The Independent Film Journal (1954)

LowGothamBO Tax Yield: NYC New York City Controller Lawrence E. Gerosa reported to the Board of Estimate and the City Council this week that the 5 percent amusement tax would yield only $10,816,487 in the current fiscal year instead of the $16,700,000 estimated by Budget Di¬ rector Abraham D. Beame. For 1955-56, Gerosa was able to project only $14,000,000 from the tax. He cautioned, however, in estimating the tax return, that “the first few months of the imposition of a new tax is not a time indi¬ cation of future collections.’’ This week, in a final 650-page report to the Governor of New York, the Temporary Commission on the Fiscal Affairs of State Government, headed by Dr. Frederick Bird, completely sidestepped the study of the effects of the 5 per cent tax. City the erro¬ neous estimated city tax revenue of $16,700,000, the Bird Commission urged that all permissive legislation now existing, including the admissions tax, should continue to be available to all localities. Exhibitor testi¬ mony before committee members as to the effects of the tax and potential revenues were ignored in the report because of “dis¬ agreement among members of the Commis¬ sion as to the staff’s findings,” Dr. Bird stated. In Mid-June of last year, Gov. Dewey directed the Bird Commission to undertake a study of the probable tax yield to New York City of such a tax. The commission was to determine whether it was unsound, and if the legislature should be asked to invalidate the tax. Probe Reviewed At that time, the exhibitor emergency com¬ mittee believed that the investigations of the commission would justify exhibitor pro¬ tests against the amusement tax. The Appellate Division has granted New York City permission to appeal its decision on the local admissions tax to the Court of Appeals in Albany. Assistant Corporation Counsel Stanley Busehbaum said he hoped to have the case heard during the first week in March. He will argue that the “breakage” or major fraction clause in the tax law calls for the “practical” method employed in busi¬ ness and banking. In a three to two decision reversing a lower court, the Appellate Division on Jan. 31 ruled the “breakage” clause was illegal, since it caused the tax to exceed the 5 per¬ cent limit authorized by the 1947 State En¬ abling Act. Theatre attorneys opposed the city’s move to appeal to Albany, contending that the Appellate rule was not a final order and that the case would have to be returned to Queens Supreme Court for trial of all the issues. Columbia Earnings Tops Columbia Pictures this week announced the greatest six-months earnings in the com¬ pany’s history with a net profit of $5,153,000 before taxes for the period ending Dec. 25, 1954. The net profit after taxes was given as $2,823,000. This also was a new high for the corporation, as Avas the $3.40 earned per share of common. Comparative figures for the first six months of last year showed $4,759,000 in net profit before taxes, $1,910,000 net profit after taxes. Buying Co-operative Trust Rule Sought Washington. — The Supreme Court was asked this week to find that a film buying co¬ operative violates the anti-trust laws when it serves theatres in both open and closed situations. G. & P. Amusement Co., opera¬ tors of the now-closed Moreland Theatre in Cleveland, lost the case in the lower courts. G. & P. is suing Regent Theatre, its com¬ petition in Cleveland, other companies owned by the same people, 20th CenturyFox, Loews, Warners and Universal, and Co-operative Theatres of Ohio, which was the central booking agent for the exhibitors sued. G. & P. charged that Co-op Theatres used its closed-situation buying power as a lever over the four distributors to secure choice films for the Regent, forcing the Moreland out of business. Mo veF orRegulation Postponed By Allied ( Continued from page 7) sympathy of Congress can be gained because the issue does not involve merely a dispute over the price of film. Rather, the board con¬ tended, it involves arbitrary curtailment of production and the creation of a starved market which enables the film companies to impose upon the theatres film rentals so exorbitant and conditions of license so onerous that they threaten the forced closing of upwards of 5,200 sub-run and small town theatres. There would be a resultant loss to the American economy from the destruction of investments and unemployment, the board stated. At the convention, Ruben H. Shor, of Cin¬ cinnati, Avas chosen as National Allied’s new