Motion Picture Herald (Jan-Feb 1939)

16 MOTION PICTURE HERALD January 14, 1939 LEGISLATIVE MOVES IN THE STATES (Continued from preceding page) amendments to the tax laws, from Congress, their purpose being to alleviate heavy income tax payments by actors and actresses, and social security payments. Plans are for Frank Gillmore, president of the Associated Actors and Artistes of America, to go to Washington this week to confer with Senator Robert F. Wagner. Fight Use of Industry As Target for Taxes With the Independent Theatre Owners of Ohio, under P. J. ("Pete") Wood, leading the fight, Ohio exhibitors are arrayed against the proposals in the new legislature which would increase the three per cent state admission tax. Representatives of the smaller counties urge further taxation of the industry, because, according to their line of thought, "it is such a wealthy industry, and ought to pay more of the cost of government." Ohio exhibitors are appealing to their senators and representatives. In Colorado, the absence of any bill in the new legislature, directly attacking the industry, is tempered by a proposed one per cent state income tax, the progress of which exhibitors are now watching. The introduction of a chain store tax bill in the Oklahoma legislature is being watched by Oklahoma exhibitors. It has the backing of the Oklahoma Independents, Inc. May Kill Blue Laws^ In Vermont and Ontario Exhibitors in certain sections may expect "fair and clear" weather on Sundays. In Vermont, the legislature, in biennial session, is expected to consider the repeal of the ancient state Sunday closing laws. In Ontario, Premier Hepburn and Attorney General Conant have placed themselves on record in favor of "open Sundays." The Premier said, "our blue laws are in need of complete overhauling." The attorney general declared, "It is far better that our people should have an opportunity for some recreation and amusement than that they should be compelled to pass the whole day under the restraint that now exists." In Philadelphia, Magistrate McBride freed 19 theatre managers from charges of violating the law by giving shows after midnight on New Year's Eve. The law forbids the opening of theatres before 2 P. M. on Sunday. New York Legislature Considering New Bills Proposals for abolition or restriction of highway billboard advertising; for two men in a booth throughout the state; for reduction or cancellation of the American Society of Composers and Publishers taxes for revision of the laws appertaining to projectionists — these and other legislative "interferences" are being introduced and may be hatched in the present session of the New York State legislature, in Albany. The efforts to restrict billboard and all outdoor advertising have taken form in the StaggTodd bill, backed by Assemblyman Joseph P. Teagle, Assemblywoman Jane Todd, Senators John J. Howard and C. Tracey Stagg. The battle against outdoor advertising received publicity in the state Constitutional Convention, where it was almost successful, the vote being 75 to 73. New York City Commissioner of Parks Robert Moses has long campaigned against outdor advertising, and so have members of Governor Lehman's "cabinet." The Governor's message opening the legislature is interpreted as his approval of such a bill. Under consideration by the Cities Commit tee of the Assembly is a bill introduced by Assemblyman Robert J. Crews amending the general city law pertaining to projection, by requiring persons threading motion picture apparatus for operation in first class cities to have licenses, and also requiring operators to give full time to their apparatus. In Denver, Colo., several theatre managers, led by Harry Huffman, city manager for Fox, have requested the City Council to require all non-theatrical exhibitors, such as schools and churches, to employ licensed operators. In support of the request, Mr. Huffman pointed out the number of people employed by the industry, and the taxes its pays, and asked that, "in justice," the non-theatrical operators assume their "proper" tax and legal burdens. Chance Games Lose More Ground Chance games are losing more ground. A test case was started in Plymouth County, Mass., to determine the legality of Bank Night; a judge in Terryville, Conn., ruled that Entertainment Night is a lottery; Milwaukee exhibitors advised officials that they will discontinue the games providing churches and other organizations did likewise, and the City of Quebec started an anti-Bank Night drive. Meanwhile Charles Skouras, National Theatres operating head, said in New York this week that the "no giveaway" policy at the 195 theatres in the west coast division of National will