Motion Picture Daily (Jul-Sep 1956)

■1 Motion Picture Daily Friday, July 27, PERSONAL MENTION ARNOLD PICKER, United Artists vice-president in charge of foreign distribution, will return to New York over the weekend from Paris. • Silas Seadler, M-G-M advertising manager, will leave New York today for Hollywood. • " Jeff Livingston, Universal Pictures Eastern advertising manager, has returned to New York from Europe. • Irving Wormser, general manager of Distributors Corp. of America, will return to New York today from Toronto. • George Weltner, president of Paramount Film Distributing Corp., and Hugh Owen, vice-president, have returned to New York following a tour of Ohio and upstate New York. • Maurice Silverstein, liaison between M-G-M and independent producers, will return to New York from the Coast on Monday. • Sol C. Siegel, producer, returned to New York yesterday from France. He is en route back to the Coast. • Robert Vogel, M-G-M studio executive, will arrive in New York on Sunday from the Coast. Tax Bill Goes to Eisenhower WB, PRM finalize Film Library Deal WILMINGTON, Del., Jul 26 Warner Brothers Pictures and PRM, Inc., have finalized their agreement involving the sale of the film company's pre1949 film library to television for $21,000,000, it was jointly announced here today by Ben Kalmenson, executive vice-president of Warner Bros., and Maxwell Goldbar, vicepresident and treasurer of PRM. The Warner Bros, film library which was sold to television includes over 750 features and over 1,500 shorts and cartoons. The agreement to sell the library was entered into last March when a memorandum of sale had been entered into by both parties, subject to certain conditions, mainly a Treasurv Department ruling pertaining to taxes involved. Since the March 1 agreement, PRM had acquired control of Associated Artists Productions which is distributing the Warner produot to television. bill was reported by the House Ways and Means Committee Monday of last week until final approval today. Industry leaders will now turn their efforts to attempting to prevent a Presidential veto of the measure. The deadline for a Presidential decision is not yet known; he has ten days from the time he receives the bill to make up his mind, but it may be several clays before the bill is actually delivered to the White House and the time limit starts running. Pocket Veto Possible Since Congress almost certainly will not be in session when the president's deadline arrives, he could, if he decides against the bill, pocket veto itkill the bill without Congress having a chance to override the veto. On the other hand, it also means that he could, if he didn't particularly like the measure but was not prepared to veto it, let the bill become law without his signature— something he can do only when Congress is not in session. If the President does approve the bill or let it become law without his signature, the increased exemption would go into effect September 1. The bill sent to the White House would not make any reduction in the tax on tickets selling for more than 90 cents— the 10 percent levy would apply to the full amount of these tickets. Compo Expects Approval Officials of the Council of Motion Picture Organizations, elated over the speedy action on the bill, were also increasingly optimistic that the President would approve the measure, rather than giving it the pocket-veto treatment he accorded the admission tax repeal bill in 1953. This hope was re-enforced by remarks made by Sen. Kerr (D., Okla.) during Senate debate on the measure. Asked by Sen. Holland (D., Fla.) why the finance committee had lowered the House-approved $1 figure to 90 cents, Kerr, a committee member, replied that the committee had wanted to pass the bill as it came from the House. Treasury 'Advice' Seen However, he went on, "we were advised that there was a better than even chance of its being vetoed if the provision providing for a tax reduction for admissions up to $1 were retained. We were also advised that there would be a much better chance to have the bill approved if the taxes were eliminated up to some lower figure than $1." Kerr did not say, but the implication was clear that the "advice" came from the Treasury. Holland replied that he was very sorry that "the attitude of those in ( Continued from page 1 ) high places financially in the government have operated to withhold relief from a very important part of the motion picture industry." Two-Party Support COMPO officials were also cheered by the strong support for the bill from both Republicans and Democrats. Not a single voice was raised against the bill during the brief Senate debate, and the only criticism of the committee action was for lowering the $1 figure. The COMPO officials were also counting on the influence that Finance Committee Chairman Byrd (D., Va.) has with the Treasury to influence Secretary Humphrey against a veto. Byrd told the Senate today he was "strongly in favor" of the bill, and pointed out that he had called a special meeting of his committee to act on it. He also emphasized that the committee had approved the bill unanimously. Nonetheless, the veto threat does remain. The Treasury did oppose the bill on its way through Congress, citing a $70,000,000 annual revenue loss from the $1 figure and a $60,000,000 loss from the 90 cent figure. Called Up by Johnson The bill was called up in the Senate for action this morning by majority leader Johnson (D., Tex.). Among those speaking for it, in addition to Byrd, Kerr and Holland, were Senators Schoeppel (R., Kans.), Smathers (D., Fla.), Morse (D., Ore.), Fulbright (D., Ark.), and Bush (R., Conn.) Schoeppel recalled that as a member of the Small Business Committee he had sat through "many days of hearings in which the motion picture theatre owners have painted a dreary picture of their operations." He admitted that tax relief would not be "a magic formula to put the industry on its feet," but said there was "an utter necessity for some relief for these hard-pressed businessmen." Points to Closings Bush said he was sorry that the $1 figure had not been retained, but that he was glad that "small theatre operators all over the country will still be afforded some very welcome relief." Smathers declared that some 40 per cent of the nation's theatres have closed in recent years, and said this meant not only unemployment but a great deterioration in property values. The admissions tax, Morse said, should be eliminated entirely. However, he added, he agreed that "we must take one step at a time. Fulbright said he too regretted the departure from the $1 figure, and that he knew of "no industry which needs relief more." (Continued from page 1) ager of the Interstate Circuit, Di paid tribute to what he termed fantastic job of public relations," he added, "I am hopeful and prs ful that the measure will not be toed by President Eisenhower— aii certainly see no reason why it shl be." Sol Schwartz, president of RKO 'i atres, said the Federal admission* "is discriminatory and should ' been removed before. I am pleased and encouraged by the j ate's action and I hope it helps box office." Pat McGee, veteran exhib; leader, said he is naturally happ the Congressional action, but felt industry still had to postpone anyi celebration until it knew what: President's stand would be on the; islation. Sam Pinanski, president of Am can Theatres Corp., presented a s lar reaction. He said he was tremely grateful that the House _ Senate are so familiar with our] dustry's problems and that they; willing to do something to heir pull ourselves out of our distre situation." However, he added, "wi I come from, you don't count ' real estate deals until the papers passed and the deeds recorded." Judge Harlan Palirn Dies on Coast at 71 HOLLYWOOD, July 26 Jib Harlan G. Palmer, 71, publisher-ec 1 of the "Hollywood Citizen-News" if 45 years, friend and often spokes I for the motion picture industry, i| last night of cancer, at Good San • tan Hospital, after four months hospitalization. Private funeral vices will be conducted Saturday The deceased was Hollywood's I practicing attorney, and served a ti as judge, in addition to other activ l as civic leader. His widow, sons II lan, Jr., Byron, Ralph; daughter, Ijf' gy; brothers, William, Orlando T., I sister, Zuma, who is a radio-televi n editor, survive. The Los Angeles city council journed today in his honor. 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