Variety (January 1958)

14 PICTURES pAkmtt Wednesday, January 29, 1958 Salary & Severance Terms Revealed; Aggregate remuneration paid to-f Loew’s Inc. officers for full or par*' tial service during the past fiscal year totaled $1,525,066, according to the. proxy statement issued by the company for the annual meet¬ ing on Feb. 27. Prexy Joseph B. Vogel i? down for $135,429, figure including his salary from Oct. 18, 1956 to Aug. 31, 1957, during which time he became a director of Loew’s Ific. Previously he had been prexy and a director of Loew’s Theatres. Under ah employment agree¬ ment entered with. Vogel oh Oct. 22, 1956, he is entitled to receive, after termination of -his contract, $1,000 per week for every week of employment since that date* pro¬ vided he renders advisory service as set forth in his contract. This, in essence, gave Vogel a $1,000 weekly raise when he became prexy of Loew’s. Inc. Firm has re¬ served $45,000 during the past fis¬ cal year , for the extra payment to Vogel. Ben Thau, studio administrative chief, is listed as receiving $156,429, and studio executive E. J. Mannix is down for $166,857. Charles C. Moskowitz, who re¬ tired during the year as v:p. and treasurer and was succeeded by Robert H. O’Brien* received a total $156,429. Former prexy and board chairman Nicholas M. Schenck re¬ ceived $35,769 from Sept, 1, 1956 to Nov. 21, 1956, after which date Schenck. was not an officer or di¬ rector of Loew's. Schenck’s employment termin¬ ated Oh Bee. 31, 1956. Under the .company’s retirement plan, he. was entitled, on-terminatioh of his em¬ ployment, to an annual annuity for life (and in any event for 10 years even though death occurs earlier) of $47,508. Instead ofthe annuity, and as provided by the retirement plan, according to the company, Schenck elected a lump sum cash payment of $503,672. This pay¬ ment Was provided by the Equita-i ble Life Assurance. Society from annuity purchase payments pre¬ viously made by Loew’s from March 1, 1944 to March 1, 1953. Former sales v.p. Charles M. Reagan received $45,625 during the time he served as. a director (Sept. 1, 1956 to . Feb. 28, 1957): For the period from March 1, 1957 to Aug. 31, 1957, during which time he was an officer but not a director he also received $45,625. Under the employment agree¬ ment entered With Reagan in 1952. his exclusive employment with Loew’s was to. terminate on July 17, 1957. ^Part of his salary was deposited m escrow and upon com¬ pletion of his employment became payable to him or his representa¬ tive in weekly installments over a 12-year period starting July 19, 1957. During the 12-year stanza, Reagan is to be available as a con¬ sultant. After termination of Rea¬ gan’s contract, his exclusive em¬ ployment continued until Dec. 13, 1957; Part of his Salary after July 17, *1957, was also deposited in es¬ crow; In addition to the $91,250 he received during the fiscal year ended Aug. 31, 1957, Loew’s de¬ posited $83,200 in escrow for Rea¬ gan. From July 21, 1949 to Aug. 31, 1956, Loew’s deposited a total of $452,200 in escrow for Reagan. Former pub-ad v.p. Howard Dietz, now serving as consultant at lialf salary, received a total of $104,286 during the fiscal year. Benjamin Melniker, v,p. and gen¬ eral counsel*, is down for a total, of $60,929. Only business scheduled for the Feb. 27 meeting is the election of directors. 4 $15,000 Walked Away Toronto, Jan. 28.. • “Sayonara” meant good-bye to $15,000 at the Imperial The¬ atre, this being the amount of weekend -receipts for the War¬ ner picture Which a bandit team walked off with. Michael Bihun, treasurer; of the house, left the inpriey in two canvas bags in an unlocked safe in his mezzanine office when he Went to the washroom and discovered the loss upon -his return; Service, personnel at the theatre saw two young men in the office but -thought they were seeking . employment. . Jules Furthman’s 1456 Suit Vs.Howard Hughes Hollywood, Jam 28. Attachment suit has been filed against Howard Hughes for $145,833 by Jules .Furthman Over “Jet Pilot.” Furthman said he was hired in May of 1956 at $2,500 per week to produce added scenes and discharged a year later at Which time Hughes Owed him $135,000. He also asks $10,833 under pen¬ alty provisions of California labor code; Harrison Stays Cheery St. Louis, Jan. 28. “There are no prophets of doom in our company, and statements niade by movie prophets of doorri do not apply to us,” Alex Harrisori, general sales manager