Moving Picture World (Jul 1919)

July 12, 1919 THE MOVING PICTURE WORLD 235 TREASURY DEPARTMENT DEFINES TAXES Regulations Covering Ticket Returns and Definition of Those Admitted Tax-Free Issued from Washington THE Treasury Department today issued voluminous regulations on admission taxes, which have been in course of preparation for several months. Nearly one hundred printed pages are required to carry all the regulations and explanations which have been compiled, and Treasury officials feel that they have covered very nearly every point and question which might be raised regarding the applicability of these taxes. While the tax in the new law differs but little from that in the 1917 act, the regulations are much more complete than for the previous year. The tax is one cent for each ten cents or fraction thereof of the amount paid. Persons admitted free, except soldiers and sailors in uniform, bona fide employees, municipal officers on municipal business, and children under twelve years of age are subject to the tax. The rate is one cent for each ten cents or fraction thereof of the amount paid by other persons for "the same or additional accommodations.” Critics Pass without Tax. It is deemed in the regulations that newspaper critics who reviews a theatrical performance or moving picture are not subject to the tax. They are included in the list of “bona fide employees.” The regulations say: “In the case of a theatre the following, among others, are ‘bona fide employees’: In Class 1, the advance agent of an attraction then showing or soon to show, the house physician, the regularly employed attorney for the theatre; in Class 2, actors and actresses then playing at the theatre, members of the orchestra and organist, a moving picture machine operator, the ushers; in Class 3, a physician called in to attend a spectator taken suddenly ill, a theatrical critic of a newspaper attending to view and review the play, young women selling souvenir programs at a benefit, a Four Minute Man attending to speak.” Defines the 50 Per Cent. Excess. The act imposes a tax of 50 per cent, on the price of admissions to places of amusements in excess of the “regular or established price.” In the case of a theatre the price decided upon by the management before any of the seats are put on sale is the established price. If, however, the management stages a performance which is to run three weeks, sells seats in advance, and, after the second week, decides to increase the price of orchestra chairs for the remaining week from $2 to $2.25, there is a tax of 12 1/2 cents due from the theatre for each ticket sold for $2.25. This tax must be paid by the person selling the ticket, and is distinct from and in addition to the tax on the established price of admission — in this instance 20 cents — which must be paid by the purchaser of the ticket. The act imposes on tickets sold at excess prices by brokers or at news stands, hotels and places other than the ticket office (except those under the management of the place of amusement) a tax of 5 per cent, of the excess, if such excess does not exceed 50 cents. If the excess charge is more than 50 cents, the tax is 50 per cent, on the whole of such excess. This tax must be paid by the person selling such tickets, and is in addition to the tax on the established price. Returns Exacted Monthly. Monthly returns and payment of admission taxes are required. Returns and payments must be in the hands of collectors of internal revenue on or before the last day of the month following that for which the return is made. Heavy penalties for failure or willful re fusal to make return and pay the tax on time are provided by the act. The regulations require that the established price of the ticket, the amount of tax to be paid and the total, shall appear on the ticket. Whenever such ticket is sold at a price other than its established price, then, in addition, on the back of such ticket, the actual sale price, the admission tax paid, and the total of such price and tax shall appear. Whenever an admission ticket is sold at a place other than the ticket office of the theatre, there shall appear in addition the name and address of the seller. Failure to comply with this provision is punishable by a fine of not more than $100. The admission taxes became effective April 1. Sparks Fly When Jesse Goldburg Talks Plainly at Meeting of Quinn Disciples VERBAL fireworks enlivened the second meeting of the Motion Picand Theatrical Co-operative Association at the Hotel Astor, Tuesday, July 1. Matters were a trifle slow until Jesse J. Coidburg, general manager of the Frohman Amusement Corporation, was invited to say a few words by Mrs. John Francis Yawger, chairman of the meeting. Mr. Goldburg started right in by warning President Quinn that he was going to take issue with him on his statements as to the evils existing in the motion picture industry. The president of the organization had said in his opening address that the industry was a joke ; that studio conditions were rotten ; that the public was starving for good pictures ; that he (Quinn) could improve by cutting ninety out of every hundred pictures made, and that the people of this country were back of him in the reforms he proposed to accomplish in the making of photoplays. One of President Quinn’s statements contained the information that better pictures were made in the days when General Film was a power in the picture world, and the short pictures re , Harry McCoy Featured in the Sunshine brand of Fox comedy. leased by it enabled the exhibitor to get together a succession of programs which satisfied his patrons and gave him a fair margin of profit. Goldburg Talks Plainly. Mr. Goldburg sounded a warning in the opening of his remarks when he said: “I am going to get in bad before I get off this platform, but you invited it. I did not ask the privilege of the floor, and since I take it that you want candor and frankness and truth just let me, to use the vernacular of the street, ‘hand it to you.’ ” After giving the history of a picture that had great educational value, that cost $71,000 to produce and lost over $40,000 for his company, the speaker went on to explain other practical problems which confront the producer, and closed with these words : “You have got to change the taste of the public. You can’t change the work of the manufacturer. He won’t stand for it as long as he is going to stand any financial loss ; and we exercise our rights and protect the property of our stockholders. Intolerant of Inexpert Advice. “I can sit down here for hours and show you the intricacies of production, but let me say this the second time, in conclusion, and I mean it: I am heartily in support of Mr. Quinn’s movement to eradicate the rotten poster, the rotten photoplay, to cut down production costs. If he can do it he is a wonder. He doesn’t have to ally himself with this organization, for, I tell you, if he can do what I imagine he can do he can get $50,000 a week and make money for the company at that. My God, what a task he has got! Atlas, with the mythical globe on his shoulders, had nothing on Brother Quinn’s intended plan. I am heartily in favor of anything that is going to make the motion picture a greater or a better thing in the universe, but I am so intolerant of advice from those who really do not know.” The other speakers were : Mrs. E. D. Foster, editor of the Community Motion Picture Bureau; L. J. Rubenstein, a film exploiter ; Dr. Edward Stitts, superintendent of schools in New York; B. J. Fagan, chief probation officer of the Children’s Court; Mrs. Ellen O’Grady, deputy police commissioner, and Jay Hunt, a director. There were between fifty and sixty persons present.