Variety (November 1961)

“by. Joseph L: Best, owner of more than 4,000: shares in National The-. _atres &. Television, against 21 past and present officers and. directors. of NT&T,. National Television’ As “ "Nov: 27 in the offires of local at-. ‘torneys ‘Gibson, Dunn & Crutther. ’ al. defendantswho were directors ‘of NT&T™. ‘at. the times: complained --. of, “aeted recklessly, negligently. ~vand carelessly and in violation: of unknown, according to ‘the. com_ plaint, _ therein. Each of the acts alleged " ‘Was committed pursuant to said Co. Ine:, and the three. companies ald Cantor, Eugene V. Klein, Joe ‘Cock, .William H. Hudson; Willard Jr., Charles.A. Barker Jr.; Charles |: ‘Serald & Co., Inc., NF&T and NTA. “eoncelved. ‘scheme and conspiracy ofacquiring. control. of NT&T and. then. ‘foisting upon it the securities: of NTA. owned. ‘by said defendants, “was caused to enter into an agree-. ment. to purchase from. the’ de-fendants. Landau, Unger. and Gold|. ‘common stock ‘for each. share of. _officers of NTA to serve. in: their -then capacities and.upon the same _ficers and employes of NTA includ-' “Of NTA stock warrants . approximately $20, 000,000 princi-. tures in. payment therefor.”* of: today. NT&T only holds. :38%: -caused_ to pay. for the aforesaid -gecurities of NTA was: ‘grossly: ex<-eessive. and ~ -to. ‘the true value. of the’ securities “LL Bass Actin Vs NTQT Charges Corispiracy By’ oy Past: and” Present 7 Corporate Officials: ' tain additional losses in the future. Los: Arigeles, ‘Nov. 7, For. the year 1960 NTA. sustained Depositions: in the Wtmington. derivative action filed last March: vestmerit in securities of NTA was ‘come of approximately $7,000; 000. ‘soclate nd. Cant Fitzgerald & ane antor, Fitzg of its, investmerit: in NTA,.NT&T has “been: compelled® to “advance large sums of money to NTA, Thus, ps of Sept. 27,.1960, NTA was in‘debted to. NT&T for advances of $7,328,873. which are still unpaid.” ‘The. operations of NT&T in its business (other than its ownership of NTA) continued to be profitable named, are slated to get under. way Plaintiff Best alleges “the individu their fiduciary duties as directors." Exact .amodunt: of said. losses. is we NTA. the allegations: state. “and canbe ascertained Best: seeks an-order be: issued only. upon an accounting in this |. action.” Listed as defendants are. B. Ger with all ‘the: shares options on shares and. debentures. of NT&T Benaron.. John. B. Bertero, Samuel Firks, William J. Friedman, A. J. yall shares, options on: shares and ‘debéentureson NT&Tin which. ‘such defendants may have interest, to compel ‘the appearance of each of. the said defendants _herein.‘and. that: a.sequestor. be ‘appointed. to ‘hold and. preserve such shares, ‘options on shares. and débentures W. Keith,. Richard W.-Millar,. Jack M... Ostrow, -Graham. L. ‘Sterling L. Glett, Burt: Kleiner, Ely A. Landau, Oliver. A. Unger, Alan May, Harold Goldman, ‘Edythe Rein, Robert Westheimer, Cantor, Fitzcause. , th than NT&T required: to “In or abeut ‘the latter part of aii be required 1957,"" states. the complaint, “the individual defendants who ‘were then directors of NT&T arid NTA, the ~ unlawful plan, of the-matters..set. forth, together. with interest thereon , ...” also “costs and disburséments, in cluding counsel. fees, etc; (reported at. $25,000) be allowed. ; Three attorneys:to rep Best in bs* the customers and: clients’ of C:F.: and. “others, . at exhorbitant and ‘excessive prices. Each. de-. fendant who thereafter became a. director of NT&N' had’ knowledge of said lan and ‘participated filed. :Wilmingten’ suit; Joseph J: Karlin of Karlin, Coe & Solomon of Chicago, and. Sam Kurland, Los | Angeles. ‘Fotal losses ‘sustained’ by. NP&T unlawful. plan, scheme and. con: | orhood. of $30, 000,000. spiracy. The plaintiff ‘further alleges “in | the latter part ‘of 1958, NT&T | Marcus Cohn New Plea: Hartford Toll Test: ‘Abuse: man. 160.500 shares ofcommon stock.of: NTA for debentures and: ‘warrants. of NT&T. on the basis of. 1 $11 principal amount.-of © dében-| tures. and a warrant for. the pur| chase of 14 of one share of NT&T “Washington, Nov. 7. “Attorney for exhibitors fighting the Hartford. pay-tv projects has called on:U. S. Court of Appeals -[to’ nix’ FCC approval of the. ex Details ‘periment “as an abuse of. discre “At the same time NT&T was | tion:” caused to agree with defendants{charge in response to: briefs filed Landau, Unger, Goldman ‘and Kleiner that if its exchange offer were ‘consummated, “sald ‘defendants. should remain as‘ executive’ NTA common stock: in defense of the pioneer tollvision trial. : ‘In his ‘reply brief; Cohn raised existence of the RKO-General payterms andconditions, . including their profit. participations in NTA. At the same time,” it. is further stated in the