Moving Picture World (Oct 1917)

October 20, 1917 THE MOVING PICTURE WORLD 361 Manufacturers Dubious About Film Tax ® a s @ Believe It Will Fall Upon Producers and Distributors— National Association Holds Important Meeting THE situation in the film industry as a result of the signing by the President of the war tax bill, is one of uncertainty. There seems to be on the part of •manufacturers a feeling that the impost of a quarter of a cent on negative and a half cent on positive will have to be shouldered by them, inasmuch as they can discover on a short examination no equitable way of passing it on to the consumer, in this case the exhibitor. One matter that gave much concern to manufacturers during the week was the day on which the bill became operative, but it did not take long to ascertain that it went into effect on October 4. The new regulation regarding a tax on admissions of 10 per cent., due to the fact that it was a part of another section of the bill, will not be effective until November 1. There is no disguising the fact that there is deep resentment in the trade over the outcome of the large amount of work that has been done in Washington looking to fair treatment by Congress of the motion picture industry. There is a feeling that the motion picture men have been asked to contrbute to the national treasury a sum over and above that which has been levied upon commerce in general; that the tax upon film, for instance, is not offset by any diminution of the income and other taxes which fall upon business men. One phase of the bill which is subject to criticism more than any other, is the half-cent levy on positive prints. As one large producer of commercial and industrial subjects pointed out, the impost on manufactured film is practically a 20 per cent tax on production cost. In his figuring he included, of course, the quarter-cent on negative. He said a fair price for printing would be 3.75. cents, and, of course, 0.75 cents would be one-fifth. This, he declared, was far in excess of the profits on a printing contract. With the close competition existing in the trade, manufacturers were playing close heed to tenths of a cent. One of the departments of motion picture production to be hardest hit by the new law is that of the weekly. This, of course, is due to the fact that a large number of prints is necessary to cover the insistent demand of exhibitors for fresh pictures of current events. Singularly enough, the weekly, too, has been one of the most important agencies of war propaganda — it has been one of the greatest aids of the government in bringing the war home to the people. While undoubtedly it is too early to estimate the effect of the tax on manufacturing in a larger way, one chief of a big producing and distributing concern took a decidedly pessimistic attitude. He said his concern had intended to enter immediately upon a marked expansion in its business, but that from all he could gather as to the situation following the signing of the bill, his firm stood to suffer a direct added cost of manufacture running into six figures. If this proved to be the fact, he declared, retrenchment would follow. It may be worthy of note none of his fellow producers took so black a view of the situation. One official of a program company, a concern which supplies with film many of the smaller houses in the country, pointed out the inequity of the film tax. •The film that is exhibited in theaters charging 50 cents admission and the negative cost of which maj have been $50,000, p tically the same rate as does one that is exhibted in houses charging 5 cents admission an.l the negative cost of which may have been $7,500," he said. "In other words, the tax on a hundred feet of a weekly is exactly the same as the tax on a hundred feet of the most expensive feature that may be put out in a year." Il is tOO early yet "to prophecy what will lie done In the motion picture men looking to a readjustment oi Already conferences are being held and under consideration is Ihe ad\isahilitv o! preparing amendments to the pies.-nt measure designed to put the motion picture upon the Same basis as other industries, to ask that it be treated not as a trade apart from other lines ,,t legitimate investment. There is no disposition to ask any favors because ol work oi large importance it has done for the government and in mam in stances without cost ,,, .,„> |,.,,,N |,„, itself, but there' is B During the week a committee of the National Association of the Motion Picture Industry visited Washington to take up matters connected with the various auxiliary war committees. President Willam A. Brady of the association and P. A. Powers and Arthur Friend during the stay in the capital city had a conference with President Wilson regarding the work of the motion picture men in furthering the activites of the government. The talk lasted forty minutes. National Association Holds Meeting. On Saturday, October 6, a meeting of the National Association was held at its rooms in the Times Building. Presdent Brady briefly outlined the topics discussed at the conference with the President and said the recent offer of the association to furnish films to the soldiers abroad had been accepted by the administration and that the suggestion had been made that the idea be extended to include the people of Russia and Italy, with particular reference to the soldiers of those countries. Mr. Brady laid great stress upon the importance of the work in Russia, where it was proposed to have the officials of the American Cinema Commission act in co-operation with the Y. M. C. A., already established along the battle front. He said one of the first things to be done was to agree upon representative men who would undertake to give their time and energy to the pushing of the great work and submit their names for appointment by the President. Mr. Brady pointed out these men would be officials of the United States, that they would be commissioned by the President, and urged that careful consideration be given the subject, so that the recommendations would be of men who could command the confidence and support of all. It was decided first to agree upon the man upon whom would fall the burden of collecting the film in the United States and supervising its shipment. After much discussion the name of Jules E. Brulatour was suggested by Samuel Goldfish. It was declared Mr. Brulatour would agree to serve. He was unanimously selected as the choice of the meeting. Mr. Brulatour was not present when his name was mentioned. Previously he had informed the gathering that George Eastman had authorized him to offer to the association and the government the full use of all the Eastman properties in France for the work of the commission. After much discussion, in which several men were mentioned, P. A. Powers was named for commissioner to France. Mr. Powers later arrived at the meeting and was applauded as he entered. For the mission to Russia Walter \Y. Irwin was tentatively agreed upon, subject to the ratification of the arrangement by Mr. Irwin's family and ass, mates For the Italian mission J. A. Berst was suggested The meeting adjourned to 2 o'clock on the following Monday, at which time there was received the acceptances of Messrs. Brulatour, Powers and Irwin. Mr Berst was obliged through business reasons to decline the Italian mission. Frank J. Marion was chosen in his ■ The members of the commission met on Tuesday morning at the offices of the association to meet lolin K. Mott. gen eral secretary of the Y. M. C. A. In the afternoon at 5 o'clock there was a general meeting of th< which was addressed by George Creel, chairman of the committee on public information Zukor Sees Danger to Industry. Adolph Zukor, President of Famous Players Laskj Coi poration, who has followed every development of the war situation so far as it concerns the motion picture industry, m the following statement points out to Congress the results that are certain to follow the agreement of the Congressional Conference Committee on the war tax bill, which contemplates raising three instead of tWO billion do] '■"'■■ •iml concerning which a decision was reached September 29. "From the moment that the motion picture industry was .recognized as ■ factoi in the preparation foi war. and its value in aiding the Government m the prosecution of us plans therefor Folly appreciated, the Famous Players Laskj Corporation has taken ■ leading pan in the various acti\ itiea in that direction and has demonstrated its patriotic pin. [plea and eagerness to assist ,,, t\,., , U,IV possible " sai< M. Zukoi "It has co-operated with the Xatioual \ssociatior fullest DOSSibll oi the Mot,, ■ Indus,, ,