Showmen's Trade Review (Oct-Dec 1941)

Page 4 SHOWMEN'S TRADE REVIEW October 4, 1941 Rules Made For New Tax Exceptions Granted for Some Classes of Admissions New taxes on theatre admissions went into effect this week, which will make the filing of returns necessarv by every theatre in the country. The tax starts with the first penny on all admissions except those for children that are less than 10 cents. Adult admissions of 10 cents will carry a tax of one cent, and so will children's tickets of 10c or more. Many circuits are planning to take advantage of the new law to raise admission prices to an even figure, eliminating the odd pennies. To comply with the law, new tickets have been ordered and will be required after a brief period which the Government allows. New types of forms have been prepared by the Internal Revenue Bureau for reporting the taxes and they will be available for the October returns. In those states which have an admission tax themselves, figures on children's admissions have been adjusted so that they will still be tax exempt. Thus in a state which has a 2 per cent tax, the base admission price has been set at 9.8 cents, the two percent state tax making a total of ten cents. However, since the base admission price is less than 10 cents, no tax need be collected. The Internal Revenue Bureau has also advised the regulations applying to admissions for reduced prices. All persons admitted free or at a reduced rate (except bona fide employees, municipal officers -on official business, children under 12 years of age, members of the military or naval forces of the United States when in uniform and members of the Civilian Conservation Corps, when in uniform are liable for a tax based on the established price of admission to other persons for the same or similar accommodations. When any of these exceptions are admitted at a reduced price, tax must be collected on the price charged. If any special categories of patrons, such as high school students, are admitted at a price less than the regular adult admissions, the equivalent of the tax on the adult admission must be collected. Nine Allied Units Approve Joint Resolution Committee But Connecticut Group Upholds Convention Action; Plebiscite on Unity Resolution Illegal, Says Yamins Representing a majority of the regional associations, nine Allied units have ratified the resolution for a national joint committee, thus leaving eight more regional associations to file their reports. At a full membership meet " ing this week, Allied Theatre Own j the convention to discuss a subject ers of Conn, voted unanimously as important as a plebiscite violates against the national organization's : Allied's constitution, which, he said, unity resolution, at the same time , requires that a special board meeting passing a vote of confidence in the 1 can be held only after the directors officers of Allied. Boston was ex have been given 10 days' notice in pected to follow suit. There is advance by letter or telephone, speculation as to which way Michi Yamins said he was in favor of gan will go. Scheduled for next Monday and Tuesday in Detroit, the Michigan meeting will be attended by Abram F. Myers, general counsel, while Jack Kirsch, head of Illinois Allied, and Martin Smith, Ohio president, also are expected to attend. The unity resolution has been approved by the following associations : Allied of New Jersey (with reservations), MPTO of Maryland, Allied of Illinois (with special vote of confidence in the national officers and liaison committee), Allied of Western Pennsylvania, Independent Theatres Protective Association of Wisconsin and Upper Michigan, Associated Theatre Owners of Indiana, Allied Theatre Owners of the District of Columbia, New York State Unit of National Allied, and Allied Independent Theatre Owners of Eastern Pennsylvania (as amended and with special vote of confidence in national officers and the board). While Allied's procedure, after all units have approved or acted on the resolution, has not been determined, it is understood that a formal statement will be issued by Myers who will then call a special meeting of the board of directors, after which the board is then expected to invite other branches of the industry for a round-table conference. Nathan Yamins, former national Allied president, believes the ordering of a plebiscite by Allied's board of directors to vote on the adoption of the unity resolution is illegal, he said last weekend. He added that calling of a special session of the directors after the adjournment of a special board meeting being called, at which a resolution could be adopted ■ that would satisfy everybodv and without it being rushed through without proper discussion and consideration. He