Variety (September 1957)

Wednesday, September 4, 1957 PICTURES 19 ' Last Lap on Loew's: Litigation — The anticipated defeat of Joseph Tomlinson and his associates, Stanley Meyer and Louis B. Mayer, will not close the book on the _. fight for control of Loew’s. A series of lawsuits, reportedly being prepared, is expected to be filed against the. dissident faction by individual stockholder groups. It’s understood that “conspiracy” actions will be brought against Tomlinson, Meyer and Mayer in New York and Delaware courts charging that their actions resulted in tremendous damage to the company. In addition, there are reports that efforts will be made to attach the stock holdings of both Tomlinson and Meyer. The courts, it’s reported, will be asked to hold their. shares in escrow for any damages that may ‘be forthcoming. Basis of the lawsuits, it’s said, will be the contention that the activities of the Tomlinson faction placed the company under a cloud and that deals favoring the company could not be consummated as a result. It will be cited that.an important television deal, involving about $3,000,000, was held up because of the fight. and that important independent picture deals went to other companies because the principals feared getting caught in the middle of a corporate battle. In addition, it will be charged that the management went to tremendous expenses. to stave off the Tomlinson group and that the efficiency of Vogel’s program was impaired. Lippert (Exhib) Tosses a Lot of Lip At Distribs for Low Pre-Summer Diet Experience this summer “has taught the distributors a lesson” and there’ll be no repetition» in 1958 of .the. tendency to bunch top releases during the summer, leaving the cupboard bare in May and June. That’s. the opinion of Robert L: Lipper, exhibitor, whose intérests in recent months have been more in production (via Regal Films for 20th-Fox release). Lippert said that business now ‘was good at his theatres, though “below original expectations. It had been in a slump during the April‘May-June period “because we: didn’t have any product.” He-added that his circuit had kept a careful: check on who had and who hadn’t |= played ball with the product=hun|gry houses during the lean months. “When it came to the July4 holiday, when they all suddenly started to release their top product, ‘we made it a point of giving -play-— ing time to those companies that had helped us out when we were starving for pictures,” Lippert. said,, “I know of some companies that had prints of pictures in their exchanges and wouldn't release them to us. When it came to booking them, finally, we very deliberately gave our playing time to those distributors who had shown an ynderStanding of.our problem.” i“ Lippert clearly implied that this was one -effective method for breaking the “tradition” .of the seasonal release pattern. “I think the companies have benefitted from ‘their .experience this year,” he said. “I think the situation -will be. improved a lof next year.” If Lippert the exhibitor appears dissatisfied with biz (he .says there’s been an attendance drop from last yéar even in‘ towns that have no tv service), Lippert the. producer is beaming ear-to-ear. He’s signed for a new 27-picture program with 20th and.thinks ‘he'll end up with. 31. One of the Regal low-budgeters, “The Deer Slayer,” brought in for $200,000 as a tinter, will gtoss 10 times its negative cost by the time it has played off, Lippert estimated. Other Regal quickies are showing equally high earning power. in rélation to their budgets, he said. “By the time we get through, our revenue will help to pay for a third -of the 20th-Fox organization's. entire distribution costs,” ‘Lippert estimated. “In addition, what we pay. the studio in space rental alone. will allow them to. make a $1;000,000 picture. Our programmers are going over bigger than anyone ex-. pected. 