Variety (September 1957)

Delaware Ruling on | Ruling on Loew’s| " Investors’ Meet: Go Ahead ‘But Adjourn to.Later Date | dividual participants,. said that-a Sept. 17 closing date has been. Wednesday, September 4, 1957 PUBLIC RELATIONS It is sorry commentary that, as highpowered as the. picture business is, and has been, in merchandising and putting on the map a new face, a new title, a new penetration campaign for a Specific picture and/or personality, that is exactly how ineffectual it has been, in inverse ratio, in selling itself as an industry. Any and all bailyhoo, sales campaigns, exploitation stunts and | the like have been geared to some particular picture, and it is not long before the masses from Altoona to Zanzibar know the specifics about the dimensions of some well-endowed babe, or . that this or that story property is a shade this side of the Production Code, Even now, so far as the east coast is concerned, the Motion Picture Assn, of America (Eric Johnston office), through its public relations committee, is committed only to the proposition | of boxoffice. Which is as it should be—none will deny that the b.o. needs beaucoup hypo. Perhaps the most affirmative approach that the film business is taking is the move by the recently formed Mofion Picture © Industry Council’s public relations committee’in re the Con fidential mess. And, of course, there again it required a catastrophic industry smear to muster forces, It is axiomatic that from tragedy and strife off emerge a positive force, and it is hoped that the-MPIC move, chairmanned: by George Murphy, will achieve that affirmative end-result. Certainly this is one. program that requires all-industry support, should get it, deserves it. It is reasonable to assume that this is the one time Hollywood will do its all-out job in that connection. Certainly all-industry embarrassments can be better handled—and avoided—under such a@ program. Post-War’ Inventory on Loew's: Earnings, Production & Wall St: With a victory over the Joseph Tomlinson forces now in sight, .{ market price. Loew’s prexy Joseph R. Vogel and his management team must now face the task of improving the company’s earning position, An analysis of the financial reports-of Loew’s and several of its competitors perhaps points up what has been ailing Loew’s and why it has been. so vulnerable to attack in recent years. Despite the fact that in the past several years Loew’s: has chalked up the largest gross income in the industry, its net income percent _age-wise has been among the low est. Take 1956 as an example. Loew's total gross was $172,355,933, the highest i in the industry. Yet its net income was only $5,161,505. In comparison, 20th-Fox grossed $122,251,864 for a net income-of $6,198,419; Warner Bros.. grossed $77, _ 393, 560 for a net of $17,393,560 (including sale of film library to tv),-and Paramount grossed $93,313, 71I for a net of $8,731,568. Grossing potential of Loew’s makes it apparent that ‘under a new policy that Vogel must inSti(Continued on ontinued’on page 2 22) By DON KLEPFER Wilmington, Sept. 3. Chancellor Collins J, Seitz ruled in the Delaware Court of Chancery today (Tues.) that the special Loew’s stockolders’ meeting be convened on Sept. 12 and then immediately adjourned to a later date. Such a, stay, he sald, will not prejudice the right of those with. the ultimate say—the stockholders. The court, he continued, is opposed }: to pass on many matter presented to it at such short notice. Seitz stiggested that the meeting be held, a move which Loew’s interprets as at least legalizing the session. The Court, Seitz said, recognizes that itwill interfere to some extent by delaying the Sept. 12 meetirig, but, he added, some matters are of such importance that no action ofher than adjournment to future date should be taken. He said the court will set the new date with counsel for both sides. Tomlinson’ s ‘Appeal Wilmington, Del., Sept. 3. ‘Delaware courts continued in the Loew’s battle limelight last Friday (30) with the JosephTomlinson faction filing an appeal to the Dela(Continved on-page 19). _ _bEranciscg,.. +, Picket 30 Days’ Charlotte, N. C., Sept. 3. Stage union members angry over ‘the dismissal of a Manor Theatre projectionist, are picketing the first showing of “Around the World in 80 Days” here. W. H. Fowler, business agent of: Local 322 of IATSE, said the Manor was using only one operator during the unlimited run of the Michael Todd production. Report Syndicate Buying Republic Herbert J. Yates, president of Rebublic Pictures, reportedly has reached an agreement to sell his holdings. in the film company to a group of eastern and New England | investors, including Joseph D. Blau, show business accountant and fin ancier. Yates’ holdings are said to amount to 600,000 shares, which would give him a total of $6,000,000 in the deal. Representatives. of the syndicate, while declining to indentify the in agreed upon.. The group, it’s said, are anxious to try to build.up. Hepublic rather than liquidating the company. Blau, in association with ContinentakThrift, 