Variety (Apr 1942)

PICTUBU WedBMdny, April 1, 1942 Film.Ex«^ Can't See How Theyre Going to Pay Otf Those Excess IVofits Taxes; Not a War Industry In the foreground In expressing willingness to carry their full share of the nation's-tax load, majority of picture companies are hopeful that Congress "wUl work out a more equitable^ method of taxation than employed in 1941. AtUtude of In- dustry tax experts and financial men is that film companies want to see all profit taken out of war, but that cur- rent operations of excess profits regulation socks non-war Industry companies (picture corporations) while not actually reaching some of vast earnings piled up by war manu- facturers. , ^ ,^ Attitude of these officials is that if a company shows unreasonable war profits they should ie soaked and not via the present setup, which often penalties a corporation Just now emerging from the financial woods. Reason for this concern over the ex- .cess profits alignment is that present- ly proposed steep rates, applied un- der current formula, would put a. hefty crimp into various film com- panies' financial structure at e time when foireign business Is dwindling. Under present U. S. Treasury pro- iwsals before Congressional .com- mittees, the film companies would have to figure their exces<f profits from full total earnings rather than be permitted to deduct normal taxes first In 1940, corporations were allowed to take off normal federal tax first. But procedure was re- versed last year with all companies forced to figure excess profits first on total earnings, with the normal tax deductions written oft later. This means in many Instances that the tax bill jan 10 times greater than 1940. It is the. reason film companies have had such enormous increases in tax- ation for 1941. ' . With current Treasury proposals calling for an excess profits tax rate running from 50 to 75%, pl«s a 55% bite via normal taxation, many pic- ture company financial men ' are wondering- how they can show any profit; or to be in strong enough financial position to attract new in- vestors or'retain old ones. ■To many tax experts in the busi- ness, present ^guments on taxation all'dwindlis down to a definition of what represents excess profits. They believe It should mean, what is earned over and. above in normal tlm^; hence, normal taxes should be deducted first This would be fair, • according to the belief of most com- pany financial men. And at the same ame, It would leave the heavy ex- cess profits tax rate In effect to curb war. profiteering.' 10-YEAR-OLD MOMAND SUIT VS. PAR DUE SOON The oldest suit agahist Paramount that it has on Its books, that which was brought against-It in 1B32 by A: B. Momand, Oklahoma exhibitor, will probably go to trial in May or June, according to .Louis Phillips, homeoSice couiisel. ' ' Paf has Just filed answers to inter- rogatories of the plaintiff and now awaits'the setting of a date for trial by the U. S. District court at Okla^ homa CIV. where It will be tried. Momand sued for triple damages under the. anti-trust laws, .claiming conspiracy in restraint of trade and In an' accompanying action named the Griffith circuit of Oklahoma and .otiief major jdistributors. .Under provisions of the anti-trust laws,, he asks damages of $4,500,000. TAX COMMITTEES VHPJ SeU Vp Orotips In Over Half Of 54 Zones Tax protectTon committees of the United Motion Picture Industry have been let up in more tiian half of the .54 zones where they will fiuctlon in all matters of taxation affecting the film Industry. In New York there wiU b« three committees while In' the states of California, Missouri, Ohio and Pennsylvania there will be two each. Plant also call for a 'Capital Committee* in Washington. All will work under the guidance of the UMFI national tax committee, of which Spyroa Skouras Is chair^pan. While there la nothing specific committees are being asked to do at this time, they lir* being «rganized so that they will be prepared to wrestle with any tax situation that arises. Each local committee 'will consist of one member representing a atate or regional exhibitor' association, one