Variety (Sep 1935)

Wednesday* September 4* 1935 PICT E S VARIETY 29 Fix Fwesees the Mills of Missouri Grinding Into a Costly Nuisance St. Louis. Eppt. 3. Cashiers at picture theatres here had their troubles alone with other trades people last week when Ic state sales ; tax became effective. Pasteboard. discs, slmilap to milk bottle caps, and in denominations of one and five mills, are used in mak- ing purchases. One mill, tax Is re- quired on' all purchases of 6c and under. Two mills between 6-14c and up to when tax is Ic. Theatre cashiers .were drilled in making change for a week before the act became effective but found their customers a bit slow. in grasping exchange rate. Ushers and other employees of theatres sold the mUl discs to those in line and this method helped expedite sale of Uckets. Tax Is designed to yield state J10,000,000 a year, part of which wUl bie used in paying an Old Age Assistance to indigent over 70. Picturing a mess. in bookkeeping and confusion not only In handling accounts but at box offices,' home office executives and attorneys are fretting over the new Missouri sales tax, which makes all transactions, including theatre admissions, tax- able in fractions of a cent when under 14c. The new law, copy of which reached New York during the past week for study, became effective .throughout Missouri this week. Because the usq of mills, to be manufactured by the State in the form of scrip, will prove cumber- some and highly Inconvenient, film leaders do not believe it will last. The tax is a 1% sales tax, but tlie way it's written, when the transac- tion is no more than 14c., the levy is under Ic. or in mills, with the taxation starting on Ic. purchases. The Federal government has ad- vised Missouri that it is unlawful to coin new money, so Missouri has gotten out what Is humorously called 'bottle cap script,' so-called because t::e scrip Is shaped like the cardboard stoppers In milk bottles. It is printed on special paper which is immune to water and the State, as a starter, has budgeted $10,000 to print and distribute the mill money. While the sales tax does not apply to film rental, It covers all theatre admissions and In the distributor camp all advertising accessories and exhibitor supplies sold at exchanges; JANE MOORE AND BILL REVEL THIS WEEK (AUG. 30) LOEWS VALENCIA Penional Slgt. WALTKB D.4TCUELOB At the box offlcfe home office execs and looal Issourf operators have no idea how it's going to work out. Change will have to bo provided for a cent, With maybe eight or nine mills to be handed out at a time where it figures that way. Books must be kept on the tax, including all the mills, and for the exchanges where exhibitors send in checks to cover ad sales material, mills will have to be returned to the account in some manner. One of the difficulties under the terms of the Missouri tax is that a theatre or exchange cannot absorb the tax and avoid the trouble and cost of handling the scrip; keeping a full set of books, etc. Notice to the effect that the tax cannot be absorbed anywhere by the seller must be posted where the public can see It.- A similar tax Impends In Ohio, where the present sales tax expires' shortly and new taxation to take Its place will probably be legislated. The test case in New York to de- termine • whether or not film rental Is subject to the city sales tax which went into effect lost Decem-i ber, is not expected to be decided until sometime this fall.' City's cose, as a tester, is against United Artists for failure to report a tax on film rentals out of Its New York exchange. All majors and the Hays office are defending the case, ground being that film is rented to exhib- itors, not sold. Roy Headrlch, Lyric manager here, by County Attorney Towle who filed charges after several complaints of Headrich's suburban operation of the stunt alleged to be in violation of state lottery laws. Headrich was told If he"d drop the practice, the county attorney wouldn't file the case, but he con- tinued, A ruling against the gag is anticipated by state showmen who believe it's the first move toward the cleaning up of giveaways. MAGISTRATE IN BROOKLYN OK'S GIVEAWAYS .Albert It. Green, manager of the Oceana theatre, Brooklyn, went free yesterday (Tuesday) when Magis- trate David Malbin, in Brooklyn, dismissed a charge against Green of operating a lottery. The Magis- trate, in tossing out the complaint, stated, 'It cannot be a crime gratuitously to distribute prizes ac- cording to a plan of chance,' Brooklyn has been the central point of a drive against 'bank night' by N. Y. authorities. MAYAN THEATRE Los Angeles, Calif. Best Equipped Legitimate Theatre on Pacific Coast Lower Floor, 717; Balcony, 775 Available for Productions or Road Shows Mortgage Guarantee Co. OW.NERS Chas. P. Salisbury, Mgr. "JUMBO" NEW YORK IOWA'S Am GENERAL K.O.'S BANK NIGHTS Cedar Rapids, Sept, 3. •Bank nights' are definitely out In Iowa as result of an order issued by Walter Maley, first assistant attor- ney general, wliich has been sent to all county attorneys and sheriffs in the state. aley's latest letter reiterates a ruling he made last December that 'bank nights' were