Variety (April 1953)

PICTURES $ tffednesdayy April 15, 1953 3-D’s Role in Exhib Economics- May Cue 1st Diwy by Stan Warner Immediate effect off 3-D, espe- cially as it applies to the new Ganiev Warner Corp., is that the depth medium may make the dif- ference between a payment or no rravment of an initial dividend to stockholders. Theatre offspring of Warner -Bros. Pictures, which be- gan operations on March 1. *53, showed a profit of only $1&,112 for 1952 as compared to $6,143,- 341 for 1950, when a part of the picture company. On- the basis of the 1952 statement and the early returns from 1953, it was doubted that a dividend could be declared, However, playing of “Bwana Devil” the initial 3-D entry, plus the soon-to-be-played “House of Wax,” may make a substantial dif- ference in the company’s earnings. Outfit chalked up hefty returns on “Bwana” and expects similar results on “Wax.” In addition, it did well with “Peter Pan.” On the basis of this trio, SW may be able to declare a dividend by fig- uring the estimated earnings or' waiting until the final returns are in. « Since it is advantageous for a hew company to declare a divi- dend to gain stockholder confi- dence, SW could have dipped into earned surplus or capital assets (latter is permissible under Hhe corporate laws of Delaware). AL though it’s not known if the com : pany contemplated such action, it’s figured that either of these con- tingencies will not be necessary now. . When Warner Bros, split into separate production and theatre companies, stockholders received one-half share of stock in each of the new companies for each full share of the former combined company. Picture company-recently declared a 30c quarterly dividend (Continued on page 25) Natural Vision $$ For ‘Good’ 3-D Pix Natural Vision Corp. is ready to help finance “good” productions lensed in Its own 3-D process and, in addition to its 20% interest in “Bwana Devil,” also has a 10% piece of “The Moonlighters,’’ which Joseph Bernhardt is producing for Warner Bros, release. This was disclosed in N. V. last week (10) by Milton L. Gurizburg, Natural Vision prexy, as he con- ferred with reps of the Polaroid Corp. regarding a stepup in the production of polarized viewers, to which Natural Vision has exclusive distribution rights worldwide until July 15. Question of Gunzburg’s future relations with Polaroid also figured prominently in the talks but remained unsettled. Gunzburg indicated he expected the U-. S. Patent Office to issue a patent on his 3-D camera within the very near future,,, and hinted that this might set off a series of infringement suits, “since there has been^so much copying of our sys- tem.” Natural Vision exec also dis- closed, without elaboration, that his company might handle a stereo- scopic sound installation for thea- tres much cheaper than that cur- rently being marketed. Polaroid expects’ to boost produc- tion of viewers from the current (Continued on page 24) LOW’S CONTESTS BANK SALE OF POWELL FIX In an effort to keep two William Powell pix off television, Loew’s, inc., filed an answer to the Bank ot America’s foreclosure suit. Films involved are “The Senator Was In- f* sci ' ee t” and “Mr. Peabody and the Mermaid,”'in which Powell ap- peared on loanout deals. ” Utlder . his contract with Metro, the studio claims, Powell’s name cannot be used for commercial tie- «Ps or sold for telecasting without ^oeu ‘s permission. D For Delayed Hollywood, April 14. Paramount’s “Sangaree” bears a unique distinction. It is the first 3-D picture ever sneak-previewed in 2-D. The 3-D print was not ready for the screening at the Cali- fornia Theatre, so producers Pine & Thomas ordered it un- veiled as a “flattie.” They wanted an audience reaction for further editing purposes.- Regent, Buffalo Nabe, ToddAOs Proving Ground Buffalo, April 14. The Regent, Main-Utica nabe, has been leased for four months by Magna Corp. for preliminary trials of its new (Mike) Todd-AO wide-angle projection which has been developed at American Opti- cal Co.’s Buffalo plant.' Regent is one of the four community houses owned by the Konczakowski Cir- cuit. New 3-D trials, which will he under direction of William F. Peck, American Optical’s local general manager, require only one camera and one projector and is-claimed to “ad&pt easily to existing thea- tres.” ‘Okla/ StiU Up In Air There appears to be sharp dis- agreement over the choice of “Oklahoma” as the first Magna Theatre Corp. pic to be lensed in the To"dd-AO widescreen process. In Hollywood, Magna board chairman Joseph M. Schenck con- firmed previous reports that “Okla- homa” would be Magna’s initial release. “Before contracts can be signed we must first buy out a small minority of stockholders. We have a definite agreement with Rodgers & Hammersein to do the picture,” he said. In New York, Richard Rodgers, (Continued on page 25) Stanley Warner Facelift Now Likely From Current Survey by New Toppers Trio of Stanley Warner toppers —prexy S. H. (Si) Fabian, exec veepee Samuel Rosen and general manager Harry Kalmine — are currently making a survey of the theatre company’s houses. For Fabian and Rosen, who took over the circuit from