The Moving picture world (November 1925-December 1925)

28 MURING PICTURE WORLD November 7, 1925 Motion Picture Men Argue with Congress for Reduction of Tax MOTION' picture interests argued for the repeal of the admission tax before the Ways and Means Committee of the House of Representatives at Washington, D. C, on October 24. Those participating were A. Julian Brylawski, Charles C. Pettijohn, M. J. O'Toole, and ex-State Senator J. Henry Walters, the last named for B. F. Keith. The entire testimony did not require more tlian a hour for presentation. The tax bill probably will be reported on the floor on December 7. Exhibitors are urged to write Senator Reed Smoot, chairman of the Senate Finance Committee. He has pledged himself to abolish all nuisance taxes. Brylawski's Arguments A. Julian Brylawski, chairman of the administrative committee of the M. P. T. O. A., presented a strong argument at the hearing on nuisance taxes held before the Ways and Means Connnittee of the House of Representatives, Washington, D. C, October 24. His arguments, logical and well known to the industry, may be summarized as follows : The resentment of the public to a "war ta.x" at the box office. Though production and rental costs are on the upward trend, theatre prices are normally constant because the exhibitor can't FAMOUS Players Canadian Corporation, Ltd., Toronto, operating more than eighty theatres across Canada, has issued its annual financial statement for the fiscal year ending, August 29 last, and the report shows that slightly larger net profits were secured for the twelve months. Ket profits, before providing for income taxes for pillllllllllllllllllllllllll1lll1l1llll|lt!!11ll'llllllllll!l1lll1lllllllllllll'llllllli!1l!'illl1l^ I To Finance Houses? | S Back of the opening of the invest i 5 ment securities offices of Lawrence § B Stern & Company of Chicago, observ 1 g ers profess to see a strong financial g 1 group which will do motion picture 1 1 financing. Real estate bonds on the 1 1 aires being acquired by Paramount 1 I and Balaban & Katz will be placed | S through this company, it is said. g 1 A significant name on the board of g 1 directors is that of Herbert L. Stern, g 1 president of Balaban & Katz Corpora g I tion. Others are William Wrigley, Jr., | H the gum magnate; John Hertz, who g 1 manufactures city busses and other g g cars; John R. Thompson, A. D. Lasker, | I formerly with the U. S. Shipping | 1 Board and now president of Lord & j 1 Thomas; Stuyvesant Peabody, coal | i magnate; Charles A. McCulloch, presi | 1 dent of the Parmelee Company; Joseph | 1 Rice, vice-president of the Stem Com g I pany; Alfred Ettlinger, vice-president, g 1 and Lawrence Stem, president. 1 iiuiiiiuiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiHiiiiiiniiniiiiiiiiiiiiiiiiiiiiiiHiiiiiiiiiiiin"^ raise them without hearing vigorous protest the waj' a merchant can. Admissions have advanced only 3 1/3 per cent, since 1922. The only answer to increased costs of shows today is increased capacity, not increased admissions, but most small theatres can't meet the problem this way and they feel the tax keenly. Its removal to the public means lower theatre prices, to the exhibitor larger audiences. Pettijohn Speaks Charles C. Pettijohn, general counsel of the Hays body, made the following points among others : More than 85 per cent, of exhibitors reduced prices when the last tax cut was made, thus giving their patrons the benefit of the cut. This tax is not a luxury tax, for entertainment is recreation and thus a necessity. The motion picture's power for good should not be hampered. In concluding, Mr. Pettijohn said : "I firmly believe that this tax, which hits the great mass of the American public from one to four times a week, should be repealed in its entirety. However, if this cannot be done, this great burden should be lifted as much as possible in view of existing conditions in the treasury." 1925, amounted to $413,168, as against $304, 362 for the preceding twelve months. Dividends paid on the first preference stock amounted to $332,000. The surplus brought forward from August 29, 1925, was $243,325, before providing for 1925 income taxes. The net surplus one year before was $187,146 and, it is pointed out, the 1924 income taxes amounted to $33,162. Total Deductions Total deductions amounting to $317,438 included interest on bonds and mortgages totalling $90,369; proportion of deferred charges $47,069 and depreciation $180,000. Mortgages on theatre properties were increased during the year by approximately $120,000, this being accounted for through the assumption of a mortgage in connection with the purchase of further theatre site property in Ottawa, Ontario. Apart from this transaction, mortgages