lotteries. He cites a decision by U. S. District Judge O. A. Dewey, who denied an injunc- tion to the Central States Theatres Corp., which tried to restrain cer- tain persons from Interfering with the bank night stunt in the corpor- ation's theatres. G. P..Hundling, manager of a the- atre in Newton, who was convicted on charges of advertising bank night in alleged violation of Iowa laws, has appealed to the supreme court, so rialcy says the attorney general's ofTlce will Insist on prosecuting 1)ank night operator.s until the court ren- ders a dc-clsion. Detroit Test Detroit, Sept. 3 Whon local and circuit courts failed to come through with injunc- tions bai-ring give-aways in oppo- sish houses, the Cohen Bros, who manage five theatres hero toolc the matter to tho Suprrme bench In Lansing and obtained a Federal writ, good until Oct. 1, The action was aimed principally nt the Colonial theatre. Neb's Status Lincoln, Sept. 3. The fate of bank nite in Nebraska Is hanging by a slender thread. Judge Polk callc-d for atlornoys to .suljinit brief.s In the pro.secution of Circuits' $1,000 Weekly Crockery BiD-Giveaways Dish and crockery giveaways T.ave developed Into such a business with pix houses In greater New York that several Independent circuits have inaugurated a special admis- sion ticket for gift nights In order to reduce losses on merchandise that at times have amounted to more than $100 weekly per circuit. One circuit, which led the way with these separate admlsh coupons, handles fl.OOO to 11,200 worth of dishes and glassware each week In its 11 or 12 theatres. Officials of company, alarmed over the large number of dishes stolen, took drastic steps to check this loss. They found that some customers were receiving as many as three dishes on one ad- mittance ticket and that in other ways, pieces, of glassware mys- teriously disappeared. By the new system, cveiry fem patron is given a separate ticket, which must be presented in order to receive the giveaway article. At the close of every gift night, these coupons are checked against the total number of dishes on hand. Some circuits carry this plain even further. The ladles' special tickets are listed separately, and then there Is an itemized statement showing the number of dishes given away as compared with these coupons. Robbins Finn's Bingo Cleanup in San Mateo Worries Frisco Cinemas New Firm's Activity Los Angeles, Sept. 3. With O. A. Coons as president and Merlo Armltage v.p., Hollywood Talking Picture Corp., capitalized at $75,000, will engage in picture mak- ing as well as manufacture of equip- ment for television and radio. San Francisco, Sept. 3. In IS 19, wheo.^ the gold rush started in Frisco, keno was a head- ache only to the miners who didn't win at it. Today under the name of 'Bingo' it's a headache to half the small outlying theatres of this town. Couple of weeks ago, Robbins & Robbins, operators of various ver- sions of this corn game in the southern beaches and resorts, in- vaded this territory. There was no soap when It came to operating within the city limits, so R. & R. built a modern spot jtJst-. over the county line in the unlncSrporated village Of Bayshore. After some grief, mainly political, the Bingo jernt opened, and In less than two weeks hit a capacity stride every night. Peak hours are from 8-11 p.m., and it is figured that the par- lor, which seats 300 people. Is good for $4 per chair per hour. This makes the take for that time around $1,200, and tho prizes awarded total about $100 an hour, leaving a neat house percentage. The usual merchandise Is on dls- plaj as prizes, or the winners can take scrip—which they all do— which Is redeemable at a 4% dis- count at the customary clgaret store that always adjoins a Bingo parlor. This 4% cut is the house fiind to 'adjust grievances,' in San Mateo county, a phrase that doesn't need a dictionary to translate. The parlor Is attractive and com- fortable, and there Is parking space to burn, with the. result that every night sees big business and the weekend has 'em In line for seats to drop the corn kernel on the num- ber. While the three night hours are peak, there Is always a play, with thu curious autolst dropping In for a few minutes to see what It Is all about, and then stc/lng for an hour. A brisk matinee trade Is being built up. Sunday, of coprse, is a cleanup. The theatre operators have tried several ways to attack the outfit, but with little success, as San Ma- teo county looks like a paradise for the gamblng element these days. County has two horse race tracks and two dog tracks, and gives all four the glad hand. County heads are even wishful that parl-mutuel betting would be legalized for dogs, Majors Regard 'Bank Night' as a Passing Fancy, Little Concerned Although major film officials re- gard bank nights and similar so- called lottery stunts as an ever-in- creasing threat , to business antici- pated from percentage pictures, the new selling season Is In full swing without any distributor-producer action or any definite move on the part of the Hays office to curb it. Haysian attitude is that ther.e is little or nothing that can be done, at least this year. Bank nights