Boxoffice-12.1953

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Sfanhy Warner Gains
After Showing Loss
NEW YORK—In the first nine weeks of the
new fiscal year, beginning August 30 the
Stanley Warner Corp. had an operating profit
of more than $800,000 before provision for federal
income taxes and before profit and loss
on sales of fixed assets.
This is in direct contrast to the report for
the 29 weeks from March 1 to August 29, a
period during which the company underwent
heavy nonrecurring expenses arising from
sales of theatres and other properties and
heavy depreciation charges. In that period
the compLy had an operating loss of $320,000
and a capital loss of $649,000.
In a statement to stockholders, S. H. Fabian
president, said, "While we cannot assert that
operating profits will continue at this rate,
it is a healthy portent, reflecting benefits from
some of the changes in operation instituted
by your new management and the basic pub-
Uc response to improved motion picture prod-
"'^The company began operations March 1,
following transfer to Stanley Warner Corp.
by Warner Bros. Pictures, Inc., of its theatre
^Commenting on the loss, Fabian said it included
$1,345,100 for amortization of buildings,
leaseholds and equipment.
"The operating results were adversely affected
by charging to expense certain nonrecurring
items relating to the organization
of your company, expenses required to adapt
our theatre equipment to show the new 3-D
pictures, and a portion of the expense relating
to the installation of wide screens and
stereophonic sound necessary for the exhibition
of wide screens and stereophonic sound
Says Ticket Tax Repeal
Would Cut Down Budget
PRINCETON, N.J.—A high Treasury Department
official on Thursday (3) questioned
whether the federal government could do
without the revenue from the admissions tax.
Treasury tax legal expert Kenneth Gemmill
told a tax symposium here that $750,000,000
is reaUzed from phone and admissions taxes,
alone, and said repeal of either would result
in "serious budgetary consequences."
Gemmill dealt with overlapping federalstate
taxes during the Princeton university
symposium, and he acknowledged that there
is much overlappuig and confusion with respect
to excise taxes.
He told of pressure for repeal of the federal
admissions tax and also the federal tax
on phone calls, but said he doubted that
federal retirement from these tax fields would
"effectively open the way" for the sUtes to
use these revenue sources.
The Gemmill speech appeared to be another
indication that the Treasury again will oppose
admission tax repeal next year.
Wilschke Is Recuperating
NEW YORK—E. O. Wilschke, Altec Service
Corp. operating manager, Ls recuperating satisfactorily
from surgery at Overlook hospital,
summit, N.J. He will take a vacation
after discharge from the hospital. Meanwhile,
A. J. Rademacher is pinchhitting.
necessary for the exhibition of pictures pro
duced in other new processes.
The company has cash and government securities
totalUng
*9-584,100,whach exceeded
all current liabilities which totalled $6.928900
and debt maturing after one year amounting
to $1,794,400. All properties are free of mortgage
indebtedness except for one theatre and
bunding. Book value is estimated at $29.31 per
share of common.
••To maintain its strong competitive position,"
the report states, "Stanley Warner has
already made and is continuing to make large
expenditures for wide screen projection,
stereophonic sound and equipment required to
show the 3-D and Cinemascope pictures.
More than 200 of our theatres have been
equipped to show 3-D pictures. For the purpose
of showing Cinemascope and other widescreen
motion pictures more than 125 wide
screens and 75 stereophonic sound umts are
being installed."
At the annual stockholders' meeting January
14 the stockholders will be asked to approve
an amendment to the present certificate
of incorporation, permitting the company to
further diversify its activities so that its income
will not be dependent solely upon the
entertainment field.
Since the company took over, additional
theatres showing "This Is Cinerama" have
been opened in Philadelphia, Washington and
Pittsburgh. San Francisco and Boston will
open before the end of the year and St. Louis
Cinerama is scheduled for January.
The second Cinerama feature, "The Thrill
of Your Life," is now in production in
Europe with Louis DeRochemont as producer.
