The Exhibitor (1956)

10 MOTION PICTURE EXHIBITOR National Theatres Income Rises; Rhoden Sees Public Interest High Los Angeles — Earnings of National Theatres, Inc., including capital gains from the sale of real estate, were sub¬ stantially higher in the fiscal year ended Sept. 25 than in the preceding year, Elmer C. Rhoden, president, announced last week in the annual report to stock¬ holders. Consolidated net income for the 1956 fiscal year was $4,648,057, equal to $1.72 per common share on the 2,699,486 shares outstanding. This included capital gains after taxes of 88 cents a share from the sale of the Roxy, and 21 cents a share from the sale of other theatres and real estate. Profits last year amounted to $2,886,008, equal to $1.04 per share, in¬ cluding 11 cents a share in capital gains. Total gross income for the year was $59,707,251, compared with $61,692,043 last year. The most important factor in the decrease in gross income and earn¬ ings from theatre operations was the “severe shortage of suitable attractions,” Rhoden said. The public’s interest in motion pictures in general has not lessened, he said. “It is obvious that the market exists if the producers can meet and satisfy the enter¬ tainment desire of the public,” he added. During the past year 14 unproductive theatre properties and 13 unimproved or non-theatre properties were sold or other¬ wise disposed of, Rhoden said. These sales, together with the Roxy transaction, en¬ abled the company to materially reduce long-term indebtedness and increase its cash reserve without appreciably affecting earings potentially, he pointed out. The company has completed final tests of the Cinemiracle process and this three panel system of photography and projec¬ tion can now be used commercially, Rhoden said. The first production under this process, tentatively entitled “Cinemiracle Adventure,” is expected to be completed for release in the fall of 1957, he stated. National Theatres has ex¬ clusive worldwide rights to and control of the production and exhibition of pictures made in Cinemiracle. National Theatres is actively exploring opportunities for diversifying its opera¬ tions through investments in other fields. Cash realized from the sale of the Roxy makes this policy feasible, Rhoden explained. Concluding his report, Rhoden said, “There is a good indication that the pro¬ duction of Hollywood will meet the de¬ mand for more pictures. This, coupled with the growing segment of young motion picture patrons, gives us hope that the new fiscal year will hold better opporunities.” Yates To Hold Stock Hollywood — Herbert J. Yatese, presi¬ dent, Republic Pictures, stated last fort¬ night that his stock in the company “is no longer for sale to anyone.” He said that December will be a big month for the company both in gross and volume of playdates and that Republic will start production activity on three pictures in January. SAG, Matty Fox Agree On Post-48 TV Pay HOLLYWOOD — The Screen Actors Guild board of directors last week approved a settlement with Matty Fox, C and C Super Corporation, cov¬ ering the television exhibition of 82 RKO features made after Aug. 1, 1948, and some 50 short subjects, it was disclosed by John Dales, SAG national executive secretary. Fox will pay the SAG $715,000, of which $615,000 is to be remitted in 36 monthly install¬ ments. The remainder is to be paid from Fox’s gross television receipts for the entire RKO package of 740 features when such recipts exceed the average of $50,000 a picture. The SAG board, in discussing methods to divide the payments among the actors in the films repre¬ sented, pointed out that it does not consider Fox to possess the same status as a major producer, and that the agreement with him is not to be interpreted as a precedent. New $60 Million Loan Concluded By AB-PT New York — Leonard H. Goldenson, president, American Broadcasting-Para¬ mount Theatres reported last week in a letter to stockholders that the company had concluded a loan agreement with several financial institutions for $60,000,000. The AB-PT head said that $12,500,000 of the loan is to be taken down on Dec. 27, 1956; $42,500,000 on May 31, 1957; and $5,000,000 by Oct. 1, 1958. There is an option for an additional $5,000,000 exer¬ cisable by Oct. 1, 1958, he said. The stockholders were told that of the proceeds, $37,234,000 will be used to pay off existing debts, and the balance will be added to the working capital. The loan will mature serially from July 1, 1957 to July 1, 1977, with a final maturity on Jan. 1, 1978. The letter to stockholders accompanied the AB-PT fourth quarter dividend check. The payment on common stock included an extra dividend of 30 cents a share, an Brotherhood Dinner To Launch 57 Drive New York — The amusement industry’s 12th annual Brotherhood Dinner will be held on Jan. 24 in the grand ballroom of the Waldorf-Astoria Hotel in New York, it was announced last week by William J. Heineman and Spyros S. Skouras, Jr., national co-chairmen of the 1957 Broth¬ erhood Drive. Jack L. Warner, president, Warner Brothers Pictures, has been named re¬ cipient of the 1957 Brotherhood Award. The award is made in recognition of his contributions to better understanding among Americans of all faiths. More than 1,000 representatives from the motion picture industry, television, radio, and legitimate theatre are ex¬ pected to attend the dinner, formally launching the annual Brotherhood cam¬ paign sponsored by the National Con¬ ference of Christians and Jews. With the cooperation of the film busi¬ ness’ production, distribution, and exhibi¬ tion branches, the Brotherhood Drive will carry the campaign for better understand¬ ing among Americans of all faiths to every section of the country. The national effort will be climaxed by the observance of Brotherhood Week, featuring a membership drive and solici¬ tations of contributions at more than 15,000 theatres. "Commandments'7 Sets Mark New York — All boxoffice records for an advance sale motion picture have been broken by Cecil B. DeMille’s production of “The Ten Commandments” in its first eight U. S. engagements to date, Para¬ mount revealed. Approximately $2,250,000 has been garnered by the DeMille epic to date. Picture has been playing an average of four-and-a-half weeks at the eight situations. Two-shows-a-day and reserved seat policies prevail. In consequence of this record achieve¬ ment, the company said it was unquali¬ fiedly confident that the predicted mini¬ mum world-wide gross of $50,000,000 for the picture in the next few years was certain to be attained. increase of 10 cents over last year’s divi¬ dend, in addition to the regular quarterly dividend of 25 cents a share. The pre¬ ferred dividend is at the regular rate of 25 cents per share. Sidney Newman, left, advertising-publicity director, Skouras Theatres, and Alfred H. Tamarin, assisJan national director of advertising, publicity and exploitation. United Artists, have accepted posts a national publicity co-chairmen of the Brotherhood Drive for 1957 sponsored by the National Confer ence of Christians and Jews. December 26, 1956