The Exhibitor (1959)

January 7, 1959 MOTION PICTURE EXHIBITOR 9 Commerce Dept. Predicts Production Cut, Attendunce Increuse For 1959 Distribs Win Round In Underreporting Suit COLUMBIA, S. C. — Damages aggregating $93,577.81 for percentage underreporting at some nine theatres operated by H. B. Ram of Aiken and various members of his family during the period 1941-1954 were found to be due to eight distributing companies in a re¬ port filed in Federal Court here by E. W. Mullins, Special Master appointed by that court for trial of the matters. The eight actions, which were consolidated for trial, were begun in 1949 by Paramount, Loew’s, Warner Bros., RKO Radio, Twentieth Century-Fox, Univei'sal, United Artists, and Columbia. Defendants were H. B. Ram, Esther Ram, Jake Bogo, Sam Bogo, and Max Bogo, former owners and operators of various the¬ atres in the Aiken-Augusta area. Highlights of the Special Master’s report in¬ cluded findings that defendant-exhibitors had destroyed or falsified their records to conceal relevant facts; that daily admission receipts could be and were reasonably reconstructed from various other sources; that one among many indications of false reporting by de¬ fendants was the fact that the exhibitors sent in identical box office reports of admissions for different days to different distributors, often with identical breakdowns of admissions by price class; and that interest should be awarded on each item of underreporting from the last playdate of each underreported pic¬ ture to the date of final judgment. The case now goes to U. S. District Judge C. C. Wyche for action on the Special Mas¬ ter’s trial findings. Representing the distribu¬ tors were attorneys C. T. Graydon and Augustus T. Graydon of Columbia, S. C., Wil¬ liam R. Glendon of Royall, Koegel, Harris & Caskey, New York, and John F. Whicher of Sargoy & Stein, New York. NTA Promotes Gang NEW YORK — Samuel Gang has been named foreign sales manager for National Telefilm Associates, Inc., Oliver A. Unger, NTA president, announced. Gang joined NTA as a foreign sales representative more than two years ago. He has been active in selling NTA product in the Latin, South American, Australian, Japanese, Philippine Island, and Hong Kong markets. Gang recently returned from a seven week business trip of the Far East. Prior to joining NTA, Gang was active in theatrical distribution in the Philippine Islands for a period of five years. Cincinnati Cuts Tax CINCINNATI — Local theatre owners got a welcome Christmas gift when City Council approved a cut of $80,000 in city’s admission tax. New schedule exempts first 55 cents when admissions are $1.05 or more, effective Jan. 1. In 1960, city will exempt $1.05 of all admissions from three per cent tax. Theatre owners feel that local tax relief and revised federal tax exemption law will considerably ease pressure of operating costs. Mich. Exhibitors Meet DETROIT — Michigan exhibitors were sum¬ moned to a meeting yesterday in the screen¬ ing room of the Fox Theatre to hear first¬ hand reports from some of the men who helped organize the American Congress of Exhibitors. The call was issued on stationery of Allied Theatres of Michigan, Inc., signed by presi¬ dent Milton H. London. Sherrill Corwin, Los Angeles, head of Metro¬ politan Theatres, is seen, center, as he recently received a plaque in appreciation of the con¬ tribution the circuit has made in a campaign for the entertainment of Los Angeles County's senior citizens— those over 65. The presentation was made by Carlton Browning, left, a vicepresident of the Senior Citizens Association of Los Angeles County, while Bill Welch, KTTV announcer, right, looked on. Para. Acquires Stock, Cuts Long-Term Debt NEW YORK — Barney Balaban, president, Paramount Pictures, revealed last fortnight that the company in 1958 continued its pro¬ gram of acquiring its own shares on the open market and that it has reduced its long-term debt by over $5,000,000. The company in 1958 purchased in excess of 176,000 shares of its stock at a total cost of $6,944,000, or an average per share cost of $39.43. About 1,764,000 shares are now out¬ standing. Liquidation of debt includes full payment of the $1,200,000 note of 1501 Broadway Cor¬ poration, and accelerated payments of more than $3,300,000 on