Motion Picture Daily (Jan-Mar 1955)

Monday, January 3, 1955 Motion Picture Daily 7 Congress (Continued from page 1) doubt as to whether Congress may not balk at the Administration's desire to extend the present excise rate on autos. There'll be little disposition right now for new excise cuts. Some Benefits Likely The industry might, however, benefit from some changes brewing in the technical tax field. The Administration is expected to repeat the request it made last year that some U.S. firms pay 27 per cent less tax on income earned overseas and also avoid payment of U.S. taxes on blocked funds overseas. The big question is whether the Administration has changed its thinking to include film companies in the group entitled to these tax breaks. Last year's recommenedation excluded the film companies and certain other industries, and this was one of the reasons that Congress removed this provision from the huge technical tax relief bill. The administration is also reported to be considering asking Congress to ease the taxation of capital gains, something which would be of interest to all industries, and also to provide special tax relief for actors, lawyers and other people with fluctuating incomes. Both proposals would face tough sledding in the Democratic Congress. Minimum Wage Law Eyed The Labor Department has reportedly been trying to sell the President on urging Congress to extend the Federal minimum wage law to retail and service trades, including theatres. The present minimum is 75 cents an hour. There may also be an attempt for some changes in the Taft-Hartley law, including the long-sought change to require actors and other studio workers to join the unions in union shop studios very soon after they start working. At present, they can work 30 days without joining, and the agitation has been to cut this to seven days or even less. In the anti-trust field, there will be new attempts to enact legislation boosting the maximum fine for anti-trust law violations and enacting a uniform Federal statute of limitations for private anti-trust suits. Moreover, the Senate Judiciary Committee has under consideration proposals for a full-scale investigation of Phonevision and other proposals for pay-as-yousee television. Industry leaders will probably line up behind Administration proposals for liberalizing U.S. foreign policies, including a three-year extension of the reciprocal trade agreements program and new lowering of U.S. import duties. Democrats in Congress have promised favorable action on this program. Lawmakers also seem ready to look with greater friendliness on money requests for the U.S. Information Agency, which carries on the government's overseas information program. Some senators favor a revival of the special Judiciary subcommittee studying juvenile delinquency, and if this group should be revived it could quite easily turn its attention to film program content, an unfinished piece of business from the last subcommittee. Several groups may look at various aspects of television. The Senate Sees Quality Films Aiding Foreign Gross (Continued from page 1) big grosses being chalked up on quality pictures in the U. S. now will be reflected abroad. Calling quality pictures "the tool" for expansion in the foreign field, Aboaf explained the reason for his over-all optimism. The quality pictures, he stated, will allow American motion pictures to penetrate foreign exhibition in depth, opening up the provinces, small towns and the subsequent run houses, some for the first time, to U. S. films. In the light of his accent on quality pictures, Aboaf was asked his thoughts on the possibilities of low-budgeted pictures in the foreign field. "The small picture won't find a book Americo Aboaf ing in today's foreign market, except in fringe areas where costs cannot be recouped." He stressed his belief that low-budgeted pictures cannot compete with high quality pictures either at home or abroad, adding that foreign patrons are just as selective as U. S. audiences and "demand quality." Speaking for Universal International, he forecast another record year in 1955 for foreign earnings, the fifth successive year of increased income from abroad for the company. Recognizes Several Problems Aboaf interjected his expressions of optimism with the acknowledgement that the foreign field will offer problems in 1955 as in the past and that there will be trouble-spots. However, he went on, quality pictures — again using the phrase — will be "the tool" which will compensate for what may be sporadic reverses in some territories. The Universal-International executive contended that the "momentum" whipped up by the quality pictures of individual American companies aids all American films, as well as the films of native foreign producers. In a free competitive market, he added, all films, native and others, profit by bigger audiences, regularly patronizing