Boxoffice-October.01.1955

ecause
More Companies Now
In Atlas-RKO Plan
NEW YORK Ucl.iil.s oi ii wKloiiod merger
plan that will t-ake in four companies of the
Atlas Corp. Kroup as well us KKO Pictures
Corp. arc now beinR worked out by Floyd
Odium and his n-ssociates He expects these
will be completed within tliree weeks.
The companies now Included in the proposed
merger are: All-fleets. Inc.; San Diego
Corp.; Albuquerque Associated Oil Co. and
Wasatch Corp., all owning oil properties and
uranium holdings.
There will be a general exchange of stock
for shares In the proposed new corporation,
with some of them rated down to small percentages
of a share. Alrfleets, for instance,
would be exchanged for 0.6 of a share of
Atlas Corp.
Odium said one or more additional companies
will be Included In the merger and
that there might be a split of the present
Atlas Corp. stock.
Some opposition developed when the
Wasatch merger proposal w'as first mentioned,
but this probably will await further development
of the new plan.
How far the oppwsition will get cannot be
predicted. Hughes owns 1,262,000 shares and
Atlas owns 907,100.
RKO Pictures has about $18,000,000 in cash
on hand and a tax loss carryover estimated
to be worth S30.000.000 in three years.
The market value of the RKO stock has
been declining. Atlas sold 66.400 shares during
August and 20.000 during July. The stock Is
now quoted at $7.12 S.
RKO Rad:o Pictures, recently acquired by
General Teleradio, is not affected by any of
these negotiations.
Technicolor to Diversify
By Doing Amateur Films
NEW YORK—Technicolor Motion Plctiue
Corp. is going in for diversification by engaging
in the business of processing amateur
Kodachi-ome film when such film becomes
available under license from the Eastman
Kodak Co., Dr. Herbert T. Kalmus, president
and general manager, told the directors at a
meeting here Tuesday i27».
At the same time Dr. Kalmus said orders
for manufacture and delivery during the last
part of 1955 showed a drop of about 30 per
cent from the previous quarters. About 400
employes of the 2.000 on the payroll will be
laid off.
Diu-ing the fourth quarter a large number
of release printing schedules have been postponed.
The new Technicolor process will require
a few more months to reach large scale
operations. Dr. Kalmus .said.
With September earnings estimated, consolidated
profit, after taxes, is estimated at
$1,775,000 for the first nine months of 1955,
or 89 cents per share. This compares with
$1,427,000. or 73 cenUs per share in the corresponding
period of 1954.
The board voted a dividend of 25 cents per
share on the common of Technicolor, Inc.,
payable October 25 to holders of record at
the close of business October 10.
Cinema Chain in Campaign
NEW YORK—The Cinema Circuit here,
with nine theatres, has joined in the Audience
Awards campaign, according to the
Council of Motion Picture Organizations.
Magnetic, Optical Sound
Combined in One Print
Florida Film Studio
Receives Citation
Empire Studios, Inc., the Florida film
company uiiirh produced the motion
picture, "Vellowneck," has boon cited by
Gov. Leroy Collins for its "foresight in
recognizing the state of Florida as a
natural God-given stage for the production
of motion pictures." The governor
(left) is shown presenting the colorful
scroll to R. John Hugh, president of
Empire.
ORLANDO. FLA.— Empire Studios, Inc., the
young Florida film company, whose first
feature film production, "Yellowneck," is
now in worldwide release, has received a citation
from Gov. Leroy Collins for its successful
efforts in establishing the state's first
major film production company.
In his commendation, presented to company
President R. John Hugh of Orlando, who both
wrote and directed "Yellow'neck," Gov. Col-
Uns cited executives, officials and technicians
for their "foresight in recognizing the state
of Florida as a natural God-given stage
for the production of motion pictures."
Republic Pictures is distributing "Yellowneck."
which was released last March, and.
according to Hugh, has signed to distribute
"The O.sceola Story." Empire's second featurelength
production and two more features now
in the planning stage.
Empire maintains administrative offices in
Orlando and Its properties Include sound
stages on a private island near St. Petersburg.
Jacon on Sales Trip
LOS ANGEX,ES ^ Bernard Jacon. vicepresident
In charge of sales for IFE Releasing
Corp.. met with local exhibitors the latter
half of last week. He Is .scheduled to go to
Oakland on Monday i3) for a week's stay,
then to Dallas and New Orleans, returning
to the New York home office on October 13.
Nt;W YORK The development of u slnnle
motion picture print that in-rmlLs the u.m;
of either magnetic or optical ^ound ha« come
about lus a result of high distributor print
costs and exhibitor complaints about an inability
to obtain the type of .sound prints
suitable to their projection equipment.
The new type of print also Is expected to
Increase the number of usable prints available.
Distributors now l.ssuc some Cinema-
Scope prints with magnetic sound and others
with optical .sound.
.\WAIT EXIIIBITOIIS- INTEREST
Tlie new print Is the result of research and
experimentation that has been going on for
months. It has been perfected by engineers
of the Motion Picture Research Council in
Hollywood and of Columbia. MGM, Universal-International
and Warner Bros. It has
passed tests both in Hollywood and here
Production will be started when enough
exhibitor Interest has been aroused. The distributors
say they won't make a move until
that time. Tliey argue that exhibitors have
complained about an existing situation, that
relief is now available and that exhibitors
must ask for it in sufficient numbers.
Projectors equipped for stereophonic Cinemascope
sound won't have to be changed.
Others win have to have a minor mechanical
correction. This would entail replacements
of sprocket wheels at an estimated cost for
two projectors of not more than $75 and
perhaps as low as $35, de{>ending on the age
of the projectors. There would not have to
be any changes in laboratory equipment.
There are four magnetic sound stripes on
stereophonic CinemaScope films. All would
remain. The one optical sound stripe Ls next
to the No. 2 magnetic stripe. There will be
some effect on the 2.55 to 1 CinemaScope
aspect ratio, but distribution engineers noted
that some theatres already arbitrarily
shorten it.
ANNOYANCES IN PAST
The current two-print system has been an
annoyance to exchange personnel as well as
to exhibitors. Exhibitors have called on exchanges
for optical prints when only magnetic
prints were available, and vice versa.
There have been instances when the wrong
type of sound print has been delivered to a
theatre. Distribution engineers now believe
all that sort of thing can become a thing
of the past, if exhibitors show their interest,
and also that the distributors will save large
amounts in print costs.
A dim view of the development was taken
by Earl I. Sponable. 20th Century-Fox technical
expert. He objected to the need for
reducing picture size to make room for the
optical .sound stripe, .saying the size would become
2.35-1. He also said the sound would
be "degraded " a theatre would be
getting only "half-track" optical sound. He
preferred installations of magnetic heads
that could utilize only the No. 2 track if
stereophonic sound wasn't wanted.
VOTE YOUR AUDIENCE AWARDS
BALLOTS
BOXOFFICE :: October 1. 1955 17