and ot'.cr alleged lottery nights were definitely banned by local boards and the Film Code Authority, and in In- stances where the cases went to the courts, the decisions were against such stunts. Reason for C. A. ac- tion while the NRA lived was that distributor leaders on the board were fully cognizant of the manne^i- in which income naturally expecteJ from percentage pictures was being cut into by the bank ni lit evil. DistrlbH were alert to the manner In which cheap pictures were beinj; cmpi jyed on bank nights which, be- .sidcs slashing revenue on one .spe- cific night actually were cutting into the business derived from percen- tage features. But with the code gone the situa- tion is wide ojjen, City police offi- cials have taken charge in Now York, Chicaf;o, Detroit and other principal cities, invoking the gam- bling statute in an effort to curlj bank ni.ijhts. This campaign i.s spreading, and in several sfJots ar- rests have been made. As has been anticipated by dl.s- tributors, attornej's rcprest-nting ttie bank night concession arc clalmtng In court that it Is not necessary to purchase a ticket in order to win. Their contention Is that the regis- tration book is located in the lobby of the theatres Involved and open to the public, therefore not requir- ing admlsh ticket In order to enter the competition. However, It Is ex- pected that trial of exhlb defend- ants will revolve around the ques- tion of 'how a participant is to claim his bank night award, if he Is not in tho house when a winner Is an- nounced?' Just how far legal lights will be able to force their claim that it Is only necessary to be In the theatre lobby In- order to win Is something that the courts must de- cide. (In Minnesota some ycors ago, It was held that non-pay ot- tendance was in Itself the 'valuable consideration.') City officials In New York who believe the stunt Is out- .and-out gambling may bo expected to challenge this contention by re- questing the games' counsel to produce a single person who has won a bank night account without purchasing a ticket. .Some regard bank night a.i a fad that will soon wear itself out. Average l;ank night officially is supposed to run 13 weeks. Some- times the operators of thi.s stunt, said to be copyrighted Idea, get a fl.at payment of %T!> per week from an exhib. In other localities they obtain an agreement for a certain peicenLage of the gross or a per- conLa;;e fjver the average receipts of that night. In some spots bank n-ght has meant so little to tt'.o box office that rnanagcrs hurriedly can- eel.' In other localities the compet- ing hou.'-cs, forced to hold bank nights by the original stager of the stunt, soon created a sHuatioii where not one theatre in the <oin- pellng group was deriving .-in ad- ditional dollar's worth of biz bul j was paying for the cost of lagiiig i the 'night.' ' as It would Increase the already heavj' attendance. Joker In county's attitude toward gambling is that tracks and con- cessions get ^nly county permits to operate If most of employes are drawn from county's relief roll.'j, which makes It a nice dignified way to kick through with part of tho necessary. Robbing boys have the theatres stymied on legal action on another count, by making counter-threat to go after bahknlting In a big way. Theatres have not yet tried bank night test cases In any big way In local court, and are Just as well sat- isfied to let sleeping pooches con- tinue their nap. Logical next development will be rival Bingo parlors along the county line, because the lads are looking enviously at this new form of dimo collecting. For the present It Is all Bobbins gravy. Providence, Sept. 3. Kxhibitors see a new menace on the theatrical horizon. Carlton the- atre, one of the dark stands In town. Is now catering to natives who cravo bingo parties, a fad hitherto which had been strictly confined to halls' and carnivals. Veterans of Foreign Wars backing tho Carlton parties. Bingo has long been popular In these parts. While It Is a form of gambling, and not legal, the fact that the parties are conducted for charitable purposes makes it okay with the authorities. There are two other dark houses in town, and should the Bingo stunt go over at the Carlton there's no telling what will happen. WB MET, BAITO, STICEUF Baltimore, Sept. 3. Lone bandit robbed Warnere^ Metropolitan Monday (2) night of $307, early evening receipts. Hold- up staged in lobby when cash box was being carried from .cashier to office by Manager Albert Blnnard. Thief escaped In front of many onlookers. ALEC MOSS' COMBO JOB Alec Moss Is to head both ex- ploitation and press books at the Paramount home office. In charge of the exploiting divi- sion. Moss takes over the press book duties now handled by Rodney Bush when latter goes to Coast studio Sept. 20 as assistant, to Bill Fine. BILLY AND BEVERLY BEMIS VARIETY, August 17th: "A couple of snappy dancing kids. Attractive and plenty of ginger." BILLBOARD, August 17th: "They perform energetically and capably in three routines." • Maiiitf^rmont MILES INGALLS CURTIS & ALLEN OFFICE BZnNARO DURKF. Gtn. M|r. niCO ISullillnii;, Kiirkcroller Center Nt-w Vork nty, N, Tl.