The Canadian Motion Picture Exhibitor (May 15, 1941)

Page 2 Ul XHIBITOR VOL. 7, No. 1O—MAY 15, 1941 R. COPER Managing Editor Published Semi-Monthly by the INDEPENDENT THEATRES ASSOCIATION Subscription Rates: Canada and U.S., $5.00 Per Annum 1102 Hermant Building 21 Dundas Square, Toronto, Canada Address all communications to The Managing Editor The CANADIAN EXHIBITOR 21 Dundas Square, Toronto, Canada Legality of Photo-Nite (cont. from page 1) know in what other form to advance its argument. But the Judge upheld the motion and quashed the indictment on technical grounds. The matter was then taken into the Court of Appeal, and the higher court upheld the decision of the lower court on similar technical grounds. It is to be emphasized that both courts actually said nothing as to the legality or otherwise of Foto-Nite, and that therefore the matter has not yet been decided on legal grounds. If the matter were to be decided on legal grounds, it is our opinion that Foto-Night would be declared illegal. SAMUEL GOLDWYN TO DISTRIBUTE THROUGH RKO George J. Schaefer, president of RKO Radio Pictures, announced that a deal had been closed with Samuel Goldwyn to distribute the Goldwyn pictures. The first two to be released are Bette Davis in “The Little Foxes” to be followed by a Gary Cooper picture. © \ EXHIBITORS WE XiiBiTO URE R AND PUBLIC (continued from page 1) A representative committee met Mr. Ilsley on Monday, May 5th, and although they were not successful in convincing the Minister, he agreed with. them that the tax ought not to come into force without proper notice, and for that reason it was moved back to May 19th. Exhibitors in Ontario are fortunate to the extent that there is, in that province, no amusement tax at present. But all other provinces in the Dominion have taxes, varying from 3 per cent to 15 per cent. Therefore Quebec, for instance, which has an existing 15 per cent tax, will be particularly burdened with the additional federal tax, and it is doubtful whether many of the smaller theatres will be able to continue. Exhibitors are of the opinion that the tax should be passed on to the public and the odd cents charged wherever necessary. For the industry to absorb the tax in any manner, even by increasing admission prices, would certainly be fatal from a financial and future taxation viewpoint. As far as is known at the moment, the government has left the question of tax tickets to the individual exhibitor. Exhibitors’ opinion, in general, seems to be that tickets should be used for he psychological effect on the public — even though exhibitors would have to pay for the cost of printing them. Continued efforts are being made to convince government officials of the justification and equity of a sliding scale tax on all amusements and entertainments. Any representations made to this end by individual exhibitors to their local Members of Parliament will undoubtedly be helpful. STEEP RISE IN U.S. TICKET TAX REVENUE Further Reduction of Exemption Proposed In July last the federal admission tax exemption was lowered from 40c to 20c. The rate remained unchanged at 10 per cent, or rather lc for every 10c or fraction thereof. The House Ways and Means Committee is at present hearing evidence concerning Treasury proposals to increase the Government's revenue for financing the armament program. One of the proposals will be to reduce the ticket tax exemption further, namely from 20c to 9c and leave the rate again unchanged. The reduction is expected to bring a further $55,000,000 into the coffers of the government. If the reduction should be rejected it is possible that the government will fall back upon the reel tax which was levied during the last war, or upon a rental tax. The reel tax was l5c per reel, and in addition all admissions were taxed then at the rate of lc for every 10c or fraction thereof. The lowering last July from 40 to 20c has brought about an enormous increase in revenue. During the nine months from July last to March last the ticket tax receipts amounted to $52,499,059 as compared with $16,450,315 in the corresponding period a year back. In March last the tax yielded $7.1 millions as compared with $2.4 millions in March 1940, and $6.5 millions in February last. It is interesting that in spite of that increase collections from the Broadway district fell from $1.6 millions in February last to $0.7 millions in March last. However, in April Broadway business has been booming. The first industry witness before the Ways and Means Committee was Abram Myers, counsel for National Allied Theatre Owners. He urged the abolition of all exemptions, not only for exhibitors, but also for religious and charitable institu (cont. on page 4) May 15th, 1941 VICHY HELPS NAZIS TO SNEAK PIX INTO US The Anti-Nazi League has made a protest to the New York Board of Censors concerning a UFA picture ‘Victory In The West,” which, according to the League was brought to the states illegally in that it evaded the censor. The picture was apparently flown from unoccupied France to Dakar and thence via Rio de Janeiro to New York. It is classified as a newsreel, but the League holds that it is not a newsreel and therefore ought to be censored. It has been classified by the Nazis themselves as propaganda, and is alleged to be distributed in the U.S.A. by a high official of the German consulate in New York. “SHADOWS OF THEIR WINGS” The story of the Royal Canadian Air Force, which is doing so much in defence of the mother country, will be told in “Shadows Of Their Wings”, to be produced in Technicolor by Warner Bros. with George Brent and Dennis Morgan in leading roles. Co-operation of the R.C.A-F. in the production of the film was assured at a studio conference attended by Air Marshal W. A. Bishop, in whose honor a banquet was arranged on that occasion. Representing the R.C.AF. during the production of the picture will be one of its current heroes, Squadron Leader Owen Cathcart-Jones. He will serve as technical director during the filming of the picture, and will help Norman Reilly Raine, author and scenarist, in preparation of the screen play which is based on the original story by Arthur Horman, who will also co-operate. PRINTING At Economical Prices Gord Printers 40 Lombard Street WaAverley 8614-15