DECEMBER
NO REASON FOR GLOOM OVER FATE OF TAX CUT CAMPAIGN Too Early Yet to Indicate How New Administration Will Stand on Repeal By AL GOLDSMITH Washingto7i Bureau, Boxoffice WASHINGTON—Exhibitors and other film industry officials who are concerned about the fate of the federal 20 per cent admissions tax at the hands of the new Republican Congress should not be too upset this early in the game over the scarcity of positive omens regarding congressional intent. The truth of the matter is, key congressmen —although generally sympathetic toward the industry's phght—don't know themselves what can be expected in the coming session. TOO MANY IMPONDERABLES There are just too many imponderables, too many unknown factors with a direct bearing tax legislation—not merely the admis- on all sions levy or even all excise imposts—for any congressman to stick his neck out at this time and come up with a flat prediction. First, they point out, the presentation of the 1954 fiscal year budget must be awaited for indications of necessary expenditures in the year starting July 1, 1953. And the budget, which will be sent to Congress before the inauguration of General Eisenhower, is being prepared by the outgoing Truman administration. Several Republican leaders already have stated that the budget—which is rumored to total in the area of $80,000,000—can and must be cut down to from $65,000,000 to $70,000,000. But other key Republicans are skeptical that this can be done. The overwhelming bulk of the budget is allocated to defense and defense-supporting activities, so it is obvious that any possible cuts of a significant nature will depend on the development of international problems, including the Korean war and relations with Russia, and on the trend of the foreign aid policy under the Eisenhower regime. Any tax reductions must necessarily be predicated on expenditures. And there is no way of forecasting how much tax revenue can be slashed until the expenditures picture becomes clearer. And then, if it is decided that a tax reduction is possible, Congress must figure out in what fields the reductions should be applied. COMMITTEE IS UNCERTAIN Starting point for all revenue legislation is the House Ways and Means Committee, and those Republican members who have been in Washington since the election are frank to admit that they cannot tell now what is likely to happen. There are, however, a number of tax matters which would appear to take precedence over the consideration of the admission tax, and which must be watched closely as an indicator of the industry's prospects for relief. Under the Revenue Act of 1951, the excess profits tax expires on June 30, 1953. and, Oklahoma Delegation 100% for Tax Relief OKLAHOMA CITY — Positive commitments to support tax relief to the motion picture industry have been made by the all six congressmen from Oklahoma, Morris Loewenstein, president of Theatre Owners of Oklahoma, said this week. He has forwarded the commitments to headquarters of the Council of Motion Picture Organizations in New York, where the admissions tax repeal campaign is being directed. according to the best qualified observers, stands the best chance of being allowed to lapse, since it hasn't proved to be the revenueproducer anticipated, and because everybody acknowledges that it is an unfair and inequitable levy. The bill also provides for a return to the pre-1951 personal income tax rates on Jan. 1, 1954, unless Congress takes other action in the meantime. And here, of course, is the field in which Congress would like most to effect a reduction, in view of the Republican campaign promises. But even here, although there is guarded optimism, there is no feeling of certainty that a cut can be accomplished. In addition, the normal corporate tax rate is scheduled under the 1951 act to revert to its pre-Korean 25 per cent level if no action is taken by Congress. And finally, the excise increases made in DENVER—U.S. Senator Eugene D. Millikin of Colorado gave the film industry representatives here a promise of support in the industry battle for elimination of the 20 per cent federal admissions tax and also gave some constructive advice on how to present the case for killing the tax Exhibitors were briefed