2 Coast banking and trust company, recently acquired a major”sharé of the stock of Essex Universal Corp., an overthe-counter security, which owned all the assets of Flamingo Films, telepix producer and distributor. Trade was made with Joe Harris, ‘one of founders of Flamingo, e ir on * >. Lippert’s Toll-TV ‘Chain ‘Fresno, Cal., Sept. 3 Latest exhib to get into ‘the toll ty sweepstakes is Robert L. Lip pert, who has applied for. fran -chises for closed-circuit telecasting in four California cities. Lippert| has made bids here and in Medford, Modesto and Indio, in each lof which cities the, Robert L; Lip|pert Theatres circuit operates houses, ~Chain.also has applied for county franchises in these areas, Blumenfeld circuit Jast week applied for a toll-tv franchise in San ‘in a number of locations. .. pwhile “Man of Thousand Faces” _ {SIENS POINT 70 (Sugar Ray's Pre-Ring Wing-Ding A VOGEL VICTORY Sweetens Bout’s Theatre-TV Spread: Itsa a0 ON0-Seater i in 122 Cities By HY HOLLINGER To all intents and purposes the fight for contro! of the Loew's em pire is over. Inditations are that the special stockholders’ meeting on Sept. 12, although it will be {postponed to a later date, wiil eventually see Joseph R. Vogel and his management team emerge victorious. Despite the continuation of the intricate legal manuvers by the| Joseph ‘Tomlinson-Stanley MeyerLouis B. Mayer faction to halt or Jat least delay the Sept. 12 meet ing, there is every reason to bebelieve that the delay will not harm the final outcome. ‘Tomlinson, it’s said, is becoming disenchanted with the fight and he is reported to be seeking a buyer for his 180, 000 shares, which makes him the} largest single shareholder in the corporation. According to a reliable source, Tomlinson is activety negotiating for the sale of his holdings. His original asking price of $25 per share has been brought down to $21.50, -1t’s reported, but so far he’s been unable to find any interested parties. Insiders close to Vogel maintain that Tomlinson’s determination to pursue all legal efforts to harass the management represents a “nuisance” campaign. so that friends of Vogel and the Loew’s management might come forth and ‘purchase Tomlinson’s | stock at a stim above the current Loew’s shares are presently selling at 1644. Perhaps more significant than the report that Tomlinson is pre-| paring to unload his holdings is that fact thaf Lehman Bros. and Lazard Freres, “the Wall Street |} banking firms holding a combined total of 380,000 shares are ready to. vote their proxies for Vogel. This decision, it’s reported, was made at a dinner meeting Tuesday (27), the day after Chancellor Collins J. Seitz ruled in the Delaware | Court of Chancery that Louis B. Mayer and Samuel Briskin were) | illegally elected to the board by the Tomlinson faction at the so i called rump meeting of July 30. Heretofore the position of the banking groups. has been unclear. Although considerably in‘volyed in the Loew's | situation, the Wall Streeters have maif (Continued on page 19) New, strong product, launched for the Jong Labor Day weekend, is booming biz in all key cities covered by Variety this stanza. ‘Although many cities reported a return of hot summer weather, this: failed to keep many people away from the b.o. “Pajama Game” (WB), out for first time this week, is new champ, in some 13 key spots. Standout, of course, is the initial round at N.Y. Music Hall, where coupled with a stageshow, it is hitting a new Labor Day week record of $200,000. “Sim Also Rises (20th), just get ting around in current. session, is | taking. second place; nosing out. “Around World in 80 Days” (UA), which is a close third. ‘80 Days” hit actual capacity in several keys, and soared above last week’s take. “Seven Wonders of World” (Cinerama) is capturing. fourth “place, “10 Commandments” (Par), third hard-ticket pic to go big this | week, is landing in fifth spot. “Jeanne Eagels” (Col), third Tast stanza, is winding up sixth, “Pride and Passion” (UA), second a wsek ago, is getting seventh money, “Affair To Remember” (20th) will finish eighth but has been high on the list for some “3:10 To Yuma” (Col), a new entrant, is landing ninth position with well over $400,000 registered | ; Taking a Cat Holtywood, Sept. 3. Heroine of an upcoming American International film apparently turned out to be a lot younger than she looks. Tag on the Bert I.. Gordon production has been switched from “The Girl from Two Million A. D.” to “She Came from 5000 A. D.” Rank Org’s | Profits In $1,691,000 Drop London, Sept. 3 The Rank Organization’s trading profit dipped $1,691,000 to $20,538,| 000 for the fiscal year. ended June 29. The current results cover a 53-week span as compared with 52 weeks for the previous year, The drop is attributed to lower profits from Rank Precision Industries, which had exceptional. earnings the two previous years as a result of the widescreen re-equip ment program. Overall profits after taxation. were down $374,000 to $2,066,000, but the ordinary dividend was maintained at Wh. Coast’s 3d Pay-TV Bid Los Angeles, Sept. 