of 20th-Century-Fox, told executives and sales representatives of 11 of the companys’ Midwestern offices at a two day meeting here last week (21, 22). As proof of the pudding, Harri¬ son outlined the company’s plans for producing 55 to 60 pictures during 1958 at a cost of $65,000,000. ‘‘This will be one .gf the biggest years we’ve ever had,” he said. “People are not losing interest in films— they’re just shopping. They want big pictures and we intend to give, them big pictures.” h Loew’s Tale “Which statement d’ya read?' appears a natural query after a study of Loew’s Inc.’s annual re¬ port which was issued last week. The company showed a loss of $455,000 for its fiscal year, but indi¬ cates that “our earnings would have been $745,000 had we continued pur. past accounting practices.’' This Comment has naturally led to speculation whether; or not Loew’s made or lost money in pre¬ vious fiscal periods When a profit was shown and dividends were de¬ clared. In addition; it opens, to question the financial Statements of the other film companies: Of course, there is no question of doctoring the books. Both Loew’s present accountants — Arthur An¬ dersen & Co. — and its previous auditors-^Miller, Donaldson & Co: —are; reputable and respected cer¬ tified public accounting firms; How, then, can the discrepancy be ex¬ plained? , Both this and the previous, year’s statements were “prepared in con-; fonnity with generally accepted accounting practices.” However, according to accounting specialists, the decision as to a company’s ac¬ counting system is not made -en¬ tirely 'by "the: auditors. The com¬ pany can establish the basic audit¬ ing pattern Which the CPA fol¬ lows. Because of the change in the ac¬ counting technique, Loew’s latest report cannot be compared with previous ones of the same com¬ pany nor can LoeW’s be .compared to any other company on the basis of the respective reports. For example, according to and! tors, “the .accountant can generally conform' the reports of any one company to a single system, so that they are comparable from year to year unless conditions changed radically.” However, it’s stressed that reports of two or .three com¬ panies cannot be compared to each other and that, comparisons be¬ tween two companies in the same industry “are so arbitrary as to be not only worthless but dangerous.” On the basis, of this feeling among accountants, it appears dif¬ ficult to determine the comparative success or failure of the different companies that make up the .film business. This becomes more so on the strength of the remarks of accounting expert who. has said that it’ll probably corne as a shock to most, people to learn “that two otherwise identical corporation? might report net income differing by millions of dollars simply be¬ cause they followed different ac¬ counting methods arid that the fi¬ nancial stateidents of both compa¬ nies. might , still, carry a certified* | public accountant’s opinion stating that the reports fairly presented the results in accordance with ‘gen¬ erally accepted accounting princi¬ ples’:” Loew’s decision to change its ac¬ counting system is considered pure¬ ly an administrative decision and is not to be regarded as a reflec¬ tion on the Ability of its previous auditors: Under present conditions faced by Loew’s, the company prob¬ ably feels that it’s better to redord certain losses immediately rather than spread them over a period. Kansas City, Jan. 28. Biz turned up here by “Rodan,” the Japanese import; is one of the most sensational of ' the winter season.. Playing in four Fox Mid¬ west houses scattered in shopping districts, across: the metropolitan area, day and date in situations usually subsequent run, the picture racked up $23,000. After playing the first Week In the Isis, Vista, , Brookside and Granada, it played a: second week in the Vista, Brookside and Apollo, to which it Was moved from the hearty Isis. This week,; too; was big at $9,000. No small part of the. success Is due to heavy backing given .the engagement on radio and .tv* ac¬ cording to Leon Robertson, city manager. ■ The. circuit made use of an impact package offered by KMBC-KMBC-TV, including about 50 spots spread over radio and television opening day and the day before. The tv trailers' .have been cited as especially weir done and effec¬ tive. Station also conducted s contest asking listeners to send in drawing of the monster in the picture^ and this ; drew over 500 entries; it was