on how to circumvent some of the red tape usually encountered by the uninitiated when they attempt to get favorable legislation started in Congress. Pointing out that he was acting only in an advisory capacity, since any taxcutting measure must originate in the House Ways and Means Committee. Millikin gave the Denver theatremen who met with him this advice: "You're movie people. Why not present your case through the movies? Get the best script writers and the top talent available. Make a succinct, entertaining film tliat will convey your point to every .senator and representative." The Denver theatremen are getting in touch with studio people and hope to report that measure would terminate in April 1954 When it comes to excise reductions, many observers feel that if the decision is made that some reductions are possible, the entire field must be considered, and the merits of all industries saddled with excises surveyed, rather than special treatment of one or more individual excise levies. On the other hand, there are some congressmen who honestly feel that the admission tax does rate special attention, on the grounds that it is the most inequitable of the excises. One highly placed member of the Ways and Means Committee—a Democrat, however—is reported to be preparing a bill to reduce the admission tax rate from 20 per cent to 10 per cent, and at the same time set a minimum price level below which admissions would be tax-exempt. He also is reported to be giving thought to some sort of a bill under which an over-all body representing those industries with excise taxes on their products would be set up to coordinate consideration of excise tax reductions. Still another committee member, while acknowledging that trends were unpredictable at this time, did express the view that any industry burdened by an excise levy as high as 20 per cent can make " a good case for itself." And another Ways and Means member said that hardship caused to an industry by an excise tax should be considered irrespective of the general tax situation, but added, that if a reduction in the admissions tax were to be considered on that basis, the industry, "if it is smart," would revert to its original position of 1950 that benefits of a tax cut would be passed on to the moviegoers. A Senator Gives Exhibitors Some Tips On Using Movies to Get a Tax Cut substantial progress by the time Congress convenes. In presenting the case of the theatres, Robert Selig, executive vice-president of Pox Intermountain Theatres, declared that "the tax is discriminatory," and added: "Many small theatres over the United States are closing because of the tax, which in many instances represents the difference between profit and loss. Department stores are taxed on some of their merchandise, such as furs and cosmetics, but they have many other things to sell. Theatres have only entertainment to sell and that is taxed." UA Heineman Sales Drive Set to End December 6 NEW YORK—The United Artists Bill Heineman Sales drive went into its final week with Los Angeles, New Orleans and New Haven leading in each of the three groups into which the contest has been operated. The windup was set for December 6. ' 1 - 'k f "111.. . 12 BOXOFFICE December 6. 1952
' patrons ni_ rheatie! tf I .ii tip THEATRE TV INSTALLATIONS UP TO 102 HAVING 227WO SEATS Total Rises 66 in One Year With More Coming Soon; Located in 53 Cities By SUMNER SMITH NEW YORK—Large-screen theatre television, long dormant, has suddenly come alive. By the end of the year, at least 102 theatres In 53 cities seating about 227.000 patrons will have equipment In operation. The Increase. If not phenomenal, Is worth study. The figures compare with 36 installations in 23 cities in September 1951 and 88 In 51 cities less than three months ago. The endof-the-year-total of at least 102 Is a conservative estimate. Television equipment manufacturers, in deference to the wishes of their customers, do not report orders on hand and leave it to their customers to report completed installations. However, the listing which follows later identifies a number of equipped theatres not previously reported in any publication, some of them now in the throes of installation. WIDE UPT-ABC INTEREST A lot of attention television-wise is being focused on United Paramount Theatres the.se days. This circuit will lead the field with at least 25 installations active before Jan. 1. 