Motion Picture Herald (Nov-Dec 1944)

PRC, CROWING, BUYS EIGHT EXCHANGES Move Aimed at National Structure f Including Theatre Ownership The acquisition of theatres in key cities in pursuance of approval recently given by the directors will parallel the program announced this week to establish PRC Pictures, Inc., as a national distributor within the next five months, according to Leon Fromkess, president. At the same time, said Mr. Fromkess, the company will emphasize its policy of higher budgeted pictures. It acquired last year its own studios and has since increased equipment and capacity there. Exchanges announced Tuesday as acquired recently were Dallas, Los Angeles, Cincinnati, Cleveland, Detroit, Pittsburgh, Omaha and Des Moines. It is understood that the two last-named branches were previously under company operation, although no announcement was made at the time of the deal. Mr. Fromkess said that PRC expects to acquire and operate by May 1, 1945, a major portion of its domestic distribution. Deals for Cincinnati and Cleveland were closed with Nat Lefton and Jack H. Lefton, in Pittsburgh with Lew Lefton, in Dallas with Jack K. Adams, in Detroit with Bill Flemion and Miss A. V. O'Donnell, and in Los Angeles with Samuel K. Decker and Harry Stern. Seek Production Units Negotiations are under way to effectuate the board's earlier approval of proposals for the distribution of the output of major producing units through the company's system. Discussion of details of these deals has been going on for some time, and are expected to be concluded upon the return of Mr. Fromkess to the west coast next week. He has been in New York for nearly a month setting up the distribution and theatre plans. Bulwarking the PRC plans are interests of considerable substance and standing in several fields. The financial background leads to the Young holdings, the controlling factors in Pathe Laboratories, Inc. Personnel in this tieup includes Kenneth M. Young, chairman of the board; J. Stimson Young, president, and Leonard Augustus Young, manufacturer. The last-named Mr. Young is something of an industrial stalwart, represented as owning some $25,000,000 worth of investments in L. A. Young Spring and Wire Corp., L. A. Young Golf Corp., Star Service Hanger Co., Detroit Moulding Corp., Be wen Products Corp., and L. A. Young Industries of Canada. Cover 40% of Distribution It is estimated that the eight exchanges now owned and operated by the company represent 40 per cent of its geographical coverage. The rest of the country will be covered by options on territorial franchises currently held by states-rights distributors. Mr. Fromkess and his board met this week to discuss plans for the distribution and theatre programs. Included in the discussions was the production lineup for 1945-46, which probably will be expanded in numbers and in covering budgets. It is expected to exceed this season's schedule of 36 features and 16 westerns. It is likely that the original eight "A" productions to cost between $250,000 and $400,000 will be expanded to a total of 12. Although the company did not announce the deals in its current revelation of plans, Henry Brash and Fred Jackson are expected to produce three pictures each. Declaring that he will try to hold as many of the present exchange members as possible, Leo J. McCarthy, general sales manager, said that he would have an announcement soon regarding added sales personnel. The addition probably will include the appointment of three more divisional sales managers. Oppose New York Zoning Change A proposed amendment to New York's zoning resolution, which would reduce the ground coverage of theatres and other buildings to be constructed in Manhattan, was opposed last Wednesday by representatives of civic groups and by Leo Brecher, operator of the Brecher Theatres, New York, in a hearing before the Board of Estimate. The proposed change will become law December 1 unless the Board refers it back to the City Planning Commission for further study. The amendment, which seeks to improve the conditions governing light and air resulting from overbuilding, is supported by Robert Moses, Commissioner of Parks, and a majority of the members of the Planning Commission. Opponents of the plan have rallied around the minority proposal of Irving V. A. Huie, Commissioner of Public Works, and a member of the commission. Mr. Brecher, appearing as an exhibitor, pointed out to the Board that the majority proposal would force him to cut down the ground floor of the theatre he intends to erect at 53rd Street and Sixth Avenue, for which he has filed plans, from 7,500 square feet to 5,875. Unless the amendment is rejected by threequarters of the votes in the Board of Estimate, 12 out of 16, it automatically becomes law. The minority plan put forth by Commissioner Huie