Motion Picture News (Sept-Oct 1921)

0 b e r 2 2, I g 2 1 2141 [enate Committee Votes Removal of 5 Per Cent Rental Tax hst Victory in Struggle to Remove $5,000,000 Burden from Industry "MiE Senate Finance Committee at its final session on Monday, October lo, voted to remove the five ent. film rental tax from the RevHill. This action, which is of such .ndous importance to the entire mo;>icture industry, is the first decisive toward removing a film rental excise n of between five and six million rs a year which the film interests been paying since 1919. The vote iie abolition of the rental tax was five lur and followed a vigorous discusin which Senator Reed Smoot of ably championed the cause of the re industry and was largely responfor the favorable action, le recommendation of the Finance nittee will doubtless be ratified by Senate and no serious opposition is ipated in the House of Representawhen the revenue measure is red there for final passage, vvs of this big victory for the Na1 Association of the Motion Picture ^try was conveyed in a telegram red today by William A. Brady, PresI of the association, from Senator am M. Calder of Xew York, and Jack Connolly, Washington Repretive of the National Association. i hose who have carefully followed t : campaign for the removal of the five j cent, retail tax accord great credit for t result to President Brady and to Saul 1 Rogers, Chairman of the National As!:iation's Taxation Committee, both of Mom led the campaign for the tax re)il and worked indefatigably for many • eks to convince the Senate Finance 'mmittee that the industry should be ieved of this oppressive burden. \Iany conferences were held with Sen: r Smoot, Senator Calder, Senators l ollette of Wisconsin. Dillingham of nnont, Southerland of West Virginia I other members of the Committee, ider their leadership the repeal cam?n was ably augmented by prominent ■atre owners in many territories and by ders in other businesses w'ho were coniced that the picture industry needed h governmental aid to enable it to rejust itself to successfully meet present iditions. In commenting upon the action of the nate Finance Committee, President ■ ady said : ' This is a wonderful victory for the >tion picture industrj and one which II accomplish much in relieving an Jte condition which every branch of the -iness has felt for many months. I 1 not only gratified but proud to have I en identified with the campaign on beIf of the National Association. First Naf 1 ''Get Together'' to Be Held in Chicago THE national "Get-Together" of Associated First National franchise holders will be held, according to the final decision just announced, in Chicago at the Drake Hotel on Michigan Avenue, beginning Monday, October 24, and continuing for four days. The primary cause for the week's postponement in the time of the " get-together " was the cabled news from England that the delegation of British exhibitors which was being formed to come to America and study the Associated First National franchise plan at close range, would sail from Southampton on the Aquitania October 15. The "Get-Together" city will be Chicago, instead of Detroit, as previously announced. Because of the number of conventions that have already been booked for the Motor City, it was found impracticable to obtain the necessary hotel accommodations, without dividing the delegates between three or four different Detroit hotels. " Great credit is due to Saul E. Rogers, Vice-President and General Counsel of Fox Film Corporation, who is Chairman of the association's Taxation Committee and who has worked day and night on this campaign. Valuable aid was rendered also in Washington by Jack Connolly. " The entire industry should be grateful to those Senators who have championed our cause, particularly to Senator Reed Smoot of Utah who co-operated so heartily and so effectively with us in the move to abolish this oppressive tax." Chairman Rogers of the Taxation Committee said: " I am indeed gratified at the removal of the five per cent film rental tax by the Senate Finance Committee. This is a partial victory. I would have been infinitely more pleased if the Finance Committee had removed all of the nuisance taxes. The burden of my work as Chairman of the Taxation Committee of the National Association was greatly relieved by President William A. Brady and Jack Connolly, the untiring efforts of both of whom were of inestimable value." The removal of the rental tax will have a far reaching effect in the solution of the exhibitors' problem in regulating their overhead expenses to meet present conditions, and many theatres which closed down several months ago will undoubtedly be enabled to open their doors. During the twelve months ending May 31, 1920, the sum of $4,072,852.42 was paid to the Government in film rental taxes. In the year ending May 31, 1921, the total amount of the rental tax was $5,931,187.73. The campaign inaugurated by the National Association for the repeal of the five per cent rental tax will not be discontinued because of the action by the Senate b'inance Committee. In fact it will be continued with renewed vigor, now that complete victory is in sight. The support of every Senator and Congressman will be sought prior to final action by the Senate and the House and every branch of the industr} is being urged by President Brady and Chairman Rogers to exert all available influence upon Representatives to ratify the action of the Finance Committee in eliminating the rental tax from the Revenue Bill. License Mesco Pictures to Do Business in Missouri Judge J. M. Johnson of Kansas City last week applied for and was granted by the Missouri finance department at Jefferson City, Mo., a permit for the Mesco Pictures Company of Delaware to sell its stock in Missouri. He also filed application for a license for the company, which was granted by Secretary of State Becker, for the company to do business in Missouri as a foreign corporation. The Mesco Company was incorporated under the laws of Delaware with a capital of one million dollars. Of this capital, the affidavits filed for the license show that $584,300 is to be used in the state of Missouri. Cotton Market Up, Picture Business Better jjry^HE recent movement upwards in I the cotton market has given the entire South a new lease on life as far as business is concerned, and in no industry is the improvement more marked than in motion pictures. Business is booming." E. M. Saunders, general manager for Metro Pictures Corporation, has reached this conclusion after a trip through all of the Southern States, from which he has just returned to New York. " I talked with men in almost every line of business," said Mr. Saunders, " and I found every one agreed that the change in the cotton market had been reflected by an all-around improvement in business conditions. The slump suffered when cotton was down seems to have passed and good times are returning faster than any one could have expected a few months ago."