representing' distributors and one representing chain operation, affili- ated. However, in states where there are two axhlb organizations, one representative of each will be asked to serve. ELUOT PAUL ADAPTS HIS TARIS' FOR M-G Bit Player Sentenced; Fined for Non-Support Buffalo,' Match 31. Salvitore Ensalaco, known pro fesslonally as Anthony Orlando, 33, of North Hollywood, Cal., was sen- tenced to a year in the penitentiary, and fined $500 charged with failing to support his two children in Buffalo. Orlando was placed on pro- bation ajter being ordered to post a bond' and to pay $8 per week for the support of his two sons by his former wife,' who Is a resident of this city: ..They were married in 1928, di- vorced in 1933 and each has since remarried. In. 19^8 Orlando also re- ceived a suspended sentence on . a similar change. He was listed on the coi^rt Tieeprds .a? tt, Hollywood, pic- ture bit playeriand stand-in. Elliot Paul has done the Metro screen treatment of his own The Last Time .1 Saw Paris,' which is ex- pected to .go into production this summer 'with Eedy I<amarr and Robert Taylor, directed by Victor Saville. Metro paid $26,000 for the right to the book, which is the Literary Guild' selection for May. Paul has' beei^ employed for some time on the Metro lot Film .company already owns the title, through purchase of the Jerome Kern-Oscar' Hammerstein II eong right* STOST BIJTS Hollywood, March 31. Warners purchased 'Catch a Fall- ing Star*, magazine serial by Ruth O'Malley. Monogram bought Xure of the Islands', by Scott Littleton. Producen Releasing Corp. has purchased an original, 'Yanks Have Landed,' by J. Wesley Carrlngton. Metro bought Three Guys Named Joe,' by David.Boehm and Chandler Sprague. Arthur Hoerl sold his war story, Texas to Battfan/ to Monogram. RKO purdiased David Boehm's yarn, 'Johnny Goes Marching On.' . Monogram ..acquired 'Diine a ■Dance,', by Cornell Woolrlch. Paramount acquired "Prelude to Glory,' by Charles Leonard. Ray Golden sold his story, 'Are You Making Any Money?' to Colum- bia. Ed Finney, Independent producer, bought screeu'rlghte to The Clown,' with story'and music by Frederich Feher, Paramount purchased an - option on "The Wfell Groomed Bride,' by Manny Seff and George Beck. Dorothy B. .Hughes sold her new novel, 'The Fallen Sparrow,' to RKO Back to German, After FhYTiiig with Ui. Pix Detroit, March 81. _ After switching to a straight diet of American films, the Adlon, form- erly the Europe, has resumed show- ing German pictures here. The house, which had shown German films for the past five years, switched over to native product following Pearl Harbor. However, neighborhood la a dense German area anS the going was tough on the new policy. It resulted in a. split-week arrangement with German pix on four days and Am- erican films the other three. How- ever, things weren't what they were since it was announced that for the first time the house ■will use double features on ita German films, many of them rebookings. MAXINE SULLIVAN Ra-engaaed and held over at RUBAN BLEU "Neva Yorchlda—Mcaine StMlvan't tat« auilng ntsUm at Rubon Bteu," —Walter WlnohcU, Hanh Vt Thanks to-JACK BERTELL Managtmant—MCA Ltd. - Studios Study Per-Page Costs Of Pix Scripts Hollywood, March SI. A breakdown of acript costa per page by Metro re'veals tliat an aver- age of 32 weeks' working time was expended on writing a script for production during, the past year. Average nimiber of scriveners. runs from 14 to 16. Eddie Mannix is studying the re- I>ort In an effort to cut down on the writing time- and the number of scrlpters working on each picture. A similar survey Is being made at other studios to economize on opera- tion. Digging Deep for Texas Hollywood, March 31.. 'Deep in the Heart of Texas' is going deep into th.e bankroll of Uni- versal as a super-westerii with such supercowhands as' Robert Stack, Broderick' Crawford and Andy De- vlne herding Texas steers with' song. George Waggner is producing the picture, based on the recent purchase Of the song tltie. Stndio Contracts Riiht Baii Where Hey Started hm Hollywood, March SI, Opan MsUAt shooting, which originally brought film, compames to Callfomlt, Is being revived in a tentattr* way witb..an eya toward pofslbl* wartime shortages In electrical aqulpment Scenes in Walter Wanger'a "Eagla Squadron.