1953. and more to come shortly. Leonard H. Golden.son. president, and Robert H. O'Brien, .'secretary-treasurer, have long emphasized their interest in renting theatres for off-hour television conventions and sales meetings for additional revenue. It is noteworthy that UPT is equipping theatres at a time when a favorable report is expected from the Federal Communications Commission on a merger of UPT with the American Broadcasting Co. It is conceivable that the TV-equipped theatres could tie in to that setup, but UPT is not talking and is talcing nothing for granted prior to FCC approval. Generally, the awakened interest in theatre television is based on an advance in programming, the lack of which in the past has caused exhibitor complaints about the cost of .seldom-used installations and carrying charges. AH the exhibitors have had to lure in to watch the television screens have been fights. Some of these have drawn while others have not. There also have been civilian defense meetings, but those hardly came under the heading of entertainment. TWO SALES CONVENTIONS Now two sales conventions are in the offing, that of James Lees & Sons Co., carpet manufacturers. Monday (8i, and that of Bendix. which promises a surprise in the way of new equipment. December 30. Neither of those comes under the heading of entertainment, but both come under the heading of revenue for the theatres, which will rent their facilities during off-hours in the morning. At least one other sales convention will follow early in 1953. On the entertainment end. there will be something distinctly new in a presentation No Television Deluge During 1953, Rate of Station Permits Indicates WASHINGTON—There will be no television deluge in 1953. Much of the excitement that prevailed last spring when the Federal Communications Commi.ssion opened the ultrahigh frequencies for general use wa.s ba.sed on the assumption that about 2.000 applications for construction permits would roll in and that many of them would be granted. The expected gold rush for the air waves hasn't materialized. The A.s.soclated Presa ha.s estimated that the number of new stations to be expected In 1953 ranges from 35 to 100 This does not include applications for a-s- of the opera "Carmen" December 11 from the stage of the Metropolitan Opera House here. Like the telecasts of fights, that will attract a type of audience not usually found In a picture theatre. There is great interest in the test and there are many opinions as to how it will work out. Other announcements of theatre television entertainment will follow shortly. Spyros P. Skouras, president of 20th Cen- 'ury-Fox, has promised an important announcement shortly about the Eidophor color system which the company controls and which is now being readied for u.se. Charles Skouras has said the system will go into many western theatres, and he has talked about setting up central points from which programs would be telecast to a group of theatres. It could well be that UPT is interested in that type of setup. Last and not least is the scheduled appearance of industry representatives before the FCC in January to continue their argument for an exclusive industry telecasting setup. There is opposition to the plan and it is likely there will be considerable argument and counter-argument before the FCC hands down its decision. Big news about color television could break almost any day. from Paramount, which has been conducting experiments for a long time, as well as 20th-Fox. Radio Corp. of America, which is perfecting its all-electronic, compatible system, and Columbia Broadcasting System, with its color-wheel method that was approved by the FCC. Paramount is certain to make an announcement soon about its Lawrence color tube, but that Ls for use in TV .sets and not. .so far as is known, for use in transmitting large-screen programs in color. The installations listed by states and cities and giving the seating capacity of a theatre follow ALABAMA— Bcrnningham Ritl. 1,473. ARIZONA— Phoenix: Poranwunt, 1,523. CALIFORNIA — Lo4 Angclcj Orph«um. 2.200. Downtown. 