Motion Picture Herald (Jan-Mar 1954)

AMlietl Artists 11 ill Expand Protlactiowt HOLLYWOOD: A special meeting of Allied Artists stockholders will be held here on March 23 to vote on increasing the company’s capital stock by authorizing 150,000 shares of $10 par cumulative preferred stock. If approved, the $1,275,000 proceeds of the new issue after payment of underwriting commissions and expenses will be used for expansion of AA’s production program and general operating purposes, according to Steve Broidy, president. Mr. Broidy also disclosed that for the 26 weeks ended Dec. 26, 1953, A A had consolidated net profit, unaudited, of $180,871 after provision of $181,000 for Federal income taxes. For the 52 weeks ended June 27, 1953, A A reported a net profit of $411,112 after provision of $350,000 for Federal income taxes. Net for the first half of that fiscal year was $166,771. AA’s income for the first half of the current fiscal year was $5,359,196; expenses for the period amounted to $4,997,325. Income for the corresponding period of the previous year was $4,540,684. Total current and working assets as of Dec. 26 last, were $6,123,279, and current liabilities were $3,553,648, both unaudited. Mr. Broidy said, “An analysis of box office returns from ‘Riot in Cell Block II’ which to date has opened in four of the most important territories of the country — New York, New England, Texas, and Michigan— reveal that the picture is running ahead of ‘The Babe Ruth Story’ during its corresponding time of release and which to date has had a domestic gross of more than $2,000,000.” On the basis of this comparison, Mr. Broidy added, “The film should easily prove to be the best grosser in the history of Allied Artists as well as the most profitable.” ; E. Oliver Ramsdell Dies E. Oliver Ramsdell, 72, presdient of Middlesex Amusement Company of Malden, Mass., died this week in Malden. Mr. Ramsdell entered the industry with his brother, the late George Ramsdell, in 1913 and at the time of his death operated three theatres in Malden and one in Melford. John S. Scope John S. Scope, 41, owner-manager of the Manor, Wilmington Manor, Del., for the past five years, died February 17, suddenly, at his home in Chester, Pa. His wife, three children, a brother and a sister survive. John A. Deery Funeral services were held Wednesday in Salem, Mass., for John A. Deery, 67, owneroperator of two theatres in Salem. Mr. Deery died while in Fort Lauderdale, Fla. UA Announces Four Films for March Four major productions are on the list for United Artists during March. They are “Beat the Devil,” “Act of Love,” “The Scarlet Spear” and “The Golden Mask.” “Beat the Devil” is by John Fluston and stars Humphrey Bogart, Jennifer Jones and Gina Lollobrigida. “Act of Love” is from Anatole Litvak and stars Kirk Douglas and Dany Robin. “The Scarlet Spear” was produced by Charles Reynolds and features John Bentley and Martha Hyer. “The Golden Mask” stars Van Heflin, Wanda Hendrix and Eric Portman. It was produced by Aubrey Baring and Maxwell Setton. Hecca Hits .W Eloyil In Proxy Eiyht The management of Decca Records this week sent out a letter to all stockholders outlining its position in the controversy with George L. Lloyd, former director who is seeking support in his proxy battle. Mr. Lloyd earlier attacked Milton Rackmil’s position as president of both Decca and its subsidiary, Universal Pictures Company, and asked stockholders to join with him in forming a Decca Records, Inc., Stockholders Protective Committee as part of his proxy fight to gain control of the company at the annual meeting April 13. The Decca management, in this week’s letter, called Mr. Lloyd’s actions “part of a carefully drawn plan of a disgruntled exdirector to gain control of your company for his own selfish interest.” Management charged that although Mr. Lloyd now complained about many of the board’s actions over the past four years, he had voted in favor of every action taken by the board. Defending Mr. Rackmil, management stated that he “gives his full time and his full attention both to Decca and . . . Universal Pictures, which together provide your dividends.” It is also points out that Mr. Rackmil’s compensation from both companies “is less than is paid to chief executives of comparable companies.” Stockholders were asked to keep in mind the facts that Decca’s stock had increased in value from $7 to $10 a share from 1949 to 1954 and that the 1949 dividend rate of 50 cents a year had been increased to 70 cents a year since 1951. RCA Net Profit in 1953 Rises to $35,022,000 Net profit of the Radio Corporation of America in 1953 amounted to $35,022,000 compared with $32,325,000 in 1952, David Sarnoff, chairman of the board, disclosed in his annual report to stockholders. These earnings, it was stated, are equivalent to $2.27 per share of common stock, compared with $2.10 per share earned the year before. Eox to Seek JVet v Outlets tn Britain by PETER BURNUP LONDON : Following the Rank Organization’s turndown of Spyros P. Skouras’ renewed overtures, both main protagonists in the great stereophony struggle — C.E.A.’s policy-makers and 20th-Fox — retreat momentarily to their seconds’ corners. J. F. Pattinson — in immediate charge now of 20th-Fox operations here although currently without the titular rank of managingdirector — confirms that his company will offer to trade on first run terms with an entirely new line of customers. It is assumed 20th-Fox pictures will continue to be available to the 75 Rank houses already committed to full CinemaScope — although even that is not yet formally established — and thereafter be thrown open on roughly a free-for-all basis. Mr. Pattinson makes it clear he will insist on all-or-nothing CinemaScope. Subject to that condition, established 20th-Fox customers will have first refusal of the company’s output ; thereafter the pictures will be offered on the open market. The latest move in the intricate game of chess is likely to pose a problem of a different sort for Mr. Rank’s bookers. Last year his circuit took 36 pictures from his traditional suppliers, 20th-Fox. The newlvmade gap will require to be filled from somewhere and there'll he some earnest jockeying for position in that regard. Exhibitors show a lively interest in the extended payment scheme for CinemaScope proposed by a group of City of London insurance brokers, although the proposal is as yet in the discussion stage. The scheme was proposed by a certain Hartley Leather, associated with a concern known as the Credit Insurance Association. Under the scheme, the equipment manufacturers would supply exhibitors with the necessary equipment, accepting monthly promissory bills in payment. These would be backed by a credit insurance policy against the risk of the exhibitor being unable to pay. The bills, it is suggested, would be discounted by the banks. V The Rank Organization has leased the 2,082-seat Marble Arch Odeon to 20th-Fox. This is the second theatre to be taken over by 20th-Fox in recent weeks, the lease on the Carlton having been acquired from Paramount earlier. Both houses are to be used as showcases for CinemaScope pictures. Nelson Completes Theatre John J. Nelson has completed his new 450-seat Lake Theatre at Powers Lake, North Dakota. It is equipped with a 34foot screen for CinemaScope with stereophonic sound. Its cost was about $90,000. Owners along with Mr. Nelson are Hans Hanson, L. M. Lucy, and Donald Obert. 28 MOTION PICTURE HERALD, MARCH 6, 1954