3 years ago


In order to prove the

In order to prove the power of "SALOME" to the great mass of exhibitors prior to the general release of the picture, we shall limit the pre-release engagements to qualified theatres in cities of 75,000 population or more, which shall be selected competitively based on their offers. "SALOME "will be available for screening at all Columbia Exchanges on or about February 1. Immediately thereafter, we shall welcome, from qualified situations, offers which, for proper evaluation, should include: 1. Theatre's name and Exhibitor's name 2. Minimum dollar guarantee to Columbia 3. Terms (We desire a first week participation of 50% minimum. Percentages for subsequent weeks should also be specified) 4. Minimum length of run guarantee 5. Control figures to determine holdovers beyond the guaranteed minimum run 6. Amount exhibitor proposes to contribute to advertising campaign for advance and first week and for subsequent weeks of guaranteed run 7. Such other information as the exhibitor may consider important in more carefully helping us to evaluate his offer Offers are to be made subject to the following conditions: 1. Our right to reject all offers is reserved. 1. The run granted will be definitely established, no specific clearance will be granted. Tremendous public interest will undoubtedly be created by both the national advertising campaign on "SALOME" and the large-scale local campaigns which will launch the picture in each pre-release situation. It is our hope and intention that the maximum number of exhibitors will have the opportunity to play "SALOME" while this public interest is at its greatest. To facilitate this, a sales policy for the further release of the picture will be announced shordy after tiie first pre-release openings.

