Motion Picture Daily (Jan-Mar 1942)

MOTION PICTURE DAILY First in and Impartial 51. NO. 8 NEW YORK. U.S.A., TUESDAY, JANUARY 13, 1942 TEN CENTS 'iscal Year Fax Total at $70,963,094 *% from Theatres Taxed For First Time [Washington, Jan. 12. — Boxice collections accounted for $68,2.961 of the total of $70,963,094 Mected from the Federal admisms tax in the fiscal year ended ine 30, last, it is shown hy staItics in the annual report of the jmniissioner of Internal Revenue. Seventy per cent of the boxoffice collections were from theatres not before in the taxable class, on admissions from 21 to 40 cents. This group, on whose admissions taxes were levied at the beginning of the fiscal year on July 1, 1940, contributed $47,513,026, compared -with $20,789,935 collected on admissions in excess of 40 cents. JNew York, as usual, was the aviest source of admission-tax rev(Continued on page 6) •a) light Time Law Is Due This Week [Washington, Jan. 12. — Final entment of Daylight Saving legislation fore the end of the week was forest today as both House and Senate •pointed conferees to iron out the (Terences between the two groups. The Senate named Senators YVhee• of Montana, Wagner of New York, irkley of Kentucky, Bone of Wash (Continued on page 7) Nazis Do a Lambeth 'THEATRE audiences were treated to surprise chuckles over the weekend through a newsreel caricature, contained in all five reels, depicting Nazi soldiers marching and Adolph Hitler gesticulating in time to the "The Lambeth Walk" dance tune. The clip, about 160 feet in length, was contrived in England by the British Library of Information and released to all newsreel companies. The rigid — but rhythmyic — paraders advance a few steps and then go back, while Hitler salutes and makes sweeping gestures. Exhibitors in Albany And St. Louis Voice Decree Opposition Opposition to block-of-five selling under the consent decree came yesterday from two sources, Albany and St. Louis. In the later city the MPTO of St. Louis, Eastern Missouri and Southern Illinois adopted a resolution urging the Department of Justice and Federal Judge Goddard to vacate the decree or revise it so "all the product of a distributor shall be offered to an exhibitor at one time with a 20 per cent cancellation privilege." It declared that the decree is "working a hardship" on theatres and has been of no benefit to them, and that it has increased rather than decreased many of the "improper practices of film distributors which it was designed to correct." In Albany, a poll of recent members of the New York State unit of Allied States, revealed by Leonard L. Rosenthal, executive secretary, resulted in an adverse comment on block-of-five selling under the decree. "The consensus was to the effect that the new selling system of blocks of five was impractical and that it resulted in increased film rentals," Rosenthal said, adding "an alternative suggestion was buying under the old system the complete block for the year with a 20 per cent cancellation privilege." Allied States Will Elect January 22 Election of Allied States officers will be held at the organization's annual board meeting at the Warwick Hotel here Jan. 22, H. A. Cole, president, said yesterday. Cole said he is not a candidate for reelection and is "certain that a good man can be found" for the post. Trade observers believe, however, that the Allied president will be drafted for another term. Cole arrived from Dallas over the weekend to attend meetings of subcommittees of the Motion Picture Industry Conference Committee in advance of the main committee meeting at the Warwick on Jan. 21. The first subcommittee meeting was held Saturday, that of the croup in charge of protection of the industry from outside attack. George J. Schaefer is chairman of the subcommittee. Spyros Skouras, chairman of the subcommittee on industry taxation, has called a meeting of his group for tomorrow. W. B. Signs Wallis As Unit Producer Hollywood, Jan. 12.— Hal B. Wallis, Warner Bros, executive producer, today signed a contract with the company under which he will personally produce a number of important productions each year as head of his own unit. The films will be known as Hal Wallis Productions. Wallis, it was said, will assume responsibility for their completion. Wallis leaves for New York at the end of the week He will start on his new deal upon his return. His contract as executive producer was to have expired in several months. NBC Charges FCC Authority Is 'Fictional' The FCC has built up "fictional authority" to bolster its proposed rules governing network broadcasting, John T. Cahill, NBC attorney, yesterday told a Federal statutory court composed of Judges Learned Hand, John Bright and Henry W. Goddard as argument started on a motion by NBC and CBS for a temporary injunction against the regulations and on a cross-motion by the Government to iliMiiiss the suit. Arguments by counsel lasted all day and will be resumed this morning. Charles Evans Hughes, Jr., representing CBS, asserted that net (Cgntinued on page 8) Decision on Schenck Appeal Is Reserved The U. S. Circuit Court of Appeals yesterday reserved decision after a full day of argument on the appeal of Joseph M. Schenck and Joseph H. Moskowitz from a conviction by a jury for alleged tax evasions. John W. Davis and former Judge Joseph M. Proskauer, counsel for the defendants, hammered at the claimed failure of the Government to substantiate a criminal intent on the part of the defendants which could justify a conviction. The Government had failed to impugn the good faith of the defendants and had at most made out a case for a civil suit for recovery of taxes, Proskauer told Circuit Judges (Continued on page 6) Film Rentals Are Pegged by Canadian Gov't Based on Prices During Sept. 15-Oct. 11 Period Toronto, Jan. 12. — Film rentals in Canada have been pegged at the terms prevailing during the basic period from Sept. 15 to Oct. 11, last, it has been announced by R. G. McMullen, Administrator of Theatres and Films under the Wartime Prices and Trade Board. The Price Board recently set a ceiling on admission prices, based on those in effect during the Sept. 15Oct. 11 period. McMullen indicated that no deviation from the ceiling prices would be permitted by the Government. He declared the Government's policy would be to insure the equitable distribution of films among all theatres and that the normal supply should be available to all exhibitors. McMullen said the Government is not concerned with the trade problems, (Continued on page 6) Circuit Tax Bill Is Foreseen in Albany Albany, Jan. 12. — Ready for introduction in the New York State legislature, in the near future, is a bill intended to levy a sliding scale charge of taxation against chain stores and circuit theatres. Assemblyman William T. Andrews, sponsored a series of anti-discrimination bills, one of them intending to effectuate the present law against discrimination by public utilities to be broadened to include businesses affected with a public interest. Viola(Continued on page 6) Schine Pre-Trial Quiz Next Week Counsel for the "Little Three" will begin preparation for trial of the Government anti-trust suit against the Schine circuit, in which they are defendants, by launching the pre-trial examination of exhibitor witnesses for the Government in Cleveland early next week, it was learned yesterday. Louis D. Frohlich of Schwartz & Frohlich, counsel for Columbia, will accompany Government counsel to Cleveland next Saturday where the (Continued on page 6)