a theatre. Sees Wide-Screen Wanted In the foreign field, Aboaf continued, wherever wide screen systems have been installed in theatres, receipts have gone up appreciably at the start, levelling off thereafter. But, he added, the new level is higher than the previous rate of business. "We would like to see foreign admission prices adjusted upward," he went on, an adjustment to coincide with increased production costs and increased entertainment values offered by the foreign theatres by their new installations. Says Product Is Balanced In the foreign field, he continued, there generally is no shortage of U. S. product, explaining that local product takes up the slack, that quality pictures enjoy longer runs and that many of the low-budgeted U. S. films made heretofore were never shipped abroad. Eisenhower Message Thursday May Avoid Film Commitments From THE DAILY Bureau WASHINGTON, Jan. 2.— President Eisenhower's State of the Union Message to Congress on Thursday will reportedly urge the lawmakers to consider expanding the coverage of the minimum wage law, but not detail exactly what fields the administration wants to cover. One question has been whether the Administration would try to take in the so-called service industry, including motion picture theatres. They are now exempt from the Federal law. The Labor Department, it has been reported, favors taking in the retail and service firms, and presumably will make this recommendation when it is called to testify on the subject before the House or Senate labor committees. But President Eisenhower's message this week will leave the subject vague, it is declared. The question of expanded coverage is expected to start a bitter fight on Capitol Hill. Tax-Issue May Be Skirted The President is also reported ready to ask for an increase in the minimum wage from 75 cents an hour to 90 cents, and this would probably be less controversial than the expanded coverage. The State of the Union Message will also likely be vague on the Treasury Department's recommendation for easier tax treatment of income earned overseas. It is expected that the President will ask for this, but add that the exact details will be submitted by the Treasury later Commerce Committee still has continuing from last year a comprehensive investigation of the need for Federal regulation of television networks, and the House Commerce Committee may revive an old investigation oLthe content of radio and television programs. Census Questionnaire To Trade This Week From THE DAILY Bureau WASHINGTON, Jan. 2. — The Census Bureau mails out this week its comprehensive business questionnaire to almost every producer, distributor, exhibitor and service firm in the motion picture industry. The questionnaire will seek detailed information about practically every operating aspect of the motion picture business in 1954. It will go to every industry firm except those which have no employes ; the bureau will get the information it needs about these firms from income tax returns filed. First Time in 15 Years The forthcoming survey will mark the first time in 15 years that the entire industry has been surveyed at the same time. A census of producers and service firms was taken in 1948, and one of distributors and exhibitors in 1949, but they have not been taken jointly since 1940. It will also mark the first time that the entire industry has been surveyed by the same Census Bureau division. This means that information about the different branches of the industry will be better correlated than heretofore. Previously, producers were surveyed by the bureau's manufacturing branch, distributors by the wholesale branch and exhibitors by the service branch. Cinerama N.Y. Gross Seen at $4,500,000; Bows Out on Feb. 6 "This Is Cinerama" will have grossed an approximate $4,500,000 by Feb. 6 when the first production in the wide-screen, Cinerama process completes its engagement at the Warner Theatre on Broadway and is withdrawn from circulation, it was announced at the weekend by the Stanley Warner Corp. 'Cinerama Holiday' to Follow Shortly after the closing of "This Is Cinerama," the second featurelength film, "Cinerama Holiday" will have its world premiere with the date to be announced. The initial presentation of "This Is Cinerama" took place in New York on Sept. 30, 1952, and since then will have played to approximately 2,500,000 patrons, S-W said. Denies Ascher Deal A report that Stanley Ascher had scheduled "Rendezvous in Paris," by Rudolph Friml, for production was denied at the weekend by Dailey Paskman who, with Victor Clement, collaborated on the screenplay. Paskman said the property had not been sold and that no arrangement had been made with Ascher. IN MEMORIAM Clmer $earsion The Motion Picture Pioneers marks with sorrow and a deep sense of loss the passing of one who contributed much to the development of the Motion Picture Industry.