cpmplaint’ “NT8&T. ‘was caused to agree, “if its exchange offer -were consummated, to appoint Kleiner, Hudson,. Landau’ and. Unger as directors ‘of NT&T and to appoint Landau to its. executive’ committee.. At the | game time NT&T was. caused. to agree that. if its exchange’ offer. ‘Were consummated, to issue stock ‘options for a total of 300,000 shares. of its: common _ stock ‘to, such of the millfons RKO plans to. sink into it would tend to force FCC's hana tollvision on.a nationwide. basis. The Hartford project’ was author‘ized as @ three-year test: to help. ‘ECC decide whether it:should give At: the same time, Cohn again lack ‘of programming information ings last year. Hitting FCC's argument the. RKO’'s:. ~prowem mats I were. “sufficient,” ohn averre ing Landau, ‘Unger, Goldman and) “If this is all the commission re ‘Rein in. such proportions. as ‘said ” quires in. the way of. programming defendants should: determine.” .. . plans. ‘then’ there ‘4s,-in fact; exchange is stated, “the aforesaid no requitement that licensees. inholders of securities. of NTA in. the “early part of 1959 and asa result thereof and of. the purchase . NT&T | acquired approximately. 87% of the outstanding stock of NTA. as: well as. ‘other securities of NTA. exchange therefor, NT&T iesued -sent.’ ‘Concluding, Cohn: sald FCC won't get any useful Information pose. new service, (FCC). should not that service in the vain hope. of obtaining information ‘which. cannot: solve the problem. it attempts to. resolve. ‘It. certainly shouid not: do so when the. establishment of ‘a trial system will. virtually... foreclose the issue. In‘ this sense the proposed experiment is patently pal. amount. of its 514% debenAS: of NTA: stock.. ““The price. -which NT&T “Was. bore -no. relationship. be :condemned by ‘the court as an: abuse of discrétion.” . Cohn represents the -Connecticut’ Committe Against. Paid Tv and.a group of Hartford area ex-. hibitors. of. NTA acquired -by NT&T.. Losses NTE T as. the: result of ° the aforesaid acquisition ‘of ‘the securities of NTA -suffered -huge losses’ and will undoubtedly sus losses: of approximately . $7,000,000, : During the year .1959 NT&T’s in-: written down: by ‘a. charge: to in “In. addition to the huge. losses abroad is tremendous. sustained by NT&T as ‘a. result: and the lossés sustained by. NT&T. ‘solely to its investment in. “sequestering and seizing. forth standing’ in the names of ‘the de| fendants other than* NT&T, and ‘until -a final determination of this. ‘and ‘that the defendants | aceount for their profits and dam--. ages sustained by NT&T as a result. pre-trial examinations are Milton. ‘Paulson, New: York counsel who because‘of its. affiliation with NTA 1 are reported to. be-in the. heigh-. Of Discretion’ by: FCC Marcus ‘Cohn ‘made the|.cooperation,: recently by RKO General and :FCC; the question of whether the very. ‘ty system: in Hartford ‘because of. in’ authorizing over-the-air, a permanent greenlight. to pay-tv.. challenged what he regards as the RKO furnished during. the hear-| ‘by Marion County prosecutor and ‘merchants. . association, aim is to fotm the commission in’ detail. of | set out of control. te re-: the programming it plans oP | specifically: exempted from Sunday closing ‘by .old, long disregarded | 9 from the trial, as is the stated pur-|#ftet p.m: But. Prosecutor Phillip “Under guise. of testing a. allow’ the: virtual establishment of } Provision excepting “works of char ‘been ‘stymied. for present by legal ‘unrelated to its: purpose, and must { “Whoever being over 14 years of}. age, is found on the.first day of the rioting, Tusual vocation, works of charity “Stevens a ‘Runaway’ — Continued from page 5 — | where the. ‘best vaiue for the in-| vested dollar is received. 7 |: “I say to. people here’ in this industry, Individuals, guilds, union |: ‘ahd artists ‘that: they should con--. sider. thé. situation and try and figure out a way where Americans can regain the inititave:’ Stevens added ‘the “inducements that have come to me from responsible sources to make my The big companies like MGM and 20th-Fox don’t resist ‘these inducements. They just pack up and go: And the ‘Guild exports American directors. The Union exports a cameraman. In other words the. guilds and unions have not studied. the basic situation to keep some of the big ‘producing companies in America. They are making. conversation and talk about it, but. do nothing, from what I see.’ . “Greatest Story” will have’ tremendous employment, Stevens assured. problem. will I be regarded as a runaway?” — Producer-director feels the time is-about here where American pro ‘ducers must wave making big pro ductions in this. country, . as’ in the ‘past. ' “Let's purstie an. idea of a solution that can help us on runaway production, when it isused as an inducement. of the. ‘Yealities. in. a given situation. a “In making an. ‘appeal to the House of. Representatives on this. ‘Inatter, we might better direct our | energies in the attitude of our. gov ernment. It seems our government and |is most interested in. challenging and harrowing the American film which, up to a very few years ago, ‘knew no ‘peer. This while European governments, with their. great ‘interest in international. communications, have subsidies for their own producers : and others who will make. films in such countries as] Italy and France. And by.so doing represent those particular. countries. in world. markets.” As for. Edward Morrow and -his “forum. discussion” Sunday to ap ‘proximately 100 industry, guild |.° and union toppers, to which Stevens. has been invited, producer said “The American image on our screen ig goné to a great degrée, to other places than America: We don’t have the position we had in ‘this particular production | ‘center because more and more pictures | are being made abroad." He went. down the list of various companies citing ‘titles. and countries where they have been made in past year and are now. being produced. . He also pointed out government particularly ‘in the case of Datryl F..Zanuck’s “The Longest Day,” has been appalling. He stated there will be two Cana-. |dians for every. American -soldier, “thanks to a certain member of the House :.of Representatives named Wilson.” filro. “In view ‘of. that and my Film Logic’s Kissing Cousin—Logistics; |And How-to-Be-Your-Own Personality By IRVING RUBINE Writer-producer Carl Foreman acquired Alistair Maclean’s novel, “The Guns of Navarone,” in the summer of 1958 and began. His peregrinations in the fall. of '58. when he began to hunt a proper location for his _ story. “Guns” was about Allied and ‘Greek resistance in the Aegean ‘Sea: during the last Great War, Logie demanded that the film be PICTURES 19 ploitation of the film, because cf other commitments. Happily, Foreman, in his youth, was a “talker” for a carnival. and the prospect of facing audiences and delivering of “spiel” for his film didn’t phase him. He couldn't persuade himself, however that people would accept him as a substitute for such glamorous personalities as Peck, Niven and. Quinn, but he was prepared to do made in its actual location, artistic jhis best. integrity insisted upon it. But ; “logic” has a kissing cousin, “logis: | Born Pitchman In the six ensuing months, he ties,” descended from the same | visited some 30 cities in America Greek ancestor, “loges,”’ “logistics”: was concerned ‘such practicalities as housing, portation, power, an necessities required in film making. .Greece, as it turned out, later ‘eould provide these on the sundrenched island of Rhodes: But until this was determined, Foreman visited virtually every country in Europe with an established film industry. Some eight or ten thousand miles were logged in the process: of establishing Rhodes as the final location. Then came the problems of casting. This required -four round trips between London, where Fore-man works, and Los Angeles where Gregory Peck and David Niven live. At 10,886 miles per round trip, this is almost 44.000 miles. Add a few side trips bring this up to fifty thousand—to Rome where Anthony Quinn was-ensconced and to Athens and Spain where Irene Papas and Stanley Baker were so involved in. films that a trip to London for discussion was impossible. Armed with his cast, he made several trips to New York where he discussed with Columbia executives. the impressive multi-million dollars budget which they would have to support and his other plans for the. film. | He completed ‘“The Guns of Navarone” in Aprilof this year. As he, participated. in plans for the first. of what were to become five ‘Royal Premieres, he discovered that, in today’s film world, you cannot have your stars and tour them too. For of his stellar cast, Gregory Peck, David. Niven and Anthony |Quinn were all immediately in volved in other pictures and unable even to come to London to be presented to Her Majesty, Queen Elizabeth and _H.R.H. Prince Philip. Happily. Stanley Baker and Anthony Quayle were both: working in British films and Irene Papas was able to come from Greece so ‘that the cast was well-represented. But the painful truth, for Fore man; was that his stars were not going: to be much use in the ex Retailers, Burned at Sunday Shops, Invoke Old Law; May Hit Pictures -Indianapolis, Nov. 7. Drive to enforce 1905 Blue Law that ‘would ‘close most businesses if rigidly. applied: is giving exhibitors here some uneasy. moments. Started sheriff and Indianapolis :chief of police with backing of downtown curb free wheelers -in retail trade. But some film. exhibs fear it may Only forms of entertainment law,. ate baseball and ice hockey L. Bayt ‘has indicated: that Sunday screenings would come under its ity and necessity,” conforming to pattern of modern living. © Enforcement is abeyance. ‘waiting outcome of .court action ‘in: suit filed against. it, Simflar: drive ‘in’ South Bend.