Motion Picture News (Nov-Dec 1925)

November 7 , 19 2 5 2129 Admission Tax RepealUrged by Industry's Representatives Pettijohn, Brylawski and Others Before Committee By Clarence Linz WASHINGTON, Oct. 24.— Box office psychology literally was the theme of the discussions before the House Ways and Means Committee by representatives of the motion picture, vaudeville and other amusement interests in their plea for the elimination of the admission tax prescribed by the revenue act of 1924. State Senator J. Henry Walters, of New York, representing the B. F. Keith interests: A. Julian Brylawski, of Washington, chairman of the M. P. T. 0. A. Administrative Committee ; Charles C. Pettijohn of New York, representing the .Motion Picture Producers and Distributors of America; M. J. 0 'Toole, of Scranton, Pa.; and Charles J. Kaffler, of the "101 Ranch" circus. The delegation of theatre men was headed by Jack S. Connolly, Washington representative of the Hays organization. Briefly outlined, it was declared that the tax on popular-priced amusement is a deterrent to business and that while the Government does secure more than $30,000,000 a year in the levies on admissions and dues, the incomes of the purveyors of amusement are curtailed so that losses are sustained by the Government in lowered payments under the surtax and normal tax provisions of the same law that imposes the admission tax. The amusement interests have resorted to the building of larger houses with a view to inducing greater patronage and thus to meet the ever-increasing costs of operation. The peak of prices has long since been reached and the impossibility of getting greater returns by increasing admissions realized. Repeal of the tax will be immediately followed by the cutting of prices in most instances slightly more than the amount of the tax relief, the Committee was assured. Assurances by Mr. Connolly that the theatre men would make their statements as brief as possible and that they were willing to relinquish some of the time that had been allotted to them, met with the approval of the Committee and created an excellent impression. The theatre men stuck to their text, not engaging in any spread of oratory or flag waving in relating what the industry had done during the war. On the basis of today's situation governing the proposed reduction of taxes it would appear as though further relief would be afforded the amusement industry to the extent possibly that admissions of $1 and under would be exempt from the tax. This is not to be taken as a prediction of what finally may be the action of Congress for it is too early yet for any one to make a definite statement of prospects. Admitting that there are certain economic questions that must be considered by the Ways and Means Committee before it can definitely arrive at a plan for equitably ivduc ing the burden of taxation, Mr. Pettijohn expressed the hope that the question of the amusement tax would not be forgotten. He stressed the popular-priced amusements. These, he said, are closer to the people and represent a preserver of good order and a guarantee of public safety. Mr. Pettijohn made no effort to go into statistics as to how much money would be lost to the Government through changes in the tax, pointing out that all such information naturally could be better obtained through the Treasury Department. Some consideration at this time should be given to the removal of the tax on popular amusement, including motion pictures, vaudeville, and baseball, he declared. Asked by Representative Treadway, of Mass., if there has been any decrease in attendance because of the tax on admissions, Mr. Pettijohn replied that he had never seen any segregation of the admission tax figures and would not want to say there has been any appreciable decrease in attendance. He made the observation, however, that the payment of the admission tax is irksome to the taxpayer. He explained that when he goes to theatre with his wife, when the admission is $1, meet for two tickets he has to lav down three gjlllllllllllllll Ullllllll Illllllllllllllllimilllll II Illllllll Illlllllllllllllllllllllllllllllllllllllllll Ill "II " IIIINIIimillllllllllllllll mi ,„!.„ m /. Julian Brylawski (left) and C. C. Pettijohn (right) ii mum iiiiiiiiiiiiiiniiiiiiii bills before the ticket seller and receive the tickets and 80 cents in change. "I feel that three bills have gone instead of two, and the matter of the tax is called to my attention every time I pay for admission to a place of amusement," he added. "And it is held up in front of the average man and woman several times each week. It is a small amount, generally, but aggravating and I believe that this form of tax should be eliminated as soon as some of the others that are being recommended for repeal." Representative Garner, of Texas, suggested that this is one of the "nuisance taxes". Representative Treadway referred to the profits taken by the scalpers, but Mr. Pettijohn said he was not before the Committee upholding that class of ticket sellei-s. The prepared statement of Mr. Pettijohn was as follows: "Congress, at its last session, abolished the tax on admissions up to and including fifty cents. This was a tremendous relief to the theatre going public, and especially to the smaller theatre owners of the country. It saved hundreds of them going out of business. Careful canvass shows that when the tax was removed that more than 85 per cent of the exhibitors of the country reduced their admission prices. In other words, they gave their patrons the benefit of the reduction of the tax. "While the tax collected on admissions to places of entertainment may be an amusement tax, it is far from being in any sense a luxury tax. Entertainment is recreation and wholesome recreation is a necessity, if tolerable living is considered something more than a mere drab, mechanical existence. The amusement tax is in a very real sense a tax on a necessity. "Mankind must have something with which to fill in leisure hours and relieve the tension of civilized life if he is not to resort to injurious mischief. The amusement tax is, therefore, a tax on a preservative of good order and public safety. "The amusement tax was excusable in the beginning only because it was an emergency war measure. The conditions which made it a necessity are now definitely things of the past and it ought to be abolished as soon as conditions will permit. "While the greatest of our magazines boasts of circulation of 2,500,000, the movies reach 70,000,000 weekly. The motion picture theatre occupies a place in its community second only, if second, to the newspaper itself for the building of public opinion. Its power for good should not be hampered by excessive taxation. "It may not be possible, at this time, to abolish all of the tax on admissions and it now becomes a question for your Committee to decide as to what