Motion Picture Daily (Oct-Dec 1950)

r ILL COPY MOTION PICTURE DAILY VOL. 6<M NO. 96 NEW YORK, U.S.A., FRIDAY, NOVEMBER 17, 1950 TEN CENTS IFree Blocked IFunds from Tax: MPAA IS Johnston Gives Views At Profit Tax Hearing Washington, Nov. 16. — Blocked funds earned in years prior to the first excess profits tax year should not be subject to an excess profits tax when they are later converted into dollars, Eric Johnston, president of the Motion Picture Association of America, is scheduled to tell the House Ways and Means Committee this morning. Johnston terms the problem of frozen funds "an outstanding point that concerns the MPAA vitally in the drafting of excess profits tax legislation." MPAA member companies have millions of dollars in blocked funds, all earned since the war, Johnston (Continued on page 4) Excess Profits Tax on TV Stations Would Be Extremely Hard, Says NAB Washington, Nov. 16.— The problem of applying an excess profits tax to television stations "is perhaps as serious and extreme as any that you will consider," the National Association of Broadcasters told the House Ways and Means Committee today. Ralph W. Hardy, NAB's director of government relations, pointed out that TV stations during the base period suggested by the Treasury were frequently "matching experience to see who could claim the distinction of losing money at the greatest rate," with staggering operating losses which were carried either by siphoning off earnings from AM-FM broadcasting or hy heavy investments of risk capital. Paramount Profit For 3rd Quarter Was $1,745,000 Paramount Pictures Corp. estimates the earnings of the corporation and its consolidated domestic and Canadian subsidiaries for the third quarter ended Sept. 30 at $1,745,000 after provision for income taxes. These earnings do not include $298,000 representing Paramount's net interest in the combined undistributed earnings for the quarter of partially owned non-consoli (Continued on page 4) 400 at Pioneers' Dinner in Tribute To Spyros Skouras Spyros P. Skouras, president of 20th Century-Fox, was honored last night as the "Pioneer of the Year," by more than 400 members of the Motion Picture Pioneers at their mid-century dinner at the Hotel Waldorf-Astoria here. Skouras was presented with a bronze plaque inscribed to "an adopted son who taught the native born to prize Americanism ; a fighter for freedom filled with unceasing zeal for our way of life, a dedicated leader to the proposition that the screen is the unfettered servant of mankind." Among the speakers at the dinner were Eric Johnston, president of the Motion Picture Association of America, and Jack Cohn, founder and president of the Pioneers. George Jessel was master-of-ceremonies. More than (Continued on page 3) Carton Barron, 46 Dies in Washington Washington, Nov. 16. — Carter Barron, 46, Loew's Eastern division manager and Washington studio representative for Metro-Goldwyn-Mayer died at his home here today. He had been ill, intermittently, for the past year. He was born in Clarksville, Ga., and was graduated from Georgia ^ Tech, where he and his brother, "Red" Barron, became nationally famous as grid iron stars. He entered the motion pic ture industry in 1927 as manager of the Fairfax Theatre, Atlanta, and, subsequently, managed the Capitol (Continued on page 4) SWG Leans Toward Strike Action; Tunberg Elected Hollywood, Nov. 16. — The Screen Writers Guild membership last night unanimously adopted a resolution authorizing the Guild directorate to call a special membership meeting within two weeks to consider a strike vote against the studios. The action followed a detailed report by retiring SWG president Valentine Davies on contract negotiations with producers, which he said have broken down on three major points. New officers elected by the SWG are: Karl Tunberg, president; Edmund L. Hartman and Leonard Spigelgass, vice-presidents; Davies, treasurer, and George Oppenheimer, secretary. Negotiations have been in progress, formally and informally, since the ex(Continued on page 3) Compo Board Sets New Dues Billing Plan Approves Program for Contest and Festival The executive board of the Council of Motion Picture Organizations, meeting at the Hotel Astor here yesterday, took positive action on two proposals designed^ to improve industry public relations, and establishednew mechanics for collectingexhibitor payments. . to finance the all-industry organization. Following a report by Robert J. O'Donnell, COMPO treasurer, which showed that the method of billing exhibitors on a monthly current basis was proving impractical, the board agreed that the initial billing system should be on the basis of one-tenth of one per cent of individual exhibitor's films (Continued on page 4) Allied Parley Is Drafting Methods to Curtail Bidding Army Quick Steps To 'Breakthrough* An audience of military "brass," government officials, society leaders, veterans of Korea and Normandy and publishing, radio and film industry representatives last night filled the Strand Theatre here to pay tribute to the men of the First Division of the Army at a special premiere of Warner's "Breakthrough." Mrs. Perle Mesta, U. S. Minister to Luxemburg, was a guest of honor with officers and men of the First Division. The three generals who were with the Division at Normandy, Lt". Gen. Clarence R. Huebner, then Division Commanding General; Maj. Gen. Willard G. Wyman, who was Deputy (Continued on page 3) Allied States' committee on competitive bidding convened here late yesterday afternoon and settled down to hammering out new proposals to be presented to distributors and, if the need arises, to the Department of Justice. The present sessions, which will continue today, will be confined to policy talks by the committee members and no conferences with distributor representatives are planned at this time, it is understood. On hand at the Warwick Hotel were Abram F. Myers, general counsel ; H. A. Cole, Dallas ; Nathan Yamins, Boston; Sidney Samuelson, Philadelphia, and Ray Branch, Hastings, Mich. Only absentee was Jack Kirsch of Chicago, who has suffered (Continued on page 2) Compo Board Meet To End With TOA Dispute Unsettled The dispute between the Theatre Owners of America and the Council of Motion Picture Organizations, regarding TOA's demand for increased representation in the membership of COMPOs executive board, will remain unresolved tonight, at the termination of COMPOs two-day executive board meeting here at the Hotel Astor. (Continued on page 3) Compo Should Give Tax Stand: Myers The film industry's position on the impending excess profits legislation could well be presented by the Councd of Motion Picture Organizations, Abram F. Myers, Allied States general counsel, said here yesterday. He cited the hearings in Washington as a situation which "naturally falls within the purview" of COMPO. Myers made this observation when queried whether Allied intends to appear before either Senate or House groups holding hearings on an excess profits levy. He said no final decision had been made on the matter. (Continued on page 2)