Goldwyn's 'Best Years'
Shown on Wide Screen
NEW YORK—Samuel Goldwyn's "The Best
Years of Our Lives," which will be reissued
nationally by RKO in February, was shown
on wide-screen for critics, columnists m New
York and Hollywood during the week. On the
basis of these special showings, Goldwyn expects
the film to receive reviews and handling
as though it was in first release.
Goldwyn and Mrs. Goldwyn were hosts at
a dinner for wire service columnists before
the showing in Hollywood Monday (7). On
December 8. the picture was shown on wide
screen at the RKO 58th Street Theatre m
Manhattan to 150 representatives of the tradepress,
TV and radio programs and magazme
editors and newsmen.
Columbia Will Distribute
Selznick 'Indiscretion'
NEW YORK—Columbia Pictures will distribute
"Indiscretion of An American Wife"
in the western hemisphere under the terms
of a deal agreed to by Harry Cohn, president
of Columbia, and Frank I. Davis jr., president
of The Selznick Co., Inc.
"Indiscretion" is an American language film
produced in Italy by Vittoria de Sica with
Jennifer Jones and Montgomery Clift costarred.
A campaign is now being lined up
so that the film can be released very soon.
SuS'"'
NEW YORK—Exhibitors will no longer
have to buy at least 30,000 Pola-Lite glasses
in one year in order to obtain the Moropticon
one-strip 3-D projection system, Al O'Keefe,
vice-president for the Moropticon-Pola-Lite
Co., said Wednesday distribution
(9». He
outlined a new sales policy consisting of a
choice of three sales plans.
Under one plan an exhibitor can get a complete
Moropticon system with a contract for
30,000 pairs of Pola-Lite glasses in a period of
one year, at a minimum rate of 2,500 pairs a
month. He can speed up his purchases and
it is possible he can use the entire 30,000 pairs
on his first engagement. A $500 deposit would
accompany the order and apply against the
last 5,000 pairs furnished. The contract can
be renewed from year to year.
Under a second plan the system will be furnished
with a $500 payment which would
accompany the contract and with a commitment
for 12,000 pairs of glasses at the mimmum
rate of 1,000 pairs a month for a year.
An exhibitor would retain the equipment for
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five years.
A third plan calls for outright lease of the
equipment for two years with no commitment
for glasses. A $500 deposit would accompany
the order and an exhibitor would
pay $62.50 a month, with the $500 deposit
applying against the last $500 due. The total
rental for the two years would be $1,500.
O'Keefe said more key city demonstrations
will be announced soon.
RKO Stockholders' Action
Becomes More Complicated
NEW YORK—The RKO minority stock- ;
holders' suit which has been growing m-
creasingly complicated in recent montl^ m
New York supreme court, Los Angeles federal
court and a Nevada state court took on some
additional twists Monday (7) in the New York
,
supreme court.
Justice Henry Clay Greenberg reserved
decision on a move to consoUdate two suite.
Louis Schiff and Jacob Sacks, lawyers who
started one of the original actions, sought
to have their action consolidated with one
:
brought by Louis Kipnis in behalf of W
Castleman. Kipnis sought to have the Castleman
suit dismissed because this action, or^
one like it, is scheduled for hearing in Nevada
January 4. Decision also was reserved on|
this motion. , „„|
A motion for the appointment of a referee
to study the good faith of the Nevada action,]
is pending before the appellate division of,
the New York supreme court.
^,„„rf„
RKO attorneys who attended the Monday
hearing told the court they were neutral.
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GE Color TV Tubes Ready
In First 1954 Quarter
SCHENECTADY—color TV tubes will be
made available in limited quantities by
General Electric during the first quarter ol
1954 Pilot production has been starteQ,i
states J. Milton Lang, general manager ol
the tube department.
These will be the 15-inch all-glass type
producing a 12-inch picture. The P"ee wUl
be "about ten times" the price of black
and-white tubes,
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BOXOFFICE :•. December 12, 1953 j