Harrison's Reports (1950)

14 HARRISON'S REPORTS January 28, 1950 AN URGENT CALL TO DUTY (Continued from front page) doomed to remain the victim of existing discriminatory taxes and the target for additional ones. "For mind you, when we have succeeded in eliminating the Federal tax, our battle is only half won. "For the time being numerous governors and mayors are aiding us in our efforts to terminate the Federal tax, but we shall travel the same road for only a short distance. "They are aiding us for the avowed purpose of supplanting the Federal tax with local levies which will be just as onerous and just as unfair. They are already whetting their knives for a slice of the boxoffice take. That problem we will deal with when we reach it. We cannot let it deter us from making our fight against the Federal tax now. "For even if the Federal tax is not repealed, we still are faced with local taxes, not in lieu of, but in addition to, the Federal tax. And if you think that I am an alarmist, consider the sorry state of the exhibitors in Mississippi, who have a state admission tax on top of the Federal levy. "The campaign on which we are embarking calls for the mobilization and the utilization of all the industry's personnel, with all their diversified talents. Once it swings into action the industry will turn in a brilliant performance. But the influences arrayed against us are so potent that we must gain allies wherever we can. The theatre-going public has a vital stake in the success of our efforts and the public in general, already tax conscious, can be made movie-tax conscious by pointing out the dangers inherent in discriminatory taxation. "First in point of time and importance, therefore, is a bang-up publicity job. "The plan devised by your Committee on Taxation calls for the marshaling of public opinion against all taxes on theatre admissions. "That plan contemplates the formation in every exchange center and, as far as possible, in every community of a local committee to carry on the publicity campaign outlined therein. It will be the function of those committees to wait upon and engage the support of the newspapers and broadcasters. ... In addition, civic leaders will be asked to interest themselves in the campaign by writing letters to the Senators and Congressmen and persuading others to do so. Chambers of commerce, boards of trade, labor unions, luncheon clubs, fraternal orders and other groups will be asked to support the campaign, both by adopting resolutions and by individual letter-writing. "But it is our patrons who have a definite, tangible stake in the campaign and it is to them that we look for the most enthusiastic support. The admission tax is a handicap to and a burden upon the motion picture business. It makes movie-going expensive and reduces the amount of spending money in the community, thereby discouraging theatre attendance. But our patrons actually pay the tax and that fact must be brought home to them in every conceivable way. "Every theatre will be asked to run a trailer which the Tax Committee has devised — or else one of its own devising — pointing out the unfair and burdensome nature of the tax and asking the audience to help eliminate it. Also theatres will be asked to place desks and writing facilities in their lobbies so that their patrons can sign petitions in the form of cards addressed to the Congressman for the district in which the theatre is located. "Since there are theatres in every Congressional district, it is believed that these petitions, signed by millions of theatre-goers, will impress upon the Congress the deep dissatisfaction of this great body of citizens — and voters — with the amusements tax. "This cooperation and aid from persons outside the industry will not be forthcoming merely for the asking. The American people before they sign a petition or write a letter must have a stake in the subject-matter or be convinced that the cause to be advanced is just. In the present case we must disabuse the public's mind of certain false notions which have evolved from the glamor of the business or been implanted by reckless reporting. We have got to remove the dollar sign from the industry and present the facts as they are. "For example, there is a wide-spread impression that the movie industry is entirely made up of huge, melon-cutting corporations and that all engaged therein enjoy princely incomes. "It is imperative that the public in general and public officials in particular, be made to understand that the admission tax is not a tax on Hollywood — that it does not reach to those fabulous salaries which until recently were blazoned in the headlines. Those salaries, I have been told, are being readjusted to conform to changed economic conditions; but however that may be, the Government lays violent hands on Hollywood salaries by means of the income tax, just as it reaches into our meager purses at stated intervals. The admission tax has nothing whatever to do with those salaries. "Also it is necessary to disabuse the public's mind of any lingering impression that the move industry is all 'big business.' As the representative ol independent exhibitors I am well-qualified to speak on this point. That part of the industry which is immediately affected by the admission tax — the exhibition branch — consists of thousands of small business men. Almost two-thirds of the motion picture theatres in the United States gross an average of less than $600 a week per theatre — and that is small business in any man's language. "Finally, the movies not only are small business, they are 6mall-town business. Close to one-half of the total number of motion picture seats in the United States are in towns of 25,000 population or less. "These small business men operate on a narrow margin of profit and a relatively small falling off in attendance affects them gravely. The trend already is downward and this must be halted if those theatres are going to continue to serve the public. "But beyond all this is the inherent viciousness of special taxation — the penalizing of one industry by taxes which are not imposed on all alike. That sort of taxation is plainly contrary to the principles upon which our Government was founded. We are confident that when the American people realize the true nature of the admission tax it will offend against their sense of fair play and they will support our cause whether they be theatre-goers or not. "The foregoing ideas, arguments and suggestions are among those set forth in an eight-page folder, copies of which are now being forwarded to every film exchange, every circuit head, every exhibitor association and to every theatre in the United States. In addition, trailer prints, lobby posters and signs, and petition cards will be forwarded to the film centers for distribution to the theatres before the end of this week. The production, printing and distribution of so vast an amount of material in such a short time has been made possible through the generosity of Herman Robbins, of National Screen Service Corporation, who has virtually sidetracked all other business in order to meet the Committee's time schedule. "In behalf of my Committee, I salute Herman Robbins, his company and its staff. "Our Tax Committee is composed of men of broad experience in the operation of theatres, in organization affairs and in legislative work. I cannot now take the time adequately to pay tribute to my associates on the Committee and to H. M. Richey, our special aide. The enthusiasm with which they have carried on, the time and energy they have devoted to the task, the talents and ability they have displayed, and their loyalty to and forbearance with their chairman have earned my everlasting gratitude. . . ." Harrison's Reports hopes that Mr. Myers' words will sink deep into the mind of every person who makes his living in the motion picture industry. The industries and businesses most affected by the excise taxes, even those mentioned by the President in his tax message, are generally dissatisfied with the relief he proposed. Many are opposed to a mere reduction of these taxes, claiming that nothing short of their complete elimination will suffice to stop the loss of business. There is so much feeling against excise taxes that there is going to be plenty of stress and trouble in Congress during the coming months. And the industries and businesses that make a concerted, all-out effort to prove to Congress that the excise taxes imposed upon them are unfair and burdensome will be the ones that will get relief. The meek and the lazy will get it in the neck. There is no time to lose! Act today on repeal of the amusement tax!