He Rowdyism Making

'
' !iie
Warner's Home Office
Moving to the Coast
NEW YORK—Warner Bros, will move its
home offices to the coast, to become the first
of the major motion picture companies to
desert this metropolis as the base for its
worldwide .'^ales operations.
This step, long-rumored, was confirmed
by Jack L. Waj-ner. president. Wednesday
(25). He .said that headquarters of the domestic
and overseas sales departments and
allied components will be moved to the
studios in Burbank, Calif., as quickly as possible.
There was no further breakdown of assignment
of persomiel. Employes were on
tenterhooks waiting to learn who specifically,
will be moved, w'ho will remain here in a
curtailed capacity, and who will be let out.
Warner said the move was in the interest
of maximum efficiency in the future handling
of "the most ambitious program in the company's
historj' and to insure the greatest
boxoffice potential of the outstanding properties
on its roster."
Warner's statement, in part, follows:
"Warner Bros, is the fii-st motion picture
company to realize fully that the changes
taking place in the industry as a whole
necessarily must bring about new procedures
for expansion and diversification.
"At the same time, we are preparing, and
are alert, for future changes, and we are confident
that great opportunities lie ahead for
our industry and our company, provided we
act aggressively and realistically."
Speculation had recently simmered down
to what units would make the move rather
than as to whether there would be any move.
Backing up the belief w-ere reports that some
company executives were offering their eastem
homes for sale.
Attempts to learn when more details will
be forthcoming met ^vlth no success. Only top
executives had inside information and they
were not talking for publication.
It seemed apparent that negotiations will
now begin. If they are not already under
way, to sublet at least the bulk of the expensive
space recently taken In the new
Tishman building at 666 Fifth Ave.
Braunagel Forms His Own
Theatre-Operating Firm
NORTH LITTLE ROCK. ARK.—Jack D.
Braunagel, for the last three years an associate
and district manager of United Theatres
Corp. here, this week announced establishment
of a new theatre operating company
to be kjiown as Jay D. Bee Amusement
Co. Braunagel will provide ali operating
services, buy and book pictures and direct
management of both indoor and drive-in
theatres in Helena, Hope, Ashdown and Gmdon.
Ark. Headquarters will be at 106 West
Second street in North Little Rock.
Before affiliating with United Theatres
which is headed by M. S. McCord. Braunagel
was head of drive-in operations for
Commonwealth Theatres of Kansas City,
Mo., for eight years. In this period, the Commonwealth
outdoor operations expanded
from one to 31 drive-ins. He is a former
member of the executive board of Theatre
Owners of America and a former chairman
of TOA's national drive-in committee. He
is a frequent convention speaker.
Kas,-Mo. TOA and Allied
Affiliates in a Merger
^ •
members of the board of United Theatre OvMitrs ol the Heart of
America, the new exhibitor association established last week: Left to right: (seated)
L. J. Kim.briel, M. B. Smith, who is president; Beverly Miller, elected vice-president;
Ed Harris and C. E. Cook; (standing) Glen Cooper, O. F. Sullivan, Richard P. Brous,
Leo Hayob, J. W. Stark and Richard Orear.
KANSAS CITY—In a move which may
have national significance, two of the major
regional affiliates of the two national exhibitor
associations voted this week to merge.
The two organizations are the Kansas-Missouri
Theatre Ass'n, a Theatre Owners of
America affiliate which has been in existence
for 40 years, and Allied Independent Theatre
Owners of Kansas and Missouri, established
in 1947 as the regional unit of Allied States
Ass'n.
The merger culminated inter-unit talks for
almost a year on the subject of uniting to
form a single regional exhibitor organization.
The final decision, however, to merge came as
a direct result of the successful joint "Show-
A-Rama," a thi-ee-day business-building
meeting and tradeshow held in April. This
was. in effect, an exhibitor convention attended
by members of both affiliates and
which was to sei-ve as the proving ground
for joint activity. Show-A-Rama was a big
success. It di'ew a record crowd of exhibitors,
many of whom had never or seldom attended
an association convention, and the project
with its trade.show was a financial success.
Tlie new oi-ganization will be known as
United Theatre Ownei's of the Heart of
America. The president will be M. B. Smith,
who headed KMTA. He won the presidency
on the toss of a coin. Beverly Miller, who was
president of the Allied unit, will be vicepresident.
Ed Harris, Neosho, Mo., is secretary,
and Charles Potter of Kansas City,
Kas., trea.surer.
Members of the board are: Prom KMTA—
M. B. Smith, Richard Orear, Richard Brous.
and L. J. Kimbriel. of Kansas City. Mo.:
C. E. Cook, Maryville, Mo.: Leo Hayob. Marshall,
Mo.: Ed Harris, Neosho, Mo., and Glen
Cooper, Dodge City, Kas.; From Allied-
Beverly Miller and Ronald F. Means of Kansas
City, Mo.: Jay Woott'n of Hutchinson,
Ka.s.: J. W. Stark and O. F. Sullivan of
Wichita; Charles Potter of Kansas City, Kas.;
Herbert Jeans, Columbia, Mo., and William
Bradfield, Carthage, Mo.
As to future affiliation with the national
associations, there will be no decision for at
least six months. Meanwhile, it is expected
that a committee of the regional group will
meet with national officers of Allied and
TOA to determine future relationships. Providing
some financial support to the national
association was discussed, but whether this
will be done depends entirely on the studies
to be made in the next few' months.
Membership will be on a theatre basis, but
individuals may join as co-members. Comembers
will have voting privileges only as
alternates. Equipment and supply dealers
will be able to join as associate members, but
will have no voting rights.
Loew's Divorcement Set
For August 31, 1959
NEW YORK—Judge Edmund Palmieri of
federal court Wednesday (25i set August 31.
1959 as the date by which Loew's Inc. theatres
are to be divorced from Loew's. Inc. He
ruled that directors of Loew's. Inc. shall have
the sole and exclusive responsibility and
authority for the prepai-ation and presentation
to the court of a plan for division of
the assets and liabilities of Loew's, Inc. and
its
subsidiaries.
The new theatre company was established
in 1954 under provisions of the antitrust consent
decree, and one of the main issues which
had to be resolved was the division of a $30,-
000,000 funded debt between Loew's, Inc. and
Loew's theatre subsidiaries. Any division of
funds must be court-approved, and the plan
for the settlement must have the court's endorsement
90 days before the new theatre
company stock is to be distributed to shareholders
of Loew's, Inc.
Loew's theatre companies were authorized,
too. to make loans to Loew's. Inc.. provided
the maturity dates on such loans will not be
later than the date on which the theatre
stock is to be distributed to stockholders. In
the past. Loew's. Inc. financial repwrts have
reflected the income of the theatre company,
but tiie parent company has been unable
to use the revenue because of the divorcement
order.
BOXOFFICE June 30, 1958