DECEMBER

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ARBITRATION NOW LOOKS LIKE HOLDOVER FOR JANUARY DATE Unlikely Industry Leaders Will Be Able to Convene Until after holidays NEW YORK—Ai-bitration discussions may go over to January after a period of preliminary sounding-out on the part of those concerned. Eric Johnston, MPAA president, now in Argentine and expected back Monday (8), may want to study all the developments a confer- before sending out invitations to ence. Since National Allied rejected the last draft of the arbitration plan in Chicago, the Western Theatre Owners have taken similar action on the ground that the last draft doesn't carry out the original outline and is too wordy. THREE FOR, TWO AGAINST This leaves three exhibitor organizations for arbitration, subject to further negotiations, and two that have rejected it, as the plan stands at present. Theatre Owners of America, Independent Theatre Owners of New York and the Metropolitan Motion Picture Theatre Owners Ass'n, al.so of New York, are the three that have openly stated that they want further negotiations. Wilbur Snaper, Allied president, has said he is willing to go into a conference. Western Theatre Owners Ass'n, it is believed, would go along with whatever might emerge, if the exhibitor groups succeed in getting some of the legal verbiage eliminated so an exhibitor can go into an arbitration proceeding knowing what he is doing without the services of a lawyer. This is considered important by smaller exhibitors, because the consent decree arbitration supervised by the American Arbitration Ass'n was so expensive that it fell of its own weight, even though distributors were paying the administrative expenses. How the expense of the proposed system will be met hasn't been decided yet. That is one of the problems still to be discussed. If a December meeting is called, it will have to be during the December 14-20 week. Holidays break up the two following weeks. Allied's board of directors is scheduled to meet in New Orleans January 10. SEE SUBSTITUTE ON RENTALS Since the Allied turn-down of arbitration at Chicago some distribution attorneys have repeated that they are still opposed to arbitration of film rentals. Both distributors and exhibitors have avoided any comment on the possibility that arbitration of requests for rebates where losses can be proved might be offered as a substitute for the film rental stalemate. This is one of the problems that Johnston probably will want to discuss with company presidents before calling a meeting. The other rock in the channel of arbitration progress—pre-release films on which advanced admissions are pressured one way or another—could be settled In the opinion of a number of exhibitor leaders. One Vote 'Yes' OKLAHOMA CITY—Morris Loewenstein, president of the Theatre Owners of Oklahoma, reported the board of directors voted unanimously in favor of any arbitration plan to be approved by the national organization. This makes the eighth TOA unit endorsing arbitration. One Vote 'No' COLUMBUS, OHIO—The board of directors of the Independent Theatre Owners of Ohio voted to approve action of National Allied to reject the arbitration plan in its present form and to notify Abram F. Myers of the board's approval of the rejection. Who Will Control RKO Still Moot Question NEW YORK—Negotiations for a transfer of control of RKO Pictures continued in a suspenseful state during the week, with the decision up to Howard Hughes, who usually weighs the pros and cons of everything so long the scales creak. Twice early in the week it looked as though an announcement would be made momentarily. The official silence fell and rumors resumed. Out of these there was gleaned the following 1. Ralph Stolkin and his associates wanted to get out and were willing to take a loss on the initial payment if Hughes would agree. How much this loss would be figured importantly in the discussions. 2. It became known that Atlas Corp. was definitely interested in an effort to put the company back on the road to profits by offering management advice and helping the company to obtain bank credit. 3. Ned E. Depinet, president before the Stolkin group bought the Hughes stock, was asked to go to the coast for conferences. He went Saturday and was still there late in the week. 4. Atlas Corp., headed by Floyd Odium, the investment concern which sold the 27 per cent controlling interest to Hughes several years ago, continued to figure in the discussions. One report was that it might assume management responsibilities if Hughes reacquired the 1,013,420 shares he sold to Stolkin and his associates. It was stated that Odium was not interested in buying back the Hughes holdings. This report was generally credited. It was understood banking interests favored it, and banking support is important now if production is to be resumed. 5. Time was pressing because a hearing on the petition of a small group of stockholders for the appointment of a receiver is scheduled for December 10 in the U.S. district court. The court made it clear that another postponement might be granted, but a bank executive pointed out that would solve nothing until an executive control had been established at the studio and in New York. 6. Milton Gettinger, New York attorney who has represented banks interested in film financing, as well as James A. Mulvey, president of Samuel Goldwyn Productions, from time to time, has worked out a plan for tran.'sfer of control that would take in various groups that have been mentioned as possible purchasers or who have vital interests in the distribution success of the company, as the Goldwyn and Walt Disney companies have. Gettinger stated Thursday from Florida, where he is resting, that the plan had been discussed by various groups, but that there had been no joint meetings. It still was in the discussion stage, he said. Novel Problem Develops In RKO Pictures Action NEW YORK—Can a director of a motion picture company resulting from divorcement try to influence the affairs of the other company resulting from divorcement without being found in contempt of couit. even though he is an accredited representative of clients owning stock in the other company? Does the fact he is a director in one company rule him out from representing the interests of clients in the other company as an investment counselor? Those are the novel questions which will come up for the first time in court Tuesday (9). Louis Kipnis, attorney for a minority group of stockholders seeking a temporary receivership for RKO Pictures, raised the questions Tuesday (2) when he obtained a show cause order against David J. Greene, RKO Theatres director and investment coimselor, from Judge Sidney Sugarman in federal district court. He charged contempt of court. Kipnis argued that Greene had no right to be represented by counsel at the November 21 receivership hearing, postponed to Wednesday (10) for the filing of affidavits. He held that a section of the consent decree prohibits any director, officer or employe of a company resulting from courtordered divorcement to attempt to influence the control of the other company resulting from divorcement, and that Greene did so when he sided with other RKO Pictures investors in having counsel ai'gue against a receiver. 8 BOXOFFICE December 6, 1962