Warner Bros, on March 1, it’s a first looksee at the circuit’s theatres. Kalmine, long- time head of the chain under the Warner management, is introing the new chiefs around and briefing them on the company’s operations. * Survey, it’s indicated, may result in face-lifting and other improve- ments for many of the houses. Most of the outfit’s theatres are already equipped for 3-D, and a good many are being equipped with Warner Phonic sound for the un- veiling of Warner’s 3-D “House of Wax.” Although Fabian has been reported bullish on Cinemascope, theatre topper hasn’t indicated whether or not he’s installing the 20th-Fox or any other widescreen system. Chain, one of the first to circuit- book “Bwana Devil,” is extremely high on the upcoming “Wax.” Recognizing, however, some opposi- tion among critics and patrons to the early 3-D entry, company has taken steps to overcome any resist- ence, real or anticipated. Feeling that the N. Y. Paramount bow of “Wax” would serve as the best showcasing, outfit brought in film crix from Pennsylvania and New Jersey, strongholds of tfie Warner chain, for a gander at “Wax.” EDGE Nabe Exhibs Adopt Wait-See Plan On 3-D, Screens as Chains Take Plunge : + Widescreen exhibition of films appears to be shaping as the victor over 3-D in the race for techno- logical advancement and hypoed b. 0 . for. Hollywood over the long haul. Champions of depth with the use of viewing specs so far have had a secret weapon, i.e., tremendous public support, as evidenced first with Arch Oboler’s “Bwana Devil” (UA) and this week with the smash returns for Warners’ “House of Wax” and Columbia’s “Man in the Dark.” That 3-D’s newness will con- tinue to draw heavy trade for some time is a cinch, too. Those novelty values and optical achievements simply can’t be minimized. But the industry in large part is figuring on the widened-screen as a lasting fixture, this based on the many hundreds of exhibs now in line to install 20th-Fox’s Cinema- Scope or otherwise adjusting for projecting on 1 new screen aspect ratios. The filmmakers also are in- clining toward the screen approach. On the other hand, opinion among many pix execs is that while 3-D has a future, top, the play given that added dimension will fall off eventually. There’s wide agreement with Jack Warner that 3-D is here to stay, but the thought also is that the 3-D’ers are to be only a small part of Holly- wood’s output in the coming years. In contrast, the swing to wide- continued on page 26) Exhibitors Rap Yates’ TV Stance K- Statement to stockholders by Republic prexy Herbert J. Yates that television represents a vast, new sales field for Republic pic- tures, brought forth this week the sharpest blasts yet leveled at Yates by exhibs. There were iridications. that individual exhibs would make efforts to bypass Republic product. Harry Brandt, head of the Brandt circuit, declared that “if Yates continues his overt acts, he’ll lose more- and more of his regular customers. If Yates wants to be- come a TV producer, it’s okay wffh us. Maybe he’ll wind up in TV. It’ll be a good thing for the picture industry.” Walter Reade, Jr., head of the Reade circuit, was equally caustic about Yates’ TV policy. “I don’t think,” he stated, “that any ex- hibitor will have the wool pulled over his* eyes the way Yates pulled it over the eyes of the stockholders with his statement. If the money Yates and his company have made from TV is so great, why doesn’t he get out of the picture-business to which after all, he says he owes no loyalty?” Yates’ downbeating of 3-D brought forth from Reade the com- ment that “Yates’ statement about 3-D being a novelty or a passing fad proves how far the parade has passed him by.” ' . Wilbur k §naper, speaking as an individual exhib and not as prexy of Allied States Assn., stated: “Per- sonally, I haven’t played Republic Pictures since Yates tried to ride two horses at once.” Arnall, SIMPP Weigh Expansion, Foreign Posts Hollywood, April 14. Prexy Ellis Arnall is here discus- sing with coast Society of Inde- pendent Motion Picture Producers execs expansion program under which, group would add to its New York personnel, possibly open offices abroad for first time. Here- tofore SIMPP handled foreign affairs via foreign offices of mem- ber companies. A spokesman said that expansion has been decided upon, at least in part, as result of the booming biz 1 of the indies’ pix. Old-Fashioned Indie distribs, sans a 3-D interest, are upbeating the story values of their conven- tial “flats” by chiding the gim- mick aspects of the depth pix. For example, Joseph, Bur- styn, foreigfi film distrib, has a special ad in today’s (Wed.) New York Times plugging the French import “Justice Is Done,” currently at the N;Y. Trans-Lux 60th St., aimed at offsetting the 3-D furore. Ad reads: “DO You Want A Good Movie—Or A Lion In Your Lap?” Kirsch Wants To Know If-2-Ders Will Still Flow Chicago, April 14. While many theatre operators are rushing to get into the 3-D and new screen fields, othere has also been a hesitancy here about install- ing equipment, due to the many conflicting systems. Jack Kirsch, president of Illinois Allied,issued an open