president. He succeeds Ben Marcus, who de¬ clined the traditional second term. Abram F. Myers, avIio has long filled the post of chair¬ man of the board and general counsel, Avas renamed once again. Irving Dollinger, of Linden, N.J., was elected treasurer, and Julius Gordon, of Beaumont, Tex., is the new secretary. William Carroll, of Indian¬ apolis, becomes recording secretary. Shor Pledges Help Shor was chairman of the final business session. He pledged to do everything in his power to help Allied members. He said he hopes that conditions may be improved. Gordon, in a joint report of large and small drive-in clinics, said that current dis¬ tribution policies are putting many exhibi¬ tors out of business. Furthermore, he noted that many others are threatened with a similar fate. Gordon called some of the dis¬ tributors “octopi” and denounced sales poli¬ cies for “White Christmas” and “The Coun¬ try Girl.” He said that the tAvo clinics unani¬ mously wanted Paramount and Warners cited. The board shelved the Allied plan to con¬ sider entering the theatre equipment busi¬ ness, for the present at least. One item which had been considered was a low-cost stereo¬ phonic sound unit. Also it was announced that Allied’s 1955 annual meeting will be held in Chicago from Oct. 5-9. The 1956 an¬ nual meeting will be held at the Hilton Statler Hotel in Dallas in November of that year, and the 1956 drive-in convention will be held at Cleveland from Feb. 13-15, 1956. McGee Clarifies Group’s Purpose Pat McGee, president of Rocky Mountain COMPO, commenting on National Allied’s resolution to stop the “misuse” of the name COMPO, explained that his organization’s name Avas changed from Colorado Associa¬ tion of Theatre Owners only in order to strengthen the association, and broaden its base of membership. “We are soliciting memberships from seg¬ ments of the industry which formerly were denied representation because they didn’t oavh theatres,” said McGee. McGee pointed out that board members of Rocky Mountain COMPO include members of both TOA and Allied. “I must emphasize,” stated McGee, “that (we are) not out to replace any exhibitor organization, but the fact remains that (we are) the outgroAvth of the largest exhibitor organization in the Rocky Mountain area. Our single purpose is to defend our mutual industry against all adverse factors,” he said. Only tAvo regional exhibitor organizations use the COMPO name at the present time. One is Texas COMPO, the other Rocky Mountain COMPO. Texas COMPO is currently selling a sixweek campaign that would encourage movie patrons to identify forthcoming Academy Award winners. The Texas group is offer¬ ing trailers and other promotional materials to exhibitors on a nation-wide basis. Snaper Receives Instructions Allied’s resolution instructed Wilbur Sna¬ per to initiate action within COMPO to end “misuse by any group or individual seeking to form a regional exhibitor or asso¬ ciation to function outside the public rela¬ tions field to which national COMPO is re¬ stricted, to trade on the good will of that organization or to enter into competition with the established exhibitor associations in the field of trade practices.” Snaper, who is Allied’s representative on the COMPO triumvirate, was also instructed to impress upon COMPO the need for exer¬ cising rigid economy in the administration of the council, so that additional assessments will not be necessary. Allied’s board also approved all actions taken by COMPO to date and voted to re¬ main in the council and continue its support. However, the board indicated its displeas¬ ure with COMPO’s neutral attitude toward toll TV. Ben Marcus, retiring Allied presi¬ dent speaking for the board, asserted that if it should come to a question of financial support for either COMPO or the anti-toll TV campaign, Allied would have to support the latter. COMPO is a great vehicle for protecting and advancing the interests of the industry, Marcus stated, but it can’t draw a line. It must get behind all projects except those having to do with trade practices. Corwin Buys SW Houses Hollywood. — Metropolitan Theatres Corp., headed by Sherrill C. Corwin, has purchased the entire Stanley Warner theatre interests in Santa Barbara. Houses involved are the 1,700-seat Granada; 900-seat Cali¬ fornia ; also, an eight-story office and store building. Corwin’s circuit will assume opera¬ tion the end of the month and theatres will be modernized in the Spring, it was noted. 8 THE INDEPENDENT FILM JOURNAL— February 19. 1955