\/\/B STOCKHOLDERS ARE CALLED TO APPROVE SPLITUP FEB. 17 Theatre Unit to Be Called Fabian Stanley Corp.; Will Start March 1 NEW YORK—Proxy statements for the annual meeting of Warner Bros. Pictures stockholders at Wilmington. E>el., February 17 were mailed to stockholders Wednesday 1 211 with full details of the proposed organization of two new companies under the terms of the divorcement decree. The original plan was to organize a new theatre company and continue the present production company, but this plan, approved by the stockholders Feb. 20, 1951. had to be discharged because the Department of Justice refused to approve changes in the consent judgment to make it conform to rulings of the Internal Revenue Department on ".split up" provisions. TAKE OVER BANK LOAN Under the new plan the theatre company will take over a term bank loan which has been reduced from $9,546,000 to $4,773,000. The new theatre company also will take over a mortgage of one of the subsidiaries totaling $1,466,458. The sale price is $11.12 per share. The new production company will be called Warner Bros. Pictures, Inc., and the new theatre company will be known as Stanley Warner Corp. It is expected that the new companies will commence operations March 1, 1953. All the Warner family holdings, which include several family trusts, total 674,370 shares and will be acquired by the new theatre company to be headed by S. H. Fabian. This new company will be separate from Fabian Enterprises, Inc., which now operates the Fabian circuit. Fabian enterprises will obtain a portion of the funds for the purchase from David G. Baird, well-known stock broker. REQUIRE PA. DIVESTITURES As previously published, the Department of Justice has required as a condition of approval, the divestiture of the Cambria or State Theatre in Johnstown, Pa., if the Fabian group does not dispose of the Embassy, Johnstown. The Troy or Lincoln in Troy will also be transferred within one year, and the Albany must by dropped Palace or Grand in by Fabian. The Albany transfers will not be required if the new theatre company drops the Riti} in Albany. Directors of the new theatre company will be: Simon H. Fabian, president: Samuel Rosen: David G. Baird, partner of Bali-d & Co., New York brokers; Harry M. Kalmine, president of Wai'ner Bros. Theatres, and Maurice A. Silver, zone manager of Warner Theatres in the Pittsburgh and Cleveland area. The three first named directors will serve two years and the latter two for one-year terms. If the deal does not go through, Kalmine and Silver will be designated as board members and others will be chosen later. Directors of the new production and dis- Detroit's A/ew Faces Contest Enters Third Year as Motor City Institution DETROIT—The precedent-breaking "New Faces" series sponsored by the Detroit Free Press through film critic Helen Bower is attaining the status of an institution with the launching of the third annual event this week. Each day the picture and a thumbnail type biography of a new player who is considered a potential star are presented, giving fans otherwise unavailable background data about .some of these le.sserknown new players, and helping to build individual fan interest. The contest aspect to "New Faces" is being revised this year, with theatre staffs to vote upon the most popular male and female "New Paces of 1952," based upon their expert knowledge of boxoffice business. The winners will be selected from the "New- Faces" presented a year ago in the 1952 series, while winners for 1953 will be similarly .selected a year hence. In the past, the selection of winners was done by vote of the readers, thj-ough ballots but the shift to a ballot by theatre staffs marks a further reaching of maturity in the whole idea, since the theatre people, on the basis of their detailed experience through tribution company will be: Harry M. Warner, Albert Warner, Jack L. Warner, Waddill Catchings, Robert W. Perkins, for two years, and Samuel Carlisle, Stanleigh P. Friedman, Charles S. Guggenheimer and Samuel Schneider for one year. The new companies will be organized under Delaware laws. Stockholders of the present Warner company will receive certificates representing their shares in each of the two new companies on surrender of their present stock. not be entitled They will to exercise rights in either of the new companies until they have surrendered their stock. Stockholders also will be asked on February 20 to approve the cancellation of 669,185 shares of the common stock acquired for $10,000,166 now in the treasury. This will reduce the capital stock by $3,345,925 and the capital surplus by $6,654,241. Current assets of the new theatre company, figured in a pro forma statement, are $85,720.- 851. This includes $8,860,074 in cash: $2,439.- 926 in U.S. government securities and $490,576 in accounts receivable. The new picture company assets are figured at $70,112,858. The Warner stock was quoted at 14^2 Dec. 31. 1952. The new theatre company has 358 theatres. Of these. 186 are owned in fee. 163 are leased and nine are partly owned and partly leased. Twenty-four theatres must be dropped July 4. 1953. or earlier. Another 16 are subject to disposal under certain contingencies described the year, are able to judge the relative popularity of the contenders more accurately than any single member of the public, resulting in more accurate polling. Selected in the poll a year ago were Jeff Chandler and Piper Laurie, who met their fans in an unusual civic open gathering that made indu.stry history, as a new approach between performers and public. The contest has been conducted by Miss Bower since its inception, with active support from the management and staff of the Free Press. The industry has been active in promotion of the contest, and cooperation of the film companies was secured in gathering the biographical data and the necessary pictures to in the papers. Surprisingly, considerable reluctance or inertia was encountered at first on the part of some companies to assemble the essential data for some of the players who have not yet received extensive promotional treatment. Basic industry liaison on the whole "New Faces" plan has been furnished from the start by Alice Gorham, public relations chief of United Detroit Theatres. in the consent judgment, but are not currently affected by these conditions. The theatres are located in 17 states from California to the Atlantic Coast, with the largest number, 115, in Pennsylvania. Thirtyeight are closed and 11 are sub-let to others. Net profits on theatre operations have varied from a low of $1,344,960 in 1941 to a high of $12,996,144 in 1947 to a new low of $145,112 in 1952. The picture company received 33 per cent total film rentals from Warner Theatres of its in 1949. 33.9 per cent in 1950, 37.7 per cent in 1951 and 36.4 per cent in 1952. Net profit of the picture company in 1941 was $3,820,314. This fluctuated up to a record high of $9,098,835 in 1947. to a record low of $138,595 in 1949, and back to $7,258,328 in 1951. For 1952 the net was $7,084,570. Paramount Will Finance Danny Kaye Feature NEW YORK—Paramount has concluded a deal to finance and distribute on a participation basis the new Danny Kaye independent production. "Knock on Wood," in collaboration with Norman Panama and Melvin Frank. Kaye and his wife, Sylvia Fine, who will do original musical numbers for the film, will leave for England in late spring, shortly after the run of his current in-person engagement at the Palace, which opened January 18. BOXOFFICE :: January 24, 1953 15