letter last week to sales toppers of major distributors, ask- ing for some unifications of the many systems pointing out that many houses could not afford to install the various types of equip- ment yet. He also asked for some reassur- ance ..that the distribs would con- tinue to furnish 2-4D product for the vast majority of houses. Prexy asked that companies report hdw many pictures they were sched- uling for the coming season; how many were in 3-D; how many in 2-D; and of the 3-D, how many of those would also be available in 2-D. There was also a plea for aid from majors to help in case a serious cutback of 2-D product was made. Essaness circuit here, one of the largest in the city, is bypassing all of the new tri-dimensional efforts until some standards can be ob- (Continued on page 20) Stock Suit on Again, Jack, Harry Warner’s Control In Question Hollywood, April 14. Trial of a five-year-old stockhold- er suit against Harry M. and Jack L. Warner resumed today (Tues.) before Federal Jud&e William C. Hathes. Action will be heard on a split-week basis, with testimony be- ing taken every Tuesday, Wednes- day and Thursday for the next five or six weeks. Suit contends there were irregularities in the way in which the studio financed indie op- erations of U. S. Pictures. In his opening statement Eugene D. Williams, attorney for the de- fendants, declared that Harry and Jack Warner own 15% of the stock in Warner Bros., but do not control the company. The suit was originally filed Dec. 5, 1948, by Edward S. Birn, N*. Y. financier who has since died and whose estate is pressing the action. It named Milton Sperling, Warner Bros., Inc; United States Pictures, Inc., and^Harry M. and Jack War- ner. Birn claimed the defendants con- trol the company, and that War- ners had advanced Sperling’s inde- pendent United States Pictures 50% of the production costs and put up collateral for the other 50%. He contended that Warners thus was undertaking the entire risk 1 (Continued on page 22) • While the major, well-heeled theatre chains continue bullish on 3-D and widescreen, the subse- quent-run exhibs are maintaining a cautioOs wait-see policy. Cur- rently the new medium ^sweep- stakes from the theatre standpoint shapes up as follows: The chains will install 3-D and widescreen, using a screen that is sufficiently versatile to exhibit both processes as well as regular flat pictures. The smaller houses will go slow on everything, perhaps installing 3-D first because of its lower cost and moving into widescreen when the cost factors become more pal- atable. Although 20th-Fox has an- nounced many orders for Cinema- scope, such circuits as Loew’s, RKO, and Stanley Warner have yet to make definite commitments. Officials of these outfits, although high on widescreen, say they are studying all the widescreen meth- ods before ordering installations. On the other hand, Harry Brandt, head of the Brandt circuit, is one of the^most ardent advo- cates of Cinemascope. He declared he’s ordering the 20th process for all of his 120 theatres, though ad- mitting there will “be headaches and problems until there is suffi- cient product in the medium.” Meantime, he noted, he’ll keep his theatres operating “until the in- dustry is restored to normal,” by exhibiting whatever ' product is available, be it 2-D, 3-D or wide- screen. That, in short, appears to be the attitude of most of the ma- jor chains. Brandt is convinced that every company will be making films In the future in the Cinemascope process. He contends that all would be making it now if the necessary lenses were available. Theatre topper is also bullish on new sound developments, declar- (Continued on page 25) 20th to Handle Bigscreen Units Decision by 20th-Fox to enter the equipment field to do its own handling of the Cinemascope wide- screen package was implied yester- day (Tues.') \yith announcement of the formation of CinefoaScope Products Inc. as a 20th subsidiary. Company will act as the sole dis- tributor of the Miracle Mirror Screen which is part of the CinemaScope unit, but it’s under- stood that it will serve also as a channel for the CinemaScope lenses and stereophonic sound equipment. Miracle Mirrors Screen is de- scribed as an all-purpose type fl com- pletely compatible with and suit- able for CinemaScope, Eidophor, other theatre TV systems, 3-D and various widescreen processes. It’s adaptable to theatres of all sizes, according to 20th. NAT’L THEATRES EXECS CONTINUE STOCK BUYS National Theatres’ officials are continuing huy-ups of the corpora- tion’s common stock, presumably a factor in the issue’s substantial price rise on the N. Y. Stock Ex- change. It’s now being traded at over $7 per share. Earle G. Hines, National board member, made his first investment in the issue with acquisition of c block, of 1,000 shares, according to the Exchange, Elfrier C. Rhoden picked up an additional 1,500 shares and now holds 16,800 shares direct and 3,525 shares indirect. On the RKO Theatres front, Sol A. Schwartz, president and direc- tor, has become active with the purchase of 1,500 shares of the chain’s common issue. This brings, his total ownership to 2,500 shares.