The Exhibitor (1959)

20 MOTION PICTURE EXHIBITOR August 19, 1959 Texas COMPO Wins Double Tax Cut For Exhibs As Other Levies Rise DALLAS — While the Texas Legislature has been wrestling for almost eight months through the regular and three special ses¬ sions to raise new tax money for an all-time high budget to run the state government, the forces of Texas COMPO, headed by general counsel W. O. Reed, have won further tax relief for the exhibitors of Texas. It was announced by executive director Kyle Rorex that beginning Sept. 1, the state’s motion picture theatres will enjoy a tax re¬ duction equal to that presently applied by the federal government whereby a one cent tax will be levied on admissions with a start¬ ing base of $1.06, where formerly the state rate began with a six cent tax on $1.01. This adjustment will account for a saving of more than $100,000 per year for Texas exhibitors. Reporting further, Rorex declared that the untiring efforts put forth by Texas COMPO had also gained exemption from the occupa¬ tion tax which ranged annually from $10 per theatre in the smallest town to $150 per theatre in the largest towns. Total tax sav¬ ings for theatre owners will be around $37,000 yearly. During the hectic sessions, lawmakers re¬ jected six bills containing selective sales taxes on many luxury items. Final passage of the 185 million dollar tax bill came July 30 and levied an extra three cent tax on cigarettes and 25 per cent on other tobaccos, increased the tax on corporation franchises, motor vehicle sales, gross utility receipts, natural gas, liquor and wine, and voted new taxes on boats and motors, air-conditioners, radios, TV sets, phonographs and component parts, furs, precious stones and metals, and hotel-motel occupancy. Rorex said the double-barrel tax relief came after two years work in preparing the industry hardship case. He concluded, “The theatres in Texas would probably have had additional admission taxes imposed had it not been for the outstanding work of our general counsel and the Texas COMPO tax commit¬ tee. Instead, our theatres were able to secure the only tax reduction given up and at a most critical time when many other luxury items were feeling the pinch of new tax lev¬ ies, all of which borders on the miraculous.” ABC Divides Legal Functions NEW YORK — Leonard H. Goldenson, pres¬ ident of American Broadcasting-Paramount Theatres, Inc., and Mortimer Weinbach, ABC vice-president and general counsel, an¬ nounced that because of the growth of the American Broadcasting Company and its di¬ visions, the functions of the ABC legal de¬ partment have been divided. Weinbach will continue in the senior ca¬ pacity as vice-president and general counsel for the American Broadcasting Company, in addition to his duties as Assistant Secretary of AB-PT, Inc. Omar Elder, Jr., ABC assistant general counsel, has been appointed general counsel for the ABC Television Network. Charles DeBare has been appointed general counsel for the ABC Radio Network and for the ABC owned TV-radio stations. ITOO Plans Oct. 26 Meet COLUMBUS, OHIO— The Independent Theatre Owners of Ohio will hold its 24th annual convention at the Deshler-Hilton Ho¬ tel here on Oct. 26-28. Loew's Circuit Prepares To Renovate N.Y. Capitol NEW YORK — Loew’s Capitol will un¬ dergo major renovations beginning in midNovember, it was learned last week. The house will be redesigned along modern lines and reduced in its seating capacity by about 700 seats from its present 4,417. According to Eugene Picker, president, Loew’s Inc., the estimated cost of the ren¬ ovation is $750,000. NT Reports Rise In 40-Week Net LOS ANGELES — In a letter to the stockholders, National Theatres, Inc., report¬ ed that its consolidated net income for the 39 weeks ended June 30 was $1,702,632 or 63 cents per share as compared with $904,198 or 34 cents per share for the same period in the prior fiscal year. Net income includes gains from the dis¬ position of interests in theatres and other properties. In their joint statement to the stockhold¬ ers, B. Gerald Cantor, chairman of the board, and John B. Bertero, president, pointed out that on April 1, the company acquired 89 per cent of the common stock of National Telefilm Associates, Inc., and that the opera¬ tions of this new subsidiary are reflected in the accounts for the third quarter. It was also pointed out that there were 2,700,283 shares of common stock outstanding at the end of the 39 week period compared with 2,699,486 at the end of the comparable period in the prior year. Wise. Houses Change Hands MILWAUKEE — Control of two local mo¬ tion picture theatres, the Oriental and the Tower, changed hands last fortnight. The theatres were sold at public sale following foreclosure action taken by Delmar Securi¬ ties Corporation, New York, against Kent Theatres, Inc. Delmar purchased the theatres for about $202,000, approximately the amount due on the mortgage and was the only bidder. Kent continues to operate the theatres on a tem¬ porary basis while further negotiations are carried on. WOMPI Sets Agenda For Jacksonville Meet By MRS. MARIE BERGLUND WOMPI Publicity Chairman NEW ORLEANS— The 11 WOMPI clubs in the U.S. and Canada, consisting of Dallas, New Orleans, Atlanta, Charlotte, Memphis, Jacksonville, Kansas City, Denver, Des Moines, Toronto, and St. Louis, are enthused over the big plans revealed in the call to 1959 convention Sept. 10-13 in Jacksonville, recently revealed by association president Mrs. Gene Barnett and her corresponding secretary, Mrs. Ruth Toubman Segal. In the new Robert Meyer Hotel, the kick¬ off of the convention will be simultaneous meetings of the association officers and board and a president’s forum of all club presidents on the afternoon of Sept. 10. That evening, Jacksonville WOMPI will honor the association officers. On Friday morning, association officers, club presidents, and association committee chairmen will meet while registration begins in another part of the hotel. A full schedule with many interesting plans in addition to the business of the con¬ vention is in the making, including sight¬ seeing tours, open house in the association suite, dinner at the Chateau on beautiful Jacksonville Beach, luncheons, breakfast, a cocktail party sponsored by Tent 44 of Va¬ riety Club, and an installation banquet. Wielding the international gavel will be Mrs. Barnett, whose position in the indus¬ try is that of managing director of the Joy, New Orleans. Accent has been on membership, stimu¬ lated with the aid of first vice-president and membership chairman Mrs. Mabel Guinan, Dallas, and on public relations, which made giant strides directed by Mrs. Grace Folsum, Dallas. A first in this convention will be the presentation of an international member¬ ship award to the WOMPI who has brought in the most members. Donor of the award is Mrs. Guinan, who conceived the project. Another first will be the presentation of the public relations award, a gift from R. J. O’Donnell, vice-president and general man¬ ager of Interstate Circuit, Inc., Dallas, who is “Godfather of the Dallas Club.” Reopened House Aids Charity NEW YORK — Seymour Selig, new owner, 800-seat DeLuxe, Woodside, Queens, N. Y., donated the profits of the first week of the reopened theatre to the Woodside Com¬ munity Baptist Church, the Woodside Jew¬ ish Center, and St. Sebastian’s Church. Seen at the recent premiere of Buena Vista's "The Big Fisherman" at the Rivoli, New York City, were, left, George P. Skouras, president. United Artists Theatres Circuit, and Irving H. Ludwig, president, Buena Vista; and right, Martha Hyer and Howard Keel, stars of the film.