The Independent Film Journal (1953)

July 25, Vol. 32 1953 No. 1 der a closed rule, precluding amendments and limiting debate to one hour. Therefore, it is more than likely that concerted efforts will he made to tack on amendments in behalf of other industries adversely affected by excise taxes. We are hopeful that these efforts will not succeed and that the Mason Bill is submitted to you without change for your signature. Amendments would require a referral of H.R. 157 to a joint committee of both Houses for compromise proposals. With Congress anxious to adjourn as soon as possible, and with a host of administration measure on the “must” list, the addition of collateral matters would becloud the issues and possibly sidetrack this measure during this session of Congress. If good sense prevails, this will not happen. Then it will he up to you, Mr. President. We recognize, and are equally confident that you do, the fact that the excises afflicting other business are deterrents to trade, hut the motion picture industry is fighting for survival, a claim to which the others hap¬ pily need not subscribe. We appeal to you, Mr. President, to sign the Mason Bill into law when it succeeds in concluding its perilous journey through the Congress and is brought to the Chief Executive’s desk. We are keenly aware of your desire not to reduce Government income until the budget is balanced, hut the Mason Bill is not a tax hill; it is emergency legisla¬ tion to save a distressed industry, yet the tax benefits accruing from its passage far outweigh any possible loss of revenue that may result. An irrefutable case has been presented for tax re¬ peal. It has convinced a clearcut majority of Congress, including Administration leaders, that the motion pic¬ ture industry needs relief. Since 1946, more than 5,500 theatres have closed their doors and reliable statistics indicate that 5,000 more will close within the next year if repeal is not forthcoming. Only this week, official figures of the Department of Commerce revealed that, in spite of the fact that consumer spending hit a new peak in 1952, motion picture admissions dropped to a point where for the first time in a quarter of a century it accounted for less than 10 percent of total consumer spending on recrea¬ tion. By the same token, admissions tax revenues from motion picture theatres are declining steadily at an alarming rate, to the point where the law of diminishing returns is operating against the Government’s best interests — and most certainly to the detriment of the theatres. The survey also disclosed that motion picture cor¬ porations paid $15,000,000 less in corporate income taxes in 1952 than was paid the previous year. Divi¬ dends dropped more than $11,000,000, representing another tax loss to the Government. These are Government figures, Mr. President. They do not take into account the losses to the Treasury on wages, salaries and reduced earnings of industry employees. They do not take into account the effect on industry suppliers, manufacturers and allied businesses. They do not take into account the disservice to local merchants and neighborhood trade, to realty owners and property valuations, to labor and the moviegoer. If the tax is not removed, it will mean increased admission prices for moviegoers since more theatres will close and those remaining will have to produce the additional revenue to maintain Hollywood production. However, if the Mason Bill is passed, theatres con¬ templating closing will remain open and many a closed theatre can once again become a going business. The industry will be in a better position to pay increased corporate and personal income taxes, retool for the new dimensions and technological improvements, and contribute generally to a healthier national economy. We know that with your fair-mindedness, Mr. Pres¬ ident, you will listen to our case and come to the same conclusion that prompted Congress to single out the motion picture industry for special emergency con¬ sideration. THE INDEPENDENT FILM JOURNAL. Published every other week on Saturday by ITOA Independent, Inc. Editorial Offices: 1515 Broadway, New York 36, N. Y. Telephone Circle 6-6460. Editor, Morton Sunshine; Business Manager, Herman Schleier; Associate Editor, Aaron Sloan; Circulation Manager, Charlotte Gross. Coast Bureau: Richard Bernstein, 42251/2 Lockwood Ave., Hollywood 29, Calif., Normandie 26494. Chicago Bureau: R. L. Farnsworth, 307 N. Michigan Ave., Financial 6-2786, Washington, D. C. Bureau: A1 Goldsmith, 1365 National Press Bldg., MEtropolitan 8-0001.