Motion Picture Herald (Nov-Dec 1938)

December 3, 1938 MOTION PICTURE HERALD 9 Would Pro-rate Taxes California Congressmen, led by Senatorelect Sheridan Downey, plan to seek legislation in the next Congress, this winter, which would pro-rate Federal income taxes of Hollywood and Broadway stars over a period of years, to benefit them when their box office power starts to dwindle. Companies with receipts not exceeding $250,000 a year and net incomes of less than $25,000 will be relieved of much detail in preparing income tax reports next year through a new form announced Wednesday by the Treasury Department. See page 17. 3 New Film-Radio Shows Slated for early production are three new radio shows with film affiliations. Jesse Lasky's show, put on in cooperation with RKO Radio Pictures and sponsored by the Wrigley Company in the interest of Doublemint Gum, will make its debut over the Columbia network on January 8th. Called "Gateway to Hollywood," the show will be a motion picture talent quest. The show of the Screen Actors Guild and sponsored by the Gulf Oil Company is to start on the same date, with proceeds going to the Motion Picture Relief Fund. Herbert Ebenstein, film man, and William and Harry Brandt, New York theatre operators; have formed Radio Attractions, Inc., to produce air shows. Aid Paralysis Fight Joseph M. Schenck, board chairman of Twentieth Century Fox; Nicholas M. Schenck, president of Loew's, Inc. ; Ed Kuykendall, president. The Motion Picture Theatre Owners of America; Gene Buck, president, the American Society of Composers, Authors and Publishers; Eddie Cantor, comedian — these comprise the entertainment division of the executive committee in the 1939 campaign to "Fight Infantile Paralysis," which is the highlight of the nationwide celebration of President Roosevelt's birthday, January 30th. Banking and finance, labor, industry, communications, transportation and power, advertising and publishing also are represented on the committee. First Quarter Report Losses for the summer and heavy amortization charges were reflected in the financial report of Columbia Pictures for the first quarter of its fiscal year, ended September 24, 1938, which showed a net loss of $233,612. Working capital on September 24th was $10,740,000 of which $2,300,000 was in cash. The balance sheet is on page 32. Television Challenge Television, within two years, will bring a competitive test betwen radio-l3roadcasting and the motion picture on the determination of the source of talent for telecasting. Hollywood is determined that it rightfully has a place in television, both in its development and the eventual form it will take. These conclusions are made by the Academy's Research Council in its third annual report on television's position in relation to motion picture production, as detailed on page 31. Paramount Television Paramount studio officials denied on Welnesday that the company will inaugurate television programs in Paramount or any other theatres in January, as reported. They pointed out that the license granted Dumont Laboratories is for experimental purposes only and specifically prohibits commercial operation. Although experimental broadcasts are to start the latter part of January, Paramount executives said the company would not have the authorization to sell a television program even if it was practicable to deliver one. Stanton Griffis, of Paramount and a director of Madison Square Garden, said television rights to Garden events would go to the highest bidder. MOTION PICTURE HERALD Published every Thursday by Quigley Publishing Company, Rockefeller Cent&r, New York City. Telephone Circle 7-3100. Cable address "Quigpubco, New York." Martin Quigley, Editor-in-Chief and Publisher; Colvin Brown, VicePresident and General Manager; Terry Ramsaye, Editor; Ernest A. 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Burlesquing Films The proposal of WPA Theatre Project officials to burlesque the motion picture business in a "Horse Opera" "living newspaper" play became a definite plan this week, after a conference in New York between WPA Theatre officials of that city and those in Chicago, where the burlesque will be produced this winter as the industry starts the observance of its golden jubilee. WPA play-producers say they originally had intended to produce a "cavalcade" of films, but that the industry indicated a complete lack of interest, whereupon the Federal Theatre Project decided to burlesque the business. Plans for the play appear on page 14. RKO Decision Expected Federal Judge William Bondy, at the hearing Tuesday on the RKO reorganization plan, said Friday's hearing might definitely dispose of the matter. The jud?e declared himself concerned about the delays, and said he would regard the technical parts broadly, so as to hasten the company's emergence from section 77B before the year's end. Special Master George Alger, who approved the plan, was this week awarded $27,500 for services. Judge Bondy this week also ordered RKO trustee Chemical Bank and Trust Company to pay $5,512 to RKO trustee Irving Trust Company which will pay the amount to attorneys Wickes, Neilson, and Ridell, and accountants Price, Waterhouse and Company. « Columbia in France The possibility that Columbia Pictures might undertake production in France, while at the same time, definitely establishing a distributing organization of its own there and in Algiers was revealed this week, according to Pierre Autre, cabling from Paris. The distributing organization to be established would have exchanges not only in Paris but additionally in Lille, Marseilles, Lyons, Bordeaux and Strasbourg. These revelations were made prior to the departure of Jack Cohn, vice-president of Columbia, for the United States on the Queen Mary. Mr. Cohn was in Paris with J. A. McConville, general foreign sales manager; Joseph Friedman, European manager, and Al Segal. Mr. Cohn also closed with Paul Graetz of Transcontinental Films, for Columbia distribution of Transcontinental product. Mr. Cohn was guest of honor before sailing at a dinner tendered him by Jean Zay, French Minister of National Education, in recognition of the aid rendered French films by the deal.