1.757. Poromouni. 3.387. Ri(z. 1.363. Hollywood Hollywood. 2.756. Beverly Hill> Beverly Hills. 1.612. Huntington Pork Huntington Pork. 1,468; San Berncrdirx) Ritz, 920. Son Froncttco: Poromount. 2.646, Telcncws, 400 Rlgnment of wavp|rn«th.'< for theatrr clr< ..' Some Idea of the time coiuumcd In ilo;i.ii bUAlne.iK with the PCC can be obUlncd (ram the United Paramount Theatn*>Ainen'-nn Broadcaitlng Co. menter application. 8tr^>on Ke Pork St Jomm. 1.58$. Comdcn Stonlev. 2,213 Fort Lee Lee. 1,354. Orortge Poloce, 1,400: Rutherford S-3 Dnve-ln. 1.300 con NEW YORK—Greater New York City; For(»iam 2.191, Fox. 4.040. Marine, 2.082. Queera. 2.146, Poroirvount. 3.650. Worner. 2.711. GuikJ 450, Victoria. 2.282 Lone. 1.600, Criterion. 1,671. Binghamton Copitol. 2.250. Albony Grond, 1.497. 8uffo«o Century. 2.911. Center. 2.091 NORTH CAROLINA—Chortotte Carolina. I.40S. OHIO—Cleveland Poloce. 3.293. Slate. 3.446. Allen. 3.009, Hippodrome. 3.465. Exjuire. 714, Cincinnati Albee. 3.037; Dayton Keith't, 2.669. Tole 1 A29 Tacoma: BOXOFFICE December 6, 1952 13
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'<br />
patrons<br />
ni_<br />
rheatie!<br />
tf I<br />
.ii<br />
tip<br />
THEATRE TV INSTALLATIONS UP<br />
TO 102 HAVING 227WO SEATS<br />
Total Rises 66 in One Year<br />
With More Coming Soon;<br />
Located in 53 Cities<br />
By SUMNER SMITH<br />
NEW YORK—Large-screen theatre television,<br />
long dormant, has suddenly come<br />
alive. By the end of the year, at least 102<br />
theatres In 53 cities seating about 227.000<br />
patrons will have equipment In operation.<br />
The Increase. If not phenomenal, Is worth<br />
study.<br />
The figures compare with 36 installations<br />
in 23 cities in September 1951 and 88 In 51<br />
cities less than three months ago. The endof-the-year-total<br />
of at least 102 Is a conservative<br />
estimate. Television equipment<br />
manufacturers, in deference to the wishes<br />
of their customers, do not report orders on<br />
hand and leave it to their customers to report<br />
completed installations. However, the<br />
listing which follows later identifies a number<br />
of equipped theatres not previously reported<br />
in any publication, some of them now<br />
in the throes of installation.<br />
WIDE UPT-ABC INTEREST<br />
A lot of attention television-wise is being<br />
focused on United Paramount Theatres the.se<br />
days. This circuit will lead the field with<br />
at least 25 installations active before Jan. 1.<br />
1953. and more to come shortly. Leonard H.<br />
Golden.son. president, and Robert H. O'Brien,<br />
.'secretary-treasurer, have long emphasized<br />
their interest in renting theatres for off-hour<br />
television conventions and sales meetings for<br />
additional revenue.<br />
It is noteworthy that UPT is equipping theatres<br />
at a time when a favorable report is<br />
expected from the Federal Communications<br />
Commission on a merger of UPT with the<br />
American Broadcasting Co. It is conceivable<br />
that the TV-equipped theatres could tie in<br />
to that setup, but UPT is not talking and is<br />
talcing nothing for granted prior to FCC<br />
approval.<br />
Generally, the awakened interest in theatre<br />
television is based on an advance in programming,<br />
the lack of which in the past has<br />
caused exhibitor complaints about the cost<br />
of .seldom-used installations and carrying<br />
charges. AH the exhibitors have had to lure<br />
in to watch the television screens<br />
have been fights. Some of these have drawn<br />
while others have not. There also have been<br />
civilian defense meetings, but those hardly<br />
came under the heading of entertainment.<br />
TWO SALES CONVENTIONS<br />
Now two sales conventions are in the offing,<br />
that of James Lees & Sons Co., carpet manufacturers.<br />
Monday (8i, and that of Bendix.<br />
which promises a surprise in the way of new<br />
equipment. December 30. Neither of those<br />
comes under the heading of entertainment,<br />
but both come under the heading of revenue<br />
for the theatres, which will rent their facilities<br />
during off-hours in the morning. At<br />
least one other sales convention will follow<br />
