Motion Picture Herald (1953)

New Voices Raised in Tax Protest New voices from scattered sections of the nation were raised during the past week in behalf of the 20 per cent admissions tax repeal. In Washington, Senator Morse, Oregon independent, told the Senate that “theatres of the country are being subjected to a very discriminatory tax that is working a great hardship on them.” The Senator said he felt that “we ought to get rid of theatre admission and excise taxes, if not entirely, then substantially.” The Oregonian inserted in the Congressional Record a long statement against the admission tax, submitted to him by Jack Matlack, spokesman for the Council of Motion Picture Organizations in Oregon. Rep. Tellefson (R., Wash.) also inserted in the Congressional Record an editorial from the Seattle Post-Intelligencer hitting the tax. In New York the IVorld-Tclegram and Sun came out with an editorial urging the removal of the tax. The same paper also published prominently a letter from independent distributor Noel Meadow urging action on the tax. Mr. Meadow said: “Congress must be shown clearly that the restriction of business at the box office — through the admissions tax — is reilected in general retrenchments within the industry, and that a reduction of production activity means a very important tax loss to the Government.” He said Congress “must be brought face to face with one of the sharper facts of life, namely, that the film industry pays a great many taxes before the customer steps to the box office window to be nicked for another 20 per cent.” Rep. Philbin (D., Mass.) told the House that the industry’s presentation to the Ways and Means Committee “had made out a very strong case for the elimination of the admission tax.” “I am convinced that this industry has a great future notwithstanding some current recessions, because it is already engaged in successfully adapting its methods and techniques to newer inventions and newer facilities, and with the presentation of interesting, effective pictures, it is bound to continue to grow in public favor and enjoy sustained prosperity.” Industry UJA Unit Sets May 26 Luncheon Date The executive committee of the New York section of the amusement industry drive for the United Jewish Appeal has scheduled its annual luncheon for May 26 at the Plaza hotel. The luncheon will be a testimonial in honor of S. H. Fabian and Sam Rosen of Fabian theatres, who recently acquired control of the Stanley Warner Corp. 24 • ■ ^ . r DAR Committee Reports Better Picture Trend WASHINGTON : The national convention of the Daughters of the American Revolution was told last week that their state chairmen have noted a recent trend toward better motion pictures. Mrs. F. Allen Burt, head of the film committee, announced that this report was based on recent survey questionnaire sent out by her group. She also noted that musicals, historical films and westerns are the most popular films. The organization voted “Greatest Show on Earth” an award as the best film produced last year for children between eight and 12 years of age. Brooklyn Theatre Sues Circuits and Majors The M indell Theatre Corporation, operating the Bell Cinema in Brooklyn, New York, has filed a $750,000 triple damage suit, charging discrimination and monopoly, against eight major companies and a group of circuits and theatres. The suit contends the distributors conspired with the circuits to monopolize exhibition through fixed admission prices and a uniform system of runs and clearances in the Washington Avenue section of Brooklyn. The plaintiff claims that when it sought to bargain with the distributors, it was met with a “fixed pattern.” It is also charged that the defendant theatres overbought product to prevent the plaintiff theatre from getting pictures. North Central Allied Set To Fight Pre-Releases MINNEAPOLIS : Ben Berger, president of North Central Allied, has announced that his organization is prepared to fight in court the next attempt by a major film company to set a pre-release policy. Mr. Berger charged that pre-releases were “sounding the death knell of small subsequent runs.” The unit’s plan to take its case to the courts has been approved by Abram F. Myers, national Allied general counsel, and would be submitted for final approval to the NCA board May 4. Minneapolis Exhibitor Files $870,000 Suit MINNEAPOLIS : The Minnesota Amusement Company, RKO Orpheum and the major distributors have been named as defendants in a $870,000 suit filed here by the Nicollet and Eleventh Corporation, former operator of the Lyceum theatre. The action charges the defendants prevented the Lyceum from buying first-run product from 1946 to 1948 after the legitimate theatre had been converted to motion picture operation at a cost of $100,000. Veto S. C. Tax Cut Bill COLUMBIA, S. C.: Governor Byrnes has vetoed acts to reduce the motion picture theatre tax and exempt baseball games from the state tax. A two-thirds vote of both houses is necessary to over-ride the veto. •G j -.jOv. ' A’ ‘ Group More To Rack Fox Managewnen t Proxy letters and special messages to stockholders were bandied back and forth during the past week to highlight the proxy contest between 20th Century-Fox and the dissident Charles Green stockholders group. In the meantime, a spontaneous movement to aid Spyros P. Skouras, president of 20th Century-Fox, in the contest was initiated in New York by leading Metropolitan theatre owners at a luncheon last weekend. Attending the luncheon, tendered by Matthew Fox, a partner in United Artists, were about 12 prominent exhibitors. Initial plans to support the management were reported to have been drawn, but an announcement was withheld pending clearance from the Securities and Exchange Commission, it was said. In a second letter attacking the company management, Mr. Green charged Mr. Skouras with incorrectly stating that the minority group of stockholders sought control of the film company’s board of directors. He also stated that reports that he would liquidate the company are “utterly ridiculous,” and enumerated a number of other charges against the company. Earlier statements by 20th-Fox cited charges made by Mr. Green and answered them forthrightly. The company, in the face of charges that the price of the common stock “has shrunk over the past three years” said that “the market price of the stock is substantially as high at the present time as it has been in the past three years.” The company listed charges and answered them individually. Citing Mr. Green’s criticism of salaries in excess of $100,000 per annum, it said that “he omits any reference to the salary reduction plan now in effect, by which executives have voluntarily taken a reduction of 50 per cent of their salaries in e.xcess of $26,000 per annum. . .” Pennsylvania Bill Would Bring Film Tax Relief HARRISBURG, PA.: Film theatres in Pennsylvania would be removed as a subject of taxation under the local tax law by provisions of House Bill No. 1097 which has been introduced by state Representatives Wilmer W. Waterhouse, R., Erie, and Hiram G. Andrews, D., Cambria. Under the local tax law communities in Pennsylvania are permitted to place a tax on anything not taxed by tbe state. Eastern Profits Drop Eastern Theatres, Ltd., of Toronto, has reported a net profit of $48,806, equal to $1.53 per share for the year ending January 3, 1953. This compares to a profit of $56,114, equal to $1.75 per share, for the previous year. , V , MOTION PICTURE ;felERALD, MAY 2, 1953 .|A/ ; ,