Motion Picture Daily (Oct-Dec 1954)

Thursday, December 16, 1954 Motion Picture Daily 5 Tax Fight (C ontimicd from page 1) Atlas stockholders recently that he hoped to reach an agreement with Hughes before the Dec. 31 deadline. Odium told Atlas stockholders that the inactive RKO Pictures company has cash and a capital-loss-carryforvvard and that "it should get organized to make profits to offset these losses because time is running." Clarified by Grainger Grainger, reporting on the Tuesday night meeting of RI'CO Pictures board, emphasized the following to stockholders : "No stockholder is required to tender his shares for redemption, and any stockholder may refrain from doing so. If he does not tender his stock, he will continue after the expiration of the redemption period to be a stockholder, having his pro rata interest in the holdings and affairs of the company." There are still outstanding, registered in the names of about 4,500 per sons, between 700,000 and 800,000 shares of stock, exclusive of the stock owned by Hughes and Atlas Corp. and its associates, Grainger added. "Your management makes no recommendations whatever as to whether stockholders should or should not tender their stock for redemption prior to the expiration of the redemption period," Grainger concluded. Active in Wall Street Despite the apparent stalemate in the status of the stock, RIvO Pictures shares ciantinucd to hold the interest of speculators on the New York Stock Exchange yesterday for the second consecutive day. There were nearly 30,000 shares traded, with the closing up Yi to 8^, a new high for the year and $2.25 per share more than the $6 which the company will pay to holders other than Hughes who surrender their shares in the period between now and Dec. 31. election of Averill Harriman as L^emocratic governor of the state, have felt that possible relief from the New York City levy, which is being fought on the grounds that it exceeds the five ])er cent authorized under the State Enabling" Act of 1947, may be forthcoming as tile cit}' may possibly secure more financial assistance from the new state administration and result in a number of taxes, now in effect, to be revised or eliminated. Repeal Seen Unlikely Some time ago, the local theatremen had planned to ask the state legislature at its next session to amend or repeal the Enabling Act which allows municipalities to enact taxation as the amusement levy. Now, it appears to some exhibitors that while the new administration would not be likely to repeal the 1947 legislation, it would be more likely inclined than the present administration to give the city some of the increased financial assistance it had been requesting. If this were done, some industry observers feel, the need for the admissions tax might be removed and the city might repeal or end it voluntarily. In this connection, it is recalled that Mayor Robert F. Wagner allegedly attempted to place the responsibility for the city ticket tax directly on the state government last spring, on the grounds that refusal of state fiscal aid for the city forced the latter to adopt such measures as the nuisance tax. These observers remarked that if the new state administration now grants more fiscal aid to New York City, the sincerity of Wagner's statements of last spring would be put to the acid test. Direct Appeal Expected At today's exhibitor meeting, it is expected that some sort of direct appeal to Governor-elect Harriman may be framed as the current tax suit could possibly reach the Court of Appeals in Albany, pending, naturally, the Appellate Division's decision. In the meantime, reports on the second tax payment which covers September, October, and November, indicate to high exhibitor officials that the yearly tax return as estimated by the City Budget Director earlier this year, would be far less than expected. The first tax payment on Sept. 20, which was collected from all sources of amusement revenue, totaled $1,291,949. The 436 local theatres contributed about $750,000 for the July and August period of the total tax collected, mainly due to the peak summer business attained here. Canada Labor {Continued from page 1) introduction of a resolution of the Ottawa and District Trades and Labor Council which opposes any "meddling" with Sunday restrictions. Unions of projectionists and stage employes are members of the Ottawa Council while prominent in the affairs of the provincial Federation is Hugh J. Sedgwick, a Hamilton, Ont., projectionist who is the International vice-president for Canada of the lATSE and also a director of the Canadian Picture Pioneers. His predecessor in office, the late William Covert, took an active stand against the open Sunday. (Continued from page 1) the offer leaves everything in status quo with RKO Pictures, a shell of a corporation whose only assets consist of cash, stalemated in its efforts to redeem the major portion of its stock. Grainger, reporting on the company's activities since the sale of RKO Radio Pictures, the operating company, to Hughes, for $23,489,478 last March, said a total of 952,987 shares of the stock of RKO Pictures had been tendered by stockholders and had been redeemed up to the close of business on Tuesday. Considered by Odium Grainger in his stockholders letter estimated the company's capital-losscarry-forward as much as $30,000,000 under the recently enacted new Federal tax code. This capital-loss-carryforward was referred to by Atlas president Floyd Odium when he told WB to Distribute Hall Bartlett Film HOLLYWOOD, Dec. 15.