Motion Picture Herald (May-Jun 1947)

PARAMOUNT PUTS NET AT $9,522,000 Balaban at Stockholders* Meeting Says Outlook Is Generally Good Estimated earnings of Paramount Pictures during the first quarter of 1947 after taxes, including $1,700,000 of undistributed earnings, were $9,522,000, which compares to $11,587,000, including $3,086,000 of undistributed earnings of non-consolidated companies, for the same period in 1946, Barney Balaban, president of the company, told the annual meeting of stockholders in New York Wednesday. The stockholders unanimously reelected Mr. Balaban, Adolph Zukor and all of the 14 other directors of the company and, additionally, approved by a 5,440,935 to 250,395 share vote the formation of the Employee's Investment Company with an authorized capitalization of $4,000,000. Some. 45 key home office and studio executives will participate in the profit-sharing arrangement. Tells of Liberty Purchase In his report to the stockholders Mr. Balaban related the purchase of Liberty Films, Inc. in exchange for common stock of Paramount. Without mentioning any of the Paramount partners, the Paramount president said discussions are continuing with other interests "with a view to their acquisition." In this connection he disclosed that the company, between November 20, 1946, and June 16, 1947, had purchased 355,600 shares of common stock of the corporation in the open market. Mr. Balaban and Edwin L. Weisl took it upon themselves to answer the scattered objections from stockholders to the investment company plan. Paramount was compelled to adopt the plan, Mr. Balaban said, to keep its manpower. He pointed out that Paramount paid less to its key executives than the other major producers and declared that the plan was one way of protecting the company against tempting offers to these men from competitive companies. Sees Seasonal Decline In his report Mr. Balaban further said that while business had help up quite well during April, it had fallen off during May and June in what seemed like a regular seasonal decline. He also told stockholders that, in face of "unusual requirements in connection with the rearrangement of theatre holdings" the company might have to borrow money and that arrangements toward that end now were being made on the basis of revolving credit with the corporation paying standby charges and the money ready if and when needed. He also expressed the belief that there would be no British quota restrictions against American films and said Paramount's "show case" acquisition and 16mm programs abroad had not made satisfactory progress. He ended his report with an expression of confidence in the future of Paramount's business at home. "Duel" Gets ABC Circuit Booking in England The physical distribution of David O. Selznick's "Duel in the Sun" in Britain will be handled by Pathe under a deal which calls for the exhibition of the picture on the ABC circuit, Neil Agnew, president of the Selznick Releasing Organization, announced this week in New York. The agreement calls for the circuit to give extended playing time to "Duel" in some 75 summer resort situations which are an important ^source of British film revenue at this time of year. Exhibition is scheduled to start July 6 in 30 ABC houses with subsequent situations agreeing to run the picture after an appropriate interval. Negotiations evolving around "Duel's" British distribution have been carried on. for some time. Mr. Selznick wanted his film shown over J. Arthur Rank's Odeon circuit, but his effort failed as a result of the latter's consistent refusal to give extended playing time on his circuit to any but his own product. Sheckman Acquires Twentieth Century Circuit in England Sol Sheckman, prominent North County, England, exhibitor, has acquired the Twentieth Century Cinemas, Ltd. Through this acquisition Mr. Sheckman now controls about 50 theatres and excluding the ABC, GB and Odeon circuits — his will be one of the largest theatre circuits in England. Hughes Must File Again New York Federal Judge John C. Knox ruled last Thursday that Howard Hughes must strike out certain "irrelevant" allegations from his anti-trust complaint against the Motion Picture Association and file his suit again. Mr. Hughes' suit asks $7,500,000 damages which, he claims, he lost as a result of the MPA's withdrawal of the Production Code Administration seal from "The Outlaw." Hold Paramount Premiere The world premiere of Paramount's "Welcome Stranger," starring Bing Crosby, Joan Caulfield and Barry Fitzgerald, was to be held Thursday at the Famous Players Canadian circuit's Capitol theatre in Winnipeg, Canada. Davies Denies Charge on Film Joseph E. Davies, former Ambassador to Russia, denied that pressure from the White House had forced Warners to produce the pro-Soviet film, "Mission to Moscow," and further denied the charges that "Warner Brothers studios did not wish to produce the film" but "was literally coerced into the production by insistence from Washington." In a letter to Representative J. Parnell Thomas, chairman of the House Un-American Activities Committee, last Saturday, Mr. Davies further said that at no time did he serve as the liaison man to carry orders to Hollywood from the late President Roosevelt. His denials were directed to recent press reports purporting to set forth testimony of the alleged pressure, and his part in it, during the secret sub-committee hearings in Hollywood. The committee had charged that some of "the most flagrant Communist propoganda films were produced as a result of White House pressure." Last Thursday the committee announced it would subpoena Charles Chaplin, Edward G. Robinson and Dorothy Thompson to answer charges of their alleged affiliation with subversive elements when the committee's full-scale investigation gets under way in Washington, September 16. Lawrence vs. Korda Suit Starts in New York Argument and counter-argument in the Laudy Lawrence breach-of-contract suit against Sir Alexander Korda began in New York Supreme Court before Justice Bernard Botein this week. Isidor J. Kresel, Mr. Lawrence's attorney, said Sir Alexander employed the American early in 1946 to assist him in building a "world-wide empire of production, exhibition and distribution." A few months after that the producer was said to have come to the U. S. and to have dismissed the plaintiff "without provocation." In his opening statement, Mr. Kresel asked specific performance of a stock bonus deal entered into by Sir Alexander as well as the $310,000 which, he said, was due Mr. Lawrence under his contract. In response, Louis Frohlich of Schwartz and Frohlich, Sir Alexander's counsel, said that his client had no less than 32 reasons for dismissing Mr. Lawrence. One of them was that Mr. Lawrence had "betrayed the interests of Korda and was trying to build an 'empire' for himself." Rosenfeld Joins Herald Jack Rosenfeld has joined Herald Pictures, producers of Negro features, as sales manager in charge of the company's first release, "Boy ! What a Girl." The ennouncement was made by Jack Goldberg, president of Herald. 28 MOTION PICTURE HERALD, JUNE 21, 1947