the principal of the Dec. 1, 1965 note. Outstanding debt by the end of 1958 will be reduced to $12,000,000 notes payable to Prudential Insurance Company and $5,074,000 mortgage on the Paramount Sunset Studio property. Balaban said it was questionable whether the $2.80 per share operating earnings of 1957 will be matched in 1958. Earnings in the first nine months of 1957 were $8.04 per share, in¬ cluding $5.93 per share from special income and $2.11 per share from ordinary operations. Evidon Heads Col. Branch LOS ANGELES — William Evidon, sales manager at the Columbia Pictures branch here, has been promoted to the post of branch manager, it has been announced by Rube Jackter, vice-president and general sales manager. Evidon succeeds Norman Jackter, who re¬ cently was named southern California and Rocky Mountain division manager. With Columbia since 1934, Evidon joined the company as a poster clerk in the Min¬ neapolis exchange. He served there succes¬ sively as a booker, head booker-office man¬ ager and a salesman, before being transferred to Los Angeles in 1947. He also served as office manager and branch sales manager of Los Angeles before his pro¬ motion. WASHINGTON— In a forecast of 1959 busi¬ ness the Department of Commerce indicated an increase in receipts and attendance at motion picture theatres but a probable cut in the production of features for 1959. Foreign made films were seen as having a better chance of playing time in U.S. theatres than ever before, the report stated. The bureau stated that “the average weekly attendance at motion picture theatres during the past three years has been estimated at from 45 to 46 millions. ... It is expected that attendance in 1959 will not increase greatly, but it should maintain its present level. “Boxoffice receipts in 1958 will approximate $1,200,000,000 with statistics showing that ad¬ mission prices have risen about 13 per cent since 1954. The estimated average admission price at motion picture theatres in 1957 was 50.5 cents compared to 44.7 cents in 1954. Average admission prices at conventional the¬ atres are considerably higher than the aver¬ ages shown for the years 1954 through 1957. However, lower admission prices at drive-ins bring the overall average down. “Another factor which should aid the in¬ dustry in 1959 is a revision of the admission tax, which is effective Jan. 1. This change in the tax exempts from taxation tickets costing less than $1, and provides for a 10 per cent tax on only that portion of the ticket exceed ing $1. “Another bright factor in the exhibition field has been the steady growth in the number of drive-ins, which at the beginning of 1958 counted for about 24 per cent of the gross receipts of the industry. “It is beginning to appear that attendance at motion picture theatres is becoming sta¬ bilized . . . and it is expected that 1959 at¬ tendance will remain at the 1958 level. . . . “It is becoming more evident that producers and exhibitors must work together; and it is expected that a good number of epic-type films will again be available for exhibition throughout the year, probably at advanced prices. This should be a factor in keeping box office receipts at a high level. Though it is not considered likely that a much larger number of feature films will be produced in 1959, the production of high-budgeted, spec¬ tacular type features should continue. “The foreign market for U.S. films should remain good in 1959, and remittances of film earnings from abroad should remain at a high level.” Bingo Ballot Sought COLUMBUS, O.— Drive to obtain 328,413 signatures of Ohio voters for the placement of a constitutional amendment on the Novem¬ ber, 1959 ballot to legalize charity bingo and lotteries is expected to begin shortly after Jan. 1. The proposed amendment would delete from the constitutional prohibition against lotteries and the sale of lottery tickets the words “for any purpose whatever” and sub¬ stitute a ban against them when they are “for personal profit only.” The proponents must obtain at least 10 per cent of the vote for governor in the last elec¬ tion in order to have the amendment placed on the ballot. Committee sponsoring the pro¬ posal is headed by Elmer Coy, Toledo insur¬ ance agent. Members include Richard H. Conn and John J. Neenan Jr.