20th profit on. the Regal films is expected. fo Tun into -seyeral millions Billy Graham — Continuedfrom page. 1 the the , added. He then referred to the show. business people who had: made a “decision for Christ” at the Gar| den meetings. Medical Scorecard fight. stein. In the midst of the Loew’s fight, number of blood transfusions. bleeding ulcers. Exhibs Lukewarm all such items off the counters.” believe the distributors really gain by this anyway.” Selznick, . losing money. for Selznick’s at Christmas. along. indies Beef -Continued from page 5 aL | their pictures is excessive: evangelist moment, * once “the signatures are affixed. There haye been exceptions, where ‘vor of the producer. The split is usually is about 70% of film rental The comedian sald he had wonto the producer and 30% to the dis-) dered about * ‘the wise guys” and. tributor, this after costs of negathe column quips which. would | tive, prints and advertising are. regreet the evangalist’s mission “in Gouped. the eity where I live and which Ij Rows centre on subsequent Jove.” Instead, Paar read “the|charges made against the. picture beautiful things” wriften about Dr.|for such items as print shipping, Grahath; believed this “a tribute | publicity activities, expense ac‘to the innate goodness | of people.” cquiits, etc. David Karr, special public relations eounsel for Loew’s in the fight against Joseph Tomlinson, is’ also ..involved in another proxy He represents FairbanksMorse in the battle against PennTexas, headed by “Leopold Silber Louis B. Mayer, associated. with Tomlinson, was taken to a San Francisco hospital and required a Last week Silberstein entered a New York hospital with a case of Continued from page 4 == lar experience. Ask a. department store whether all the item for sale are profitable, and the answer un-. doubtedly will be negative. But that is a poor argument for taking In the southwest, in Oklahoma} "City, the same question was put to Henry J. Griffing, prez of the big Video Independent Theatres circuit. Hée, too, agreed that many marginal operations might not be profitable for the distributors. “To argue that they should be closed up is-foolishness, After all,.we are in a service business. And I don’t would .on ‘returning from Europe last week, opined that the servicing of unprofitable accounts was in part to blame for outsize distribution costs charged against pix. He noted that, because an account wasn" profitable for the distributor, this did not nécessarily ‘imply that the theatre itself was ‘There was a pained “no com-. ment” from 20th execs re the Selznick. blast which called distribution antiquated and sttessed the need “reform.” 20th will release “A Farewell to Arms” Many distribution men take the view that “volume” is still important in the business. “Those $5 and $10 bills add’ up,” said one. “Also, Selnick is forgetting that these small situations can deliver when a really : good attraction comes now figure they have a better idea | of what their pictures are earning, | distribution-wise, and perhaps to what extent. the tharges against Basie terms of releasing deals, it appears, are not squawked about an adjustment is made later in fa _ Tes All Over Continued from page 3. | tained a hands-off attitude during | the Vogel-Tomlinson battle for + control Andre Meyer, a senior partner in Lazard Freres, was ac ‘| tively involved in the negotiations prior to Tomlinson’s ascendency to the board. Decision of Lehman Bros. and Lazard Freres to support | Vogel is seen as prompting Wall St. brokerage firms to follow suit and it’s expected that they will vote the proxies they control for Vogel at the special stockholders’ meeting’ whenever it is held. SEC’s ‘Proxies Okay’ Another factor seen favoring. | Vogel and the Loew’s management jis a clean bill of health from the ‘Securities & Exchange Commission in Washington. The Tomlinson fac-. tion had complained to the SEC that Vogel was fraudulently soliciting proxies—and issuing proxy material: The SEC summoned Vogel.. Ben Menlinker, Loew’s general counsel;Howard Dietz, pub-ad r Y.D., and David Karr, special pub| lic ‘relations counsel to Washing linson and Stanley Meyer were | also grilled by SEC officials. After examining the evidence, the SEC cleared all of Vogel’s proxy material late Friday (30) and rector supporting the Loew’s presi ter some time this week. The second letter, unlike Vogel’s original holders, will not be sent out on Loew’s stationery. The SEC, it’s understood, cleared the stationery, the letter. The charged, both before the SEC and the Delaware court, that’ Vogel’s holders, since the appeal“and the management. ment, Tomlinson & SEC Struct and delay Loew’s material, intended to launch a proxy fight. the stockholders or solicit proxies, The the special shareholders’ meeting. Delaware Ruling Continued from page 3 a Court of Chancery riffing (Aug. Louis B. Mayer and Samuel Briskin to the board of directors. the Court of Chancery here prior Ralph