early in 1953.<br />
On the entertainment end. there will be<br />
something distinctly new in a presentation<br />
No Television Deluge During 1953,<br />
Rate of Station Permits Indicates<br />
WASHINGTON—There will be no television<br />
deluge in 1953.<br />
Much of the excitement that prevailed<br />
last spring when the Federal Communications<br />
Commi.ssion opened the ultrahigh<br />
frequencies for general use wa.s ba.sed on<br />
the assumption that about 2.000 applications<br />
for construction permits would roll<br />
in and that many of them would be granted.<br />
The expected gold rush for the air waves<br />
hasn't materialized. The A.s.soclated Presa ha.s<br />
estimated that the number of new stations to<br />
be expected In 1953 ranges from 35 to 100<br />
This does not include applications for a-s-<br />
of the opera "Carmen" December 11 from the<br />
stage of the Metropolitan Opera House here.<br />
Like the telecasts of fights, that will attract<br />
a type of audience not usually found In a picture<br />
theatre. There is great interest in the<br />
test and there are many opinions as to how<br />
it will work out. Other announcements of<br />
theatre television entertainment will follow<br />
shortly.<br />
Spyros P. Skouras, president of 20th Cen-<br />
'ury-Fox, has promised an important announcement<br />
shortly about the Eidophor color<br />
system which the company controls and which<br />
is now being readied for u.se. Charles Skouras<br />
has said the system will go into many western<br />
theatres, and he has talked about setting up<br />
central points from which programs would be<br />
telecast to a group of theatres. It could well<br />
be that UPT is interested in that type of<br />
setup.<br />
Last and not least is the scheduled appearance<br />
of industry representatives before the<br />
FCC in January to continue their argument<br />
for an exclusive industry telecasting setup.<br />
There is opposition to the plan and it is likely<br />
there will be considerable argument and<br />
counter-argument before the FCC hands down<br />
its decision.<br />
Big news about color television could break<br />
almost any day. from Paramount, which has<br />
been conducting experiments for a long time,<br />
as well as 20th-Fox. Radio Corp. of America,<br />
which is perfecting its all-electronic, compatible<br />
system, and Columbia Broadcasting<br />
System, with its color-wheel method that was<br />
approved by the FCC. Paramount is certain<br />
to make an announcement soon about its<br />
Lawrence color tube, but that Ls for use in<br />
TV .sets and not. .so far as is known, for use in<br />
transmitting large-screen programs in color.<br />
The installations listed by states and cities<br />
and giving the seating capacity of a theatre<br />
follow<br />
ALABAMA— Bcrnningham Ritl. 1,473.<br />
ARIZONA— Phoenix: Poranwunt, 1,523.<br />
CALIFORNIA — Lo4 Angclcj Orph«um. 2.200.<br />
Downtown. 1.757. Poromouni. 3.387. Ri(z. 1.363.<br />
Hollywood Hollywood. 2.756. Beverly Hill> Beverly<br />
Hills. 1.612. Huntington Pork Huntington Pork.<br />
1,468; San Berncrdirx) Ritz, 920. Son Froncttco:<br />
Poromount. 2.646, Telcncws, 400<br />
Rlgnment of wavp|rn«th.'< for theatrr clr< ..'<br />
Some Idea of the time coiuumcd In ilo;i.ii<br />
bUAlne.iK with the PCC can be obUlncd (ram<br />
the United Paramount Theatn*>Ainen'-nn<br />
Broadcaitlng Co. menter application. 8tr^>on Ke Pork St Jomm. 1.58$.<br />
Comdcn Stonlev. 2,213 Fort Lee Lee. 1,354. Orortge<br />
Poloce, 1,400: Rutherford S-3 Dnve-ln. 1.300 con<br />
NEW YORK—Greater New York City; For(»iam<br />
2.191, Fox. 4.040. Marine, 2.082. Queera. 2.146,<br />
Poroirvount. 3.650. Worner. 2.711. GuikJ 450, Victoria.<br />
2.282 Lone. 1.600, Criterion. 1,671. Binghamton<br />
Copitol. 2.250. Albony Grond, 1.497. 8uffo«o<br />
Century. 2.911. Center. 2.091<br />
NORTH CAROLINA—Chortotte Carolina. I.40S.<br />
OHIO—Cleveland Poloce. 3.293. Slate. 3.446.<br />
Allen. 3.009, Hippodrome. 3.465. Exjuire. 714, Cincinnati<br />
Albee. 3.037; Dayton Keith't, 2.669. Tole 1 A29<br />
Tacoma:<br />
BOXOFFICE December 6, 1952 13
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