Boxoffice-December.25.1948

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New Ticket Tax Moves
JJ'OT much is known in this industry
about the political power of the American
Municipal Ass'n which met in Washington
last week. Apparently it has connections
with Leagues of Municipalities
and other state groups interested in tax
problems and intends to engineer a national
movement to get the federal government
to give up admission taxes so
they can be taken over by municipalities.
There is sharply divided sentiment on
the wisdom of this among exhibitor leaders.
In many places local ticket taxes are
ah-eady levied on top of federal taxes and
there is no way of telling to what lengths
some governing authorities might go.
If the new association really goes to
work, there will be a lot of agitation in
exhibitor circles before 44 state legislatures
adjourn three or four months hence.
To Fight Checking Suits
^HE last two paragraphs of a resolution
recently passed by the Iowa-Nebraska
Allied unit read:
"The employment of 'auditors' of a single
firm of alleged 'copyright attorneys' by
the seven or more film companies raises
the extremely important question of possible
exchange of properly secret theatre
information as to rentals paid and business
enjoyed by theatres audited by and
between the several film companies. As
American citizens, independent exhibitors
have certain inalienable rights, and it is
our opinion that this collective, if not
collusive, action violates one or more of
these fundamental rights.
"Recent court decisions have held that
the contracts the film companies are now
attempting to audit are illegal, and that
these contracts will not therefore be recognized
by any court in the land."
Tele Networks Possible
fHE FCC ruling last week that Paramount
controls the DuMont company
and its theatre partnerships which, in effect,
limited this group of companies to
five television stations may be obsolete
soon. If divorcement goes through with
the approval of the Department of Justice,
as it is expected to do within the
next few weeks, any circuit will be entitled
to file an application for a television
station permit with the expectation
that it will get one.
This will apply to the other theatreowning
majors whose circuits are cut
adrift.
RKO Report
^HE RKO report showing a net loss of
$2,257,887.78 for the 13 weeks ending
October 2 and a $356,024.04 net loss for
the 39 weeks ending on that date came as
a shock to many, but it may be the temporary
effect of a reorganization brought
on by a change in management.
Production activities are sensitive to
turnovers. When Howard Hughes acquired
fly JAMES M. JERAULD
control the company was in the middle of
a studio slowdown, with one picture in
work.
Since Hughes took over, the company
has made some moderate-budget films,
including "The Clay Pigeon" and "Follow
Me Quietly." Some larger-budget pictures
were started recently, including "Sam
Wynne" and "It's Only Money." Another
slowdown is now in effect, but in January
the company will start "The Big Steal,"
with George Raft.
A turn for the better can be expected
shortly, because it is not expected that the
stock splitup scheduled as a result of the
consent decree will have much effect on
production and distribution.
Arnall Talkative
JF ELLIS G. ARNALL, president of the
Society of Independent Motion Picture
Producers, does only a small percentage
of the things he is talking of doing he will
stir up plenty of excitement in this business.
Al Steffes and Bennie Berger in their
palmiest days were never more positive in
their expressions on all kinds of industry
problems.
Among other things he is in favor of
more litigation, if he deems it necessary,
and complete divorcement of all distributor-owned
theatres.
Apparently the SIMPP members are convinced
that this is the way to get higher
rentals for pictures.
Rembusch Gets Data
^LL the regional Allied units are urging
their members to submit suggestions to
Trueman Rembusch on pictures and other
problems for submission to the coast meeting
of producers. He will have a full portfolio
when he arrives in Hollywood.
This probably will be the first time in
many years that producers will come into
face-to-face contact with a man representing
their sharpest critics. It's a new
approach and something constructive may
come of it.
This Man's a Producer,
Not an Exhibitor
DENVER— Cy Lee of Poppers Supply Co.,
theatre candy and popcorn broker, recently
sold a 100-pound sack of popcorn to a very
small town in Colorado. Lee said a farmer
came into his office and asked the price.
Lee asked where his town was. On being
told Lee said, "Why, that town is too small
for a popper, isn't it?"
"Oh," replied the farmer, "it isn't for
public consumption. I have 11 children, and
my sister and brother each have nine children
in their families. When we get together,
the popcorn really disappears. Now
it appears I will soon be a grandfather, so. I
suppose that in a few years I'll be getting
200 pounds each year."
Wants This Performance
Without Sound
Brownsville, Tex.—What's the legal
amount of noise you can make in building
a theatre? Builders of the new downtown
Interstate circuit theatre here didn't
know it was against the law to make
noise in construction until they ran up
against an irate federal court judge,
Allan B. Hannay.
H. F. Pettigrew, contractor for the
$300,000 theatre, recently moved in a
power saw to speed the work. Across the
street, Judge Hannay was holding
court. 'When the saw buzzed, the court
held, it disturbed legal procedure. The
judge also fined the job superintendent
$100 and 10 days in jail, but suspended
sentence when the noise abated.
But it took Frank Strickland, Interstate
lawyer, the contractor, and the
coui-t to determine just how much noise
a builder can legitimately make before he
runs afoul of the law. The parties agreed
to tone down the noise, and the court
allowed the project to proceed.
George Bonwick Elected
To Pictorial Films Post
NEW YORK—George J. Bonwick. who has
been associated with various Robert R. Young
entei-prises since 1930, has been elected president
of Pictorial Films, Inc., a wholly-owned
subsidiary of Pathe Industries, Inc.
Pictorial
handles the 16mm distribution of all featui-es
produced and distributed by Eagle Lion
Films, also a wholly-owned subsidiary of
Pathe.
Before taking his new post, Bonwick has
successively been: office manager. Young,
Kolbe & Co., brokers; president, Atina Corp.,
security holding company; president, Jersey
Management Corp., securities; assistant
chairman, Alleghany Corp., railroad holding
company; assistant chairman, Chesapeake &
Ohio Railway Co.; executive vice-president
and treasurer, Pathe Film Corp.; executive
vice-president and treasurer, Pathe Laboratories,
Inc.. and executive vice-president
and treasurer, Pi-oducers Releasing Corp.
Earle Hammons Gets ABC
Tele Tieup for Lion
NEW YORK—Earle Hammons, president
of the newly organized Lion Television Pictures,
has been appointed film television consultant
of the American Broadcasting Co.,
according to Paul Mowrey, national television
director of the network.
Tlie appointment provides the new Lion
company with an immediate outlet for the
films which it is now accumulating for television
use.
Cowan Buys More Drive-Ins
TORONTO—The Sunset Drive-In Theatres
at Brantford and Peston have been
taken over by A. C. Cowan of Toronto who
acquired five units a short time ago from
Park Drive-In Theatres operated by Herb J.
Ochs of Cleveland. The latter includes Ottawa,
Peterboro, Oshawa and two at Toronto.
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BOXOFFICE December 25, 1948