Exhibitors Herald (Jun-Dec 1917)

X H B New York Exhibitors In W. A. Brady Meeting Resolve B. O. Increase New York, Oct. 22. — (Special to the Exhibitors Herald.) — At a meeting of exhibitors of Greater New York called by William A. Brady and held at the Playhouse, New York City, on Monday, October 22, a resolution was passed recommending that all exhibitors add 10 per cent to the present price of admission. A committee was appointed to confer with a committee of producers and distributors to devise ways and means to compel exhibitors to abide by the resolution. The exhibitors' committee which acted in the matter was composed of the following prominent New York exhibitors: Messrs. Burman, Greesman, Whitman, Hering and Wolf. The following film companies were represented at the meeting: Universal Film Manufacturing Co., World Film Corp., Fox Film Corp., Goldwyn Pictures Corp. and Pathe Exchange, Inc. An additional committee composed of Messrs. Ascher, Manheim, Cowen, Steiner and Weinstock were appointed to wait on various distributors to urge a reduction of the 15 cents per reel tax which has been added to film rental prices. TAX CREATES CONTROVERSY (Continued from page 15) you will please include the several amounts in remitting for film rental. On all invoices billed from this office after today, the amount of the war excise tax will be added thereon. Yours very truly, Pathe Exchange, Inc. Other large distributors have sent out similar letters. Creates Big Issue While it is expected that at an early date an amicable adjustment of the controversy as to just how the footage tax will be met will be arrived at between exhibitors and distributors, there is every indication that there will be a great deal of wrangling before the final agreement is reached. The Eastman Kodak Company, which furnishes practically all the raw stock used by American manufacturers, announced on October 18 that the additional one-fourth of a cent tax would be added to the price of film. This increase the manufacturers of motion pictures were compelled to meet at once. Hutchinson Interviews The following statement concerning the tax measure has been issued by Samuel S. Hutchinson, president of the American Film Company: The impending tax on films must mean a great difference to the producer, naturally. It will necessitate a general readjustment of the film industry in order to meet this new tax. But the motion picture industry has already done much for TORS H the government and can do still more. Taxation must be heavy in every line of business in war time. We must do our part — and do it without grumbling. It is useless to whimper over spilled milk — but we can take care not to spill any more than is necessary in the future. I refuse to take a pessimistic view of the situation. I believe that both the government and the film industry will be the gainer of this taxation. It will bring us in close touch with one another and while the film men have an opportunity to learn something of the problems of the government, the latter will be able to ascertain something of the difficulties under which the pictures must be produced and the manner in R Samuel S. Hutchinson, Noted Producer and President of American Film Company who Takes Optimistic View of Tax Situation. which the money must be raised for expenses. It will do us both good and perhaps the film men will be taught how to protect their interests better than they have in the past. I am of the opinion that this tax will speedily bring about a reorganization of the film business that will put it on a sound and enduring basis. The government cannot afford to be without the motion picture industry, for it has become an integral part of the nation. We want to work for the government and with it. Out of this taxation is going to develop a new future for the motion picture. The American Film Company will meet the new condition as we meet any new business condition — and keep right on producing good pictures. We will not impair in any way the quality of our productions. Statement by Rowland Richard A. Rowland, president of the Metro Pictures Corporation, has the following to say on the tax question: The Congress has seen fit to im 18 pose special taxation upon the motion picture indsutry and that settles the matter. The motion picture industry will pay the taxes and the patriotic thing for us all to do is to see that the Government gets as large an amount from the industry as it is possible to pay. While the taxes are heavy, and in some cases undoubtedly a great burden, I see no reason for worry. As with everything else that is taxed the ultimate consumer, namely, the public, will foot the bill. If the manufacturer now selling at the lowest price he can in a market keen with competition is forced to spend more money either in taxes or production, the price of his product must go up, or he must cease to do business. Therefore, it will, of course, be necessary for the manufacturer to increase his price to the distributor, and the distributor must advance his price to the exhibitor, and the exhibitor must increase his price to the public. In my opinion, a five-cent raise in the price of motion picture theatre admissions will cover nicely the footage and the admission taxes, and not impose a real hardship upon anyone. The advance to the exhibitor will not exceed ten cents a reel per day, and ten five-cent admission advances will cover the feature show tax. This leaves all the rest of the admission advances for the theatre, out of which their own tax can be met. The situation lays the foundation for an advance in motion picture theatre prices which is already needed, to continue after the war. The whole matter in a nutshell is the United States needs money and needs lots of it. We, as Americans, will endeavor to see that Uncle Sam gets as much as possible. Several other leading manufacturer and distributors have issued statement, making it plain that, regardless of th financial hardship the tax may impose every effort will be made to prevent curtailment of quality in productions. Schoenstadt Resigns Presidency of A. E. A. Branch in Chicag" Sons Join Army and Extra bus iness Duties Force Him to Turn Office Over to A. J. Krug Herman Schoenstadt, a big factor u the organization of Motion Picture Th< atre Owners' Association, which no is a branch of the American Exhibitor Association, has resigned as presidei of the Chicago body and has been su ceeded by A. J. Krug, formerly vie president. Mr. Schoenstadt's two sons, Hem and Arthur, who were associated wi'l him in operating his chain of theatre| were both drawn in the recent arn draft and he has been unable to devo his time to the duties of the presidem of the exhibitors' organization becau of his business.