Independent Exhibitors Film Bulletin (Sep 1935 - Aug 1936)

WEDNESDAY, JANUARY 29, 1936 7 MERRITT CRAWFORD OBSERVING THE MOTION PICTURE INDUSTRY NEW YORK. THEATRES FACE THREAT OF INCREASED TAXATION The annual report of the Film Board of Trade made public this week showing an increase in the country's total seating capacity of some 175,446 to a new high of 11,308,041, in a total of houses of 18,508, a gain of 245 over last year, while indicating a national pick-up in business, perhaps, should not be regarded by the individual showman as great cause for congratulation. While reports from many sections do indicate a definite upward trend and improvement in theatre business generally, few exhibitors should feel over-optimistic, for the reason that the future is full of uncertainties and the increase in "prosperity'' is only comparative. The year 1935 was better than 1934, it is true, for most houses, though there were many casualties, especially among independent theatres, in the course of the year. And 1934 was better than 1933, which was pretty close to the all-time low for theatre business. Thus, while the prospects for improved business in 1936 are far from discouraging, they hardly impel the hope that the theatre business will become what once was regarded as "normal" unless a miracle happens, which is not at all likely in the present economic condition of the nation. Most of the trade press enthusiastically feature the fact that practically all the major companies have shown considerable increases in their earnings, especially during the last quarter of 1935. Apparently, they do not reckon with the possibility that these increased profits do not necessarily reflect a similar improvement in the net of the average motion picture house. Nor do they seem to consider the further probability that the "prosperity" of the industry is largely gauged by the earnings of the big companies. The taxes, however, are paid by the exhibitor. The last monthly report of the Bureau of Internal Revenue in Washington, D. C, showed that collections from the theatre admission tax during the last six months of 1935 were $8,874,871, as against $7,848,246 for the same period in 1934, a gain of $1,026,625. There was a decided falling off in the receipts for the month of December, however, as against the receipts of last November, the difference between the two months being close to $115,000. At the same time it was noted that the collections in December, 1935, were slightly under $90,000 more than in December, 1934. All of which may be taken by the statistician as indicating definite improvement in theatre operation as far as the box office is concerned, and therefore evidence of a substantial increase in profits. If the local and state taxes, which most houses are paying in addition to the federal tax, the high costs of film and the difficulties of competition with producer-owned houses, were taken into consideration, however, it would be found that in the majority of independent theatres this increase in profits will be negligible, if it exists at all. This situation makes the possibility that the national administration may seek higher admission taxes, as one of the means to meet the mounting deficit in government costs, a distinctly disturbing thought. That it is more than a vague probability is indicated by a report from Washington early this week, which indicates that United States Treasury actuaries are considering higher admission taxes as one means to raise funds. If it is so decided it will mean that the present 40-cent exemption probably will be removed and a tax laid on all admissions above 15 or 20 cents. (Continued on pa^c 10) WE REFUSE TO KEEP THE FACT CONFIDENTIAL THAT 'CONFIDENTIAL' IS BREAKING BOX-OFFICE RECORDS WHEREVER IT PLAYS ! -AND REMEMBER 'CONFIDENTIAL' WAS THE FIRST EXPOSE OF THE NUMBERS RACKET TO BE RELEASED! • 'CONFIDENTIAL' WITH DONALD COOK EVALYN KNAPP J. CARROL NAISH WARREN HYMER MORGAN WALLACE GOLD MEDAL Film Company 203 EYE STREET. N. W. Washington. D. C.