^ originally slated fox filming under arU- flolal light, were moved outeide as an experiment at Universal. Testa for 'Wrecking Crew,' produced by Bill Pine and BUI Tbomaa for Atfamount release, are being made under natural lighting. William Baroyan ia producing part of bis flnt short, Hie Comer Store.' in the open air. Idea la to be prepared In case the sound stages run short of artificial ■unfhine. ntere are no priorities on the Hollywood aky. ' WiD Hays' 20th Annual AssUe Report Stresses Vital Role of Fdms in War HAYS' 21SJ YEAR EleotloB m FernuUty—4 Here to Oo —BesblatloB on Kent Will Hays was elected president of the li^otlon Picture Producers & Distributors Assn, for the 21st con- secutive year Monday (30), at the annual meeting of the association. This was a mere formality, since Hays holds a long-term contract which has about four more years to run. Carl E. Milliken was reelected secretary; George Borthwick, treas- urer, and F. W. DuVall, assistant treasurer. Edward C. Rafteryr presi- dent of United Artists, was elected to the directorate. Directors reelected were Hays, chairman; Barney Balaban, Nate J. Blumberg, Jack Cohn, Cecil B. De Mllle, E. W. Hammons, E. B. Hat- rick, Hal E. Roach, George J. Schaefer, Nicholas M. Schenck, 'V^ter Wanger, Harry M. Warner and Borthwidc. On motion by Schenck, a resolu- tion on the death of Sidney R. Kent was unanimously adopted, recog- nizing his passing as a public loss. 'SOCKER' COE NAMED ADE TO WnX HAYS Hollywood, March 31. Tom Conway Inked player pact at RKO.. Brenda Joyce's ^ option picked up by 20tii-Fox. Marjorie Reynolds drew new act- ing ticket at Paf'amount Milton Rosen renewed as compos- e];-arranger at Universal.' Ted North's player option hoisted by 20th-Fox. ' Katharine Brown's player contract renewed by Paramount. 'Victor Yotmg drew> new pact as composer-conductor at Paramount Richard Dlx signed to do four pic- tures in two years for Harry Sher- man. Jeff Donnell, legit" actress, signed by Columbia. " ~ Ann Todd's moppet option picked up by 20th-Fox with approval of Superior Court Susan (Tagalongy Levhae, five years old, signed by Universal yrlth Court approval. Dorothy Morris inked new player pact at Metro. Lon Chaney, Jr., renewed by Uni- versal. Jane Randolph drew an acting ticket at RKO. 'Virginia Gllmore's option' picked up "jolnOy by Samuel Goldwyn and '20U1-FOX. ^ Peggy Digging drew player ticket at'. 'Warners. Joseph Ruttenberg, camerman, re- newed by Metro. Esther Fernandez, Mexican actress, signed by RKO. . . Harry Jackson, cameraman,, signed for one more-year by 20th-Fox^ John Arnold renewed as head of Metro's camera department. John Nesbitt renewed as shorta producer ct 'Metro. Lengthy' directors'* session lasting about two hours followed annual MPPDA meeting, with Charles Francis ('Socker') Coe appointed as- sistant to Will Hays following di- rectorate huddle. Coe, who lias law oAices In Palm Beach, takes over new position April 1. Naming of Coe is in Une^ with recenUy instituted poUcy of "streamlining 'the associa- Uonr A native of Buflalo, N. Y., he is S2 years old, and had announced his retirement seven years ago. How- ever, Coe was admitted to the Florida' bar two years later and opened law practice at Palm Beach. Hays said of his appointment: "He has won a unique- place In the history of his times. He'has excelled in such diverse endeavors as litera- ture,, broadcasting, motion pictures, oratory and law. He brings to his new work an amazing combination of all these Bccomplishmente.' Matter of naming a permanent secretary to head the MPPDA ad- publidty committee was discussed by the directors. While the necessity of picking a permanent man for the job was agreed on, no selection was made. There was no discussion on the selecting of a new Production Code Administration head although sev- eral Hays oflice directors previously had voiced. the need of having a strong