Motion Picture Herald (Jan-Mar 1954)

INDUSTRY EYES NEW CONGRESS Tax Repeal Plea the Chief Interest ; Chance Seen for Part Exemption WASHINGTON : The film industry will be directly or indirectly affected by a dozen major pieces of legislation likely to be acted on in the session of Congress which got under way Wednesday, but the tax field will again take top billing. Most important in this field will be another industry fight to eliminate the 20 per cent Federal admissions tax. The President, in his veto message of the Mason tax repeal bill last year, promised to recommend at least a reduction in the tax, but the industry will fight for its complete elimination. Chances are considered promising for elimination of the tax at least on the lower-priced tickets. It is not clear whether the theatre tax will be handled in a separate bill, as it was last year, or wrapped into a general excise measure, covering the theatre tax and other excises, too. There will be many more bills introduced to repeal the admissions tax, and all those not acted on carry over from last year, but the final decision as to procedure will be up to the House Ways and Means Committee. The timetable indicates late February or early March for consideration. Film industry firms will also be affected by what Congress does about the corporate tax rate. This rate is scheduled to fall, under present law, from 52 per cent to 47 per cent on April 1, 1954. However, the Treasury Department is almost certain to ask that the 52 per cent rate be continued, and it is considered likely that Congress will go along with either a 50 per cent rate or the full 52 per cent. A sweeping technical tax revision bill will also have many provisions of interest to the industry. This bill has been prepared by the staff of the Congressional joint committee on Internal Revenue Taxation and by the Treasury staff, and will be the first order of business for the Ways and Means Committee, with voting scheduled to start next week. Provisions Diversified Some of its provisions likely will liberalize depreciation policies, ease double taxation of corporate dividends, give some relief on the tax treatment of overseas income, overhaul the present rules for corporate reorganizations, liberalize the provisions for averaging income over several years, and make other changes affecting industry firms and workers. Social Security legislation also will come up befor,e the Ways and Means and Senate Finance Committees. There’ll likely be a fight as to whether to put the social security tax rate, which went up to two per cent on January 1, back to 1 J4 per cent. There may also be attempts to make the tax apply to more than the $3,600 a year it now applies to, and to broaden coverage of the social security system. Another item of major interest will be in the anti-trust field, where a House Judiciary sub-committee plans to have early hearings on whether Federal judges should be given discretion to award less than treble damages in private anti-trust cases. Distributors favor this change, while exhibitors generally oppose it. There are also pending proposals to set up a uniform Federal statute of limitations on private anti-trust actions and also to increase the fines for violating the antitrust laws. Other Items Scheduled Other items which may come up for action during the coming months include these : Small Business: The Senate Small Business Committee may continue to follow up on its earlier report on film industry trade practices. Television: Hearings may be held on the status of pay-as-you-see television, to determine whether it should be considered a common carrier, with all rates subject to Federal control. Minimum Wage: The Administration may ask Congress to extend provisions of the Federal minimum wage law to theatres and other service groups not now covered. Taft-Hartley : Any attempt to revise the Taft-Hartley law likely will include several provisions affecting film industry labor relations. Unemployment Compensation: The Administration is reported considering asking Congress to make the unemployment compensation program cover all establishments with three or more employees, rather than eight or more, as at present. Reciprocal Trade: The reciprocal trade program, strongly supported by the producers, expires again in June, and there’ll be another fight over extending it. 1 6mm Suit Defendants Receive Court Delays The Government’s anti-trust suit against the major companies and 16mm subsidiaries drags on in Washington, in the interrogatories stage. Monday, Columbia, and Screen Gems, its 16mm subsidiary, were given until January 15 to file their replies to interrogatories. The replies had been due Monday. At the same time, Republic Pictures Corporation and Republic Productions, Inc., were given until February 2. Networks Ready for Color TV Equipping of television channels to carry national color programs is being undertaken by the American Telephone and Telegraph Company long lines department. Ralph L. Helmreich, director of that department’s operations division, said the transcontinental radio relay route had been equipped just in time so it could carry the Tournament of Roses New Year’s Day Parade at Pasadena, Cal., to some IS eastern cities. The new color signal on several previous occasions has been carried by the Bell System. On October 15, a test program was carried from New York to Washington and back, on both radio relay and the coaxial cable. A color program was carried experimentally November 3 from New York to California. Mr. Helmreich remarked that more than added equipment was necessary. Personnel must be trained in new techniques. The long lines department has 50,000 miles of television channels. They service 261 stations in 159 cities. Bernhard Rejoins New Stanley Warner Circuit S. H. Fabian, president of Stanley Warner Corp., announced Tuesday the appointment of Joseph Bernhard as consultant on management relations for the company. Mr. Bernhard joined Warner Bros, in 1930 and two years later was made general manager of Warner Bros. Theatres. He later became vice-president and director of Warner Bros. Pictures, Inc., and took leave of absence in 1942-43 to serve as a civilian expert with the U. S. Navy. In 1945 he switched to production, becoming the president, treasurer and co-founder with Milton Sperling of U. S. Pictures, Inc. Resigning from this company in 1947 he became president of Film Classics and the next year also was elected president of Cinecolor Corp. He gave up the direction of Cinecolor in 1949 to devote his whole time to Film Classics. Since 1951 he has been in independent production, having launched such productions as “Journey Into Light,” “Japanese War Bride” and “Ruby Gentry.” Florida Exhibitors File $600,000 Trust Suit JACKSONVILLE: A $600,000 anti-trust damage suit has been filed in Federal Court here by John R. Sutton, Jr. and L. K. Kasa, partners in the Vogue theatre, Orlando, claiming they were denied first run pictures. Triple damages are asked. Defendants are Florida State Theatre, Florida Costal Theatres, 20th Century-Fox, Paramount, RKO Pictures, Columbia, United Film Exchange, Warner Brothers, Loew’s and United Artists. 30 MOTION PICTURE HERALD, JANUARY 9, 1954