declared such a proposal would get 100 per cent support. Defining his stand on the unity question, he said he favored any plan that would not hurt the independent exhibitor. He pointed out, however, that although there was unity to some extent in Europe today, it's a unity controlled by dictatorship, and nobody wants that kind. The proposed resolution, as seen by Yamins, would make the independent exhibitor comparable to Norway, Belgium, etc. That kind of unity he doesn't want, he said, adding that he was suspicious of the resolution because he could foresee domination by the MPTOA-Hays organization. Among the exhibitors and theatre circuit executives who attended the sneak preview of Columbia's "Ladies In Retirement," at Loew's Theatre in Yonkers, Wednesday evening, September 24th, were from left to right: Larry Beautis, Loew's Inc.; Sam Goodman, Century Circuit; Gene Picker, Loew's Inc.; Lester Cowan, producer of the picture; and Oscar Doob, Loew's Inc. Detroit Theatres Raise Admissions Detroit — With representatives of over 100 Detroit theatres present, including Co-operative Theatres of Michigan, a meeting was held here last Friday during which a price boost for all local houses, effective Wednesday of this week, was informally approved. With the move based on the tax boost, the exhibitors agreed on adding rather than absorbing the tax. Kuykendall Names Three Committee Will Try to Stop Exhib.-Distrib. Friction Receipt of bitter complaints from exhibitors in widely scattered terri I tories regarding prevailing sales pol j icies on the part of certain distributors has caused Ed Kuykendall, j MPTOA president, to appoint a special committee of three to meet ' with distributor interests "and make an effort to straighten out differences I that are building up sentiment for law suits." The committee is headed by Lewen j Pizor, of Philadelphia, as chairman, with Max A. Cohen of New York and Herman Levy of New Haven. j The trio is serving, Kuykendall said, I "in the hope of avoiding the courts and in promoting a better relationship between exhibitor and distributor." The strongest exhibitor complaint, it is said, is the alleged "unfair prac. tice of holding out pictures that have been bought in good faith and reallocating them at increased rentals." In a statement issued this week concerning the matter, Kuykendall expressed the hope that "we can work our differences among ourselves." He continued: "There never was a time when we needed industry unity more than the present. Now, when we hear so much industry coordination, and all-industry committees for the common good, why don't we play a little 'give and take' and demonstrate sincerity of purpose by a spirit of fairness? Storm warnings are out — will the industry heed them ?" Two Warner Houses in Milwaukee Reduce Prices Milwaukee — Admission prices at Warners' Granada and Milwaukee theatres here have been reduced a nickel. The Granada, located on the south side, is now playing matinees at IS cents to compete with Fox's Modjeska, former Warner Saxe house. On the north side, the Milwaukee's early bird admission price has been dropped from 20 to 15 cents in view of the recent inauguration of 20-cent matinees at Fox's Garfield, also a former Warner-Saxe house. 'Blues' for Memphis Memphis — Paramount's "Birth of the Blues" will have its world premiere here on Oct. 31. Unit May Convene Albany — A state-wide convention of the New York State Unit of Allied is in prospect for next week, according to Leonard Rosenthal, Troy counsel active in the group. SHOWMEN'S Trade rfST&> Review Vol. 35, No. 11 Oct. 4, 1941 Title and Trade Mark Reg. U. S. Pat. Off. Published every Friday by Showmen's Trade Review, Inc., 1501 Broadway, New York City. Telephone BRyant 9-5606. Charles E. "Chick" Lewis, Editor and Publisher; Tom Kennedy, Associate Editor; Robert Wile, Managing Editor; Joseph H. Gallagher, Film Advertising Manager; Harold Rendall, Equipment Advertising Manager; West Coast Office, Guaranty Bldg., 6331 Hollywood Blvd., Hollywood, Calif., Telephone Hollywood 1390, Ann Lewis, manager; Chicago Representative, Marshall Reinig, 612 North Michigan Ave., Telephone Superior 7646 ; London Representative, Milton Deane, 185 Fleet St., London E.C. 4; Australian Representative, Gordon V. Curie, 1 Elliott St., Homebush, Sydney, Australia. Subscription rates per year: $2.00 in the Uniled States and Canada ; Foreign, $5.00. Single copies, ten cents. Subscribers should remit with order. Entered as second class matter February 20, 1940, at the Post Office at New York, N. Y., under the Act of March 3, 1879. Contents copyrighted 1941 by Showmen's Trade Review, Inc. Printed in U.S.A. Address all Communications to : SHOWMEN'S TRADE REVIEW 1501 Broadway New York Citv