3. Having recommended granting a pair of closed-circuit pay-tv franchises, the: Los Angeles Utilities and ‘Transportation ‘Commission will meet Sept. 18 to consider a third bid, this one from Skiatron, | Previously recommended were the | joint bid of Fox West Coast Theatres and International Telemeter and an application by HarriScepe, Ine “Applications have been turned City Council which. ‘will set a date for the settling of the franchises, Terms will require the companies to pay the city at -) least 2% of the gross income. over to the National . Boxoffice Survey Labor Day Boosts Biz; ‘Game’ New Champion, ‘Sun’ 2d, ‘80 Days’ Third, “Wonders’ 4th, 10 C’s’ 5th (0), fifth last session, rounds out (WB) and “Hatful of Rain”. (20th) are the the Top 10. “Band of Angels” runnerup pix this week. Cincy but is dull in Frisco. “House (20th) looks. good in Philly: “Chicago Confidential” (UA), noisy in Chi, looks mild dn N.Y. “Perri” (BV), also new, shapes good in L.A. .“Silk Stockings” (M-@), ‘good in Detroit, looks slick in Philly. *Cruel Tower” (AA) is lofty in Chi. “Land Unknown” (U) looms neat in Balto. “Sweet Smell of Success” (UA), fine in Chi, looks slow in Cincy. “Lost Continent” (Lopert) shapes. nice in Boston. “Night Passage” (U) is rated okay in Minneapolis} and K.C, “Rising of Moon” (WB), thin in Cleveland, is brisk In N.Y. “Love in Afternoon” (AA), oke in K.C., looms big.in N.Y. “‘Man on Fire” (M-G) is just good in N.Y... “Curse of Frankenstein” (WB), good in Minneapolis, shapes big in Detroit. “Can Success Spoil Rock Hunter?” (20th). is better. this session, being big in Chi, good in Cleveland and fine in Washington. “Doctor at Large” (U), sock in Boston, looks big in N.Y. (Camplete Boxoffice. Reports Gn Pages $9), :.. elo “Action of Tiger” (M-G), a new entry, looks okay in Boston and of Numbers,” also from Metro, is rated oke in Cleveland. “Sea Wife” ‘Rather than harming the potential of. the closed-circuit theatre telecast of the Ray Robinson-Carmen Basilio middleweight cham | pionship bout on Sept. 23, the con troversy over the closed-circuit rights had a salutary effect as far as theatres booking the event are concerned, The nationwide publicity occurring from Robinson’s battle with the International Boxing Club and Theatre Network Television had the effect of stim | ulating interest in the fight and, More important, called attention to the fact that: the only way it could be seen on television was at theatres. As a matter of fact, many exhibitors were convinced that Robinson's walkout and_ the resultant bickering over the rights had the earmarks of a well-conceived publicity stunt. At any rate, Robinson’s insistence on better terms and the general interest in the fight itself spparently aroused theatremen and the public as well. As a result, the closed-ty phase of the middleweight championship. bout stands to establish a record for the medium, both in attend. ance and in boxoffice gross. 165 Houses, 122 Cities Nat Halpern's TNT, which has handled all previous IBC closed-ty fights, reports that it has signed up 165 theatres in 122 cities, which in itself is a record: The previous | high was 133 locations in 93 cities for the Rocky Marciano-Archie Moore heavyweight championship fight in September, 1955. A number of additional theatres are expected tobe signed up for the present attraction before the September 23 deadline. After a week of dickering, charges and countercharges, and heated exchanges, the controversy (Continued on page 18) WB to Pay Severance To Workers at Closed Ace Lab in Brooklyn Employees of Ace Film Laboratory, the Warner Bros. processing plant in Brooklyn, will receive Severance pay although no contract existed between the lab union and WB when the latter decided to close down the operation, The lab, the oldest in the east, had many staffers with as much as 20 to 35 years of tenure. The union’s contract withWB expired on. June 19 and negotiations for a new pact were taking place when WB. decided to close down its entire Brooklyn opera | tion, including the old Vitagraph Studio. Despite the absence of a contract, a union spokesman declared that WB is definitely xesponsible for severance pay and that the let-out employees will -probably receive their checks by Sept. 15. Severance payment calls for a maximum of seven | weeks’ pay for those employed at the lab for 15 years or more, Approximately 70 to 80 of the 200-odd employed at the .Ace lab are expected to be absorbed by (Continued on page 18) ATLAS CORP. TAPERS OFF ON PIX SHARES Atlas Corp., which long has had substantial. film company holdings in its portfolio, does not show nearly as many pix shares in its report to shareholders for the six months ended last June 30. Biggest change is the sale of 400,000 shareg of its holdings in Walt Disney Productions, These were sold recently by “secondary offering” through a group of inyestment bankers, according to the report to stockholders by prexy Floyd B. Odlum, dated Aug. 28. Atlas still retained its W. D. warrants, entitling the company to weeeeh@ontinued on page 10) .. ot