Motography (Jan-Jun 1918)

February 23, 1918. MOTOGRAPHY 357 Launch Hard Fight on Big War Tax CANADIAN EXHIBITORS BATTLE FOR POOR AS WELL AS THEMSELVES A SERIOUS SITUATION has arisen in motion picture circles in Manitoba, Canada, on account of the provincial government's determination to put through an amusement war tax bill which will provide for an extra stiff levy on all tickets of admission to amusements. The exhibitors of Winnipeg and Brandon, the two principal cities, are thoroughly organized and will fight the measure. They are threatening either to close their theaters or to use their screen for a campaign against the government if the law is enacted. Talk with Legislators They have discussed the measure with Edward Brown, the provincial treasurer, the law amendments committee and various members of the provincial parliament and have obtained the support of a number of these law-makers by basing their case upon the fact that the tax is a discrimination against the poorer people who can afford only the ten, fifteen and twenty-five cent admission entertainments, and favors the rich who patronize the higher priced theaters. The statement had been made when the bill was introduced in the legislature that the measure would increase the attendance at picture theaters, but the exhibitors point out that the tax on the low-priced tickets is relatively higher than on the more expensive admission. Tax Now Graduated A tax of twenty per cent on all theater tickets was originally planned, but this was changed so that the percentage varies from nine to twenty per cent, with the highest percentage affecting the lowpriced tickets. This was done purposely to secure a larger revenue. The following table explains how the proposed taxation works out: Price of P roposed A i^erage Ticket Tax per cent $ .05 $ .01... .... 20 $ .06 to .15 .02... ..20 .16 to .25 .03... ..15 .26 to .40 .04... ..12.3 .41 to .75 .05... .. 9 75 to 1.00 .10... ..11.4 1.01 to 1.50 .15... ..12 1.51 to 2.00 .20... ..11.4 2.01 to 2.50 .25... ..11.1 house, Edward Brown pointed out that Manitoba and Saskatchewan were the last Canadian provinces to adopt an amusement war tax provision. Ontario derived $565,000 from this source last year while Quebec gained $650,000. He expected that the tax law would produce $200,000 for Manitoba, which would replace a similar amount lost through the abolition of the liquor license system. F. J. Dixon opposed the bill because he felt it would add to the burdens of the poor. They needed all the recreation and diversion possible on account of war strains he said. Theater-goers of the class who would be hardest hit, he declared, were not the people who had chiefly benefitted under the temperance act. It is significant that the opposition voted with Mr. Dixon when the second reading of the bill was put to a vote, but the government members were, of course, in the majority. Exhibitors Urge New Schedule Mr. Brown was tackled by a strong deputation of Winnipeg exhibitors, who were accompanied by Max Finkelstein, their attorney, when the law amendments committee held a session. In behalf of the exhibitors, Mr. Finkelstein urged that a new schedule of taxes be adopted, this schedule to be as follows: One cent on tickets of less value than 25 cents; five cents on all tickets from 25 cents to 50 cents; and a ten cent rate on tickets from 50 cents to one dollar. Mr. Brown answered that the whole purpose of the measure, namely the securing of large additional revenue, would be defeated if the tax on the low-priced admission tickets were thus reduced. The theater men also suggested that the bill be dropped and that the owners of theater sites and buildings be taxed as the landlords were making big rentals out of theater properties. Tells Poor Business H. N. Jernberg, manager of the Province, Gaiety and Bijou Theaters, Winnipeg, stated that the Province did not afford a clear profit of six per cent; the Bijou was in arrears in taxes and the Gaiety had lost $1,800 in eight weeks. In the latter instance it had been necessary to put on a special campaign in order to repopularize the house. F. R. Hyde of the Crescent Theater declared that he was willing to stand a ten cent tax on his 35-cent seats if the tax on lower-priced seats were cut. Manager George Sackett of the Orpheum Theater was sure the receipts of his house would drop $2,000 per month through the war tax. The exhibitors protested against the exemption of religious and educational entertainments, fairs and art exhibitions, but they favored the taxation of pass holders. On tickets for boxing contests, horse race meets and similar events, a flat tax rate of 50 cents will be charged, according to the law as it now stands. In speaking to the question in the Clara Kimball Young in a scene from her next Select production, "The House of Glast.