The Moving picture world (December 1920)

December 18, 1920 MOVING PICTURE WORLD 843 Would Double Picture Taxes to Allow Elimination of Tax on Excess Profits THE doubling of the present tax on admissions and of the rental tax on moving pictures is suggested by the secretary of the treasury in his annual report as a possible means of making up some of the revenue which would be lost as a result of the elimination of the excess profits tax and a rearrangement of the surtaxes on income, both of which are recommended to Congress. Seventy million dollars additional would be derived from the increased admission tax and four millions from the increased film tax. Thorough revision of the tax law is imperative at this session, in the opinion of the secretary, in order that the more important changes may, without important retroactive application, be made effective with respect to income and profits for the calendar year 1921. The business interests of the country have a right to know in advance the rate of taxation they will be called upon to pay, he declared. Criticise Luxury Taxes The repeal of the excess profits tax and a modification of the income supertaxes are again urged. As a substitute for the former some form of corporation profits tax is advocated by the secretary. The present excise and luxury taxes are also criticised, some of them, it is declared, being inefficient and burdensome. The repeal of the tax on sodas and ice cream, the luxury taxes and the taxes on medicinal preparations is recommended. To offset any loss in revenue which would result from these changes the secretary submits a list of possible additions to the tax law, including the increased taxes on admissions and film rentals. An increase in the normal income tax from 4 to 8 per cent, to 6 and 12 per cent, is suggested, together with a tax of 50 cents per horsepower upon automobiles, 2 cents a gallon on gasoline and increased taxes upon tobacco products, automobiles, jewelry, candy, soap, etc. The admission taxes and the film rental tax could readily be doubled, it is declared, with an addition of $75,000,000 a year to the government's revenues. The department professes to believe that attendance at the theatres would not fall off materially as result of the increased tax, especially if the increase was offset by the removal of some other, and, in the opinion of the department, more burdensome impost. Selznick Gets $2,000,000 More Capital; Utica Bankers Purchase Ten Year Bonds REAL tribute to the constantly growing stability of the motion picture industry in general and the enterprises controlled by Lewis J. Selznick in particular was paid Thursday, December 2, when that wellknown motion picture producer closed a deal for the sale to the Utica Investment Company of Utica, N. Y., of $2,000,000 worth of ten-year 8 per cent, collateral trust sinking fund bonds to be issued by the Selznick Corporation. The deal was completed on a basis Motion Picture Men Launch Campaign to Obtain Sunday Movies for Albany WITH every local exchange, as well as the majority of motion picture theatres represented, a meeting was held in Albany last Sunday morning, at the local Paramount office, launching what will be a campaign to secure Sunday shows for Albany. At the present time Albany is the only Keith city in the state which does not have Sunday motion pictures. The trouble, it is said, lies entirely with the city administration. It is expected that there will be a change next November, and Sunday's meeting really marks the opening of a campaign in which the Sunday motion picture show will be one of the live issues. There are seven exchanges and eighteen theatres in Albany. Sunday's meeting was called at the suggestion of Joseph Seidlemen, the local Paramount manager. After considerable discussion a committee was named, consisting of W. T. Brooker, manager of the Strand, George Roberts of the Hudson, and Walter Powers of the Colonial, together with Mr. Sedlemen and B. M. Moran, the latter being the local manager for Pathe. This committee is a permanent one and will hold another meeting in the near future. With the advantage which will lie with the exchanges and the theatres in the way of advertising, reaching tens of thousands of residents and voters through slides and in other ways, it is believed that the committee jusl organized will be able to carry on a most aggressive campaign in the interests of a candidate who will be pledged to at least submit the question of Sunday shows to a referendum. The theatres and exchanges of this city suffer to a considerable extent through the more liberal Sundays which Troy enjoys and which attract large crowds from this city. said to be quite unusual in motion picture circles. It involves absolutely no change in the personnel, management or stock control of the Selznick business. Mr. Selznick continues in full charge of the enterprises, which he has been building up for years, without the slightest suggestion of interference on the part of the outside interests. The notes were purchased by the Utica company, comprising sixteen leading upstate bankers, because they were considered a preferred "buy" even in these times when money for the operation of any business is conceded to be exceedingly difficult to procure and when unusual bargains are going begging in Wall Street. The negotiations on behalf of the Utica bankers were conducted by Walter Jerome Greene and W. C. J. Doolittle, respectively president and vicepresident of the big concern. These men were keenly interested in a financial statement of the Selznick enterprises certified by Barrow, Wade, Guthrie & Co. of New York City, which shows earnings of $1,155,319.07 for the first nine months of the current calendar year. It is said that the Utica people have been quietly examining the Selznick company, through outside sources of information, for the past six months. They admit that they have been much impressed by the freely expressed opinion of motion picture people throughout the United States to the effect that the Selznick policy was one which could not fail to achieve very satisfactory results. The constantly increasing sales value of Selznick pictures and the steadily increasing popularity of Selznick stars, employed on long-term contracts, were taken into consideration in the closing of the deal.