GREATEST BOXOFFICE PICTURE: 1951-52 AWARD TO QUO VADIS' urn'- isait*- 01 ff Trophies Go to Zimbalist, Producer; Mervyn LeRoy Director of the Film HOLLYWOOD—Producer Sam Zimbullsi and ProductM-Dlrcclor Mervyn LeRoy this week joined the proud and exclusive circle of Hollywood filmmakers who have been recipients of the annual BOXOFFICE BAROMETTKR award for the Kreatest boxoffice picture of the year. Their "Quo Vadis. " for Metro-Goldwyn-Mayer, was the feature which won them the distinctive kudos when it was determined, through statistics gathered by this magazine, that It was the top grosser of the 1951-52 season. PRESENTATION AT STUDIO Presentation of the handsome trophies which record the winning accomplishment were made on behalf of Ben Shlycn. publisher and editor-in-chief of BOXOFFICE. by Ivan Spear, the publication's Hollywood editor. In reviewing the outcome of the annual compilations, details of which will be printed in the forthcoming annual edition, BOX- OFFICE BAROMETER. 1952-53, Spear called attention to the fact that third place among money-makers of the recent season also went to an MOM feature. "An American in Paris." produced by Arthur Fieed and directed by Vincente Minnelli. The second spot went to "The Greatest Show on Earth," a Cecil B. DeMille production for Paramount release. This was the sixtli year that the BOX- OFFICE BAROMETER annual award has been made. Previous winners included: "David and Bathsheba." 20th Century-Fox. 1950-51: produced by Darryl F. Zanuck, directed by Henry King. "Samson and Delilah," Paramount, 1949-50: produced and directed by Cecil B. DeMille. "The Snake Pit," 20th Century-Fox, 1948- 49; produced by Anatole Litvak and Robert Bassler. directed by Litvak. "Gentleman's Agreement." 20th Century- Fox, 1947-48: produced by Darryl F. Zanuck, directed by Ella Kazan. "The Best Years of Our Lives," RKO Radio-Ooldwyn, 1946-47: produced by Samuel Goldwyn. directed by William Wyler. BIBLICAL FILMS WIN OUT Dore Schary, MGM vice-president in charge of production, who served as master of ceremonies at the presentation, noted that for the past three seasons the award for top grosses has gone to a spectaculai- Techniqolor feature with a Biblical or religious background. "In my opinion," Schary commented, "this indicates a resurgence of a more spiritual viewpoint on the part of motion picture patrons and demonstrates their eagerness to support, in profitable numbers, film.- that have a religious genesi-s—especially when they are presented excitingly, spectacularly and colorfully—and when they are leavened with I'roducer Sam /imbali^t (left) and prtxiurrr-Dirrrtor .Mrrvyn l.cnl.« tlirni tlir anniul BOXOFFICE BAKOMKTER trophies. a romantic story, such as was the case with each of the winners In the past three seasons." E. J. Mannix. vice-president and studio general manager, and a member of the executive board, and other MGM dignitaries were on hand to congratulate ZlmbalL^t, LeRoy and Srhary Johnston to Report on Progress On Lifting Argentine Restrictions NEW YORK—Eric Johnston, president of the Motion Picture Ebcport Ass'n, will be In New York Monday i8i with details of the progress he has made at Buenos Aires in seeking the lifting of Argentina restrictions on the U.S. industry. It will be the end of a South American trip that took him also to Brazil and Uruguay. The MPEA .said he might visit Chile during the week before his return. Reports received here were that Johnston was optimistic about finding a -solution to Argentine-American differences, and that he might have the text of an luter-country agreement to offer the MPEA member company presidents for study. He had held conferences with Jeronimo Remorlno, foreign minister, and Raul Apold, head of the information subsecretariat. Argentina has been a sore spot since there have t>een no remittances from that country since 1947. An agreement was reached with Argentina in May 1950 and ratified in July 1951 covering remittances of dollar earnings, but none have been permitted. The agreement was to run for five years and under It the Industry here was to get profits up to $1,100,000 annually, or 50 per cent of earnings at the official free rate of 14 pesas to the dollar. The remainder could be invested in local enterprises. About $2,000,000 has been tied up. Argentina imports of U.a films in the last 18 months have totaled about 300. It had been understood that they would be admitted without duty and be promptly reviewed by censor boards .so that distribution would not be held up, but 178 are still awaiting licenses. The Argentine government has pleaded a dollar shortage. Dollars are still In short supply. However, observers now believe that Johnston chose the right time to vtJll Buenos Aires because the Argentines are said to be interested In cultivating the Republican administration that will take over in Washington In January. It Is said that for that reason they may release film funds to show a good faith not previously In evidence. Court Upholds RKO In Paul Jorrico Suit HOLLYWOOD PrcceUenlial In its b affect motion picture screen credits was the ruling handed down Wedne.sday i26i by Superior Judge Orlando H. Rhodes, upholding the contention of RKO Radio that It was within Us rights In refusing screen credit to Scenarist Paul Jarrlco on "The Las Vegas Story" because he had refiLsed to testify at a House Un-American Activities Committee probe about whether or not he was a Communist party member. "i December 6, 1952
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DECEMBER

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