The Exhibitor (1959)

April 8, 1959 MOTION PICTURE EXHIBITOR 7 AB-PT Reports Record Income High As Theatre Division Profit Holds Broumas, Allied Fight For Sunday Movies By AL ERLICK WASHINGTON — John Broumas, Transamerica Theatres, isn’t lonely any more. After battling Pennsylvania’s Sunday movie law single-handed since June 24, 1956, when he first decided to test the ordinance on behalf of the circuit’s State Line Drive-In, State Line, Pa., Broumas is now receiving |solid industry support. Last October, the Supreme Court refused to hear his appeal, but Broumas fought on. Allying themselves with Transamerica in the battle are exhibitors of Western Pennsyl¬ vania Allied Theatre Owners, headed by Harry Hendel, who has pledged the group’s support. Campaign strategy will be discussed at a meeting on Tuesday, April 21, at the Gover¬ nor Hotel Americana Room, Harrisburg, Pa., at 1 P.M. All exhibitors affected by the Pennsylvania Sunday law are invited to at¬ tend, as are all others interested in the campaign to win for exhibitors barred from Sunday showings the same rights enjoyed by their more fortunate brothers. In addition to the Allied support, Broumas says he has received encouraging promises of aid from other high industry sources as well. Harrisburg is the capital of Pennsylvania and the meeting place of the State Legis¬ lature, where attempts to win Sunday movie rights through legislation have failed in the past. Regardless of the outcome of the meet¬ ings, one fact is certain. The fight won’t end until an industry victory has been won. Broumas, accustomed to battling alone, is not likely to quit now that the industry he serves is in the battle, too. For some of the background on the fight for Sunday movies in Pennsylvania and Broumas’ long, often private struggle, see '“SPOTLIGHT ON A LONELY BATTLE” . . . issue of Oct. 22, 1958. Tenn. Eliminates Tax NASHVILLE, TENN. — The Tennessee Legislature has passed a bill eliminating the state’s two per cent admission tax, which has been yielding approximately $250,000 a year, COMPO was advised last week. The bill was signed by the Governor, March 11, and becomes effective July 1. There is also a clause in the bill which eliminates the authority of cities to levy a two per cent tax on theatre admissions. This will prevent municipalities, not now levying such taxes, from imposing them in the future. The fight for repeal was led by the officers of the Tennessee Theatre Owners Associa¬ tion. Walter L. Morris, Knoxville theatre owner, who is a member of COMPO’s Tax Com¬ mittee, said: “The elimination of this levy is another instance of the grass roots working to secure relief and primary credit goes to the little man who worked and followed a good organization plan.” Four Units In Joint Meet CLEVELAND — The Independent Theatre Owners of Ohio announced last fortnight that they will join with Allied units in In¬ diana, Kentucky and West Virginia in a four-state convention to be held in Septem¬ ber, probably in Indianapolis. Seen at the recent opening of Allied Artists' "Al Capone" at the Victoria, New York City, were, left to right, Richard Wilson, director of the film; star Rod Steiger; co-star Fay Spain; and Morey Goldstein, AA general sales manager and vice-president. Johnston Hails Defeat Of N.Y. Censor Bills WASHINGTON — Eric Johnston, president, Motion Picture Association of America, last week hailed the defeat of censorship efforts in New York as a victory for a united indus¬ try. He said: “We have just had another striking demon¬ stration of what can be done when this in¬ dustry works together unitedly to advance the common interest. “I am referring to the fact that the New York Legislature has adjourned without pass¬ ing a single one of the bills to extend censor¬ ship and to increase the powers of the state over motion pictures, advertising, and the theatres. “Too many persons contributed too much to the success of this endeavor to single out any one, but I do want to pay tribute to COMPO, to the Independent Theatre Owners Association, to the Metropolitan Motion Pic¬ ture Theatres Association, and to the MPAA Advertising and Publicity Directors Commit¬ tee. “I think that special honors also go to the trade press for its leadership through power¬ ful editorial support and for its usual splen¬ did coverage of all developments. “The fight will be won at all times, just as it was won this time, when we stand side by side to repulse all efforts to strangle or de¬ stroy our Constitutional rights of freedom of expression. “We say to all: Censorship has no place in America, and we shall never cease our fight until it is eliminated entirely.” Film Daily Names "Best" NEW YORK— The Film Daily’s “Ten Best” of 1958 were announced last fortnight with all “Oscar” contenders finding places in the 36th annual poll. Selections are Columbia’s “The Bridge On The River Kwai”; MGM’s “Cat On A Hot Tin Roof”; MGM’s “Gigi”; Warners’ “Auntie Marne”; United Artists’ “The Defiant Ones”; United Artists’ “Witness For The Prosecu¬ tion”; United Artists’ “Separate Tables”; 20th-Fox’s “The Long, Hot Summer”; 20thFox’s “The Young Lions”; and United Artists’ “The Big Country.” NEW YORK — American BroadcastingParamount Theatres, Inc., set an all-time high in gross income and showed improved earnings for 1958, Leonard H. Goldenson, president of AB-PT, said last week. In the annual report to stockholders, Gold¬ enson reported improvement in income and earnings for the ABC Broadcasting Division, with the ABC Television Network making the most significant gains in audience and billings in the industry. He also reported profitable improvement for the five owned television stations, a streamlining of the ABC Radio Network operation, profits about equal to last year for the theatre division, a successful year for Am-Par Records, and ex¬ pansion by ABC Films. Gross income for the record year of 1958 was $244,821,000, Goldenson said, against $215,877,000 in 1957. Consolidated earnings after taxes in 1958 rose to $6,116,000, or $1.40 per share, from $4,894,000 or $1.10 per share in 1957. Of the 1958 earnings, $772,000 was in net capital gains equal to 19 cents per share. No capital gains were reported in 1957. ABC operating income in 1958 hit a record high at $136,967,000 against $109,393,000 in 1957. Theatre operating income in 1958 was $94,280,000 compared to $95,280,000 in 1957. Merchandise sales and other income in 1958 was $13,574,000 against $11,204,000 in 1957. Working capital in 1958 increased to $47,125,000 from $45,848,000 in 1957. Net worth of American Broadcasting-Paramount Thea¬ tres in 1958 was $85,146,000, equal to $18.97 per share, a rise from $83,718,000, equal to $18.62 per share in 1957. As to theatre business, Goldenson said there is still a wide appeal for top quality motion picture entertainment and pictures with strong audience attraction continue to show substantial box office grosses. He added that 26 theatres were disposed of during the year in keeping with the company’s policy to divest marginal properties. The circuit now numbers 511 theatres. Eastern Acquires N.J. House NEWARK, N.J. — Continued expansion in the motion picture theatre field with the acquisition of the Elwood, this city, was an¬ nounced by Sheldon Smerling, executive vice-president of Eastern Theatres. A deluxe 1500 seat neighborhood theatre, the Elwood is equipped with the latest sound and projection apparatus and has one of the largest silver screens in the state. Extensive remodeling and refurbishing of the interior will be started shortly, but one of the new features that will be offered immediately is free parking. Eastern has taken over some adjacent property, and ample off-street park¬ ing facilities will be available to all theatre patrons. TNT Names Rolley NEW YORK — William G. Rolley has been named general sales manager of TNT, it was announced today by Nathan L. Halpem, president of TNT (Theatre Network Tele¬ vision, Inc.). Rolley will direct and supervise the TNT sales personnel in New York and in branch offices throughout the country. He moves to TNT from his post as national sales man¬ ager of C.B.S. Station WCAU in Philadel¬ phia.