Motion Picture Daily (Jul-Sep 1954)

MOTION PICTURE DAILY VOL. 76. NO. 17 NEW YORK, U.S.A., MONDAY, JULY 26, 1954 TEN CENTS Tradewise . . . By SHERWIN KANE NEW YORK CITY exhibitors pinpointed a glaring flaw in the municipal five per cent adnnission tax which went into effect July I in their Suprenne Court suit, decided in their favor last week. They charged, and the court agreed, that the tax scale imposed upon motion picture theatres by the city, in some specific price instances, resulted in a tax of nine per cent. The enabling act under which the state authorized the city to impose an admissions tax limits such tax to a maximum of five per cent of the ticket price. Unfortunately, the city's presumption in helping itself to a tax almost double the amount it is legally entitled to, does not invalidate the entire tax ordinance. The city can continue to collect what the state enabling act authorizes it to, but no more. It is recalled that the city's financial "experts" gave some confused estimates of the probable yield of the tax during public hearings prior to its adoption. The explanation might be that some of the city's estimates were based on an illegal nine per cent tax, if they got away with it, and others on the authorized five per cent tax, in the event they didn't. City financial authorities would be well advised now to re-appraise their income not only in the light of the Supreme Court decision with respect to the admissions tax, and the cost of collecting and policing that levy, but also in the light of the effect of that d ecision on the city's three per cent sales tax collections. These, too, have been confiscating an apparently illegal share of breakage where the tax amounts to less than one cent but more than a half-cent. There is the possibility of recovery suits being instituted against the city involving millions of dollars in that field. • There is also in the offing the possibility that the state will revoke {.Continued on page 2) RKO Extends Stock Purchase Period To Sept, 30 to Hughes and ^Holders Another extension of time in which stockholders of RKO Pictures may exercise their privilege of tendering stock to the corporation for redemption at $6 per share was authorized by the board of directors at the weekend, this time until Sept. 30. The board also extended to the same date the period within which Howard Hughes may accept the company's offer to purchase from him, at $6 per share, all or any portion of the 1,262, 120i shares of stock owned by him. The previous deadlines had been next Saturday. At last reports, RKO stockholders had tendered an approximate 900,000 shares of stock for redemption. Hughes, however, has not indicated one way or the other whether he will accept the corporation's offer to buy his holdings. Meanwhile, the outcome of the Hughes-Floyd Odium maneuvers for the ultimate control of the company remains speculative. For the last few weeks, there have been reports that an announcement of the wrap-up of the deal could come "any minute." Para, to Celebrate 40th Anniversary With Sales Drive The 40th anniversary of Paramount Pictures, 1914-1954, will be celebrated this autumn by the Paramount sales organization with a national sales drive titled, "Paramount's 40th Anniversary— A Salute to the Future." The drive, envisaged by the sales organization as the biggest event of its kind in the company's 40-year history, will open Aug. 29 and continue for 14 {Continued on page 8) Loew Gets Another 6-Month Extension To Divest 8 Houses WASHINGTON, July 25.— Loew's has received another six months extension of its divestiture deadline. Under the original consent decree, Loew's was to have gotten rid of 25 theatres by Feb. 6, 1954. Early this year, this was extended to Aug. 6, and now the Justice Department has agreed to extend it again until Feb. 6, 1955. Justice officials said Loew's still has eight theatres to dispose of. Appeal 'Mandatory' NYC Theatres Map Strategy Move on Tax Set Tentative Dates Allied Meeting With Sales Heads May Start Aug. 17 WASHINGTON, July 25.— Allied States Association's committee to meet with distributor heads now hopes to hold those meetings starting ■ on Aug. 17, Mexican Government Enters Film Strike MEXICO CITY, July 25. — The Meanwhile, Hearing in Queens Court Postponed By FRANCIS BACKILMAN Exhibitors and attorneys representing five Queens theatres which won a temporary injunction last week re-, straining a provision of the New York City five per cent amusement ta.x, at the weekend called a strategy meeting for tomorrow morning to map future plans in their opposition to the tax. The meeting, at which suing exhibitors and their lawyers will discuss the latest developments in the tax picture and devise new strategy, will be held tomorrow morning in the offices of Joseph R. Vogel, Loew's Thealtres vice-president. The new development postpones a hearing previously set for today in Supreme Court, Queens, at which exhibitor and city attorneys were to have filed orders for the court to sign. The exhibitor order, when presented, will be argued along with the form of order to be drawn up by the city. Amount {Continued on page 8) Mexican Labor Ministry was earnestly attempting to end the National Cinematographic Industry Workers Union strike at the weekend which closed 1,237 theatres and the offices of 23 American and other foreign distributors here. The government is eager to end the strike because of the popularity of films in this country and the heavy loss in taxes which will result. The union ordered the strike in order to secure a 35 per cent blanket pay increase after an all-night session where an employers' offer was rejected. The Cinematographic Workers want to have the same pay scale throughout Mexico, After talking by long-distance telephone to Allied president Ben Marcus, general counsel Abram F. Myers said Wilbur Snaper, president of New Jersey Allied, who is arranging the meetings for Allied in New York, would be asked to try to set up sessions with the various companies for Aug. 17, 18, 19 and 20. Allied's committee is planning to discuss its complaint that high rentals have been depriving exhibitors of the benefit oi the recent excise tax cut and other charges against the distributors. Myers explained that Allied preferred to hold the meetings starting the 17th because those days are just before Allied's summer board meeting in West Virginia, and thus Allied officials from the West could make both the New York sessions and the board meeting on one trip. Johnston to Address IMPDAA on Aug. 9 Eric A. Johnston, president of the Motion Picture Association of America, will address a closed membership meeting of the Independent Motion Picture Distributors Association of America at a luncheon on Aug. 9 at Sardi's Restaurant here, it was announced by Arthur L. Mayer, IMPDAA president. Johnston will fully explain the newly concluded motion picture contract with the French government. IMPDAA members are said to be greatly {Continued on page 8) 'Brides' Opening Day Sets RCMH Record The biggest opening day gross ever recorded at the Radio City Music Hall was announced at the weekend. The M-G-M CinemaScope production, "Seven Brides For Seven Brothers," grossed $25,100 on opening day Thursday. ,