proposes that the zoning resolution be amended only to restrict total floor area. Since many plans have been filed for construction based on the existing zoning regulations, there is considerable legal opinion that plans thus filed will give the property owner grounds for contesting the effects of the amendment. Fine Is WAC Chairman In Cleveland Area Meyer Fine, Cleveland exhibitor, has accepted the post of War Activities Committee exhibitor chairman for the Cleveland area, succeeding William Skirball. Mr. Fine joins Maury Orr and E. J. Fisher, distributor chairman and public relations chairman, respectively, as heads of the activities for theatres operating out of the Cleveland exchange territory. Formal induction of Mr. Fine will be at the next annual meeting of the WAC. Samuel Rosen Denies There are 96,800 lines of six point type in the biographical section of Motion Picture Almanac, just ofi^_ the press. One of those lines got out of place with the result that it most erroneously records the demise of Samuel Rosen, treasurer of Fabian Theatres Corporation. The editor of the Almanac has the official statement that both the corporation and Mr. Rosen confirm the fact that he is both extant and healthy. The Almanac officially regrets the accidental error. Seventh -Millionti "Army'' Dollar Relief Fund The dollar to round out the $7,000,000 mar'^ grossed by the picture, "This Is the Army," fo^P' Army Emergency Relief, was presented by Harr M. Warner in Washington Wednesday to Get, George C. Marshall, Chief of Staff. With it wer a full accounting of the results of "Army" plajj' dates. ■ I. "We estimate that by the time the picture hj| completed its run. Army Emergency Relief wi: have received from it more than $7,500,000," sai Mr. Warner's letter which accompanied the preseif tation. He paid tribute to the cooperation of theatr owners who he said were responsible for a substai tial portion of the total. He pointed out that thou sands of exhibitors held special premieres, wit total proceeds going to the fund. He also praise||il( the contribution of Irving Berlin, Michael Curti; director, and the other artists, and Army officer! and enlisted men who participated in the produc tion. Mr. Warner traced the career of the film, citinj the fact that it was produced and distributed i cost and that the Warner theatres turned ove their full profits to the fund; that the origin: agreement to handle the film at 50 per cent of th profits was changed to give the fund 100 per cent that since its premiere at the Hollywood theatre i New York July 28, 1943, the production ha played in over 12,000 theatres to more than 50= 000,000 people. "In producing the picture, Jack L. Warner, i charge of production, spared no effort to make tlr picture worthy of the great job the Army ha dune with the show on the stage," said the Warnc: president. "In distributing it, we carried on a ful scale sales, advertising and promotion campaig designed to provide the widest possible showing S the picture and the maximum possible revenue fc the Relief Fund." 4 mi RKO Nine-Month§ Net Profit $3,634,863 Radio-Keith-Orpheum Corporation and sulf ' sidiary companies, for the 39 weeks ended Sep tember 30, 1944, reported this week net prof, j after all charges of $3,634,863, compared witi $5,008,074 for a corresponding period in 1943. Gross profit for the 39 weeks ended Septembd* 30, 1944, was listed at $10,293,035, compared witl $11,914,106 for the same period in 1943. A total of $979,856 was listed for depreciatiof compared with $966,888 in 1943. Provision for est i mated income and excess profits ta.xes was $5,656i 000, compared with $4,900,000 for 1943. Dividend'/ paid during the period to date on common and 7 pe cent preferred stock of a subsidiary company in th< hands of the public were estimated at $22,31 compared to $39,142 for 1943. Rathvon Addresses Alumni Of Colorado University N. Peter Rathvon, president of Radio-Keith: Orpheum, was toastmaster at the annual dinne of the New York Alumnia Club of the Universit of Colorado at the Ambassador Hotel, New YorlTuesday. Mr. Rathvon is president of the clul Floyd B. Odium, board chairman of RKO, also ai. alumnus of Colorado, was a principal speaker Others on the program included : Colonel W. Bar ton Leach, United States Air Force, and Dr. Rob; ert L. Stearns, president of Colorado University Jaffe Arranges Army Shows Sergeant Saul Joffe, former president of Vita Print Corporation, now with the special services of the United States Army, is currently stationec in the South of France, where he is arranginp'^ athletic events for men returned to rest campfrom scenes of battle. Sergeant Jaffe, youngei brother of Leo Jaffe, Columbia executive, wa; previously reported running a rest camp on ar island of? the coast of Italy. 30 MOTION PICTURE HERALD, NOVEMBER 25, 1944