reported by Don Davis, station president. Traffic generated by the picture even brought out the Kansas City. Star, which did . a feature story aboiit the lines of patrons waiting to see the picture— like old times. Thje . big; business came at a time when the town was. loaded with super attractions, all doing big trade, an indication of the fact that there is no limit to What good pictures can do. Greg Bautzer Ineligible For Rhoden’s Directorate Los Angeles, Jan. 28. Greg Bautzer,' on directorate of National Theatres, will act as con¬ sultant in connection with NT’s production activities, prexy Elmer C. Rhoden disclosed. Bautzer conse¬ quently won’t be available for re-¬ election to board, because of the consent decree, Rhoden explains. Company topper also stated that the subsid. National Film Invest¬ ments, Inc., prexied by Charles L. Glett, is hopeful of shortly getting the green .light from Justice Dept, to pursue its financing of indie pro¬ ductions. Bautzer, said Rhoden, will serve as legal consultant for this company as well. Four New loew’s Directors Almost One More at U Prior To Five Months of Hiatus Hollywood, Jan. 28. • -Universal delays Its scheduled five-month production hiatus tem¬ porarily, to roll “The Water Witch” this week. Property, an original screenplay, was recently purchased from David Duncan, Will. Cowan will produce and. direct. Five-month production suspen¬ sion was decided upon last week at a meeting , of top echelon U execs. It had been scheduled to start next month following windup of the currently shooting “The Perfect. Furlough.’* Instead, it will start with the completion, of “Witch,” Local Historian Gives Canadian Fihn Hard Time Vancouver, Jan. 28. National Film Board’s feature.] film on British Columbia’s “Hang¬ ing Judge,” due for release, has been shelved in response . to screams of “travesty” from Van-, couver. Bruce Ramsay, as spokesman -for city’s Historical Association, cried halt to the epic, claiming “The dia¬ logue is idiotic . . ^ and 'the film Is historically and geographically incorrect,” Focal point of local indignation was the, title, “The Hanging Judge,” implying that film’s subject. Judge Matthew Baillie Begbie, was another Judge Jeffries of British history and as bloody. Feature has been retitled “The Legendary Judge” arid script is being ^re-edited” to riiollify complaints as far. as finished footage permits. : Ramsay, as “immediate past chairman” of local historical ac¬ tivity, fingered scenes showing Judge Begbie “patrolling outside the courthouse, all night, which is. silly!”, arid scripted Begbie dia¬ logue where in court judge is made to voice often, "Now hear this!’Which said Ramsay, “He would not say that.” Begbie is shown as coming down the. Fraser canyon to Yale, whereas he, by topographic necessity, would have to go “up.” Other Ramsay beefs Involve dates of persons then Extant as ex-San Franciscan toughie Ned Mc¬ Gowan who is dialogued as here In 1861, whereas, said Ramsay, “McGowan was only here during the winter of 1858-59.” Whatever remedies the National Film Board may take to. bring "The Legendary Judge” into line with historical fact, the filriv seems slated for a raspberry style recep¬ tion in B. C. The four new directors proposed for the board of Loew’s: Inc.. own or control a, total of 172,488 shares of the firm, but their holdings are a shade under that off former dis¬ sident Joseph Tomlinson, who per¬ sonally owns 180,000 and controls another 5;000 through a corpora¬ tion which Indirectly owns Loew's shares. Authorized Capital stock of Loew’s corislsts of 6,000,000 shares, of which 5,336,777 are outstanding. Breakdown of the holdings of proposed directors Louis A. Green, Ira Guilden, Philip A. Roth and Jerome A. Newman Was contained in a proxy statement issued last week for the annual meeting on Feb; 27 in New York. It shows Green, with 113,268 shares, as the largest stockholder of. the quartet. He has played a leading role in the peace movement supporting Loew’s prexy Joseph R. Vogel. Guilden personally has 1,900 shares, but he is board chairman and a stockholder of Baldwin Se^ curities Corp.j which owns bene¬ ficially 27,900 shares of Loew’s. Newman holds 3,340 shares, his wife! 2,200; through Graham-Newman Co., of which he is managing partner, he controls another 3,760 shares. Roth personally .holds only 100 shares, but he is also as¬ sociated with Baldwin Securities Corp. Although Guilden. and Roth have been identified