entirely due to a loss of $5,000,000 in the production department. He assumed full blame for this, as president of the company, but he said, "This responsibility places me in a position to guide the affairs of the corporation more effectively in the future." He reviewed progress in all departments of the company, predicting increasing revenue from all sources. 'Very Careful' on Post-1948 He told the stockholders the company would be "very careful" on the sale of its post1948 pictures to television and ventured the opinion that in most not enough was charged for the earlier pictures which had been sold to television. He said the market would have to watch very closely and no hasty sales made. On Eidophor he recalled that under a deal made last year a new holding company for the Eidophor patents had been set up in which Fox owns 50 per cent of the stock and a Swiss group including Ciba Pharmaceutical Co. the other 50 per cent. This company is to exploit uses for Eidophor other than in theatres. In addition in this country Fox is working with General Electric to work out means of overcoming technical difficulties which now prevent effective transission of the signals by wire. All incumbent directors of the company were reelected. They are Colby M. Chester, Robert L. Clarkson, Daniel O. Hastings, Robert Lehman, Kevin C. McCann, William C. Michel, Thomas A. Pappas, B. Earl Puckett, Spyros P. Skouras and Gen. James A. Van Fleet. The board of directors of 20thFox yesterday declared a dividend of 40 cents payable June 30 to stockholders of record June 15. Totman Takes Over ( Continued from page 1 ) chain since he began as a part-time usher for Roland & Clark in Erie, Pa., in 1925. When Warner Brothers took over the theatres Totman became a manager of a Pittsburgh theatre, returned to Erie, managed successively the Iris, the Perry— a vaudeville house —and then shifted over to the deluxe Warner Theatre when it opened. He then transferred to the advertising department as assistant— became district manager in the Erie territory and then Pittsburgh advertising manager. Nine years ago Totman was transferred to New England as assistant zone manager and advertising manager. His territory comprises the Stanley Warner theatres in Rhode Island, Massachusetts and Connecticut. Magna Net (Continued from page 1) of George P. Skouras, which was released to the press yesterday. The net compares with a loss of $196,172 for the previous fiscal year. Operating income for the year reported on was $11,487,085, compared with $6,783,542 for the previous one. In the letter to stockholders, Skouras states that the company is in the "best financial condition in its history," thanks largely to revenue from "South Pacific" and the ToddAO Corp. He also reports that Magna has acquired a story and developed a screen play to be used in the next Todd-AO picture, production of which is tentatively set before the end of the summer. Next meeting of stockholders of Magna will be on June 14. $4,500,000 Paid By Kratter to W&K In a deal whereby Kratter Corp. will acquire the 267-acre Century City tract from 20th Century-Fox it will pay Webb & Knapp, which had originally contracted to buy and develop the site, approximately $4,500,000. In turn, Webb & Knapp will retain 25 acres for a hotel and apartments. Kratter will proceed with development of the original Webb & Knapp plans proposed last year, according to a joint announcement yesterday by Marvin Kratter, chairman and president of the company, and William Zeckendorf, president of Webb & Knapp. Century City comprises a vast complex of apartment houses, shopping centers, an ultra modern hotel, office buildings and school and religious facilities. Provisions Outlined Under terms of the agreement, Kratter pays 20th-Fox $2,393,000. The film company also retains $2,607,000 already paid by Webb & Knapp. In addition, Kratter will pay $38,000,000 upon the closing of the contract to buy the Century City tract. Closing is scheduled in six months following approval by stockholders of 20th-Fox. When the new agrement is executed, Kratter will lease to 20th-Fox for 50 years the studio portion of the property of 75 acres at a net rental of $1.5 million per year. Fox also receives an option to renew the lease at the same amount for an additional 25 years. Named Century City by Zeckendorf when Webb & Knapp originally acquired the tract from 20th Century in 1959, the planned community calls for: 12,500 Apartments Planned A middle income, high rise housing development containing 12,500 apartments with a garage for more than 15,000 cars; A 600,000 square foot shopping center, including a major department store with 1,800,000 square feet of parking space in a multi-level garage; and A 1,000 room luxury hotel, The Century, with convention and exhibition space to be built on 1,000,000 square feet of land retained by Webb & Knapp. Century City is expected to have a residential population of 40,000. Construction of a major north-south boulevard through the center of the property, called "The Avenue of the Stars," will be under construction within 60 days after the closing, Kratter said. 'Hours' Big hi D.C. "The Gallant Hours," starring James Cagney, has racked up a solid $11,185 for its first three days in its world premiere engagement at the RKO Keith's Theatre in Washington, D.C, it was announced bv William J. Heineman, United Artists vice-president.