NOVEMBER

^uUc Sm^U Grant Resigns From RKO;
Government Control Sought
To Solve Buying Problems
Aid for small Independent exhibitors in
making film deals to be asked by Abe Berenson.
president of Allied Theatre Owners of
the Gulf states and member of the national
board.
Increase in Wholesome Films
During Past Year Reported
*
Catholic Legion of Decency finds only one
out of 370 reviewed was condemned, and it
was an independent production; 13 of 76
foreign films seen were not approved.
Johnston Back From Paris
Calls Meeting on Pact
Arrived unexpectedly Friday (14) with
Joyce O'Hara to report immediately to MPAA
executive committee and major company
foreign managers on progress of reopened
negotiations stymied by subsidiary provisions.
-K
Arthur Krim Going Abroad
To Study UA Problems
United Artists president intends to visit
England, France and possibly Spain for study
of distribution, production and remittance
problems; will be away for month or more.
-tt
Opera for Theatre-TV Screens
In Coast-to-Coast Hookup
Through precedential deal with Metropolitan
Opera Co., "Carmen" with Rise Stevens
and Robert Merrill will be telecast via closed
circuit on Dec. 11; 30 theatres .signed thus far.
-K
Record Ascap $15,000,000
Take Expected for 1952
American Society of Composers, Authors
and Publishers collected $10,375,000 for first
eight months and expects year's total to
reach over $15,000,000; increa.se attributed to
television.
Harold Mirisch Is Elected
To Allied Artists Board
Vice-president is approved at meeting of
stockholders in Hollywood Wednesday (12);
replaces William Hurlbut, who recently sold
his Detroit franchise to the company.
'Desert Fox' Stirs Controversy
Among Argentine Germans
Neo-Nazis and anti-Nazis break into heated
argument in print; there are about 2,000,000
German-.speaking persons in the country,
about 70,000 of whom are German citizens.
*
MPEA Member Companies Set
Meet on Japan Film Quota
Public hearing to be held in Tokyo on
problem of sharing 53 import licen.scs for
1953-54 year; Irving Maas. MPEA vice-president,
negotiating for increase to 63 licen.ses.
Corwin Is Acting Head
NEW YORK—Arnold M. Grant, has resigned
as chairman of the board of RKO
Radio Pictures Corp. and principal executive
officer, after holding office since October 2.
Sherrill C. Corwin was named acting chairman
of the board. He has been directed by
the board to consult with David Tannenbaum,
prominent westcoast attorney. Tannenbaum
flew to New York, arriving Friday (14i, to
confer with the board and Ned E. Depient,
consultant to the company.
The direct cause of Grant's resignation was
his inability to secure important men as directors
to fill vacancies caused by the resignation
of Ralph Stolkin, A. L. Koolish and
Ray Ryan, members of the group which purchased
the 29 per cent holdings of Howard
Hughes September 23, following a series of
articles of a derogatory nature in the Wall
Street Journal.
THREE NEW BOARD MEMBERS
Immediately following the resignation of
Grant the board met again and named as
new directors Charles Boasberg, general sales
manager, who has been with the company 21
years; William Zimmerman, general counsel,
who has been with it 18 years; and Ross
Hastings, who has a 16-year record. Hastings
is at present in charge of studio operations.
The board also announced the resignation
of Ai-nold Picker, executive vice-president,
who was to have assumed his duties beginning
November 15. Picker will return to United
Artists as vice-president in charge of the foreign
division and UA board will meet next
week to restore his stock participation agreement.
Corwin, Los Angeles theatre man and
Edward G. Burke jr., who were also members
of the Stolkin-Koolish group, continued as
members of the board, as they were not the
targets of any of the unfavorable publicity in
the Journal. Grant revealed for the first time
that he insisted on the resignations of Stolkin.
Koolish and Ryan, because it was "obvious
that their continuation with the company
would be a detriment rather than a positive
contributing factor to the future welfare of
RKO."
Since October 22, Grant said, he had made
every effort to obtain outstanding men as
board members "so that all question of internal
integrity of purpose would be removed
and the corporation could get on with the
urgent job of meeting the manifold problems
which it was. and still is, facing."
TWO MEETINGS POSTPONED
He was asked by Burke at a board meeting
November 6 to postpone nomination of directors,
because negotiations were under way
for the sale of their holdings by Koolish, Stolkin
and Ryan. This delay was agreeable.
Burke then requested a postponement on
November 11, but Grant was insistent that
a president must be named, an executive producer
hired and a program of productions
undertaken immediately in order to avoid
further damage to the company.
Burke and Corwin again insisted upoii a
postponement and Grant agreed to a delay
until November 13. At a morning meeting of
BULLETIN
New York — Two RKO stockholder
suits have been filed in New York
supreme court. One seeks appointment
of a receiver and the other is an action
to recover $3,000,000 from Howard
Hughes as payment for losses sustained
while the companies were under his
control.
The suits were filed Thursday (13)
by Ely W. Castelman and his wife, of
Detroit, owners of 2,500 shares of RKO
Pictures, and Louis F. Feureman, a lawyer
who owns 25 shares. The papers
were filed by Louis Kipnis, downtown
attorney. Justice Henry Clay Greenberg
set November 21 as the date for
a hearing.
The plaintiffs do not claim the company
is insolvent, but assert RKO Pictures
Corp. and its subsidiaries have
boards of doubtful power and the companies
are losing money at the rate of
$100,000 a week.
The companies also are losing experienced
executives, the complaint asserts,
and production is at a standstill.
The action, aimed at Hughes, said that
he made advances to outside producers
with "reckless abandon; that RKO was
forced to pay the Hughes Tool Co.
$100,000 for Jane Russell's services in
one picture; that the parent RKO company
has sustained losses while Hughes'
private enterprises have prospered."
William Zimmerman, counsel for
RKO, pointed out that the complainants
represented only 2,525 shares out
of a total of over 3,000,000
shares.
the board Grant presented the names of
Robert Butler of St. Paul, a director of t!-
American National Bank, former ambassadi
to Australia and former ambassador extra
ordinary to Cuba, and Lawrence Cowen of
New York, president of the Lionel Corp.,
makers of toy railway trains, and a member
of the Stock Exchange.
Corwin and Ryan refused to second the
nominations, so Grant presented his resign
nation with the understanding that th(
company would not be under any financli
obligation to him as a result of terminate
of his contract. Grant is a well-known coast
attorney. He was a dii-ector of Columbia
Pictures up to September 30, when he re
signed to join the new RKO purchasers.
Grant says he made it clear at that time
that he would work in the best interests of all
of the stockholders and employes of the
corporation "without regard to special
interests."
Grant's resignation came in the middle
of rumors that a new syndicate, headed by
Matthew Fox, had purchased the StolkiH'
Koolish holdings in the company with th(
backing of Henry Crown, Chicago financier.
Fox was in Chicago early in the week, but on
Thur.sday it was reported the deal had fallen
through.
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BOXOFFICE :: November 15, 19538