The Exhibitor (1966)

Third Stockholder Sues Over Warner Stock Sale NEW YORK — A third suit has been filed by a Warner Brothers stockholder against Jack L. Warner, Seven Arts, and various Warner Brothers officers to prevent Warner from sell¬ ing his large stock holdings in WB to Seven Arts. The suit action, filed by Joseph D. and Flor¬ ence Ellis, asks that Warner be made to ac¬ count to WB for all benefits and gains mani¬ fested through the transaction. Also asked is an accounting for damages and losses allegedly sustained by WB. The complaint states that under normal cir¬ cumstances, the stock would have been sold below value, but that it had not been. Because of the size of Jack L. Warner’s holdings, War¬ ner Brothers’ major officers and directors fol¬ lowed his decisions on management and policy. The sale of his holdings, according to the com¬ plaint, would give Seven Arts “the ability to control and distribute the WB film library for tv exhibition purposes and to determine the prices thereof. Consequently, it charged, the sales will have an adverse effect on, and will possibly serve to eliminate, “WB’s own ability to offer and market its film product to tv on a free competitive basis.” ft is claimed Warner received a premium price on his stock at the expense of WB and for the benefit of Seven Arts. The board of WB has been charged with a breach of fiduciary duties to the company. Columbia Earnings Dip NEW YORK — Columbia Picture Corp. has made public its comparative earnings state¬ ment for the 13 week period ending Sept. 24. Income for this period, after taxes, is $647,000, a decrease from $696,000 for the same period in 1965. This represents an earning per share of common stock of 31 cents, as com¬ pared to the 33 cent earning in 1965. The earnings per share of common stock after preferred stock dividends, for both the current year and the prior year, are based on the 1,966,527 shares outstanding. The afore¬ mentioned figures have been prepared by the company, and are subject to year-end audit by its independent public accountants. Sidney G. Deneau (left), executive vice-president of Rugoff Theatres, signs the contract for the exhibi¬ tion of Charles Chaplin's "A Countess From Hong Kong" starring Marlon Brando and Sophia Loren at the Sutton Theatre in New York with Henry H. (Hi) Martin, Universal vice-president and general sales manager. 311111111111111111 u 1 1 1 1 1 1 1 1 1 ii 1 1 u 1 1 n 1 1: 1 1 in 1 1 1 1 1 1 1 1 u 1 1 ii i! i 1 1 1 ii i ii 1 1 ill i ii 1 1 in in in i >tiiiiiiiniiimii m 1 1 u 1 1 mm i in i ii i in 1 1 in 1 1 ii 1 1 n i hi 1 1 1 1 1 ii i LONDON Observations By Jock MacGregor BIG, BLUFF SIDNEY JAMES HAWTHORNE WARD IS A PRETTY UNUSUAL personality. Perhaps one should say dual personality since he divides his time between being a steel magnate in the Midlands and producing films with his money in London. And there is no overlapping of activities. Indeed, his friends in the former call him Sid and in the latter Jim. This I found a trifle disconcerting when I went to Wolverhampton for a fabulous party which he staged to mark the opening of his latest film, the follow up to his highly successful "Second Best Secret Agent in the Whole Wide World,” “Where the Buhets Fly,” in his town. He brought the principal artists and technicians from London; took the circle at the ABC for some 500 guests; and added all the trimmings of a West End premiere — military guard of honor, stage appearances, fresh flowers, the lot. The theatre looked wonderful. A bar for artists and press was established in manager R. Trevor’s office, and from there, it was easy to know how the film was running. Most artists saw it until they were bumped off on the screen. I suppose it is only natural that if one saw oneself killed, one would want a drink — a stiff one, of course! Afterwards, the champagne flowed at the supper dance until it was hardly worth going to bed. It was then that the third Ward — Hawthorne as he is known in sports circles — emerged. He admits to being golf-mad, and the Sunshine Coach, promoted when a Variety Club Golf Society celebrity team played at his club — at his expense — was handed over. Roger (“The Saint”) Moore made the incredibly sporting gesture of personally driving from the studios after work — a round trip of some 220 miles — to make the presentation. He returned almost immediately to be on the set in the morning. What an impression he made! Three guests were prompted to give Jim blank checks to go towards the cost of another coach. We had a grand time. SPIRITS WERE HIGH AT MACGREGOR SCOTT’S LUNCH FOR THE WARNERPathe exchange managers in London for a two day convention. So they should