Variety (June 1954)

Jane % 1954 >« t rici'inites The current last-ditch battle to fight the proposed New York City 5% admission tax recalls the indifference of both the Met- ropolitan Motion Picture Theatres Assn, and the Independent The- atre Owners Assn, when the warning was first sounded. Several weeks ago several New York dailies reported that Mayor Robert F. Wagner was weighing an admission tax. Asked by Variety what action the exhib orgs were taking to fight the move, spokesman for both MMPTA and ITOA "pooh-poohed” the re- ports,' dismissing them as “newspaper dope stories.” Said one spokesman: "There's nothing to it. Why .print anything about it? You’U only call attention to it.” Unfairness of Tax Better Argument Than Predictions of Bankruptcy Some warning voices are being raised against a tendency by the film biz to overplay the "bank- rupt” angle in its fight against the threatened 5% N. Y. City admis- sions tax.'These observers feel that it would be wiser to concentrate on the unfairness of the tax and its implications rather than the poor economic state of the thea- tres. It's recalled that, during its ill- fated attempt in 1953 to obtain' re- peal of the 20% admissions tax. from the Congfess, the industry put elaborate stress on the down- beat approach, stating that it was teetering on the brink of disaster and that failure to remove the tax would result in some 5,000 houses closing their doors. - When President Eisenhower ve- toed the tax cut—it was reduced to 10% earlier this year—some clos- ings did take, place but not any- where near as many as had been predicted by exhibition spokes- men. There was considerable com- ment at that time, however, that in fighting the tax by claiming in- dustry bankruptcy, COMPO had actually defeated its basic purpose, i.e., to create public confidence in the industry. Crix concede that the fight against the 5% levy obviously has to be tied in with a graphic re- minder of the economic conse- quences not only to the theatres and their personnel, but also to al- lied businesses. At the same time they fear that the industry may be doing itself a disservice by cre- ating an impression that pix are no longer catching the public’s fancy. An overstressing of this point is harmful tp the business as a whole, they say.’ Premature, Unwarranted Reissues Draw Allied Scolding of Distribs Minneapolis, June 1. North Central Allied is warning members to "beware” of the reis- sues of comparatively "recent vin- tage pictures” which it states are now "flooding” the market and "in most instances" proving to be “boxoffice flops.” At the same time it upbraids dis- tributors for "digging up” the oldies "too soon” and frequently "unwarrantedly” because they al- legedly don’t bear repetition box- officewise. Organization also takes occasion to scold the producers again for "falling down on the job” and not producing enough pictures. Such deficiency, it’s claimed, is responsi- ble for the present "abortive” at- tempt to remedy the picture short- age and to squeeze out additional film rental income by bringing back old pictures "over and over again.” Bennie Berger, NCA president, declares, the major producers now have been "tried” and "found guil- ty” of failing to fulfill their func- tion and should be "ashamed” of themselves. At the same time, however, the vast majority of the territory’s in- dependent exhibitors continue to refrain from signing contracts for the promised but unproduced Hal R. Makelim and other independent pictures. ' ' ' All Kinds of Advice H. R. Makelim, who’ll have to please 2,500 exhib "charter members” under his guaran- teed cost scheme, had an indi- cation recently of what he’s up against. • Drumming up contracts in Omaha recently, Makelim was approached by an elderly exhib with some fatherly advice. "Make a film with Laurel & Hardy,” the vet theatre- man counselled. "They're hard working boys and they go over big. And come to think of it— why not team ’em up with the ‘Our Gang’ boys?” New Titles On ’46 Stewart And ’51 Holden Pix Taking advantage of the recent Academy Award won by William Holden for "Stalag 17” (Par) and the . acclaim received by Jimmy Stewart for "The Glenn Miller Story” (U), Warner Bros, is reis- suing two pictures starring these thesps. Pictures, being re-released as a package, are "No Time for Comedy” (1946), starring Stewart and Rosalind Russell, and "Force of Arms” (1951), starring Holden and Nancy Olson. Pictures, however, are not be- ing issued under their original titles. WB has dubbed “Comedy” as "Guy With a Grin” and "Force” has been named "Girl For Joe.” The press books and new advertising matter denote that the pix are re-releases and list the former titles. Catch lines bill Stewart as "That Wonderful Glenn Miller Guy” and Holden as "This Year’s Academy Award (Continued on page 20) N. Y. TAX JUST LATEST SOCK • Attempts by local governments to impose admission taxes has the industry