man of the calibre of Joseph I. Breen, former PCA chief. Ahoy'er for Collins Hollywood,-March 31. Leyr Collins drew the director chore' On Universal's Navy picture, "Datager in the Pacific,' which starts this week with Ben Plvar as asso- cUte producer. ■ Leo Carrlllo, Don Terry, and Andy Devine continue as an adventurous trio. ATLANTIS TO THE SESEBT HoUynrood, March 31. Atlantis Pictures moves Into tiie Californta desert to^ shoot location scenes ior "The Army Takes Over,' a tale of war training, starting April 10. Interiors will be filmed at Talisman studio, with Edgar George Ulmer directing from a sorlpt by Bart Dut- toh, for distribution by Producers Releasing Corp. Charging that 'business as usual' is a counsel of complacency which everyone today rightly repudiates and re-iterating the industry's cry ^in the war nowl' WDl Hays, presl* dent Of the Motion Picture I^oducers and Dlstrlbuton Association, in his annual report to th'e assoctaUon Monday^ (30) stressed the impor- tance Of the motion picture to the war effort and the 20 years of progress by the MPPDA. Hays highlighted 'Win the war nowl Everything else ia chores' as the 'Order of the Day' In his resimie of the association's activities during the . last 12 months. •Desire to have one's own affairs untrammeled by the common peril betokens either blind selfishness or a failure to understand how ^radical is the demand which tiie emergency makes on all of us,' was Hays' sumr mation of the stupidity of a com- placent attitude towards the war. There is notlilng that takes prece- dence over the duties of war, ac- cording to Hays, who said that though business cannot and should not, go on as usual, there are certain phases of our national life so essen- tial to our well-being and ■victory, that they sliould be intensified rather than diminished.' Importenee ol RelaxaUon He said that - education, public health and service of religion should be uninterrupted. Hays described relaxation as 'one of the indispen- sable elementa of public health,' and that morale is Invigorated by enter-t tainment 1»olh on the lighter side and in Ita more serious phases frgm which inspiration and emotional ele- vation result. ■The dissemination of information about current events,' he said, 'and the vicarious experience of war acti^vities which all of us cannot know directly, are iidportant parta of public education at this time. Ip all these respecta, ^ the motion picture screen is a major contributor to the war efforf Hays said the 'essential natiure' of the service of picture films in war time has been recognized by federal officials and would seem to indicate a determination to assure contin- uance of these services through pro- ■viding sufficient film stock and other (Continued on page 10) SID KENT'S WILL Bnik to 'Widow and Danghtor Tegfj, Latter Getting Six-Tenths Portion The will of Sidney R. Kent, presi- dent of 26th Cientury-Fox Fllni Corp., who died March 19, was filed Saturday (28) hi the N. Y. Surroi gate's Court leaving four-tenths of the estate to Kent's widow, Lllyan White Kent and six-tenths to his daughter, Peggy Ann Kent, now the wife of Don Wilson, the radio an- ■ nouncer. Kent's widow was left all his per- sonal eflecta and was made one of the three trustees of trust funds which were established, Other trus- tees are the Commercial National- Bank. & Trust Co. of N. Y., which Is to act as executor, and Elmer R. Short Under Mrs. Kent's trust fund she is to receive a minimum of $16,- 000 yearly until she is 60.' His daugh- ter Is to receive $7,800 yearly until she is 40, and thereafter^l0,800. - Under the trust fund, Mrs. Olive Kent Barber,, a aisteri Is to receive an annuity of $2,000 yearly until she has received $24,000. Sjdvla Blau- steln, Kent's long-time personal sec- retary, is to get $5,000 outright as Is Elmert Short Arthxir and Law- rence Kent, brothers,' will receive $1,200 yearly until .they have received $5,000. Albert McNeill, a nephew, is to receive $1,000 .yearly'until he has received $5,000. and (Constant Darot, Kenfs former butler, la' to receive $1,200 yearly until he has received $2,500.