The Film Renter and Moving Picture News (Apr-Jun 1922)

April 29, 1922. shrinking, it has becorne a serious impost upon the legitimate pleasures and recreations of .the working-classes. All the indications so to show that the tax must now be borne by the theatre proprictor, as he finds it imrpossible to pass it forward to his patrons. Average Admission Charge. In 1914, before the war, the averaze price charged for a seat in a picture theatre, such as one of yours, was about Td., and in tle year just closed, excluding the Entertainment Tax, the average price was about 1LOdd. only, or an increase of 30 por cent. Just consider for a moment how the tax worked. If the theatre proprietor increased his prices, as be was compelled to do to mect inercased running costs, he almost certainly became liable to n higher rate of tax. The effect was therefore cumulative. It tax is included in the averave price charged for seats at the present time the amount is more than 13d. and represents an incrense over the average pre-war price ct almost 90 per cent. It would therefore seem as though the Government had taken advantage of the fact that the price of amusement had not gone up at the sume rate as the prices of all other commodities and services, to demand an inerease on the cost of amusement. for themselves. The moderation of the theatre proprictor not only met with no reward but ereated fur himself a direct. injury. I ean only hope that the Chancellor of the Exchequer will be willing to remove this unfairness by some remission and readjustment of the Mntertainment Tax in his fortheoming Budget, and thus remove a serious barrier to the growth of the industry. In so far as the other companies in which your company is interested are concerned, the same causes have preduced the same results, and the income which you have received upon sour investments has consequently fallen. You will realise, thercfore, that the extent to which the fmancial position of your company is tempcrarily worsened is more than explainea, An Optimistic Note. Looking at the causes which have led up to this result, Iam hopeful that matters will be speedily righted. The depression in trade and industry shews signs of lifting. When that becomes more pronounced the attendances at picture theatres will commence to grow again, The price of films is already adjusting itself to the new level of prices in general, so that we may look to secure some alleviation of expenditure, and I feel sure that conimmon justice must leu to a speedy and favourable revisicn of the Entertainments Tax. Iomust, therefore, conclude my review of the affairs of your company with an optimistic note, The causes of your immediate misfortune are all on the way to being mended. and [think yeu can look forward to restored prosperity ax socmas the period of high film costs has passed. And [ should not omit to mention the hard thinking and hard working which les been put into the affairs of your company by all concerned. Fresh Scheme of Organisation. It will interest you to know that we have been experimenting during the past year with a fresh scheme of organisation, If thers is a business ino which individunl offort and judgment require free play it is this of operating picture theatres, Every picture theatre has its own audience, its own requirements, its own tastes, and the manager is the best person to know them, It is therefore important te give the memager a clear responsihility for the conduct of his theatre, to give him some say in the choise of films, the price and arrangenient of seats, the general style and character of the entertainment provided. Hitherto, Tomust adinit, the responsible management been too centralised, and the task of the central administration must, lor the future, bo to direct and guide the managers of the severat theatres rather than to dictate and require, subject always to such control as will maintain the high standard of business which we have set ourselves. The working-out of this change of poliey needs care and caution, and in order that the widest exchange <f views may take place, a series cf meetings has been arranged, has tized ty GOORle THE FILM RENTER & MOVING PICTURE NEWS. 47 at which in time all responsible inembers of the staff will have full opportunity of statiog their experiences and their notions. Mr. A. EF. Newbould, M.P., who seconded the adoption of the report and balance sheet, paid a tribute to the chairman's assiduity in studving trade problems. Lord Ashfield iad shown untiring energy in his work on behalf of the company, and he liad Geen unstinting in the time he had given to its affairs. Opposition from Manchester. Mr. Hall, who announced that he was one of several shareholders who had come at great ineonvenience to themselves from Manchester to attend that inecting, immediately moved as an amendment to the resolution that the mecting be adjourned for three mouths to enable the directors to give them a proper profit and Toss account. In his opinion there was something wrong— something witch required scrutiny—and he also proposed that a cominittee of inspection be appointed to inquire into” their affairs, The speaker further said) that in’ his opinion the directors heid too many shares in subsidiary companies. He wanted to see his shares restored to the 35s, they were worth twelve months ago instend of the seven shillings they were worth to-day, Mr. Perey, why seconded the amendment, asked why it was not possible to publish details of the weekly takings at their theatres, instead of having to wait for a year to know how their propertics were faring. The success of the cafés attached to their theatres was the essence of the success of the company. MWe would like to ask, therefore, whether there was any truth in the rumour that the directors intended to turn them over to a contractor. Facing Facts. Mr. S. P. Derbyshire, the former chairman of the company, suggested that the amendment would not help them: to improve matters. They were all there as business men to face facts, and they knew bow serious a condition of things the country had passed through during the previous twelve months. Heavy taxation, unemployment, an abnormally fine summer, and many other causes had eamtributed to bring about the condition of affairs with which they were faced. He could not help expressing surprise at some of the things which had been said, and he regretted the mean and: paltry insinuations of Mr. Hall. With regard to the proposed reduction in the number of the directors he would like to tell themy that the suggestion was his, and he proposed it not only on the grounds of econcmy, but because he considered a board of twelve too unwieldy. He would like to say how much he regretted the retirement of Mr. Newbould, and he desired to testify his high appreciation of that gentleman’s services to the company. Chairman’s Reply to Critics. After same further discussion, in which eriticisms were made by shareholders of the manner in which some of the company's at Portsmouth and Brighton were conducted, Lord replied to the questions raised and remarked that theatres Ashfield he, personally, favoured the idea of giving the shareholders fuller and more complete finaneial details about the company. He considered that both Mr. Perey and Mr. Hidl in their enthusiasm for their own ideas had made remarks that were quite uncalled for. The directors, in their anxiety to econcmise during a period of tetuporary depression, had surrendered twenty per cent. of their foes, and the direeters who remained in office had decided te pay fifty per cont. of their fees to the directors who went out. Theis salaries were £1,060 a year. The amendment was ultimately withdrawn, and the report and aeecunts were unanimously adopted, The alteration in the articles to reduce the number of the Board was approved, and the following gentlemen were continued in office as directors: Lord Ashfield, Mr. F. I. Adams, Mr. Frederick Scarf, Mr. R. S. Guinness, Sir William F. Jury, and Mr. T. G. Scott.