— Completion of a deal for world-wide presentation by Warner Brothers of Hall Bartlett Productions' "Unchained," is announced. The picture, starring Elroy Hirsch, Barbara Hale, Chester Morris and Tim Considine and introducing Todd Duncan, has as its background California's prison without bars, officially the Institution for Men at Chino. "Unchained'' was filmed in its entirety at the Chino Institution, with the sanction of Richard A. McGee, director of the state's Department of Corrections and with most of Chino's 1,500 inmates participating in the action. Hargrove Service Control to Dale Dale System, Inc., nationwide business research organization, has acquired control of the Hargroves National Service System, Inc., which functions as a testing service for honesty and efficiency in the motion picture theatre field, it is announced by Earle E. Gold, executive vice-president of Dale. The Hargroves organization, headed by Mrs. Florence Groves, will now operate as the Hargroves Theatre Division of Dale System, Inc. No changes in personnel or operating methods are planned at this time. Gold stated. Burton Finishes 1st Of Three Pictures Paul Burton-Mercur, film writer and producer, has completed his first full-length film, "Dark Violence," for Burton Picture Productions, Inc., which he organized a year ago to produce three motion pictures annually. Scheduled productions for 1955 are "Moon Gate," a story dealing with an American medical missionary in China; "Lucrezia," a psychological musical tragedy to be filmed in Italy ; and "Tanya," a dramatic comedy. 3 From UA in Jan. "Black Tuesday," "The Beachcomber" and "Battle Taxi" have been set by United Artists for national distribution in January. ¥/estrex Closes 13 License Agreements E. S. Gregg, president of Westrex Corp., announces that 13 new motion picture recording and disk license agreements have been completed recently with studios in the United States, Japan, England, Italy and Hong Kong. The studios which have installed the Westrex studio recording" equipment are : Yokohama Cinema Corporation, Yokohama, Japan ; Magna Theatre Corp., Nevi' York ; Leevers-Rich & Co., Ltd., London ; Color Reproduction Co., Hollywood ; Gr. Cr. Rag. Vincenzo Cardi, Rome; Carlos C. Rivas, Hollywood ; Beeland-King Productions, Atlanta ; Information Productions, Inc., New York ; Osaka Sangyo K. K., Osaka, Japan; Langlois Filmusic, Inc., New York; and Asia Pictures, Ltd., Hong Kong. Burford & Rose, Ltd., London, and Electric & Musical Industries, Hayes, Middlesex, are the new disk recording" licensees. Silliphant, Barnwell To Make 'Huk' in P, L HOLLYWOOD, Dec. 15.— Stirling Silliphant and John Barnwell, who have just completed production of the Guy iVfadison-Kim Novak starrer "5 Against the House" for Columbia, will leave early in January for Manila to finalize plans for producing "Huk 1" a modern love story with the current Philippino guerrilla warfare as a background. Production, to be in color and widescreen, is scheduled for a mid-March start, with Hollywood talent to be used in all principle roles. Negotiations for release of the film are now in progress. Name Gookin Liaison Between RCA, AAF Frank M. Gookin, veteran theatre service engineer for RCA in New England, and a well known figure in the industry in that area, has been promoted to another field with RCA. He will serve in its government operations division as liaison between that company and the Air Corps with headquarters at Andrews Air Base, Washington. S chine Trial (Continued front page 1) names of J. Myer Schine, president; Louis W. Schine, secretary-treasurer, and John A. May, Comptroller as among officers elected. Minutes of a special meeting of the corporation's board of directors on Nov. 3, 1952, reported the election of G. David Schine and Donald G. Schine as vice presidents. G. David Schine is the former investigator for the McCarthy Committee. Asked where Hildemart has its principal offices, Miss Torrey said she didn't know, except that for purposes of tax returns the address is 40 Main St., Gloversville, N. Y. That is the address of the Schine Chain Theatres, Inc., headquarters. RKO Sales Meeting (Continued from page 1) manager, will preside at the conference at the Jung Hotel here. Sales personnel from the field who are attending include : Ben Y. Cammack, Southwestern district manager ; Dave Prince, Southeastern district manager ; S. M. Sachs, Dallas ; R. V. Reagin, Memphis ; R. B. Williams, Oklahoma City ; R. C. Price, Jacksonville; I. P. Stone, Atlanta; R. F. Branon, Charlotte, and J. R. Lamantia. New Orleans. Lancaster to Direct 2nd Burt Lancaster, who recently completed his first motion picture directing effort with "The Kentuckian," will direct a second film, "Until They Sail," based on a James A. Michener story of New Zealand in World War II and the effect on the island of the departure of the young male population. The film will be a Hecht-Lancaster production for United Artists release. YOU CAN ALWAYS DEPEND ON FOR THE REST ! SPECIALS TRAILERS