Motion Picture Herald (May-Jun 1947)

ATA URGES MPTOA TO JOIN IN FIGHT TO SLASH TAXES Would Submit a Point Plan for Reduction to Go to House Committee Continuing its fight to eliminate, or at least reduce, the 20 per cent Federal admission tax, the American Theatres Association will ask the Motion Picture Theatre Owners of America to unite with it if the views of both organizations run parallel. This combination of exhibitor forces would take the form of a proposed plan of tax reduction which both would submit to the House Ways and Means Committee, before which Ted R. Gamble, ATA board chairman, and A. Julian Brylawski, MPTOA vice-president, appeared May 28. Canvassing Directors ATA has under way a canvass of its directorate on the method of tax reduction held most favorable. The majority of those who already have answered advocate the exemption of all taxation on admissions under 40 cents, and a tax scaled upward commensurate with the ticket price, but not exceeding 10 per cent. Last weekend, J. Cheever Cowdin, chairman of the board of Universal Pictures, was named to a special 11-man tax study committee which was to meet Thursday with the Ways and Means Committee to advise it on complete revision of the Internal Revenue Code. Roswell McGill, former Undersecretary of the Treasury, is chairman of the special tax committee appointed by Representative Harold Knutson and Representative Robert L. Doughton, chairman and ranking minority member, respectively, of the Ways and Means Committee. Meanwhile, Mr. Brylawski continued his fight on theatre taxation when he appeared Monday before the District of Columbia License Commission and urged that district theatres be licensed on a sliding scale. Plan Called Discriminatory The License Commission has proposed raising theatre licenses from $30 to $75 a year, but Mr. Brylawski, speaking as president of the MPTO of Metropolitan Washington, said that such a flat raise would be discriminatory aganist the small theatres and asked that the small theatres pay a minimum of $50 a year and larger theatres up to $100. Mr. Brylawski also asked for a ceiling of $150 on legitimate theatre licenses, against the commission's proposal for raising them from $50 to $450 annually. Last week a new tax program for Washington, D. C., including an increase in the property tax rate, was agreed upon by the House and Senate District Committees and the District Commissioners. The property tax rate will be increased 25 cents over the present $1.75 per $100 of assessed valuation. However, the new program does not include the two per cent general sales tax nor the 10 per cent admission tax requested originally by the commissioners. In New York Monday representatives of exhibition met in the office of Oscar Doob, Loew Theatres executive, drafted a letter of protest against a five per cent admission tax in Yonkers, N. Y., and sent it to members of the Yonkers City Council and other officials. Citing the present burden of the 20 per cent Federal admission tax and the general decline in theatre business, the letter, signed by managers and owners of Yonkers theatres, charged that the proposed local tax would be discriminatory in that it would single out film theatre patrons for "class taxation." In its last session the New York State legislature empowered cities to impose additional taxation up to five per cent. Atlantic City Tax Effective Beginning this Sunday motion picture theatres and all resort amusement places in Atlantic City, N. J., will be assessed a three per cent tax. This was decided upon last week at a primary election when voters approved, by a two-to-one vote, a referendum to permit such a tax. Taxed also will be all hotel rooms, liquor sales and tobacco. Two other cities — Boston and Chicago — are threatened with additional five per cent amusement taxes. The Boston admission tax may be a part of an entirely new bill offered as a substitute for the governor's general sales tax bill. The Chicago five per cent tax would apply to all theatre and sporting events. The plan was advanced by Mayor Kennelly's tax committee. However, this move by the mayor's tax committee brought an immediate rebuttal by Maurice Leonard, attorney and spokesman for the Chicago theatre owners. "The five per cent admission tax is unfair to our industry. We feel we are being singled out and that such a tax will bring too great a burden on the price of the tickets. . . . We shall fight this proposal wholeheartedly," he said. Court Allows Inspection Of Two Circuits' Books Judge Patrick T. Stone of the Western District Court in Superior, Wis., has signed an order permitting Warners, Paramount, RKO, 20th Century-Fox, United Artists, Universal and Loew's to inspect the records and books of the Miner Amusement Company and the Isle Theatre Company to seek out alleged inaccuracies on returns on percentage pictures shown at the defendant's eight theatres. 32 Legislatures Adjourn; Only 2 Laws Hit Films Washington Bureau Thirty-two state legislatures have adjourned to date with legislation affecting the industry passed in only two, according to John Bryson, legislative assistant to Eric A. Johnston, president of the Motion Picture Association. This week 12 more state legislatures were still in session with adjournment expected by the end of the week in Texas, Nebraska,, Michigan and Florida. Numerous tax bills are still pending in the remaining legislatures, Mr. Bryson reported, but only one censorship bill. This is in committee in the Illinois legislature. Twelve censorship bills introduced in other legislatures have been defeated. New York and New Jersey passed the two tax bills affecting the industry, New York State empowering local municipalities to impose admission taxes and New Jersej' allowing fourth class resort cities to do so. The Connecticut legislature, which adjourned last week, passed no legislation affecting the industry, Mr. Bryson said. No tax bills were adopted, though several were introduced. A censorship bill was killed. Two others, Rhode Island and Missouri, adjourned last week. In Missouri a censorship bill was killed in committee and a tax bill defeated. No censorship bill was introduced in Rhode Island and the tax bill passed did not affect admissions. Other recent adjournments as reported by Mr. Bryson are: Iowa, which defeated a censorship bill and passed no tax bill; Maine, where afive per cent admission tax bill was defeated, and Minnesota and Vermont, both of which defeated tax bills. RKO Directors Declare 30-Cent Dividend Directors of the Radio Keith Orpheum Corporation last week declared the quarterly dividend on common stock of 30 cents per share, payable July 1 to holders of record June 16. The directors reelected all officers, headed by N. Peter Rathvon, president, and Floyd B. Odium, board chairman. Meeting previously last week, at Dover, Del., the stockholders elected as directors for the ensuing year Ned E. Depinet, Harry M. Durning, Frederick Ehrman, L. Lawrence Green, L. Boyd Hatch, Mr. Odium, Mr. Rathvon, George H. Shaw, and J. Millar Walker. MOTION PICTURE HERALD. JUNE 14, 1947