The Exhibitor (1959)

February 25, 1959 9 MOTION PICTURE EXHIBITOR Exhibs Must Relieve Film Shortage NT Names Directors, Reelects J. B. Bertero HOLLYWOOD — At the annual stockhold¬ ers meeting of National Theatres, Inc., last fortnight, three new directors were named. They are Charles A. Barker, Jr., board chair¬ man of Lockheed Aircraft Corporation and Pacific Finance Corporation; A. J. Gock, retired board chairman of the Bank of America and now member of that bank’s executive committee; and Eugene V. Klein, board chairman of Auto Imports, Inc., presi¬ dent of Sports Cars, Inc., and one of NT’s largest stockholders. Two long time encumbents were elim¬ inated. They are Elmer C. Rhoden and Alan May. All other board members were reelected. Following the stockholder meeting, the newly elected board reelected John B. Ber¬ tero to the presidency, and elected B. Gerald Cantor to chairmanship of the board. The board also elected encumbent secretary T. H. Sword to vice-presidency in charge of Fox West Coast Theatres. President Bertero stated that while weekly attendance in theatres had dropped, with neighborhood houses in a bad way, the big first-runs using big, successful pictures were doing handsomely and will do better as time goes on if producers maintain a sufficient supply of top-quality product. He said NT will speed up its program of disposing of unprofitable theatres. In referring to the Department of Justice’s continuing restrictions, he said that NT will not produce any films under them. Bertero told the stockholders the com¬ pany’s investment in WDAF and WDAFTV, Kansas City, is paying a nice profit, and its investment in attractions at the Pacific Ocean Park is also yielding a profit. He voiced confidence in the future, both with respect to NT’s own earnings and its earn¬ ings from diversification. The offer of National Theatres to exchange its debentures and purchase of National Tele¬ film Associates is conditioned upon the ac¬ quisition of at least 51 per cent of all issued and issuable National Telfilm shares by March 16. NT has agreed to acquire 160,500 shares from Ely A. Landau, Telefilms board chairman; Oliver A. Unger, president; and Harold Goldman, executive vice-president. National Telefilm shareholders will receive $11 principal amount of the $20.000000 5 Vi per cent debentures offered by Na¬ tional Theatres, and a purchase warrant for one-Quarter share of NT stock for each share of National Telefilm. For each outstanding warrant of National Telefilm, the holder will receive an exchange warrant for the pur¬ chase of $11 in debentures and a warrant for the purchase of one-quarter share of National Theatres common. Censors Eye TV, Ads ANNAPOLIS, MD. — At a bill hearing last fortnight C. Morton Goldstein, chairman, State Board Motion Picture Censors, sug¬ gested several amendments to the contro¬ versial movie censorship bill so that TV films and film advertising would be included in the measure. Goldstein said that movies banned by the board could be shown, with legal impunity, on Maryland TV stations. He also noted com¬ plaints received on newspaper ads for movies. John H. Hardin, left, and Joe Joseph, Hardin Theatre Supply, Dallas, are seen with the award presented to Eddie Joseph, outstanding personality for 1958 in the Texas Drive-In Theatre Group. The award was made at the exhibitor group's Convention. Roach Takes Helm; Buys Guterma's Stock NEW YORK — It was announced last fort¬ night that Hal Roch, Jr., has bought Alex¬ ander L. Guterma’s stock in F. L. Jacobs Company, and has become board chairman and president of the automobile parts firm which controls television and movie sub¬ sidiaries. Guterma at the same time surrendered to federal authorities on a warrant charging him with violating SEC regulations in the sale of Jacobs stock. He previously resigned “all his posts” in the Scranton Corporation, Mutual Broadcasting System, and Hal Roach Studios, all Jacobs Company subsidiaries. Roach said he acted to protest his own “substantial stockholdings” as well as the interests of other stockholders and some 6,000 employes. He said that the “first order of business will be the issuance of a com¬ plete report to the stockholders, which will include the annual financial statement.” Roach promised a “broadening” of the boards of Jacobs and its subsidiaries shortly. The Jacobs’ presidency is being held open, he said. Charles Meacham, treasurer and secretary, Hal Roach Studios, was named a Jacobs Company director. Roach is vice-president and director of Scranton Corporation, board chairman of MBS, and president of Hal Roach Studios. Fox Handles AIP In Mexico HOLLYWOOD — American International Pictures has consummated a deal with 20thFox for distribution of 10 of its features in Mexico, it is announced by James H. Nichol¬ son and Samuel Z. Arkoff. The AIP features to be released in Mexico by 20th -Fox are “Motorcycle Gang,” “So¬ rority Girl,” “I Was A Teenage Franken¬ stein,” Blood of Dracula,” ‘Viking Women and the Sea Serpent,” “Astounding She Monster,” “Jet Attack,” “Suicide Battalion,” “Dragstrip Riot,” and “The Cool and the Crazy.” William Reich, general manager of Amer¬ ican International Export Corporation, repre¬ sented the company in its negotiations with 20th-Fox. AIP is also negotiating with Fox for distribution representation in South Africa. Kerasotes Tells Texas Drive-In Meet Impetus For Production Increase Won't Come From Hollywood DALLAS — Whatever relief from the prod¬ uct shortage America’s exhibitors obtain, they must do themselves, George G. Kera¬ sotes, president of the Theatre Owners of America, told the convention of the Texas Drive-In Theatres Association last week at the Adolphus Hotel here. Declaring that the pioneers of the movie industry, who went into production to in¬ sure film for their theatres, are disappear¬ ing, and that Hollywood since the divorce decrees has no theatres which it must keep supplied with films, Kerasotes told the drivein convention that the impetus for more production must therefore come from ex¬ hibitors. “The means for more production must come from the united efforts of all exhibi¬ tors,” Kerasotes declared. “We must formu¬ late plans to assist financially in the pro¬ duction of pictures. We must be prepared to purchase some of the post-48 films for reissue purposes. We must, if necessary, buy some of the foreign films and distribute them ourselves.” “Need I say more about the outstanding re-release grosses of such pictures as ‘At War With The Army,’ ‘Streetcar Named Desire,’ and ‘Tom Sawyer.’ Many of us, as drive-in operators, would like to have some of the pictures for re-release today that are going to television.” He declared that while the nation’s popu¬ lation is growing, the frequent moviegoer — who sees pictures two or three times a month in theatres — has dropped 41 -million or 47 per cent between 1946 and 1958. But he declared, interest in movies is higher today than ever before. “Everytime a patron sees a film in one of our theatres,” he told the drive-in convention, “four are at home watching a film on television.” He said that television is burning up film and that soon the approximately 7,000 theatrical films now on TV release will be consumed. When this supply is gone, the theatre industry can anticipate a better future. Kerasotes reiterated his suggestion that theatre men buy $1,000 worth of film com¬ pany stock for every theatre they own, as a means of encouraging the film companies, to make their needs known to the film com¬ panies, and give the producers and distribu¬ tors the direct benefit of their support and advice. He also reviewed in detail the program of the American Congress of Exhibitors, urg¬ ing exhibitor cooperation with ACE. Inviting the Texas Drive-In Association to become affiliated with TGA, Kerasotes stressed that the progress to date in com¬ batting Toll-TV, in seeking to force military post theatres to play pictures after com¬ mercial theatres, and the opening of Small Business Administration loans to drive-in theatres, were the results of programs initiated and conducted by TOA. “Through a national association,” he told the Texas theatremen, “you could vastly broaden your effectiveness.” “TOA is growing stronger every year,” he said. “There is a great need for TOA and a ( Continued on page 16)