Boxoffice (Apr-Jun 1937)

ALUED PROFFERS OLIVE RRANCH WITH ONE HAND ON CHAIN m AX Drive to Oust Circuits Is Termed by Trade as Idle Gesture By A. L. FINESTONE New York — Allied States’ attempt to persuade the industry’s major interests to divest themselves of theatres, particularly those in competition with unaffiliated houses, is viewed here as an idle gesture. Observers returned this week from the Milwaukee Allied convention viewed the bid for a round-table conference with the major theatre interests as a move to immediately appease the general membership for lack of results in Allied’s legislative and court drive other than a “divorcement” bill in North Dakota which might benefit only a fraction of the Allied membership. MPTOA spokesmen ridicule the Allied suggestion that it disband and that its membership affiliate with Allied. It is pointed out that the MPTOA membership which that organization is fond of describing as “responsible exhibitors” has consistently opposed Allied’s policies and tactics. Has Powerful Weapon What has generally been overlooked is that Allied possesses a powerful weapon — the ability to bring heavy pressure on local legislators in their home precincts that would be felt in the state legislatures and in Congress. It is reported, in fact, that the Allied board of strategy has thrown out the proposal for a discussion with the home office officials to achieve desired reforms merely as a screen for a campaign which is gaining form. Being realists on the basis of past experience, the handful of real Allied leaders know that soft words will not avail, and it is reported that Allied’s silk-gloved hand extended with an olive branch is in reality a clenched fist preparing to strike telling blows. That strategy is a campaign to bring local pressure on Congressmen and Senators to push through at this session the Neely-Pettengill anti-block booking bill and the Hobbs resolution calling for a sweeping industry investigation. Furthermore, the Allied plan is for introduction of as many bills based on the U. S. supreme court’s Louisiana chain store tax decision as possible in next’s year’s eight legislative sessions and those 1937 state assemblies which will not adjourn for a while. Would Hit All Circuits Chain theatre taxation is concededly Allied’s strongest ace-in-the-whole. But because it would affect Allied members as well as affiliated circuits the leaders of necessity must make haste slowly. However, in that direction Allied finally has Allied Invitations Go Out Immediately DETROIT — Letters to the heads of all the major producers will go forward immediately proposing a roundtables conference with Allied officers, H. M. Richey, secretary of the national defense committee of the exhibitor organization, said. Richey said that the letters would be sent out over signature of Al Steffes of Minneapolis, chairman of the Allied defense committee. Majors Non-Commital New York — Major company sales heads declined to say whether they would confer with Allied leaders if the invitations should be received. It was generally considered that Allied demands are "impossible.” an opportunity to aim a blow at the large chains, the ultimate consequences to all forms of circuit operation from a tax standpoint notwithstanding. While only a handful of legislatures still remain in session, there are prospects of a number of special sessions at which tax and revenue measures will be permitted consideration and the proposed chain tax would thus come under the wire while the previously proposed “divorce” law would be barred. For results this year, believe observers who followed the deliberations and resolutions at the Allied convention, the chain tax levy is Allied’s only logical and strongest course and one that holds pregnant (Continued on page 15) Vol. 31 No 2 Reg. U. S. Pat. Office CONTENTS Editorial News Briefs First Run Reports Eastern Section Exploitation Previews Feature Reviews Short Subject Reviews Production Index Changes. Pictures in the Making Selling Seats Hollywood Section New England Section Mideast Section Central Section Midwest Section Southern Section June 5 1937 . 3 . 9 .18 ,.19 ..27 ..31 .33 ..34 ..35 ..36 ..39 ..51 ..59 ..67 ..75 .83 Five Cents to Five Dollars Per Seat Per Year Goal Chain Tax Bill Milwaukee — A proposal to tax affiliated circuit theatre on a scale graduating from five cents to $5.00 per seat per year via state legislation under the U. S. supreme court’s recent validation of the Louisiana chain store law was added to the Allied “divorce” campaign at the annual convention here last week. Submitted by Abram F. Myers, general counsel, the draft of the proposal which will be changed to suit various state laws, provides an increase in the tax according to the “competitive ability, buying power and economic resources” of circuits. The amount of the tax on state units would be determined further by the number of units operated by the chain in the United States. Text of the proposed bill is as follows; Chain Theatre Tax (Note: This draft has been prepared for the eonsideration of the Special Defense Committee on May 25 and must not be used without the consent of the (’hairman of the Committee.) Sec. 1. Definitions. Unless the context otherwise requires, the words defined in this section, whenever used in this act, shall have the meaning herein ascribed to them, viz: fa) “Person” means any individual, partnership, firm, corporation, association, trust, or other form of business enterprise. (b) “Theatre” means any theatre, auditorium, building, tent or other enclosure wherein motion pictures are publicly exhibited and an admission price is charged. (c) “Theatre chain” means any group of two or more theatres owmed, controlled or operated, in whole or in part, directly or indirectly, through stock-ownership, ownership or lease of realty, partnership contracts, booking or buying contracts, or otherwise, by a person or an affiliated group. (d) “Affiliated group” means a number of persons each of ■w'hom operates a theatre or a theatre chain and are connected with each other and/or with a common parent company, either directly or indirectly, through stock-ownership or lease of realty, partnership contracts, operating contracts, booking or buying contracts, or otherwise. (e) “Stock ownership” means the ownership directly or indirectly by a person, theatre chain or affiliated group of at least per centum of the outstanding capital stock of any other person, theatre ciiain or affiliated group. (f) “Total number of theatres in the chain or in the affiliated group” means the total number of theatres in the continental United States connected with any such theatre chain or affiliated group, either directly or indirectly, through stock ownership, ownership or lease of realty, partnership 'contracts, operating contracts, booking or buying contracts, or otherwise. Sec. 2. License tax. Beginning on the day of 19 and on the day of of each succeeding year, every person engaged in the operation of a theatre or theatres in this State shall pay as and for a license fee for the rights to conduct such business, a sum of money for each chair or seat regularly provided and maintained in said theatre or theatres for the occupancy of patrons in viewing exhibitions of motion pictures, which sum shall be graduated in accordance with the competitive ability, buying power and economic resources of the theatre chain or chains or affiliated group or groups with which such theatre or tlieatres may be connected, as set forth in the schedule of rates in Section 3, which schedule has been found and is declared to be fair and reasonable. Sec. 3. Schedule of fees. The basis of fees shall range from 5c to $5.00 per seat. (Add administrative provisions in accordance with State practice.) 6 BOXOmCE :: June 5, 1937.