The Moving picture world (September 1921)

MOVING IMLTl'KK WOKl.P September J». N21 ot telaxalion and nun l.nnmciit atTorded the pooi man "In these tune ol dcpicssion it is nec,-.•..11 \ to IhuKI up ami maintain the nun ill oi the people ami buoy up then spit lH t>\ kffording them amusement ami rcl.i\.uu>ii .11 prices within the bounds ol (hen sleutlei pluses, ami the motion pieHue i-. dome. ih.U. .is it helped to sustain the inouile ol the people during VHl w.u Sonne of Education "The motion pieture has now heeotne ,i souice oi education as well as enter tanitneni I he \.u ions eonnti ies through out the woild arc combed toi matters ol public interest ami educational value to he reproduced upon the svieen (or the edification ol the public The purchasci ,»i .< work ol ail oi a yacht costing thousandot dollars eau very well afford to pay .» ta\ iheieon. hut the poot man's amusement van ill atlonl to pav the taxes which .ue pyramided ami whieh in the loin; iiiii aie substantially eonsumevl by the puhlie "It i tine that the 5 pei eent him sales i .i \ has heen slutted by the pro dueei oi distrihutoi to the exhibitor oi theatie owner, hut it is impossible to --hill these hutvlens auv longer, because the niaioutv ot the theatie throughout the count) y .ue small theatie operated hv comparatively poor men The result is the tailing oil ot audiences at the theaters, whieh in tin u is tctlcctcd l>\ a stagna tion m the husiness ot the film producers «ml vhstnhntois Slott s i .'fi •' ■: ' : o'otv» nmtnt "U i eminent!) nufeii to pkk a bend ml »>t the industries of the country and saddle them with excise taxes ami allow othet nivhi-tue to he exempt from them It seems that the motion pieture and theatrical industries have heen seleeted a the targets against whieh weie luuled eveiv (H»ssihle toitu ot iniinicitvil, state ami fcdcial tax lieense and tiauehise tees The indiistiv has now heeome -o tun ilenevl with these oueiou taxes, federal, -t.ue and muuicnul. that it is ini|v>ssible to -target am longct undei the load "Some ot the -tale aie now lieginniug to lollow m the u>ot-tep ol the federal government hoi nistanee, the State of i ouueetieut has passed a law levying a live pei eent -I. lie tax on the pine of admission, t hus the puhlie is now coin pelled to pay a 15 pei eent admission lax in thai -late I ensoiship law have heen pa-scd in vatioiis -tales and censorship lee have heen -o planned that they shall \ield not only sulheient toi the operation and uiainteuanee ot the eeusorship hoaid. hui al-o lo piovivle a substantial revenue a well tor the -late government "Phis tax hiiulen must he consumed -omehow, and it must naturally ami neees Mirih ulleet itself in the price ol ail mi ions chained hv the theatie-, olhci wi-e the ihealtes would he operated at a lo— Not a I. usury "It noes not .ml the theatre ow nei to he informed thai these taxe ate levied ami imposed heeause the theatre has heen plaeed in the category ot luxuiies. I'hiclassitication is challenged and it upph cahility denied heeause the motion picture ha heeome today piaetieally the onlv mean of iclaxation lot the poorci fain ilie and in some communities it is then onlv means of relaxation. Amusement i not a luxury. On the contrary, it i,i necessity ll it were conceded even toi the sake of argument onlv. that the the atie is a luxury, it should he entitled to i chef heeause in tunes of depression so called luxuiies are the fust to stittet ami i,. hen a natural tax hv vvav ot diminu tion of husiness. and it would he serving no purpose to pile an additional tax on its husiness heeause it would cause tuithei -tarnation. "lite motion picture indiistiv has heen the source of substantial revenue to the government through the income tax rtnid hv it, and unless it is lostcied and given an opportunity to retiuu to noiinal. the revenue to he derived will he greatly dimiushed and the government will de i eat it own object. "The depression in the theatie has l>een telt ducvllv hv the motion pieiine producei ami di-tnhutoi Seveiat oi the laigcst producing corporations have hem ..impelled lo elo-e then Studioi in the bast, many othei producing and lahoia loiy v oi poi ,ii ion have absolutely -us pended husine-s and several companies have gone into the hands of the leceivers. throwing thousands of people out of em ploytnent. In the past year, only one mo Hon picture producing compauv was able i.' pay a divideml to its stockholders "hurt I ee. New Jersey, ami I .oil); Iland t ity, which weie bee hives of ac UvitJ in the production of motion pic tine-, ate todav practically dormant. Pio duet ion m the industry has been cut down to approximately .'5 |>ei cent ol normal and no immediate rebel seem to he in night I he motion picture producer! and distributors cannot atlonl lo shouldei these taxes nor can they he any longei -bitted to the exhibitoi and the pilblii It is impossible toi the exhibitor to re dine the puce of adniis-ion in theatres he cause present wage scale-, man nal costs overhead ami maintenance cosl aie still aliuo-t at peak Economy Units "\ pel iod ol -tuctc-t ecouoinv has set in in evei\ bnnch ol the indiistiv from production right through to sales, ami the era of high salaries has |vas-ed except in those particulai instances where eonli, ids ate still alive, ami with the expiration of those contracUi reductions in sal ane inii-l take place or lesignations will follow. The bottom has practically heen leached, still business conditions do not brifhtm Che onh reKei will iheralon he in a hliinc. of these di-ci ituinatory i. ixc Protest i made against then con tuiuanee because in a democratic FotfD oi lOVemment there should be a deinoe i.icv v<t taxation In othei won!-, a tax should he general ami apial in it apph cation i>i it should have no place in oin \merican plan ol obtaining revenue to the government "Oiu uvoinnieudation tor the prt-cn' is that the 5 pet cent lihn -ale tax !u removed; tluit the admission tax he re duced 50 per cent ami the Stating tax he eliminated " i r