Motion Picture Herald (Apr-Jun 1933)

14 MOTION PICTURE HERALD April 15, 1933 EARLY ACTION DOUBTED ON SIROVICH FILM BILL Industry Makes Fair Progress in Own Defense Against Measures in State Legislatures; Lawmakers Split Over Sales Tax Whether there will be a congressional investigation of motion picture industry activities depends upon the membership of the House of Representatives as a result of the action of the rules committee in making a favorable report on Congressman Sirovich's resolution of inquiry. Representative Byrnes of Tennessee, House majority leader, declared Wednesday that with important legislation pending, the Sirovich resolution would not come up before Thursday at the earliest. Mr. Sirovich failed Monday in his efforts to obtain immediate consideration. "A foolish waste of money," Blanton of Texas said Wednesday. The inquiry would be prosecuted by a special committee of seven congressmen. The results would be reported at the opening of the regular session next January. Every phase of motion picture activity would be studied by the committee. Progress in State Fights In the divergent fields of state legislature the industry appears to be making fair progress in its battle to protect itself. The sales tax is the chief weapon which state lawmakers are trying to use to obtain new revenue. It has caused a sharp division among legislators. Kentucky and Mississippi are the only states in which there has been no legislative session, regular or special, this year. In Georgia a special session has been called for budgtet action. The West Virginia legislature adjourned March 13 but a special session was called April 4, and there is a probability of introduction of a bill for an admission tax or an assessment on film shipped into the state. In Alabama a 10 per cent admission tax is up for reconsideration. Governor Miller has said he would sign the measure. Litigation may tie up the Arizona sales tax effective April 30. Governor Rolph of California on Monday vetoed the Redwine bill, which would have exempted theatrical agents from restrictions of existing employment agency legislation. A luxury sales tax also is proposed. In Connecticut, Thomas J. Spellacy, attorney for receivers of the Poll circuit, urged the legislators to vote repeal of the seating capacity tax on theatres. Otherwise, he warned, the large houses must close their galleries. Delaware Exhibitors Protest Independent exhibitors in Delaware are protesting against a censorship bill declaring films shown in the state already are censored in Maryland and Pennsylvania. Representative Schroeder's measure to create a motion picture board of control was passed in the House. A measure to permit city referendums on Sunday showings beginning at 2 p. m. was brought out of the House committee. Tax protests in Florida may, it is feared, turn the legislators toward the theatres as a possible source of revenue. The Georgia legislative committee turned thumbs down on a 10 per cent ticket levy. Idaho legislators also closed their session after rejecting all sales tax proposals. Theatres have been definitely exempted from the 3 per cent levy voted in Illinois. A move to repeal Iowa's blue law was defeated. Industry leaders in Kansas blame exhibitors' lack of organized action for failure to obtain passage of the Blood bill to legalize Sun day shows. However, amendments eliminate film inspectors and censorship tags on prints. A flat 2 per cent assessment on net incomes of all corporations and 20 per cent reduction of realty assessed valuation for taxation purposes were voted. The lower house in Maine has before it a divided committee report on a 1 per cent sales tax. A proposal in Maryland, defeated by the House, called for increased penalties for violations of censorship laws and gives the board supervision of the licensing of trailers, stills, illustrations and advertising matter, posters and banners. Sunday showings in Baltimore won out. A proposal of the Massachusetts tax commissioner, now before the House ways and means committee, would saddle a state tax on admissions. Michigan's legislature has in committee a suggested graduated sales tax of from 3-lOths of 1 per cent to 3 per cent. Minnesota exhibitors are jubilant because no censorship bills have been introduced. In Missouri exhibitors helped kill a 1 per cent tax which had been reported as substitute for a 5 per cent tax on admissions. All sales tax proposals in the state were lost. A bill to repeal the Sunday blue law was killed by the House. Constitutionality of a proposed ^ of 1 per cent tax is questioned in New Hampshire. The latest censorship bill in Nebraska died in committee. Decision on the plea of counsel for MetroGoldwyn-Mayer to make permanent the temporary injunction obtained in New