Motion Picture News (Sept-Oct 1918)

1990 Motion Picture News The Tax Hearing at Washington THE Senate Finance Committee on Tuesday of this week granted a hearing on the new tax bill to a delegation from the National Association. The film men present included William A. Brady, Walter W. Irwin, Gabriel Hess, S. L. Rothapfel, Alfred S. Black, Dr. J. Victor Wilson, Ernest Horstmann, Harry Bernstein, Harry Crandall, Col. Barry Buckley, Sydney S. Cohen, L. F. Blumenthal, C. C. Pettijohn and Yours Truly. In the ordinary course of events we would use a page of news column space telling you in cut and dried fashion just what happened at the Capital. But just as surely we would then be tempted to use up this page in semi-personal, semi-editorial comment on that same news story. And then the boss would come out and remind us that it is a patriotic duty to save white space. So we'll beat him to it by covering the whole blamed affair on this page. Let's go ! * * * * IN the first place — to sum up the whole day — it was a pretty disappointed lot of film men who travelled back to New York on the Congressional Limited. The impression was general that the hearing had been of little help in forestalling the heavy tax levies listed in the new bill by the House Ways and Means Committee. The industry's fate now depends entirely on the work that can be done with the Senators and Representatives " out of hours " by the Washingtonians — Harry Crandall and Col. Buckley. The delegation received assurances from Representative O'Shaughnessy of Rhode Island — a member of the Ways and Means Committee — that he would secure a reception for any briefs that may be prepared within the next few days. Mr. Irwin and others are laboring on the briefs ; Crandall wi'l see that they are presented with all force to the right people — and meanwhile — let us have courage if we can't have hope. The handwriting now says : A doubled seat tax, a ten per cent rental tax, a doubled admission tax. And may the Fates have mercy on the " average " picture theatre ! * * * * THE delegation met at the Hotel Shoreham less than an hour before the hearing to plan its campaign. It was decided that William A. Brady would present the case for the industry as a whole and that Alfred Black would state the exhibitor's case. The conference decided that the speakers would offer no substitute or alternative tax suggestions — that the industry would rest its case on the plain and blunt statement that it was already taxed beyond the limit and that further levies would seriously cripple it as a business and hamper it as a propaganda agent. It sounded good. And it continued to sound good — until the Senators heard it. And it didn't sound half so good after Senator Thomas interrupted Mr. Brady to ask : " Is it true that a young lady by the name of Anita — Anita — yes, Anita Stewart, gets something like three thousand five hundred dollars a week?" * * * * WHEN the Senator popped that question he touched the keynote of the Washington attitude towards the motion picture industry. What matter that Mr. Brady stated with all his usual force the screen's value to the Government, the fact that no picture company has declared a dividend in the past year? What matter that Walter Irwin came to his aid with technical knowledge, with clearly stated information as to the tremendous burden the new taxes would be on the picture industry ? What matter that Alfred Black — an able spokesman for the exhibitors — told of how taxes of the past year had wiped out thousands of struggling theatres all over the country, of how every new tax levied would eventually find its way to the exhibitor, burying him under triple and even greater taxation? What W ashington wants to know is : " How can you afford to pay million dollar salaries if you are a poverty-stricken industry?" nfi 'J* "4* THE man who can answer that question — to the satisfaction of Congress — will deserve a million dollar salary for himself, payable by the entire industry. If Congress can ever forget that bugaboo Congress will be able to see that the steadily mounting taxes mean ruin to thousands of small business men — the " eighty per cent " exhibitors. If Congress can ever forget the stars' salaries it will be willing to meet film men as business men and give them jtax treatment as business men. But Senator Thomas is thinking: " It seems to me if you can pay a young lady three thousand five hundred a week you must be a fairly prosperous industry." And Senator Brown, of New Mexico, is thinking: " You look like pretty good business men. I can't see why you keep on making pictures, pictures, pictures, if you are not making any money put of them and never expect to." If you — Kind Reader — have the answers to these questions please requisition the National Association for carfare to Washington. And get there quick ! * * * * THE Senate Finance Committee proved a good friend to the motion picture industry at the conference meeting with the House last year which decided the film taxes. Despite the fact that their reception on Tuesday was none too warm — it was fifty-fifty — they may be with us this year. As to the House Committee : Representative O'Shaughnessy appeared impressed when R. S. L. Rothapfel laid his cards on the table and gave him facts and figures regarding his own theatres. Messsr. Crandall and Buckley will be on the ground to talk man to man with the legislators in an attempt to show them the real seriousness of the situation. In these two phases are combined a ray of hope. Trojan work may secure for the industry a reduction of the ten per cent rental tax, it may secure a reduction of the twenty per cent admission tax. There seems little chance of a change in the proposed new seat tax. And thus is summed up " A Trip to Washington." PERSONAL Dear Leslie: You overwhelm us with your sincere flattery of The Complete Plan Book. Have we anything else that you want — an old shirt, frexamplc t Don't be bashful. Our motto is Service — to manufacturers, to exhibitors, and to — "publishers." — Yours truly. mm iiiiiHiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiBUY LIBERTY BONDS i nun m iiitin i :.imum