Motion Picture Daily (Jan-Mar 1950)

NEWS — Zj — Mmrm picture DAILY VOL. 67. NO. 32 NEW YORK, U.S.A., THURSDAY, FEBRUARY 16, 1950 TEN CENTS Johnston Asks Tax Repeal at House Hearing Voices Unplanned Plea In Behalf of Films Washington, Feb. 15. — Eric Johnston, president of the Motion Picture Association of America, today called on the House Ways and Means Committee to repeal the Federal admission tax and the taxes on raw film stock and photographic apparatus. Johnston was one of five witnesses from the National Committee to Repeal the Wartime Excise taxes, who opened five days of scheduled hearings on excises. A. F. Myers and Gael Sullivan, representing the council of Motion Picture Organizations, are scheduled to appear next Tuesday. Johnston's prepared statement dealt (Continued on page 8) 'Stromboli' in Go o d Open ing Scattered reports of opening day business for "Stromboli" in the New York metropolitan area, where it had a 125-theatre mass premiere yesterday, indicated that the highly-exploited Roberto Rossellini-Ingrid Bergman picture bowed to good but far from sensational grosses. Business built up steadily into the evening with an average of about SO per cent better than normal for Wednesday business in recent months. Houses which normally grossed slightly more than $1,000 in midweek were (Continued on page 10) 'StrombolV Attacked By Congressmen Washington, Feb. 15.— The opening of RKO's "Stromboli" was greeted with a salvo of attacks in the House of Representatives today. Rep. Ed. Gossett (D., Tex.) led the way and his stand was echoed by Reps. John Rankin (D., Miss.), Clare Hoffman (R., Mich.), and Leroy Johnson (R., Cal.) Proposes Local Officials Be Told of Tax Protests Albany, N. Y., Feb. 15. — Local film industry leaders believe practical for other areas the suggestion made by Guy Graves, Schenectady city manager for Fabian, and adopted at an admission tax repeal meeting here, that city, state and town officials be notified about the number of signers of petitions to Congress for repeal of the Federal tax. Graves explained it would put local officials on notice on the number of people who oppose an admission tax and might stop them from advocating or voting local levies to replace the Federal impost in the event of its repeal. New York State has a law, enacted in 1947, and amended in 1948, permitting all counties and every city over 25,000 population to vote a se ries of special taxes, including a five per cent tax on admissions. Binghamton is now collecting the latter. Schenectady considered an admission levy last year but dropped the idea after theatre interests began a campaign in opposition. Gov. Dewey, who approved the 1947-1948 statutes, recommended in his annual message to the legislature in January that the Federal government withdraw from admission and gasoline taxes, leaving those to the states. Following a protest by Abram F. Myers, COMPO tax committee chairman, Dewey slightly changed his position. Communities in other states are also levying admission taxes, the number doing so being on increase. Sees Exhibitor Key To Production Rate Los Angeles, Feb. 15. — Twentieth Century-Fox production chief Darryl F. Zanuck today told National Theatres executives convening at the circuit's home office headquarters here that his company probably will not make a substantially greater number of pictures this year, but may do so next, and pointed out that the decision depends on box-office, as the studio policy is to keep a steady supply of balanced product flowing to theatres. The rate of playoff and run will govern the number of pictures made, he said, but the program will continue to stress variety in subject matter under any circumstances. The executive said aggressive showmanship on the part of the exhibitor, particularly in shaping exploitation to particular communities to take advantage of na(Continued on page 8) Gould to Set 'Rose', Other Deals Here Walter Gould yesterday said he will arrange for distribution here of "Rose of Bagdad," Italian-made featurelength cartoon in Technicolor, and expects to consummate several other deals shortly. Now on his own as distribution agent for U. S. producers in foreign territories and for foreign producers here, the former United Artists foreign sales manager, returned to New York this week after a five-week tour of Europe. He said he was especially interested in "The Big Rendezvous," which concerns Americans landing in Algiers during the war, produced in Paris by Adolphe Osso. Concentration Plan For Para. Reissues In order to obtain maximum concentration in the handling of re-releases, a "bi-zonal'' plan of distribution has been developed and adopted by Paramount, it was disclosed here yesterday by A. W. Schwalberg, president of Paramount Film Distributing Corp. Under the plan, the country is divided into two zones, East and West. Two separate release dates will be assigned to each re-release, and the full national complement of prints for each production will be concentrated in one zone during the release period. The plan will make a larger number of prints available in any given area. The East zone consists of branches in the Eastern and Southern division under Hugh Owen and the Mid (Continued on page 10) Schine Is Holding Merchandising Meets Marion, O., Feb. 15. — Fifth in a series of Schine Circuit merchandising meetings is being held here today. Seymour L. Morris, director of publicity and exploitation ; Bernard Diamond, assistant to L. W. Schine ; Bill Kraemar; zone manager-booker, and Cy Fredman, Morris' assistant, are attending, from the Schine home office at Gloversville, N. Y. Another meeting will take place here Friday, and one in Lexington, Ky., on Monday. Ten managers are assigned to each meeting, to discuss product and campaigns for pictures booked for the next three months. The Federal tax repeal campaign is also being pushed. Meetings have been held in Amsterdam, Syracuse, Rochester and Buffalo. RKO Ready to Meet Terms of Decree Today Ready to Comply with Partnership Breakups RKO will file notice of compliance with the partnership-dissolution demands of its amended consent decree with the U. S. Statutory Court here today, unless a new time extension is granted. Today is the deadline for either terminating joint RKO theatre interests or taking alternative action such as filing dissolution proceedings in court as the company already has done in the case of its partnership with Walter Reade. RKO is close to a deal with Skouras Theatres on breaking up their joint operation of seven houses in the Bronx and one each in Newark and Forest Hills, and apparently has (Continued on page 10) United Para. Sets Dividend United Paramount's board of directors, at a meeting here yesterday, declared the first dividend of the new independent theatre company in the amount of 50 cents per share, payable April 20 to stockholders of record on March 31, Leonard H. Goldenson, president, announced. Under terms of the Paramount consent judgment in the anti-trust suit, 50 per cent of the dividend will be (Continued on page 10) Univ. Reduces Bank Debt to $6-Million With repayment recently of $1,500,000, Universal has reduced to $6,000,000 the amount owed to the First National Bank of Boston, the Manhattan Co. and Guaranty Trust of New York under borrowing agreements made May 1, 1947, the company has reported. The $6,000,000 outstanding includes borrowings of $2,500,000 by United World Films, a Universal subsidiary.