Motion Picture Daily (Jul-Sep 1960)

OL. 88, NO. 5 NEW YORK, U.S.A., FRIDAY, JULY 8, 1960 )isputes McNeally ^egion (Calif.) Hits Producers 3n 'Red' Issue ees Majority Violating lie 'Waldorf Declaration' From THE DAILY Bureau 'HOLLYWOOD, July 7.-Condemition of the motion picture industry h American Legion, Department of ilifornia, for giving "direct and infract assistance" to the "international jinmunist conspiracy" was disclosed day in a report here as having been >ted at the Legion convention in San •ancisco on June 24. All major stui'os, with the exception of Allied Art:s and Disney, were named in the solution charging members of the otion Picture Association of America id Hollywood's "organized independit producers with having broken the j/aldorf' pledge of 1947 not to emjoy known Communists or sub■rsives." The move made by state Legion ( Continued on page 6 ) our on Coast Named o Museum Commission From THE DAILY Bureau HOLLYWOOD, July 7.-Four mem■rs of the Los Angeles County-Hollyood Motion Picture and Television useum Commission yesterday were iimed to three-year terms by county iiard of supervisors. John L. Dales, national executive cretary of the Screen Actors Guild, (Continued on page 6) 'robe of Censorship xpected in Britain Ry WILLIAM PAY LONDON, July 7.-Recent comaints and representations to the 3me Office on censorship may lead a government appointed inquiry 1 1 the subject. This view is strengthled by the tabling of two questions | the House of Commons by Labour ■ember Stephen Swingler. On July 14 he will ask the Home ( Continued on page 3 ) S-W 39-Week Net $2,530,000 Consolidated operating profit of Stanley Warner Corp. for the 39 weeks ended May 28 amounted to $2,530,000, it was announced yesterday by S. H. Fabian, president. Operating profit for the same period last year was $3,591,300. Commenting on the decline in profit, Fabian said, "The motion pic(Continued on page 2) Chairmen Appointed for Pitt. Promotion Drive Special to THE DAILY PITTSBURGH, July 7. Exhibitors in 10 zones in the Pittsburgh exchange area have agreed to serve as zone chairmen in the operation of the Compo-Marcus promotion plan it was revealed yesterday by Alec Moss, Compo staff member acting as campaign coordinator. Those who will act as zone chairmen are the following: Zone 1 — Robert Bowman, district (Continued on page 3) 'Psycho' at Drive-In; Admission Plan Works Alfred Hitchcock's "Psycho," which opened its first drive-in theatre engagement at the Brunswick Drive-In, Brunswick, New Jersey, on Wednesday, grossed $1,973, the biggest single day's figure in the theatre's ten-year history. Attendance topped all holi(Continued on page 2) TV Rentals Bring 43.9% of Net Profit In an unusual breakdown of the sources of earnings, Joseph R. Vogel, president of MGM, said analysis of the earnings for the first three quarters of fiscal 1961 showed that film production and distribution accounted for 77.8 per cent of the gross revenue and 40.7 per cent of the net; television rentals 11.2 per cent of the gross and 43.9 per cent of the net; and the record company, laboratory, television production and all other activities accounted for the balance. The large proportion of television rental gross to net profit he attributed to the fact that the television rentals represent almost clear profit since the pictures are already amortized. Three New Promotions In M-G-M Sales Dept. Three additional promotions in the M-G-M sales department were announced yesterday with the appointment of Lou Marks as Central Division sales manager, William A. Madden as Midwest sales manager, and Sidney Eckman as Philadelphia branch manager. The appointments by Robert Mochrie, general sales manager, are effective July 18. Marks will succeed John J. Maloney, who has retired. A branch manager in Detroit since 1954, Marks has been associated with M-G-M for 23 years. Madden takes over as sales manager of the Midwest Division to fill the (Continued on page 6) Vogel Says: M-G-M Status Bright: Future Looks Better Three-Quarters Net Up 18% to $7,317,000 By JAMES D. IVERS A bright picture of the present financial state of Metro-GoldwynMayer, Inc., and an even rosier picture for the future was painted, and backed with figures, yesterday by Joseph R. Vogel, president of the company, at a luncheon for trade and financial reporters. The luncheon preceded a meeting of the Analysts Club at which Vogel discussed the state of the company. In the first three quarters of fiscal 1960 the company earned $17,168,000, which, after interest and all taxes, amounted to $7,317,000, an increase of 18.8 per cent over the similar 1959 period. The net profit per share for the three quarters was $2.92 per share on the 2,505,100 shares outstanding, a 12-year high, and the per share figure, adjusted to the number of shares, is ( Continued on page 6 ) No Decision Yet on M-G-M Post'48 Sales M-G-M has made no decision yet on releasing its post-'48 backlog of pictures to _ television, Joseph R. Vogel told the trade and financial press yesterday. When they are sold, he said, they undoubtedly will be sold by M-G-M itself directly to stations just as pre-1949 pictures are being sold. "They are worth a lot of money to the company," Vogel said, "and we (Continued on page 6) MGM Actively Looking Into Pay-TV Field Pay television in one form or another will definitely be a factor in the entertainment business in the near future and MGM is actively looking into the field, Joseph R. Vogel said yesterday. While conversations have been held ( Continued on page 6 ) AB-PT Sells Its 35% Stock Interest in Disneyland Park to two Disney Concerns American flroadcasting-Paramount Theatres, Inc. has sold its 35 per cent stock interest in Disneyland Park to Walt Disney Productions and Disneyland, Inc. it was announced by Leonard H. Goldenson, AB-PT president. The stock was sold at the mutually agreed fair price of $1,500 per share. Disneyland, Inc. paid $2,002,500 in cash for the stock purchased by it, and Walt Disney Productions gave $5,497,500 in notes payable equally over a five year period. A subsidiary of AB-PT will continue to operate its concessions in the park. As to television, ABC will continue to have the exclusive rights to telecast the "Walt Disney Presents" program over its network for the 1960-61 season. This program has been scheduled in a new time period at 6:30 to 7:30 P.M. on Sundays, commencing Sept. 25. Certain litigation between the companies involving the prior television contract has been terminated.