-also has action. The 1905 relic’. reads" like this: week, commonly called Sunday, hunting, quarreling, cat, common labor, or engaged in his. presently ‘fn: ‘Robert . Mine” and necessity alone excepted, shall be fined not less than $1 nor more than $10; but nothing herein contained shall. be construed to affect such. as conscientiously observe the ‘seventh day: of the week as the Sabbath, travelers, and: those engaged in conveying them, families removing, toll brodges and toll gates, ferrymen acting as such and persons é¢ngaged in the publication and distribution of news, or persons. engaged in playing the game of baseball or ice hockey after one ‘clock P.M. and not less than 1,000 feet distant from any established house of worship or permanent church structure used for religious services, or any public hospital or private. hospital erected prior to the passage of this act.” Both ‘Avondale Playhouse and Starlight. Musicals, summertime ‘operations here, give Sunday night performances. So does new Intro Productions Inc:,. which opened re cently for winter season in old Zaring Theatre. Saber Productions, headed by ‘Barron, Paul © Stevenson and Jack Carney, has a three-pix program coming up, including “The Louder They Cry,” “The and “Moment of Crisis.” andj; where he appeared on television 50 times, recorded for radio 73 trans| times, and participated in some 80 adequate ; press conferences and private intrained labor supply, lines of com; terviews. |munication and all the other vital : ! minded, he wore out two sets for For the = statistically luggage gained ten pounds—a Phenomenon of “going on the road” is that irregular arrival and . departure times and long hours result in extra meals which more than balance the reducing effects of hard work and nervous expenditure—and turned gray at the temples. In Europe, he appeared in’ advance in Paris, Rome, Brussels, Amsterdam and Athens, réturning again for the premieres in each of these. cities. For some of this tour he was joined by David Niven, who, having completed his later assignment in “Best of Enemies,” was able to lend a hand in Brussels and Amsterdam. Gregory Peck, scheduled to make a tour of Germany following the completion of his own film, “Cape Fear,” came to Europe but was summoned back to Hollywood for some crisis, and the German trip had to be cancelled. Quinn, who moved in quick succession from “Navarone” to “Barabbas” for Dino DeLaurentiis, thence to “Lawrence of Arabia” and presently to “Requiem for a Heavyweight," was not only unable te tour for “Guns” but hasn’t even had time to see the picture as yet. Foreman, reviewing his pilgrimage, feels that it was a most profitable undertaking—not so much beeause of the wide acclaim and subsequent profits being garnered by “Guns” everywhere. The picture has been as successful, he mostly points out where he didn’t appear as in those cities which he visited. What has been gained is a wide acquaintance with all kinds of people everywhere. This is a vital ingredient in the writer’s formula for making successful films, Foreman believes. More producers and more directors and*writers, he feels, should “hit the road.” It will help overcome the provincialism and the insular attiltudes which affect anyone who works in one place and lives in the place where he works, as Foreman did for a long time in Hollywood and later in London. And what is especially gratifying is that people everywhere have become so sophisticated about films that they have begun to look behind the stars and are interested in the creative personnel. ‘Family’ Entertainment Needs to Be Helped Greensboro, N. C., Nov: 7. Support and encouragement of motion pictures for the family is needed if Hollywood is to continue producing such films when the trend is toward more and more “adult” movies. This was the theme of a preview showing of “The Second Time Around” at the Carolina Theatre. Guests for the preview were local PTA leaders. Neil McGill, manager of the theatre, told them theatres need their support to insure production of pictures suitable for the family. McGill pointed to the Circle K Kiddies Club, held each Saturday morning for the past 13 years, and the Wednesday matinees in the summer for young people, as activities that also deserve encouragement and support. A sampling of reaction comment following the showing of “The Second Time Around” indicated unanimous favor of such films. One guest commented such films would bring her to the theatre more often, with her children.