as; Vogel support¬ ers, they were not proposed for the board by Green. Benjamin Melniker, v.p., general counsel and a director, and William A. Parker, of Incorporated Investors of .Bos¬ ton and a longtime director, both of whom are .associated with the Title Guarantee & Trust Co. in ad¬ dition to Baldwin Securities Corp. JACK JUDD TO DALLAS IN COLUMBIA SHIFTS Jack Judd, Columbia branch manager in Pittsburgh for the past seven years; has been promoted to southwest division manager with headquarters in Dallas. He’ll have supervision over Dallas, Houston, Oklahoma City and Memphis. Replacirig Judd in the Pittsburgh post is Frank Silverman, who moves up from salesmari in. that branch. This is one of several, changes •in the Col field setup. George M. Josephs was shifted from circuit sales account exec to the new post of homeoffice eastern sales rep and was succeeded in . the former job by Jerome Safron, "upped from Cleveland branch chief. Cleve¬ land spot went to . Samuel Weiss, Who shifted from the 20th-Fox branch in that city. Lament for B.O. Stars Hollywood, Jan. 28. “There aren’t as many names that 'mean something at the boxoffice as the agerits would lie us to believe,” producer William Perlberg, observes glumly. That factor, he added, may delay thriee upcom¬ ing films; from the Perlberg-Seaton indie, unit. Within the next si weeks, unit will have completed screenplays on “The Cliff’s Edge,” “But Not for Me” and“The Rat Race.” But they won’t be made until they can he properly cast— and there’s no tell¬ ing' how long that Will take. “We sat on ‘Teacher’s Pet’ for three years,” Perlberg recalls, “and when Clark Gable and Doris Day became . available, “e went ahead With it!” . Perlberg, believes film industry is no Ioriger ri manufacturing busi¬ ness Where you grind out a product with just anyone. If P-S can’t get top boxoffice names for the up-: coming trio of films, they’ll be made with the next best. “But,” he adds, “in no case; will we com¬ promise on performances and the stars will have to justify the cost.” P.A/s, Mgrs. Adopt Plan For Sick Pay Split-Up A plan has been adopted by the Assri. of Theatrical Press Agents & Managers for members to draw up to four weeks sick pay when replaced on & job because of ill¬ ness. The compensation comes to a little less than 40% of -.the mi imum salary for pressagents ,.or managers, whichever the case; The weekly split in! the mana¬ gerial category is $100 for the rev placement arid $65.38 for the sick party, while the publicists’ share $140 for the replacement and $91 for the sick party. ■ No assessriients are made on the sick member and his replacement . is riot . subject., to the associate rule. If the illness lasts more than four weeks, the replacement goes on full salary. It’ll then be up to the union’s Welfare Committee to determine what should be done for the sick member. Q. F, D. Productions,; Inc. has been empowered to conduct a mo¬ tion picture business in New York, with capital , stock of 200 shares, no par value. Directors are; Ber¬ nard and Miriam Baron of Forest Hills and James A. Gaffney of the Bronx. Robert Moinester, Lynbrook, L.I., was filing attorney. George Kraska Trails Sun; Boston Showman Retiring Boston, Jan. 28. George Kraska, the man who in*, troduced foreign, pictures to Boston and began, what subsequently turned into an art house, retires at the end of the month (31) as ex¬ ploitation chief of Joe Levine’s Em¬ bassy Pictures Corp,,. only New England national distrib. Kraska, in the picture business for 35 yerirs, will, however, he con¬ sultant to the Embassy staff. With his wife, Kraska moves to Florida: in February and plans to spend the winters there and the summers in Boston. He opened and ran the old Fine Arts Theatre and brought the first foreign films to Beantown. His operation of the Fine Arts lasted 15 years. Formerly*in the publicity department of Loew’s, New York, he was also instrumental in setting the art house policy of Louis Richmond’s . Kerimof e Theatre arid Ben Sack’s Beacon Hill house. Houston, Jan; 28.. Harris County Grand Jury heard 16 Witnesses In its probe Of vandal¬ ism at the. Brunson Theatre in Baytonw and promised more wit¬ nesses. ' It is investigating incident of NoVv 27 in which vandals caused about $l!600 worth of damages mostly to the theatre’s screen.. Same theatre was egged by youths year before. 4. Six youths already have teen charged with malicious mischief (felony) in connection with the uproar.