wondering again just what has the world against the pix busi- ness. For pictures, more than any other industry, are sublject to Gov- ernment regulations and restric- tions both in the United States and abroad. It’s an old adage by now that the pix biz i$ everybody’s busi- ness and, given the opportunity, everybody makes an attempt to get into the act. While baseball has been ruled a sport not subject to the rules of interstate commerce, the film biz is slapped with antitrust suits. The 16m antitrust suit is still hanging over the industry in which an at- tempt is being made to have films (Continued on page 20) For Celebrities? Chicago, June 1. Value of film star personal ap- pearances in the hinterlands once again spoke for itself last wjeek in helping a pic into the hefty gross brackets. “Long Wait” racked up a whopping total, nearing $40,000 at the Woods Theatre, at a time when all other fare was wilting on the Main Stem. Partly the reason, there’s no doubt, is that United Artists had sent three of the pic’s starlets here on a pre-opening bal- ly tour for the Chi world preem and got nearly complete saturation in all available media. This somewhat celebrity-starved town only too willingly avails its radio and tv programs to in-the- flesh notables, and newspaper col- umnists aren’t stingy with the space either. Dailies carried eye- catching, leggy photos of Peggie (Continued on page 20) JACK SCHLAIFER BACK AT HIS OLD UA STAND L. J. (Jack) Schlaifer, veteran industry sales executive, has re- joined United Artists and will serve as a special representative. Schlaifer, who assumes his new post immediately, was first asso- ciated with UA in 1928 and later served the company in a number of key sales positions until 1940. Under the appointment, which is in line with UA’s expanded product program, Schlaifer will cover the entire United States and Canadian territories. Industry Mobilizes 'Kill Tax’ Drive; Grace Kelly’s Courtiers Grace Kelly, who has be- come a hot film name, found herself in a state of confusion when she arrived in New York frtfm the Coast last week en route to Europe. At the air- port to meet Miss Kelly on Wednesday (26) were the rep- resentatives of three film com- panies, each- vying for her services to plug the interests of each company. And the film company press agents had to 'be at the airport at 7:55 a.m. to greet Miss Kelly. On hand to meet Miss Kelly were reps from Metro, the st&dio to which she is under ■ contract: Warner Bros., for which she made "Dial M for Murder,” and Paramount, for which she is going to Europe to make "Catch a Thief.” Miss Kelly diplomatically solved the problem by riding into the city with her agent, an MCA man. 2,000 Playdates For WB’s Them’ Within a Month! One of the fastest playoffs in in- dustry history is being attempted by Warner Bros, for its science fic- tion feature, “Them!” Distrib ex- pects to complete 2,000 dates with- in the period of a month. Picture goes into distribution on June 16 for the saturation bookings. It’s being backed by a hefty tv and radio campaign, with special em- phasis being placed on the video coverage via spot announcements. In each zone slated for the tv with special exploitation kits pre senting tie-in ideas for the video campaign. Campaign is designed to cover every distribution area in the United States. To back up the large number of playdates, WB is providing a total of 600 prints which it claims is a new high f6r the company. Television and radio blanketing is not superceding news- paper coverage, according to WB. Company is supplementing it with special area newspaper advertising in cities within the circulation area of the saturation regions. ~ 7 ~ LUST OF MUNICIPALITIES FOR THEATRE TAX IS NOTHING NEW, SAY EXPERTS Theatremen have long had warn- ing that amusement taxes are "pe- culiarly .suited” for municipal ad- ministration and that local govern- ments have avariciously eyed ad- mission taxes as a source of addi- tional revenue. The present battle of New York exhibs to prevent the city from levying a 5% bite on admissions recalls the testimony of ah official of the American Mu- nicipal Assn, at the tax hearings in Washington. Randy Haskell Hamilton, the Washington director of AM A, asked the Congressional commit- tee to recommend the repeal of the Federal tax so that it could "rightfully” come into the domain of the local municipalities. He de- clared that it could be best ad- ministered by state and local gov- ernments. A committee, member called Hamilton’s testimony to the attention of Robert Coyne, Coun- cil of Motion Picture Organizations rep, and to exhibs representing the industry. The exhib delegation. said they were sure that the local governments realized the plight of the theatres and would do nothing that, in the long run, would harm not only the theatres but busi- nesses surrounding the theatres which would be harmed if the the- atres were forced to