Exhibitors Herald (Jun-Dec 1917)

EXHIBITORS HERALD 17 R. P. THEATERS MUST BEAR SHARE OF U. S. WAR TAX Measure also Placing Levy on Raw Stock of Producer Now Before Senate for final Approval; Film Houses Will Contribute S67,000,000 Yearly the five-cent houses will be exempt from the war tax. It is expected a total o! $67,000,000 annually will be raised from the tax cn film theatre admissions. The tax will be collected by means 01 stamps, the lowest to be issued will be for one cent. In all cases where a fraction of a cent is involved the Government will profit by receiving the benefit of the doubt. Thus a two-cent stamp must be purchased with a 15-cent ticket and a three-cent stamp with a 25-cent ticket. Several conferences have been held between the Senate Committee on Finance and motion picture exhibitors and manufacturers, and for a time it was BRADY SCORES FUNKHOUSER ON CENSORING; PLAN TO CURB "CZAR" Washington, D. C, (Special to Exhibitors' Herald) — That motion picture ttitres, as well as manufacturers of films, must bear their share of the $3,000,000,000 w tax was definitely decided on Saturday by the Congressional Conference Comm ee on the War Tax Bill. The measure was reported out of the committee September 29, and went to the S<ate for final approval October 1. It will go to the President, it is expected, for hi approval before the end of this week. Under the provisions of the tax measure the modified rate on raw and exposed fils is restored and motion picture theatres charging from ten to twenty-five cents ac ission, which it was thought would be exempt, will have to pay their ten per cent ta as proposed under the first schedule. The new schedule will go into effect or. D ember 1, instead of November 1, as originally planned. }nsiderable surprise was occasioned by he restoration of the house tax on -fil^;, which had been eliminated by the Seite, as well as the proposed admissic tax on theatres, which Hoke Smith tni)duced and which sought to exempt allheatres charging a maximum admissic of 25 cents. Positive Film Tax Is Set • 'ie House bill proposes a levy of on fourth of one cent per foot on ali nn posed films sold by the manufactur or importer, 'ie original House bill also propose*.' i y of one cent per foot on positive neon picture films. This was stricken -ju>y the Senate when it passed the bill, )u by agreement the conference comaije restored it and the measure now •e«; as follows: ' pon all positive motion picture films .ccraining a picture ready for projec io sold or leased by the manufacturer. vojeer or importer, a tax equivalent to >nualf cent per linear foot." Che text of the amusement tax as gi:d upon in conference and which will -'mcubtedly be passed as rewritten, is s Hows: lection 700: That from and after the rsday of December, 1917, there shall e -vied, assessed, collected and paid A.a tax of 1 cent for each ten cent> r action thereof of the amount paid Dr Jmission to any place including adlisDn by season ticket or subscription, i • paid by the person paying such :dn;sion; provided, that the tax on aduson or children under 12 years of geshere an admission is charged for lc.children, shall in every case be one *n and (B) in the case of persons (ex• :p bona fide employees, municipal Kvs on official business and children •--od 12 years) admitted free to any ... »c;at a time when and under circumar:s under which an admission is . yac to other persons of the same class. . ..taof one cent for each ten cents or --aon thereof of the price so charged s?h persons for the same and similar xomodations to be paid by the perV>miio admitted; and, (C) a tax of one .. flitor each ten cents or fraction theref d for admission to any public perm nee for profit or any cabaret or . he similar entertainment to which the -'iai; for admission is wholly or in , wtnclnded in the price paid for re*s lent, service or merchandise." Five-Cent Houses Exempt A ording to the tax schedule, only thought that both raw and exposed films, and motion picture theatres would be exempt. However, after going into the matter further and discussing the question with representatives of both stage and motion picture theatres, it was thought best to tax "the poor man's amusement" and let it bear a part of the war taxation. Film Theater Tax Biggest The ten per cent tax on stage theatre admissions, it was ascertained, would only raise about $23,000,000, while if it was applied to motion picture theatres they could be relied upon to contribute fully $67,000,000 per year. The tax does not apply in the case of a place the maximum charge for admission to which is five cents, or in the cases of shows, rides or other amusements, the maximum charge for admission to which is ten cents. Xo tax is to be levied on admissions where the proceeds insure exclusively to the benefit of religious, educational or charitable institutions, societies or organizations, the profits of which are not distributed to stockholders or members of the assoication conducting the same. "All We Ask Is Square Deal," World President Tells SubCommittee; Seek to Adjust Powers of Chicago Board A plan is on foot to curb the powers of Chicago's motion picture censor "czar, " Major Funkhouser, and adjust the powers of the censor board. Alderman Walter P. Steffen was appointed chairman of a sub-committee by Chicago city council judiciary committee on September 25 to consider an amendment to the motion picture ordinance. William A. Brady, president of the World Film Corporation, and the N. A. M. P. L, appeared before the committee and protested against Major Funkhouser's attitude against certain films. "We have no desire to present immoral pictures," said Mr. Brady, "but Major Funkhouser is absolutely unfair and unjust in his rulings on motion picture films. Drama is drama. It is founded upon the eternal triangle. The Secretary of the Treasury said he owed more to the motion pictures for the success of the last Liberty Loan campaign than anything else. All we ask is a square deal." fare of societv and of so-called historical A committee of twenty-five of the most representative manufacturers, it is said, will be sent to Chicago to talk the matter over with the committee. Until the courts give a clear and unmistakable interpretation of the city ordinance contrary to the present standards, the Second Deputy of Police will continue to censor films as heretofore. Funkhouser Makes Statement Major Funkhouser in a statement to the press in answer to recent criticisms says : "The censoring of motion picture films is controlled by an ordinance passed by the city council of Chicago, law;s passed by the state legislature ;ina decisions by the Supreme Court of Illinois." The ordinances he refers to prohibit the showing of "Obscene and immoral representations." which menace the wel pictures depicting scenes in which crimes and malicious mischief prevail. The Supreme Court decision holds that the ordinances apply chiefly to five and ten cent theatres which are frequented by children and persons whose station in life entitles them to more protection than the well-to-do classes. SANGER CORP. IS IX BANKRUPTCY The Sanger Picture Plays Corporation was duly adjudicated bankrupt on August 22. in the United States District Court for the Southern District of New York. The first meeting of creditors will be held on October 5, in the office of John J. Townsend, referee in bankruptcy. 31 Xassau street. New York.