Motion Picture Herald (May-Jun 1946)

Paramount Asks Approval of New Capital Stock Paramount stockholders will be asked to approve an increase in the amount of authorized capital stock from $8,936,439 to $13,478,290 and the issuance of 4,542,851 new shares at par value of $1, in addition to the 4,457,149 shares now authorized. This procedure will be utilized should the stockholders at their annual meeting in New York June 18 refuse to authorize the retirement of the company's unissued first and second preferred stock to clear the way for a twofor-one split of its common stock, according to the company's proxy statement. This alternative presumably would enable Paramount to effect the two-for-one split without retiring the unissued preferred, which would continue to be carried on the books. Shareholders in addition are asked to authorize the fixing of the number of company directors at 16, instead of the present indefinite total of not less than 16 and not more than 18, and also will vote on changes in bylaws and certificate of incorporation. 16 Directors Named The 16 directors proposed by Paramount for reelection are: Barney Balaban, Stephen Callaghan, Y. Frank Freeman, Harvey D. Gibson, Leonard H. Goldenson, A. Conger Goodyear, Stanton Griffis, Duncan G. Harris, John D. Hertz, Austin C. Keough, Earl I. McClintock, Maurice Newton, Charles M. Reagan, E. V. Richards, Edwin L. Weisl, Adolph Zukor. Compensation of officers for 1945 was as follows, according to the company's proxy statement: Mr. Balaban, president, $156,000, plus $20,000 for expenses; Mr. Freeman, vice-president in charge of production, $130,000; Henry Ginsberg, vice-president in charge of studio operations, $189,083; Mr. Goldenson, vice-president in charge of theatres, $55,250; Mr. Keough, vice-president and chief counsel, $78,000; Mr. Reagan, vice-president in charge of domestic sales, $81,735; Mr. Zukor, chairman of the board, $159,400; Jacob Karp, assistant secretarv. $52,000; Fred Mohrhardt, comptroller, $32,130. Other Payments Cited Among other payments made in 1945, according to the staternent, were $260,124 to Simpson, Thacher and Bartlett for legal services ; $185,203 to Ross Federal Service between January 1 and May 5 and $454,913 to Confidential reports between May 6 and December 29, "for services in investigating ticket sales of exhibitors in connection with contracts of the corporation based on a percentage of ticket sales receipts." Other than officers and directors. Paramount paid a total of $8,914,581 to 160 employees, mostly talent and production personnel, who received in excess of $20,000. Theatre Executives Meet To Fight Chicago Tax Chicago theatre executives met at the Standard Club Monday in a final meeting before hearings were to resume at Springfield, 111., Tuesday, on a proposed bonus bill calling for a 10 per cent tax on theatre admissions. At the meeting were: Jack Kirsch, national Allied president; M. J. Leonard, Balaban & Katz; Edwin Silverman, Essaness; James Coston, Warner Theatres ; Arthur Schoenstadt, Schoenstadt & Sons, and Frank Smith and Col. Joseph Goetz of RKO Theatres. William Lynch, Chicago attorney, has been named to represent the theatremen at the Springfield hearings. Columbia Holds Chicago Meeting Columbia's district managers and the managers of the branches without district supervision met at the Ambassador East Hotel in Chicago Tuesday, in the first session of a three-day conference with home office executives. Abe Montague, general sales manager, presided. The meetings were devoted to a complete review of the current season's sales problems, and to a discussion of the films still to be released on the 1945-46 schedule. Home office executives at meeting were : Mr. Montague ; Rube Jackter, assistant general sales manager ; Louis Astor and Louis Weinberg, circuit sales executives ; Maurice Grad, short subject sales manager; Leo Jaffe, assistant treasurer; George Josephs, assistant to Mr. Montague ; H. C. Kaufman, manager of exchange operations; Joseph Freiberg, manager of sales accounting; Seth Raisler, manager of the contract department; Irving Sherman, assistant to Mr. Kaufman, and Vincent Borelli, assistant to the circuit sales executives. District and branch managers included: Nat Cohn, New York division manager ; S. A. Galanty, mideast division manager ; Jerome Saf ron, western division manager ; Carl Shalit, central division manager ; B. C. Marcus, midwest division manager; R. J. Ingram, southeastern division manager ; J. Underwood, southwestern division manager ; H. E. Weiner, division manager for Northern Pennsylvania and Southern New Jersey; I. H. Rogovin, New England division manager ; Ben Lourie, Chicago branch manager, and Oscar Ruby, Milwaukee branch manager. Two Rank Films Are Being Revised for PCA Seal "Wicked Lady" and "Notorious Gentleman," two of J. Arthur Rank's pictures scheduled for release in this country by Universal, will receive Production Code Administration seals following the completion of certain changes for which the PCA has asked, according to Joseph I". Breen, PCA chief in Hollywood. Republic Weighs Sales Policy for 1946-47 Season The contribution of men in the field to Republic's 1946-47 program was stressed by James R. Grainger, executive vice-president and general sales manager, in his concluding address at the company's sales meeting, which closed last Wednesday at the New York Athletic Club. Executives, district managers, branch managers and salesmen from the eastern, New England and central districts had met for a three-day conference. Mr. Grainger announced a series of meetings of district sales managers was to be conducted this week at the home office, and reported the company's final 1946-47 schedule and sales policy would be determined on the basis of reports from men who attended the Hollywood, Chicago and New York sales conferences. Discussion of the "B" picture was also highlighted in Mr. Grainger's address, and he put it up to the men whether or not Republic should maintain its current "B" picture policy. He pointed out that it was impossible to maintain the company's high quality of "B" product unless exhibitors would increase rentals. At the same session Herbert J. Yates, president, commenting on the fact that "B" pictures were really the "bread and butter" product of many theatres and the backbone of the double feature policy and subsequent run operation, said that if exhibitors failed to support such product, the very cornerstone of the country's theatre structure would be in danger. Allen Wilson, vice-president of the studio, spoke, and Steve Edwards, director of advertising and publicity, outlined advertising, publicity and exploitation plans for the coming season. Coast FCC Hearings On Television End Federal Communications Commission hearings on applications for television licenses in the Los Angeles area were concluded last week by FCC general counsel Harry M. Plotkin. Further hearings, Mr. Plotkin said, would be held in Washington June 20. Thereafter the FCC will render a temporary decision to eight applicants for the seven television channels, who then will have 20 days to file exceptions. In Washington last week. Television Productions, Inc., of the Paramount interests, asked the FCC to withdraw its application for a television station in San Francisco. The company said it desired to withdraw in order to win a license at the talent center of Los Angeles, now pending. The action means Paramount now desires only four wholly-owned television stations. It is reported that FCC is reluctant to grant any Paramount applications until the pending film anti-trust action is completed. 34 MOTION PICTURE HERALD, JUNE 8, 1946