Motion Picture Herald (Mar-Apr 1947)

PLAN PUBLIC FIGHT ON NEW YORK TAX Exhibitors Set Promotion Campaign, Backed by AT Af on Dewey Scheme Following Governor Thomas E. Dewey's recommendation to the New York State legislature that power be given cities and counties to raise an additional $111,000,000 a year through special taxes, including admissions, New York City exhibitors at midweek were preparing a campaign to array public opinion against the legislation. The campaign would be undertaken if a meeting between exhibitor representatives and the Governor didn't materialize. As the first step, a committee headed by J. Henry Walters of RKO Theatres, and Samuel Rosen of the Fabian circuit was seeking a conference with the Governor. If the committee fails to meet with Governor Dewey, the Metropolitan Motion-' Picture Association, supported by the American Theatres Association, will undertake the all-out public information program. Would Use All Media The campaign, if undertaken, will make use of newspapers, radio, bilboards and other available media, including a special motion picture trailer, to explain to the public the inequities of the proposed tax. Under the Governor's recommendation, the additional taxing powers to be given cities and counties consists of the right to impose a five per cent tax on admissions and sporting events, excluding race tracks, boxing and wrestling events. In addition, municipalities could tax restaurants, night clubs, liquor and automobiles. In Washington, D. C, Tuesday the MPTO of Washington, other exhibitors and their representatives, will be permitted to present their views before the House District Committee, which is considering a proposed special admissions tax for the district. The Washington MPTO will fight passage of the tax measure while the local American Legion has announced that it will contest any type of special tax proposals until the district has adequate representation in Congress and a right to vote. Hear Oklahoma Arguments In Oklahoma City Tuesday a Senate legislature committee heard arguments for and against a bill to extend taxing powers of the state's municipalities. It made no recommendation. C. B. Akers, legislative charman for Oklahoma exhibitors, attended the hearing, but did not testify against it. Many other groups have already argued against it. Exhibitors have agreed to support another measure designed to increase the state's property tax system. In St; Louis this week exhibitors were TREASURY TO REVIEW ADMISSIONS LEVY The first clear-cut indication that the Treasury is prepared to review the 20 per cent Federal admission tax, along with other excise taxes, came from Washington last Friday during hearings on the appropriations for the next fiscal year before the House Appropriations Committee. Stanley S. Surrey, the Treasury's tax legislative counsel, told the committee that the Treasury is reviewing these taxes with a view to correcting any inequities found. Meanwhile, the Senate approved and sent to the White House legislation indefinitely extending the wartime excise taxes. President Truman signed the bill Tuesday, at which time the Treasury estimated that the new law would bring $500,000,000 during 1947. preparing for another tax battle. A' five per cent amusement tax designed to yield $750,000 annually was one of the four tax measures recommended last weekend by the Citizens Tax Commission to the mayor to help increase municipal revenue. A five per cent amusement tax was first proposed last spring, but exhibitor opposition helped to kill it at that time. Citing this instance the tax commission pointed out to the mayor that after the bill had been defeated "'motion picture admission charges were increased by an amount exceeding the proposed tax, thus refuting motion picture statements that the public could not absorb a five per cent increase." "It Happened in Brooklyn" In Local World Premiere Lauritz Melchior, Kathryn Grayson, Johnnie Johnston, Tom Drake, Harvey Stone and others, were on hand Tuesday when MGM's "It Happened in Brooklyn" had its world premiere at Loew's Metropolitan theatre in Brooklyn. Miss Grayson stars in the film with Frank Sinatra and Jimmy Durante. The opening, Brooklyn's first world premiere, was sponsored by the MGMinspired, newly-formed First Families of Brooklyn organization whose aim it is to proclaim to the world that Brooklyn "is the garden spot of the world." Production Cost Is Up 116% Since '39, Says Price Since 1939, the per picture cost of production has increased 116 per cent, financial writers and editors were told in Hollywood last Tuesday by Byron Price, vice-president and board chairman of Motion Picture Association, who is leaving the industry next week for a United Nations post Unofficially, Mr. Price estimated that the 397 features approved last year by the Production Code Administration cost $350,000.000. He observed that the total expenditure was 38 per cent above 1939, while the number of pictures was 24 per cent less than that year. He said studio operating costs must be cut to overcome a potential drop in revenue. It was a bright fiscal picture for 1946 that Mr. Price painted, however. He pointed out that it was the first two billion dollar box office year in the industry's history and that weekly paid admissions averaged 85.000,000. The earnings of seven major companies totaled $115,000,000 as against $63,000,000 in 1945 and $19,000,000 for 1940. A 10 per cent increase in foreign sales was cited as one reason for the rise in profits. The 1947 prospect is somewhat different, in the opinion of Mr. Price. It is expected that the foreign market will be measurably curtailed, and revenue at home showed a decline in January. Paid admissions have dropped in the past three months, he said. Greek Orphan Appeal Luncheon March 24 Hollywood stars and military and civic leaders will be guests at an industry Greek War Orphans Appeal luncheon at the Astor Hotel in New York March 24. On the luncheon committee are Ned Depinet, Jack Cohn, S. H. Fabian, Harry Kalmine, Sol Schwartz, Harry Brandt, Ted Gamble, Tom Connors, Robert Coyne, Ben Serkowich, S. Barret McCormick, Charles Schlaifer, Sam Shain, Fred Schwartz, Joseph R. Vogel, Sam Rinzler, Ralph Pielow, Max Cohen and Ben Abner. New Jersey Allied Opposes 16mm in Resort Towns Contending that it was "viewing with alarm" the expansion of 16mm films into hotels and summer camps, Allied Theatre Owners of New Jersey, at a meeting Monday, recommended to its membership the inclusion of a special clause in contracts to protect exhibitors from narrow-gage corn Liberty Buys Horse Story Liberty Films has paid $100,000 for "War Knight," a story by Ethel Hill about her seven-year-old horse which won the Santa Anita Handicap in 1946. Miss Hill also will write the screenplay. Uphold Ban on "Amok" The Appellate Division of the New York Supreme Court in Albany unanimously upheld a Board of Regents ban on the exhibition of the French film, "Amok," in New York State. 14 MOTION PICTURE HERALD, MARCH 15, 1947