Moving Picture World (Nov-Dec 1923)

<K>6 MOVING PICTURE WORLD December 1, 1923 Court Decrees Omaha’s Empress Must Be Surrendered to Loew THE World Realty Co., Omaha, owner of most of the larger picture houses in Omaha, which recently announced it had purchased* the Empress, another of the large houses here, must give up that theatre to Marcus Loew, of New York, president of the Metro Pictures Corporation, and head of Loew, Inc., according to an order from Federal Judge Joseph Woodrough. The decision was handed down in the Federal Court here this week. Mr. Loew bought the Empress, he said, through an authorized agent, and the court held his purchase valid, although it was alleged a subsequent deal was made in Omaha by the original owner wherein the house was sold to the World Realty Company. The Empress, one of the larger downtown theatres offering a combination of motion pictures and vaudeville, has been under the management of the World Realty Company of Omaha for some time. Attorneys for the company say they will appeal the decision to the Circuit Court of Appeals. The World Realty Company is the largest motion picture and theatrical corporation in Omaha and one of the largest in the West. Loew, w’ho was in Omaha as a witness in his suit to gain possession of the Empress, said that W. N. Ledoux, former owner of the Empress Theatre, contracted with Samuel A. Shirley, Omaha, district manager for the Metro Pictures Corporation, on May 24 ATLANTA — Scores of Georgia exhibitors virtually face extinction if the latest proposed tax on theatres in this state becomes a law. Under the provisions of a bill introduced in the Georgia Legislature by Representative Elders, of Tatnall, free school books will be furnished to all pupils in the common schools in the first seven grades, and the money to pay for the books will be raised by a tax of 20 per cent, on the gross receipts of all theatres in the state. The proposed law would place this 20 per cent, tax during 1924, and thereafter a 10 per cent, per annum tax would be levied. Close on the heels of the introduction of this bill came the first optimistic tax note the exhibitors of Georgia have had in some time. This was an amendment to the present Special State Tax through which the Special Tax on theatres was reduced as regards the picture houses in suburbs of cities of more than 50,000. This tax was reduced on these particular houses from $25.00 to $12.50. Perry Spence, of Progress Pictures, Inc., points out that this amendment is most fair, inasmuch as it is absurd to make the small theatre pay the same amount of tax as the big houses downtown. He also suggests that it might be wise for some of the city councils in Southern towns to make similar amendments to their own special city taxes on picture theatres. last in Chicago, to sell the theatre to the Loew interests for a total of $60,000, of which $25,000 was to be cash and the remaining $35,000 to be made in deferred payments. Loew said he went to Chicago to meet his own representative and Ledoux while the negotiations were in progress, and that he and Ledoux agreed upon the price. When Ledoux asked him about security, he says, he told Ledoux he would have to take his word as a guarantee of payment, to which, he says, Ledoux agreed. Loew says he went back to New York after it was agreed that the Empress owner and Shirley should attend to drawing the contract. Mr. Shirley said the contract was drawn up by a lawyer in Chicago. He said the lawyer’s name was Levinson. This contract was exhibited in court. Attorney Levinson, of Chicago, testified that both Ledoux and Shirley signed the contract in Chicago and that nothing was said about the guarantee of payment. The lawyer said the terms of the contract gave Shirley the right to assign it to other persons. Air. Ledoux admitted he had negotiated with the World Realty Company of Omaha before refusing to carry out the alleged contract with Loew and Shirley, representing the Aletro people. Counsel for Loew asked that the sale contract between Ledoux and the World Realty Company be produced in court, but counsel for the World Realty Company replied that the terms of this contract were confidential. Mr. Loew announced that he will show only Aletro pictures at the Empress. “The exhibitors in Georgia are getting together to fight the 20 per cent, tax introduced by Representative Elders,” says Mr. Spence, “as they can see the ‘handwriting on the wall’ right now. “It’s a shame the way theatres in the South are taxed. Lawmakers seem to think a theatre is a gold mine. It’s a wonder they don’t take theatre and all. Then the exhibitor would at least have off his mind the worry of paying all the various taxes. Here we have the Federal tax of 10 per cent., the State Special tax, the income tax, the Corporation tax, the City Property tax, the Assessment tax — and now comes the proposed tax for school books. “If this tax bill is passed I am afraid that the State of Georgia is going to lose heavily through it by losing the State Special tax, as the small-town exhibitors will close up and go to some other state where they will be free of this foolishness and uncalled for assessment.” Warner Brothers Hosts News comes from the West Coast that Alotley H. Flint, past potentate of A1 Alalaikah Temple, Shrine at Los Angeles, and the Warner Brothers gave an elaborate party at the Warner Studio for the Alinnesota delegation of the American Legionnaires who attended the national convention in San Francisco. The entire gathering were taken on a tour of the huge studio and served with dinner on one of the big studio stages, where they were introduced to the different Warner stars, directors and important players. Then they were shown “The Gold Diggers.” Klan Film a Fizzle Ohio Order Probably “Out” Cost of 18,000-Foot Picture The Ohio Ku Klux Klan, which has for some time been endeavoring to enter the picture field with its own production, “The Toll of Justice,” is reported to have encountered difficulties which spell failure for the proposition. The picture was started several months ago by the C. & S. Pictures Co., of Columbus, Ohio, but in the final week of production it w'as found necessary to effect a reorganization of the company which resulted in the Klan becoming sole owner and producer through reducing the company to the capacity of an employee. The film, which had a footage of 18,000 feet, was subsequently completed, but when it reached the laboratory it was found that something had gone wrong with the lighting system and the interiors would have to be retaken. A number of conferences between the Klan and the company was held, but the Klan and the company were held, but the last report received is to the effect that Corey G. Cook, who wrote the scenario and w*as directing the picture, is arranging to sail for Egypt soon to take up travelogue wTork. It is likewise stated on good authority that the general manager of the company will soon leave for California. The picture w’as scheduled for release early in September. Publicity by Pictures Canada Acquainting the World with It* Advantages Through Films Canada is becoming better and more favorably knowrn throughout the world by reason of the publicity its advantages are getting through motion pictures. For the past four years the Canadian Government Motion Picture Bureau, which is connected with the Department of Trade and Commerce, has been letting the world know about Canada’s assets and possibilities. A series of one-reel informative and educational type of motion picture called the “Seeing Canada Series,” has been w’idely circulated both theatrically and non-theatrically through recognized film distributing agencies. The Canadian Alotion Picture Bureau, of wrhich Raymond S. Peck is director, says that the woyk of the Bureau has been of great aid to the Department of Agriculture and many other departments. Berman on Trip The State Capitol at Albany received a visit last Friday afternoon from Samuel Berman, of New’ York City, secretary of the AI. P. T. O. of New’ York State. During the session Air. Berman was a frequent visitor at the State Capitol. Upon reaching Albany, Friday, Mr. Berman called on several exhibitors and left late in the afternoon for Schenectady, where he met others. Gordon in New York N. H. Gordon, original franchise holder of Boston, w’ill serve as the First National rotating committee member at the New York office during the fortnight beginning November 19. He succeeds AValter Hays of Buffalo. Earl Returns to Desk Edward Earl, president of Nicholas Power Company, returned to his desk Wednesday after four months vacation made necessary by his strenuous duties. Air. Earl, to whom the Pow’er Company’s success in its field is due in a great measure, is among the best known and most popular men connected with the industry in his particular line. Georgia Theatres Threatened by Further 20 Per Cent. Tax