be! This consortium distributes for Warner, Associated British, Hammer, Anglo Amalgamated, and American International, and some really powerful box office pictures are on the way. The Associated British hierarchy, headed by Robert Clark, C. J. Latta, Jack Goodlatte, and J. MacDonald, were present, and there was much leg pulling as it also marked Jim Carreras’ return to action — on crutches, admittedly — after his knee operation. “Mac” described the managers as the “great unsung heroes of the business” on which the prosperity of the company depended, and was particularly happy to welcome the road exploiteers as Jim was giving them the “most exciting and exploitable film for years” in “One Million Years B. C.” Bob Clark sprung a surprise by announcing the appointment of a marketing expert to the corporation. He claimed that the job was not finished when they sold to the exhibitor — there was the more important job of selling to the public, for a 10 per cent increase in U. K. admissions alone would mean a further $16 million. Warner’s Arthur Abeles expressed terrific satisfaction that Seven Arts had bought Jack Warner’s holding and not another distributor, which would have meant two men for each job — or a sausage manufacturer, he slyly added. THE INDUSTRY’S GREATEST WEAKNESS SEEMS ITS RELUCTANCE TO answer its critics — knockers might be more correct — internal and external alike. It should take a hard look at the shorts agitators who are mounting a campaign to force, among other things, 100 of their sort — the ones which win prizes at international festivals and not the commercial type like “Look at Life,” Harold Bairns, and Pathe Pics — on theatres annually. I attended the conference launching the publication of “A Long Look at Short Films,” which is to be their bible, and heard little that has not been said on the subject for at least 30 years to my knowledge — exhibitors won’t book them, rentals are unrealistic, they cannot recoup their costs. Once, all exhibitors were to blame; today, Rank and ABC are presented as the villains, and sparse mention is made of independents. With the Monopoly Commission Report floating around, and some government officials culture-crazy, the sponsors may foster sympa¬ thisers to the ultimate embarrassment of the industry. Actually, the producers have only them¬ selves to blame for making uneconomic shorts for a non-existent market. They can, as the Report suggests, make their films for tv, industry, and government departments. Nevertheless, exhibitors should put their case against shorts firmly and smash this threat to the liberty of their operation before it is too late. AS IS CUSTOMARY, THE FEDERATION OF BRITISH FILM MAKERS HELD its December press conference over lunch. Actually, it was its last. On Jan. 2, along with the British Film Producers Association, it will become the Film Production Association of Great Britain. Regrettably, it marked the retirement — I do not really think this is the correct descriptive as he has other film interests and will remain active in the House of Lords — of Lord Archibald, who is planning a leisurely round trip to Australia by cargo ship, stopping off at the places he has always wanted to visit. At the BFPA’s last press conference, Admiral Sir Charles Evans reported on the Acapulco Festival, which presents prize winners from international festivals. With five British films — all proven at the box office — he felt that artis¬ tic integrity and commercial requirements were being more consistently combined by pro¬ ducers than ever before. . . . Being unable to be in two places at once I had to decline the in¬ vitation to the “Is Paris Burning?” preme and champagne supper having accepted for an¬ other function. I was able to join Russell Hadley, Peter Reed, and Bud Ornstein at the press lunch for director Rene Clement. . . . The fans and younger generation, plus some old ’uns, turned up at the preme for UA’s musical romp, “Finders Keepers,” at the Odeon, and gave Cliff Richard and The Shadows a rousing reception both in person and on the screen. It was an extremely well dressed audience, with most girls favoring long dresses in contrast to their daytime minis. Even long haired youths accepted convention and more dinner jackets. ... I went as MGM’s Eddie Patman’s guest to the Film Publicists lunch to honor my colleague of many years, Harold Myers, who for health reasons is retiring as Variety’s top man in Europe. He is to live in Italy about midway between the Venice and Cannes Film Festivals, and pro¬ duce Chateau Myro wines. He promises his grapes will never be sour. December 21, 1966 MOTION PICTURE EXHIBITOR 15 uiMiiiiiiiiiiiiiimmimmii*