B. Campbell, Lexington, Ky., seeking to halt a scheduled Sept. 12 special stockholders’. meeting through a preliminary injynction or a postpomement. Chancellor Collins J. Seitz’ deci expected some time this week’.to determine whether the stockholders’ meeting will be held Sept. 12. Arthur G. Logan, Wilmington attorney for the Tomlinson. faction, argued that Joseph’ Vogel, Loew's: president, had no authority to call the September meeting. “When the (Vogel). issues a call to further his control, he is stepping beyond his powers even though they readin a very broad way,” Logan ‘said. Logan added that under the corporation’s byJaws the president was “an agent oF servant of the directors.” Louis Nizer, atturney for Vogel, said. the latter would call a special meeting with or without the per 4, mission of the directors, ton last week for questioning. Tom| Soars in Germany; Vogel and George Killion, a di-| dent, will issue a second proxy let solicitation of the company’s stock the envelopes and. the contents of Tomlinson faction had original solicitation misled stock format on Loew’s stationery tended .| to indicate that.a vote for Vogel would be a vote for the Loew’s Tomlinson group’s contention is that Vogel. can only make a personal request, and not one for management, since Tomlinson was also a part of manage ‘do less than the average American Despite the Tomlinson protests to the SEC, which the. Vogel: forces charge are merely aimed to ob-. the Tomlinson faction has not filed with the SEC indicating: that it Unless the Tomlinson group does So, it cannot legally propagandize combination of circumstances—Tomlinson’s reported efforts to unload his stock, the ‘indication that Lehman Bros. and Lazard Freres will. support Vogel, and the clearance of the Loew’s matetial by the SEC—strengthen the belief that the fight for control of Loew’s is over:and that Vogel and his management team will win at ware State Supreme Court against 26) invalidating the election of . time benefit. The action was taken through ; to hearing on two motions filed by |. sion on the Campbell petitions is. |.are still pending. ‘Recognition’ of Sex by Magazines Rubbing Off On Audiences: R. Wise Hollywood, Sept. 3 Public endorsement today of s sex problems on the screen which five years ago would not have been tolerated is due directly to national magazines’ “conditioning” their readers to accept controversial sundectss, says director Robert ise “With respected publications, such as Ladies Home Journal, McCail’s, Redbook, Reader’s Digest and others, concerning -themselves with overall sex problems, we find audiences now are willing to accept such material on the screen more readily,” he pointed out. “Stop by any stand and lovk at any of the current class magazines. Most of them have cover-ling stories on some phase of sex. This goes on month after month. We jcan thank the periodicals for setting a more intelligent approach ta ‘such subjects and enlightenment that gives us greater latitude ta make provocative films.” As an illustration, Wise emphasized that *Until They Sail,” which he has just completed for pro. ducer Charles Schnee at Metro, would have been too daring fo1 general consumption five years ago, due to its story of three illicit siove affairs. James Michener yarn deals with New Zealand women during the war without their men, when U. S. Marines were stationed there. “We have highlighted the ques-tion, ‘What attitude should we AA Branch i in Mpls. ’ Gets“Friendly’ Payoff: _ Minneapolis, Sept. 3. It’s indicated here that rental returns from “Friendly Persua-. sion” in this territory will be alone sufficient to make the local Allied Artists branch a profitable 1957 operation. ‘ “After 10 months since pics initial release here, the Minneapolis branch still has 16 “Friendly Persuasion” prints working continuously and booked for months ahead in this exchange centre, according to Irving Marks, AA branch manager. All return engagements, as wel of course, as the first-runs, continue to be percentage deals. B.0. for US. Pix ‘Okla.’ Makes Good Though they’re crowding one another, American films in Germany still are registering an upward b.o, curve and “quite a few theatres ‘that never used to play our’ pictures now book them,” Erich Steinberg, RKO manager for |take toward the service wife who Germany, said in New York last |takes up with another man when week. jher husband is at War?’"” direc Steinberg said RKO, though re-|tor said. ‘We don't. condone the leasing a wide variety of product | practice, certainiy, yet we try to including British, Italian and.j|interpret, as Michener did in his French films, was 30% ahead of |story, an ‘understanding’ of such last year. “We're definitely still | unfortunate women. one of the majors,” he stressed.