Exhibitors Herald (Jun-Dec 1917)

How Exhibitors Are Handling Tax Detailed in Reports to "Herald" Information Received From Representative Points in the United States Gives Methods Adopted to Carry Out Governments' Mandate With the government's mandate that a war tax must be collected in all motion picture theatres where the price of admission is more than 5 cents, the exhibitor was confronted with the problem of choosing the best manner in which to collect the additional charge. He may keep his admission price at the same figure and collect the tax from the public, or as an alternative raise the price and take care of the tax himself. The Exhibitors Herald has gathered data from different parts of the United States to show how the various exhibitors are facing the situation. The cities from which reports have been received and the means the exhibitors have used in collecting the tax. follow: A. E. A. Headquarters Forsakes New York for Indianapolis Directors Choose Indiana City Following Recommendation by Charles C. Pettijohn Indianapolis is to be the new home of the national headquarters of the American Exhibitors Association. This action was taken by the directors of the association in a meeting held in the present headquarters, Times building, New York City, on November 13, and was based upon a recommendation by Charles C. Pettijohn, general manager. Rooms 412-14-16-18 of the Indiana Trust building, Indianapolis, have been selected. Accompanying Mr. Pettijohn's recommendation also came the request that he be relieved of the duties of secretary of the organization that he might devote all of his time to the duties of general manager and contemplated legislative work. He asked that the directors appoint Frank J. Rembusch of Shelbyville. Ind., as secretary, which was done, and Mr. Rembusch has accepted the appointment. Reasons for Change In asking that the headquarters of the association be moved from New York to Indianapolis, Mr. Pettijohn stated that numerous requests had been made by state organizations in the South, Middle-West, Northwestern and Western states that the headquarters be more centrally located. As an additional incentive he pointed out that the cost of maintaining the offices in Indianapolis would be much less than that now expended. "Inasmuch as every other branch of the industry is at present lined up against the legitimate exhibitor," reads a part of ,Mr. Pettijohn's recommendation, "there is no necessity for maintaining an office in New York for the purpose of cooperating with other branches of the industry until such time as the other branches of the industry should see fit to cooperate." Fix Convention Date A request from the A. E. A. Branch of Michigan that the national convention of the American Exhibitors Association be held in Detroit July 2, 3, 5 and 6, during Detroit's "Movie Week" was granted by the directors. The executive body also voted that headquarters for the state of New York should be established at 327 Main street. Buffalo, in charge of I. M. Mosher. Resistance to the payment of the socalled "15 cents per reel war tax" was made a part of the policy of the association by the directors. Retain New York Office The mailing address of the association after November 20 will be 610 Times building, from which point all communications received by the New York office will be forwarded to the general offices in Indianapolis. Among the members present at the meeting were I. M. Mosher. Buffalo, N. (Continued on page 18) CHICAGO— This city is split over the tax question. The Chicago Motion Picture Theatre Owners' Association has declared itself in favor of retaining present prices and collecting the tax from the public. Many theatres, however, have boosted prices 5 cents, including the war tax. SPOKANE, WASH. — All theatres, with the exception of the 5-cent houses, have raised their prices and are paying the tax themselves. TOLEDO, O.— Prices charged for motion picture shows remain the same. The war tax imposed by the government is being paid by the public. No confusion has occurred and there has been no falling off in attendance. GRAND RAPIDS, MICH.— Although theatre prices here still remain the same, a raise is looked for in the near future, because of the difficulty in obtaining pennies. BATTLE CREEK, MICH.— One motion picture house here has cut 10-cent admissions to 9 cents, so that the price, plus the war tax, is 10 cents, and 15-cent tickets are 13 cents, making the admission 15 cents with the tax. CONWAY, ARK.— Exhibitors here have not raised the price of admission and are collecting the tax as specified in the law. FORT WAYNE, IND.— Owners of motion picture theatres here have agreed not to raise the price of admission, but will collect the tax from the public. SUPERIOR, WIS.— Prices have been raised, the war tax to be paid by the exhibitor. ABERDEEN, S. D.— Prices here were raised 5 cents by agreement among theatre owners, which admission will cover the tax. BALTIMORE, MD.— The signs, "Admission price 11 cents," pasted on the fronts of 10-cent motion picture theatres, reflects the general action of the theatres in this city. The public will pay the tax and prices will not be raised. SIOUX FALLS, S. D.— Managers of the various motion picture theatres here have been unable to come to an agreement, and as a result prices in some of the theatres have been raised to include the tax, while others retain former prices and collect the tax from patrons. ERIE, PA. — Admission prices to local moving picture houses jumped 5 cents with the war tax going into effect. Patrons were notified that the admission price included the war tax. GREAT FALLS, MONT.— Exhibitors here have not raised prices of admission to motion picture theatres. The old admission charges will prevail with the added tax. PHILADELPHIA, PA.— Managers of motion picture houses here have armed themselves with hundreds of dollars' worth of pennies in order to make change when the public enters their theatres at the "bargain prices" made necessary by the government war tax on admissions. Some isolated cases of increased admission prices have been reported. PITTSBURGH, PA.— Patrons of motion picture theatres here have co-operated to a great extent with the "Please have the correct change" plea of the theatre owners. Some confusion marked the first day the tax went into effect, but conditions now are about normal. The threatened penny famine is a thing of the past. The majority of the theatres have not raised prices, and report no drop in attendance figures. BURLINGTON, KANS. — Beginning the first of November the local motion picture theatres which had charged 5 and 10 cents raised to 10 and 15 cents, which admission prices include the war tax. ELGIN, ILL. — Motion picture theatres here have not raised admissions and the public has already become educated to the 6, 11 and 17-cent prices. Manager W. B. Newman of the Grand Theatre is going 50-50 on the tax. For his 10-cent attractions the public pays the tax and for the 25-cent shows he pays it. Many varying reports concerning the effect of the war tax on attendance has (Continued on page 22)