Motion Picture Herald (Nov-Dec 1946)

INDUSTRY GATHERS FORCES TO DEMAND CUT IN TAXES SENATOR LANCER TO PRESS THEATRE DIVORCEMENT BILL Prepare to Seek Action in New Congress; To Fight Threat of Local Levy Taxes, their repeal or reduction and the prevention of new ones, generated hot debate this week in Washington and in the industry. In the capital, observers saw a major fight looming early in the 80th Congress which convenes in January. The Republicans, who won overwhelming control in the November election, now may split over the reduction or repeal of the 20 per cent war levy on all admission tickets. The Motion Picture Association promised to aid local exhibitor units in resisting "discriminatory" state and municipal taxes on theatre admissions, of which two new threats were reported this week, in St. Louis and in Pennsylvania. Taxes High on Agenda Of Oklahoma Group The Oklahoma Theatre Owners' Association, meeting in Oklahoma City Monday and Tuesday, placed local taxes high on their agenda. (Story on page 14.) Following the early-November elections, newly-elected Republican Congressmen reiterated their campaign pledges for a reduction of the 20 per cent Federal admission tax on places of amusement. Now, after more than a month, and confronted with a platform of general tax reduction, the Republicans are bound also by their first promise, which was to reduce the Federal debt. At the same time, they realize that the Armed Forces must be kept intact and veterans' benefits must be continued. Present indications are that the admission tax will be the last reduction made. First consideration will be given personal income taxes, and second will come a lowering of the corporation tax. Congressmen Reported Not Certain About Slash On the House side, Congressman Harold Knutson, Republican of Minnesota, is reported to be backing down on his promise that excise taxes will be lowered. Representative Knutson was a long-time advocate of reducing the present excise tax to 10 per cent. Iowa Senator Bourke B. Hickenlooper, Republican, said Monday that he favors a general and gradual reduction of taxes. However, he asserted that luxury taxes will have to "be last on the list." Senator Eugene D. Milliken, Republican of Colorado, who last week disclosed that he is "opposed to any Congressional action on cutting or eliminating excise taxes," until a complete Washington Bureau When the new Republican Congress meets next month it may be called upon to consider the matter of theatre divorcement. Senator William Langer, North Dakota, has reiterated that he will introduce his theatre divorcement bill into Congress. The Senator wanted to get action on his bill last year, but withdrew it upon the advice of Attorney General Tom Clark because of the pending anti-trust suit. This year, says the Senator, he will introduce the bill regardless of what action is taken on the suit by the New York District Court. Asserting that he does not think there "is anything unconstitutional" about such a legislative measure, the Senator said that he will call in several exhibitor association rep report on the state of the Treasury is submitted to Congress, said Monday that careful consideration must be given "before any reduction in taxes is approved by Congress." The Colorado lawmaker expressed the belief that excise taxes will be the last for reduction. Senators Charles W. Tobey, Republican of New Hampshire, and Robert A. Taft, Ohio Republican, who were members of the committee last legislative session, are both reported to have cautioned fellow lawmakers against "rushing into a tax reduction program" without first reducing the budget and setting aside money for the operation of the Government. Last weekend it was announced from Washington that the Motion Picture Association will fight every state admissions tax bill introduced. Last year, the MPA legislative branch blocked attempts to impose admission taxes in Massachusetts, Maine and Illinois. It was also pointed out that there is an increasing danger of state admission taxes because of the increased expenditures for veterans' benefits and state projects curtailed during the war. St. Louis Preparing Fight Against Tax on Grosses In St. Louis this week the entertainment industry gathered its forces to fight a proposed additional three per cent tax on gross receipts designed to help city finances. The proposal has been referred to the Legislative Committee of the Board of Aldermen. The measure, when original^ drawn, provided for a five per cent tax — the same amount resentatives to consult with him on the "pattern which the bill should take." In particular, he would consult with them on whether his bill should contain a ban on block booking. The Senator has definite views on divorcement, but wants advice on booking practices. Mr. Langer indicated that he intends to press for passage of his measure even if the Supreme Court upholds the Justice Department's contention that "theatre interests of producers and distributors must be completely divorced." Attorney General Clark reportedly believes that litigation for divorcement under the Sherman anti-trust act would set a better precedent than legislation. Mr. Langer, however, holds the contrary view. proposed last spring, but which was defeated. The amended measure would require each theatre to post either a $2,000 bond or a $1,000 cash deposit to guarantee payment of the tax. The Pottstown, Pa., Borough Council Finance Committee and representatives of local theatres held a conference last week on the theatre sections of a proposed new local law which would increase taxes on theatre ticket sales, and levy taxes on revenues of other amusement enterprises operating within the city limits. The measure has passed two readings in the Council, and must pass a third. The theatres would have a five per cent tax to pay against gross revenues if the law is adopted, or $5 per performance if an amendment is adopted. Loew's Announces Christmas Bonus for All Employees A holiday bonus, in which employees of Loew's Theatres, home office, Metro-Goldwyn-Mayer home office and exchange, and radio station WHN will participate, was announced Tuesday by Nicholas M. Schenck, president of Loew's, Inc. Employees earning up to $60 per week and who have been in the companys' employ a year or more, will receive two weeks' salary, total bonus not to exceed $50. Employees receiving up to $60 per week who have been with the company more than six months, but less than one year, will receive one week's salary bonus, with $25 established as the maximum. MOTION PICTURE HERALD, DECEMBER 14, 1946 13