close. Hamilton, when asked how Fed- eral repeal of the tax would be beneficial to the theatre biz, said the local bites would probably be considerably less since they would exact about 5% as compared to the Federal government’s 20% levy. As an argument for local con- trol of the taxes, Hamilton noted that theatres and other amuse- ment spots required additional po- lice protection' and extra street cleaning facilities. Varied Tax Yields Most recent statistics available reveal that 13 out of the nation’s largest cities collected a total of $7,973,000 in amusement tsixes in 1952. This is considerably below the $16,000,000 which the city hopes to collect from New York amusement spots as a result of the 5% tax. Chicago, with a 3% levy, netted only $1,700,000 in ’52, the major share coming from film houses. On the basis of $1,700,000 at 3%, the gross biz would have been $57,000,000. At 5% it would have brought in about $2,500,000. Assuming that New York has four times as many theatres, a generous estimate, the total amusement biz would be about $228,000,000. At 5% this would bring in about $11,- 400,000, a figure still under the $16,000,000 New York hopes to col- lect. • \ In 1952 the entire U. S. amuse- ment business yielded $246,000,000 at the 20% tax. Employing some fast arithmetic, the take would have been about $82,000,000 at 5%. For New York City alone to chalk up $16,000,000 in amusement taxes, it would mean that the city would have to do 20% of the amusement biz of the entire coun- (Continued on page 20)’ Spearheaded by exhibs and the unions, New York’s entertainment industry over the past week whipped up a fullblown crusade against Mayor Robert F. Wagner’* projected 5% tax on admissions. The anti-tax campaign is being fought with a bitterness born of the conviction that the tax is as un- wise and discriminatory as It is up- fair to the already suffering thea- tres which have only begun to par- take of the benefits of the recently reduced Federal admissions tax. Exhibs have organized all meant at their disposal, including their screens, to rouse the public to a realization of what the Mayor it trying to do. No secret is mad* of the fact that, should the tax go through—and there is a feeling among many that it is inevitable— it will be passed* on to the publit which thus becomes the ultimate victim. While this may preserve the theatres from an immediate and direct loss, upped admissions are seen being reflected in dimin- ishing attendance. Studies have found that'whereas nothing much is to be gained by dropping prices a nickel or a dime; any increase inevitably brings s loss in patronage. As alternate suggestions con- tinue to pour in, ranging /from taxes on free radio and tv shows and juke boxes to free parking and commercially used real estate of religious and fraternal organiza- tions, the industry hammered home its argument that the 5% tax would actually cost the city money in the long run due to theatre clos- ings and the effects on neighbor- hood businesses. The Albert Sindlinger research organization has been retained by - „ (Continued on page 20) Schine Chain Defendants Required to fost Bonds, On Antitrust ‘Appearance’ Buffalo, June 1. Preliminary legal skirmishing spots, exhibs .re being provided fe" - p^in'is^ro^ht proceedings brought by the Government against Schine Theatres, Inc. J. Myer Schine, John A. May, Louis B. Schine, Don- ald G. Schine, Attorney Howard M. Antsvil, Buffalo Council Presi- dent Elmer F. Lux and eight other corporations on civil and criminal contempt show cause orders charg- ing the defendants with non-com- pliance with the 1949 antitrust de- cree issued by Judge John Knight which ordered the Schine chain to divest itself of 39 theatres. Schine attorneys unsuccessfully resisted the Government’s attempt to force the Schine defendants to post appearance bonds, when Judge Knight required the posting of $2,500 by each of the defendants to guarantee their future appear- ances in court. The right of the Government to institute contempt proceedings where no direct loss has been suf- fered was" also attacked by Schine attorneys, as fras the inclusion in the present proceeding of three (Continued on page 16) Reaction To Editorial Sticky Wicket, O., June 1. In re editorial yclept “A Kick in the Wickets” in last week’s Variety, reference was made in in- dignant discussion of the proposed New York City tax that it was the sort of thing that might be expect- ed "from the unsympathetic ele- ments of Broken Bottle, Ohio.” Although there is no Broken Bottle in the state, other than those in the trash heaps, there is a Broken Sword, Ohio. It is nine miles north of Bucyrus in Crawford County. There’s no post office there and the population is un- known but it is believed there are no "unsympathetic elements” in Broken Sword. It has’ no theatre and, therefore, no theatre tax. Wass you, as the old routine goes, ever in Wauseon? ‘ ,, ‘ 1 ' f