Motion Picture News (Jul-Aug 1916)

MOTION PICTURE NEWS Vol. 14. No. 3 386 Ihas the guALiTY circulation of the trade! . MOTION PICTURE NEWS EXHIBITORS' TIMES Published on Tuesday Every Week by 729 SEVENTH AVENUE, COR. 40TH STREET, NEW YORK. WILLIAM A. JOHNSTON President and Editor HENRY F. SEWALL .Vice-President E. KENDALL GILLETT Secretary H. ASHTON WYCKOFF Treasurer and Business Manager WENTWORTH TUCKER Asst. Treasurer R. M. VANDIVERT. .: .Advertising Manager THEODORE S. MEAD Chicago Manager J. C. JESSEN Los Angeles Manager LESLEY MASON Managing Editor WILLIAM RESSMAN ANDREWS News Editor The office of the company is the address of the officers. Entered as Second-Class matter at the New York Post-OfEce. Subscription $2 per year, postpaid, in the United States, Mexico, Hawaii, Porto Rico and the Philippine Islands. Canada, $3; Foreign, $4 per year. N. B. — No agent is authorized to take subscriptions for Motion PiCtueb News . at less than these rates. Have the agent taking your subscription show his credentials and coupon book. VOL. XIV July 22, 1916 No. 3 Once More the Picture Is Political Prey ; When Will This Cease, and Where? GONGRESS has again singled out the motion picture business as fair prey. This time the exhibitor is pounced upon, and is in danger of being ordered to stand and deliver, while other businesses are disregarded. Handled with the accustomed celerity of statesmen who govern by snap judgment, when they are not governing with simple injustice, the new Federal revenue bill, carrying a graduated tax on picture theatres, was brought into the House July 5, and the final vote on the measure annoimced for July 8 — ^just three days. The inference is easily drawn : the House had no intention whatever of losing this chance to bleed the picture theatres, and they did not propose to give the exhibitor a chance to present his side of the case, if they could help it. Some exhibitors did protest, but the great majority did not. How could they on such short notice? * « * DUT the measure is still to be passed by the Senate. And Motion Picture News urges every exhibitor to inform himself of the terms of the bill, if he has not already done so, and immediately bring pressure to bear upon the Senators from his State. Turn to page 429 of this issue and you will discover just what condign punishment the statesmen have in store for you next. The new bill seeks to treble the present war emergency tax upon your theatre. Your business is already heavily burdened. Do you think it will stand any additional burdens ? And note this : whether you are an exhibitor in a town of five hundred population, or of one hundred thousand population, you will not be allowed to escape. No, the House purposes making this piece of injustice as comprehensive as possible. * * * VV/E call your attention also to the specious argument back of this performance. They say that tiie motion picture theatre should pay because it is a luxury, but they overlook the automobile, the tobacco, and other lines of business which are assuredly luxuries. They pick you out because they think you offer one easy solution of the financial difficulties into which the Administration has got itself. We urge you to protest, following the lead of Dr. William P. Herbst, Harry M. Crandall and other prominent Washington exhibitors, and the Dayton theatre managers, whose letter to Senator Harding is printed in this issue on page 409. * * * R. HERBST, who is ex-president of the Washington, D. C, Exhibitors' League, has sent the following letter to Representative Meeker, of Missouri : My dear Mr. Congressman: Permit me to present my views relative to the proposed tax on the gross receipts of theatres, etc., as included in the general revenue bill introduced by Hon. Claude Kitchin. Moving pictures are distinctly a " poor people's " amusement and an increased tax ujuder the present high cost of doing business will necessitate an increase in the price of admission to the shows patronized by that class of people who can ill afford to pay more. The sphere of the movies has been primarily to not only amnse but educate just these people whom the high cost of living prevents from paying fancy prices for this amusement and education. The five-cent show admittedly has been an important factor in the uplift of the commimity through its power of education. Continued taxation will eventually put the popular " nickel " show beyond the reach of the people. When the admission is raised to ten, fifteen, and twenty-five cents, beyond the reach of these poor people, it is but natnral that the communities that have felt the influence for good in the " movies " will simply revert to the old order of things, and instead of having the united family enjoying an amusement within their means, father and husband wUl go back to the saloon where they spent their time before they acquired the habit of going to the " movies " with their families. * * * (~\^ the other hand, in behalf of the exhibitors, wUl say I do not deem it compatible with the best interests of the country to hinder the growth of a business as vast as the moving picture industry by heavy and to say the least, unjust taxation. The present cost of doing business is very high. In fact were the proposed tax on gross receipts enforced, in the present condition of the country, many exhibitors would be forced to pay revenue when their receipts were actually below their expenses. It is not difficult to see the unfairness of this. Many of the moving picture houses throughout the country are controlled by small corporations and as such they are already paying an income tax upon their gross profits. In addition to this, they are burdened with the emergency internal revenue tax, their local license fees, their real estate and eqtiipment taxes. All throughout the country, city and state taxes are already heavy and additional burdens will work a hardship upon the " movie-man " who contrary to general belief, is making but a very small profit in comparison to the amount of investment. I trust you wiU see the justice of these views and be governed accordingly. Believe me, with expressions of esteem. Sincerely yours, WILLIAM P. HERBST, President, Circle Amusement Company, Inc. Hon. Jacob E. Meeker, M.C., House of Representatives, Washington, D. C. Dr. Herbst's argument gets down to the fundamentals of the question, from the exhibitor's point of view. A similar protest should be made by you — and at once — to the Senators from your State.