outstanding on theatre properties during the year were reduced $73,000. Theatre properties are carried on the books at a net valuation of $5,237,205. Investments in affiliated companies are shown at $499,685. Advances to affiliated companies secured by mortgages stand at $216,612. Accounts receivable amount to $156,401 and the company carries cash in banks and on hand of $264,672. The company's total assets are shown at $15,416,063. Adolph Zukor of New York City is the president of Famous Players Canadian Corporation and the managing director is N. L. Nathanson of Toronto. The annual general meeting of the corporation is to be held at Toronto shortly. Iii.iiaj;i.:lliilllilllllllllllll:llllllllllinilllllllllllllllllllllll!llllllllllllllllllllllllllli,ll^ Incorporations iniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiin^ Four roinpnniex Incorporated in the motion picture l>UMiness in .\ew Vorlc State daring tiic past week. AMiile tlie capitnlization o( two of tlie c-oinpnnieM whm foiiipiirntivply Niiiiill, till ollifr two did not .ipcfify the omouiil itt capital with 'i\hi<'h th<-> wiil brKin oiK-raf ion.M. The coni|>aiiicN, dir<-<-lorK and aiiioiinl of capitalization when staled, were: Miira.v .'Vniuscment Company, Inc., !|(IO,0<IO. Sol, liarolil and .Mildred Uaivcs, \ew * ork City; .Stcinkritx Aniuxenicnt Corporation, 1^5,000, lteiu:inn Steinkritz, Hose .MIeneck, .\ew Vork City; Kate .\cwnian, lirookiyn; Don-n Theatre Corporation, JuliUH JocNon, Stella Price, Louis .Meiz, lirookiyn; Ariel Cinema, inc., Knld Rankin, Hugrh Weir, L. S. Dal>o, Xew York City. A charter has been LsHued to the Cinderella Theatre Company, WilliamHon, W. Va., Capitol, ^"iO.IMM). IncorporatorN, Hynian liankx, Ida BankN, l.ouix Shore, WiilianiMon; George W. Brown and Garnet Mohier Urown, Illuefleld. Also a charter iMMUcd to the Goodwill TheatreH, Mraniweli. Capital, SIO.OOO. Incorporatoi-K, J. .\. Little, I'^dna H. I.ittir, I'hilip Goodwill, Mrs. Phoclie l>. Goodwill and K. K. Hartwoek, all of Hrsiniwell. The AVinter Theatre Co., Akron, Ohio, haM been incorporated for $10,OIK> with Philip C. .\u.«teg:an, Ike F^deman, .>!. II. liryer and others. Another recent incorporation In the Auditorium Theatre Co., at Toledo, Ohio, for ¥10,000, the incorporators beini;: William K. VofTt. Georgre K. Hitter L. U, Dueller and other*. Recent new theatrical eorporatioiis formed in .New Kn^land are as follows: l'arM4>iiN* Th«'atre Enten'rises, Inc., Boston; capital 4l~'>.iNM>, l.OWO shares at *:» eachi liresidciit, .>lyron C. Parsons; treasurer. A, I'illijin l*ar.s4iiis; Lillian H. Pfirsons. Main AniUNCiiicnt C<»iupany. Brockton; capital 9«0,(M)0, 44KI shares at f'M each; President, Joseph Beris; Philip K. Green and Daniel S. Tnrlow. K;iulkner Amusement Conipiin>'. Boston; capital ^lO.CKMI, 10<» shares at $UNI each; Simon W. Markell; treasurer, Barney H. .Markcll; Kdw. >larkell. .\pollo Theatres, Inc., Boston; Capitol :^1.'>0.04NI, 1,.'>00 shares at ;:il(K> each; President aiKl treasurer, John llciincs; and Triantos KodcK. Oral Theatre < Oiiipany, Boston; capital 910.000, lOO shares at ITIIMI each; presl<leiit mill trea.surer, Carl H. I r4»it; .Nettie C. Kcefe. 3liddlesex .Amusement Company, Maiden; capital »lSO,00O, l,SOO shares at »100 each; president. Liben O. Hamsdell; vice-president, Frederick Green; treasurer, Ilarria Kllenbert;. Strand Theatre Company of auincy; capital 9,'>0,000, 500 shares at 9100 each; President, Fred B. Murphy; treasurer, Joseph Al. Lcvenson; Max L, I.evenson. .New FnKland Film Distributinic Cunipany, Boston: c:ipital ;|i::,(H)0, ::o shares at *ll>i> each; I'resident and treasurer, Fd. Klein of Brookline; .\ron Weintraub, Roslindale Hialto Theatre, Inc.. Boston; capital SIOO.O»M», 1,«KK» shares at SdOO each; president, Jacob l.ourle; treasurer, .Nathan Pinanski; Harris Filenberg. Pine Tree State Aiiiuscnient Company, Bangor, Me.; capital *10,000, par value *10«; president, Archie S. Perham; treasurer. Hoy S. Coffin. Olympla Theatre Corporation of Bristol. Rhode Island; capital stock »100,<MKI, 5.000 shares common and 5,0OO shares preferred at .flO each; the incorporators are: Fred A. Heard<in, Bristol; Robert W. Cobe and Jos. W. .tlulford. Kssex Square Theatre, Kssex, Conn.; copital ».'»0,»MM»; Paul L. Sampsell of Bristol. DR. RIESENFELD RESIGNS Hugo Ricscnfeld has resigned as managing director of the Paramount theatres on Broadway, New York, to take effect about the end of the year. There has been no difference of opinion between Dr. Riesenfeld and the officials of Famous Players-Lasky Corporation. He only wishes to enjoy a long rest, as he has been guiding the destinies of the Criterion, Rivoli and Rialto tor several years. Famous Players Canadian Co. Report Shows Bigger Profits