| “Selecting such subject matter We may not be on top, but we're | was not done to achieve sensationfar. from being the last, either.” |alism. Charles Schnee put it suc He held that the German public cinctly when he said, ‘Loneliness didn’t care any more where films and sex are two universal themes,’ came from. “A German picture, and they are.” if it's good, will go over very big-| a study of the subject matter of But if it’s not so good, then it will national mag cles provides a clue to good showmanship which the film industry might well follow, according to Wise. Generally, he said, they indicate the subject matter in which the overall population is most interested. A mag trend, such as the current one on legitimate sex articles and medical yarns, shows that these are the subjects that are the most salable on the newstands, he noted. . “Tt. seems proper, then, to believe that ‘since the magazines are playing to a mass market, they have a pretty good idea of what constitutes’ ‘public accepiance,’” he added. Production code officials had made several pertinent suggestions in strengthening the sex angles of the script, he asserted. The finished picture last week was passed without a change, he declared, even to the point of okaying the illegitimate birth of a baby in one of the loye stories in picture. Minn. Happy DST Ending Sooner Minneapolis, Sept. 3. The Minneapolis Star, which was among ‘those that used influence to induce the Iegislature to enact daylight saving time, reported that Gov. A. O. Freeman’s action in ending the fast time Sept. 29, instead of the previously set Oct. 26, seems to have majority approval. Indicative of the number of people behind the governor’s move is the fact that seven out of 10 persons queried at random said they're glad DST is ending sooner than expected, according to the yarn. However, among exhibitors it appears that there's a sharp difference of opinion regarding the governor’s executive order. Some are glad, but others say they wish that film,” he reported. «There are 6,500 houses in West Germany, with. possibilities, i.e, theatres that any one picture can play, running to close. to 4,000. RKO is handling a maximum of 25 pictures a year, which includes a block. of Allied Artists actioners and between eight and 10 RKO Steinberg. said the heatwave in Germany had hurt business, but | had failed to dampen the b.o. for “Oklahoma” which is showing— in the ‘Todd-AO version—ja two houses, in Hamburg and in Munich. It'll play in three more in Mannheim, Nuremberg and Hannover, which are equipped to show the wide-gauge film. The Cinemascope version is due to go aut Ocf. 27. Success of “Oklahoma” in Germany is noteworthy since the Germans-:traditionally haven’t gone for U.S. musicals. Steinberg said the music’ had been well publicized. Biz conditions in Germany are very healthy for the U.S. companies, Steinberg reported. He added that. there wasn’t much compétition for the theatres. However, there being a lot of pictures, |soine aren’t getting the full playfhg ~~ Aatitruster Vs Bak | Chicago, Sept. 3. _ Another in a series of Federal Court antitrust suits has been filed by attorney Thomas. C. McConnell here against Balaban & Katz theatre circuit and major distribs. _ This one, on behalf of the Conigliovogue Theatre Corp., accuses the defendants of monopolizing first subsequent run . film showings. Distributors involved include 20th, Universal, Warner Bros., United Artists and Loew's. . | -Conigliovogue Theatre Corp. handles sthe Vogue Theatre here. Earlier suits of the same sort have been filed by McConnell for the Harding Theatre in. 1950, the Tif-|the Oct. 26 ending date had been fin several years ago, the Tower |retained because then “parents of and the Congress. The Tower suit i small children, the farmers ard the was won by B&K, and the Congress ; restaurant and resort people would suit was also won by B&K butibe gefting more of a bellyfull of reversed by another court and is : DST and the chances for its being currently-under appeal. The others ‘ killed in 1959, when the legislature . bnext meets, would be better.