continue indefinitely. Mr. Skouras said that the elimination of the games stimulated managers to a full use of showmanship. The first step in the Plymouth County, Mass., test case was the arrest of Roy Heffner, Jr., manager of the Key theatre, Middleboro, and son of Roy Heffner, Sr., Bank Night distributor for New England, on the charge of conducting a lottery. Mr. Heffner, Sr., said that the game had been held not to be a lottery by the Massachusetts superior court and the United States circuit court of appeals in Boston. Ruling that Entertainment Night comes under the state laws against lotteries, Judge Origen S. Seymour of the Connecticut court of common pleas dismissed the breach of contract suit brought by Reviewers, Inc., against J. W. Faith, operator of the Mayfair, Terryville. The decision was based on a ruling by the supreme court of errors in a Bank Night test case. In Milwaukee 24 theatres affiliated with the Independent Theatres Protective Association of Wisconsin advised their county law enforcement officials that they will discontinue chance sames providing that churches, fraternal and beneficent societies also halt the games. Bingo and all other games with the exception of Bank Night have been discontinued in Syracuse, N. Y., it is reported. William Rapp, chief of police for that city, is said to have issued the order banning the games. Judge Brown Harris of the circuit court in Kansas City has dismissed the test suit against R. W. McEwan, Bank Night distributor. The case was filed in May, 1936, by the Kansas City prosecutor's office. In June, 1936, Judge Mario D. Waltner of the circuit court held that Bank Night was not a lottery and sustained a demurrer. The prosecutor's office appealed to the state supreme court. Last year the court reversed Judge Waltner's opinion. Mr. McEwan's attorney filed for a rehearing, but this recently was denied. Approval of New RKO Financing Due This JVeek Federal Judge William Bondy was expected to sign the approval order this week in New York City Federal Court, marking the final emergence of RKO from Section 77B and its reorganization under the plan proposed by the Atlas Company and its adherents. The plan may still be subject to delay even after the signing, inasmuch as one of its provisions allows those who have consented to the pjan to withdraw within three weeks after a newspaper advertisement insertion of which follows the approval. Last minute changes and further suggestions by counsel for minority stockholders and others, have delayed the signing of the approval, as they have delayed RKO's emergence from receivership for several months. The latest proposal came from Carlos Israels, of White and Case, attorneys for the Unsecured Creditors Committee, who on Monday served a federal court order, offering a change in the sentence structure of a provision suggested last week by Judge Bondy, on the first dividend of the new itock. This provision was for the first dividend on the new preferred stock to be "not more than 50 cents per month for the period beginning one year after the first day of the calendar month succeeding that in which the plan is confirmed, and ending with the next dividend date." The suggested change, which was adopted Monday, was for the wording on part of the above to read : "receive dividends accruing from and after February 1, 1940." Colonel Hamilton C. Rickaby, counsel for the Atlas Corporation, presented the order for settlement to Judge Bondy, for signature on Saturday. Certain portions of this document were criticized by John S. Stover, attorney for the Stirn interests. W. Sorg, as agent of the Irving Trust Company, trustee of RKO, Tuesday filed a list of debentures and other obligations totaling $10,450,800 inspected by him, which accompanied filed consents to the plan of reorganization. This procedure, according to Mr. Sorg's statement, filed with the list, is required in lieu of physical presentation of the debentures to Judge Bondy. Irving Trust filed a list of 13 executory contracts of RKO and four unexpired leases of RKO which have been rejected and surrendered. There will be another hearing on January 26. New Pa+he Plan Due For Vote February 16 Under consideration now is a new plan for reorganization of the assets of Pathe Film Corporation, with the plan scheduled to go before the stockholders for their perusal on January 16th, and to go before them for the necessary two-thirds vote on February 16th. Principal features of the new plan are the creation of a subsidiary to divorce the laboratory business from the rest of the company's affairs, and the distribution of dividends from the company's du Pont Film Manufacturing stock to the stockholders.