Mexico restraining enforcement of the new law, which provides that pictures be offered simultaneously to all exhibitors in the state on a competitive bidding basis, has been delayed until June 12. New York theatres' grosses will be subject to a 1 per cent sales tax passed last week by the state legislature, with exhibitors' payments in the next two years estimated at $3,620,000. By a vote of 47 to 2, the senate defeated a measure for legitimate stage showings Sundays. A 10 per cent admission tax lost in Texas. Oregon Tax up to Voters A movement is under way for a referendum fight on North Dakota's new graduated sales tax, effective July 1. Governor White of Ohio this week signed the last-minute bill exempting newsreels from censorship. Maryland and Virginia now are the only censor states whose boards exercise control over news reels. When the legislature reconvenes May 15 a bill will be submitted asking for diversion of the censorship fees into a fund to establish libraries of educational pictures for school use. Oregon's voters at a special election in July will pass on a 2 per cent gross sales tax. In Pennsylvania proposal was made that censorship fees be reduced from $2 a reel to $1^50. Leading theatre operators in Tennessee s~aid they would make no move to open their houses on Sundays even if the bill before its legislature should pass. A 2 per cent sales tax is before the House, while the South Carolina House voted down a sales levy and proposed instead increased income taxes. Utah exhibitors will be subject May 1 to both a three-fourths of 1 per cent sales tax and a one cent tax on all admissions, effective until April 1, 1935, and in Vermont a measure was passed calling for a gross sales tax graduated from one-eighth of 1 per cent to 4 per cent. An occupational tax of per cent on gross is applied to all houses in Washington state. Wisconsin's blue laws will cease to exist as soon as Governor Schmedeman signs the Daugs bill. Another new tax is being weighed by the Canadian government. This is a proposal to apply the IZYz per cent tax on royalties and copyright fees paid to organizations and individuals outside of Canada to film rentals which eventually go to the United States or Great Britain. AMEND NEW YORK FILM SALES LAW A bill, amending section 1089 of the New York State Education Law, was passed by the legislature at Albany last week. The statute before amendment declared as unlawful the practice of leasing or selling any motion picture, unless at the time of the sale or making of a lease there was in full force and effect a valid license to exhibit. The amendvunt passed provides that the section shall not be construed to prohibit the making of an executory contract for the sale or leasing of a film, provided the film shall have been licensed at the time of delivery, but allows the making of an executory contract for sale or leasing for advance exhibition. The bill is now in Governor Lehman's hands for approval. BiggerSy Author^ Playwright^ Dead While still at the height of his career as a playwright, author and the creator of the famed Charlie Chan, Earl Derr Riggers, 48, died last week at the Pasadena Hospital from a heart attack he had suffered the week before at Palm Springs. Widely known, first as a brilliant playwright, then as an author of detective and mystery fiction, Mr. Diggers' creation of the smooth, soft-voiced Chinese detective, Charlie Chan, had brought his name to the attention of millions of motion picture public, through picturization of the character whose indulgence in witty and philosophical aphorisms made him unique in the annals of famed fictionalized sleuths. A literary course at Harvard was followed for Mr. Diggers by the writing of a humorous column, and later dramatic criticism, for the Boston Traveler, until 1911. His first novel, the famous "Seven Keys to Daldpate," was brought to the stage by George M. Cohan, and was a tremendous success. A successful silent film version followed. Magazine stories, plays, articles and novels came next. A war play, "Inside the Lines," ran 500 nights in London in 1915 and 1916. He went to California in 1919, as he expressed it, to repair his health in the sunshine and his bank account in the motion picture works, and had made his home there ever since. Parannount Foreign Company Shifts Executive Personnel J. H. Seidelman has resigned as vice president and acting manager of Paramount International Corporation. E. E. Shauer, vice president and general manager of the corporation, which handles foreign product, has accepted the resignation and appointed Mr. Seidelman special foreign representative. He will make his headquarters in Europe. John W. Hicks, Jr., has been named acting manager of the corporation and George Weltner assistant manager.