Motion Picture Daily (Jan-Mar 1951)

MOTION PICTURE DAILY Accurate Concise and Impartial VOL. 69. NO. 45 NEW YORK, U.S.A., WEDNESDAY, MARCH 7, 1951 TEN CENTS Tax Threat A Possibility in New Hearings Treasury May Change Its Stand on New Revenue Washington, March 6. — The film industry, which in the Administration's original taxation program avoided a request for direct new taxes, may not fare as well in further methods to be asked to raise more money. The House Ways and Means Committee plans to ask Secretary of the Treasury Snyder to return shortly to outline his proposals for raising still more revenue than the $10,155,000,000 which his earlier plan would bring in. When he testified on that plan, Snyder said there was no need for new taxes on the film industry "at this time." Whether the Treasury's views have changed is what now remains to be seen. The President and Snyder told Congress they wanted to handle taxes in two packages— a $10,155,000,000 first bill and another later bill to make up whatever is needed to put the govern (Continued on page 2) ONTARIO EXHIBITORS GET TAX CUT SECOND IN TWO YEARS AAA Now Covers Whole of U. &, On 24-Hour Basis The American Arbitration Association, whose facilities have been made available to the motion picture industry, has expanded those facilities to "every industrial nook and cranny" and has alerted its 12,500 arbitrators to be on 24-hour call to settle labor and business disputes anywhere in the country, A. C. Croft, AAA president declared' last night. (Continued on page 4) Toronto, March 6. — In his budget speech today, Premier L. M. Frost gave exhibitors of Ontario a pleasant surprise when he announced an early reduction in the provincial government's amusement tax from 15 to I2y2 per cent of the face value of admission tickets. One year ago the tax was reduced from 20 to 15 per cent. The new reduction will most likely become effective on April 1, as was the case last year. The Ontario government leader revealed that the admission tax revenue for the past fiscal year was $6,400,000 and estimated that even with the reduction the provincial ticket-tax receipts for the next 12 months would be $6,000,000. . By further comparison, the federal government, which previously collected the war amusement tax derived $6,300,000 from Ontario theatre patrons in 1949 when the im (Continued on page 4) Real RKO Divorce Means Hughes Sells Theatre Stock: US UK Circuits Failed To Meet '50 Quota London, March 6. — Britain's three major circuits, Odeon, GaumontBritish and Associated British Cinemas, were unable to meet Britain's 40 per cent quota last year, a report released today by the Board of Trade for the quota year ended last Sept. 30 reveals. British pictures played by the three circuits attained only a 35 per cent average. Total quota defaults of the circuits were 756, which accounted for 32 per cent of total defaults. In all, 1,510 theatres were granted reduced quotas ranging from 36 to .10 per cent. After (Continued on page 4) Washington, March 6. — The Justice Department told the New York Statutory Court today that it must set a time limit for the sale of Howard Hughes' holdings in RKO Theatres in order to "insure that the RKO divorcement is one in fact as well as in theory." The Department's statement was contained in a 21-page brief filed with the court in connection with a Justice motion to force Hughes to sell his theatre stock. The Hughes argument that it has never been proven that his ownership of 24 per cent of the company's stock gives him control was referred to in the Government brief as "a red herring." It is clear, Justice argued, "that (Continued on page 2) Military B onus to Columbia Servicemen Columbia will grant military bonuses to its employees. Retroactive to Jan. 25, 1950, the rate structure calls for two weeks' salary to employees leaving for military duty after six months with the company and four weeks' salary for those who leave after one year, it was announced here. Stresses 'Hardship' Building Approval Washington, March 6. — National Production Authority officials today stressed that present NPA policy permits—on a hardship appeal basis — building of theatres in areas where they are needed to take care of an influx of war workers, Army camps or other expanding populations. This was their comment on the request of J. Robert Hoff of the Ballantyne Co., for a meeting of the Equipment Advisory Committee to discuss liberalization of the construction limitation order to permit such building. "Everything he asks for is already (Continued on page 2) Change Paramount's Release Schedule 1st Industry Post -Freeze Pay Hike Pact IATSE, 20th Fox to Go To WSB on DeLuxe Deal A. W. Schwalberg, president of Paramount Film Distributing Corp., reports the following changes in the company's release schedule : "Passage West," originally set for June with "Dear Brat," has been moved back to July. In its place, Paramount will release in June two re-issues (titles to be announced). The July program will now consist of "Ace in the Hole" and "Passage West." "Warpath," originally due in July, has been pulled, and a new release date will be announced. To the August list of a "A Place in the Sun" and "That's My Boy," Paramount (Continued on page 4) Ohio Drive-ins Hit Proposed Tax Boost _ Columbus, O., March 6. — Opposition to the proposed bill in the Ohio legislature which would allow township trustees to levy three per cent admission taxes and to the proposal to reinstate the state three per cent admissions levy was voiced at a meeting of the Ohio Drive-in Theatres Association here today, attended by ISO persons. Members also went on record in (Continued on page 2) With a Wage Stabilization Board ruling pending on appeals for relief within the industry from the wage freeze, the IATSE has come up with the first definite pay raise agreement since the freeze went into effect in January. The agreement is with 20th Century-Fox and calls for a 10 to 12 per cent increase for its DeLuxe Laboratory office workers here. Attorneys for the company and IATSE Motion Picture Home Office Employes Local No. H-63 are seeking a WSB verdict on the agreement. That verdict, should it precede the relief ruling sought, would be in effect either a "stop" or a "go ahead" signal for negotiations everywhere in the industry. Confidence that WSB will come (Continued on page 4) 1951 Allied States Convention Set For Oct. 28 Here _ Allied States Association's 1951 national convention will be held at the Biltmore Hotel in New York next Oct. 28 through Nov. 1, Wilbur Snaper, president of New Jersey Allied, reported here yesterday following a meeting of the regional organization. The New Jersey unit will play host to the national convention delegates, hence the regional is called (Continued on page 2) Snaper, Dollinger On COMPO Board Wilbur Snaper and Irving Dollinger, president and board chairman, respectively, of Allied of New Jersey, have been named by that organization to represent it on the board of directors of the Council of Motion Picture Organizations under the new governing structure which has been voted for COMPO.