Variety (November 1917)

MOVING PICTURE DEPARTMENT PAGES 49 TO 58 ■ ■ CHICAGO MAKES GRAFT CHARGE WHEN FORCED TO PAY 15c TAX Theatre Owners 9 Association in Windy City in Broad State- ment Accuses World Film of Mulcting Trade of "Extra Mdhey" by Alleged Placement of Collected Levy in Coffers of Film Exchanges—World Manager Makes Explanation— Other Phases. Chicago, Nov. 7. The Chicago Theatre Owners' As- sociation has issued a statement charging graft on the part of certain film producers in connection with the War Tax, specifically mentioning the World Film Corporation, as follows: "Graft in its meanest, most glaring form, showed when the World Film Corporation branch in Chicago de- manded that theatre owners insert a new clause in its contracts for him service agreeing to be taxed by the film concern to the extent of 15 cents per reel per day, this tax not to go into Government coffers but into the executives of the corporation." The directors of the Association con- demn the extra tax as a graft plan and menace, stating that this demand on exhibitors means they will have to bear the burden of an "unpatriotic cor- poration," and attack William A. Brady, Director General of the Corporation, who is also president of the National Association of the Motion Picture In- dustry. The Association, which claims to coff- trol $10,000,000 in Chicago theatre in- terests, states it will refuse to pay the corporation tax and promises a sweep- ing .campaign against the World cor- poration and others who attempt to add the tax. When confronted with the charge that they were "grafting" in Chicago, Felix F. Feist, Manager of Sales of the World Film Corp., explained the mat- ter as follows : "Our attitude in Chicago is the same as it is all over the United States. We are acting in the same consistent man- ner as is every distributing organiza- tion in the business, with the excep- tion of two—one of which is not act- ing in a similar manner for internal reasons and the other is making a 'sales talk' of it and a campaign in an en- deavor to make c.^.wfM of the situa- tion. "The cry has not been against the tax, but rather against the amount of tax. which amount was decided upon after a careful investigation on the part of Price, Waterhouse St. Co., who do the auditing for most of the rep- resentative film concerns in New York. "The greatest cry has come from the smaller exhibitor, who says: 'I am not running pictures that you made or re- leased since May 9. The pictures that I run you made before there was any tax imposed.' In this they are cor- rect, but they forget that we will have made thousands upon thousands pf feet of film, upon which we will have paid thousands upon thousands of dol- lars in tax that we will not be able to collect any tax from the ex- hibitors on, after the Government re- moves all tax." Frederick H. Elliott, Executive Sec- retary of the National Association of the Motion Picture Industry, Oct. 29, sent out the following wire: Each one of the following motion picture distributors and producers have wired and written their man- agers in substance as follows : You are hereby directed and ordered to continue to bill and collect the sum of fifteen cents per reel per day for each reel of film delivered to any exhibitor in your territory for exhibition because of war ex- cise tax. This is in confirmation of instructions heretofore given you which you are directed to fol- low out and under no circum- stances permitted to deviate there- from. These instructions apply to all exhibitors without exception. Artcraft Pictures Corporation, Fox Film Corporation, Goldwyn Dis- tributing Corporation, Internation- al Film Service, Jewel Productions, Inc., Bluebird Photoplays, Inc„ General Film Company, Metro Pic- tures Corporation, Paramount Pic- tures Corporation, Pathe Exchange, Inc., Select Pictures Corporation, Universal Film Manufacturing Company. Vitagraph V. L. S. E., World Film Corporation, George Kleine System. It is understood a rehearing on this tax has been promised the picture manufacturers by President Wilson in December, when Congress sits again. Several exhibitors of the smaller, brand claim the present method of footage taxation is unjust for the rea- son that houses like the Rialto and Strand, New York, are only taxed 75 cents for a feature the same as they are and that in such houses do not have to figure closely in the matter of price. The two distributing concerns re- ferred to as assuming the tax- them* selves are Triangle and Mutual. The Triangle officials claim it is unjust and unfair to tax the exhibitor and that the tax was intended to be borne by the manufacturers and the burden should not be shifted upon the ex- hibitor. SEELYE LEAVES PATHE. C. R. Seelye, general manager for Pathe, has severed his connection with that concern. No information is forthcoming other than a confirma- tion of the news of his retirement. XMAS SPECIALS. With Christmas approaching, the big film makers turn their minds to sub- jects for the occasion. First of the Christmas activities comes perhaps from the Universal ranks, where at least two big "spe- cials" are being planned that after December can be rechristened and find market demand for other months. Under the Butterfly label will come "Uncle Oliver's Christmas,'* a five- reeler, with Ella Hall co-featured with her newly-acquired husband, Emery Johnson. The story is by Elsie Jane Wilson, who will also direct the piece. The other Christ- mas film will have Harry Carey as the star, with Jack Ford directing. Other film firms will make their holi- day "specials" in future announce- ments, although much of the feature distribution for December and Jan- uary has already been filled, with none of the Christmas subjects yet finally titled. ITALIAN WAR FILMS RELEASED. "The Italian Battlefront," official war films of the Italian Government, owned throughout the Uriited States by the Fort Pitt Theatre Co., are now being released throughout the country on an extensive scale. A large party of Italian officials and officers will leave New York week af- ter next for the exhibition of "The Italian Battlefront" in Los Angeles and San Francisco. It is expected General Guglielmotti, Military Attache of the Italian Embassy in Washington, will be among them. The Italian Embassy is anxious to impress upon Americans in the west and middle west the enormous part Italy is playing in the world war. The exhibition there, will, therefore, be un- der official supervision. THE SERIAL MARKET. For the first time since the Universal started making serials, it will short- ly have two serial subjects in re- lease operation at the same time. Here- tofore the U in making a serial would exploit it separately and have it out of the way on the release chart before considering another. The U now has out "The Red Ace," having released eight episodes, with nine more to follow. These will be in the market at the same time the Uni- versal^ new one, "The Mystery Ship" (with Ben Wilson), will be turned loose. The latter's first showing will be made Nov. 26, running through 15 episodes in two-reeled installments. Inasmuch as the U has lopped off the releasing of many of its shorter-made reels, the new activity in the serial de- partment is to make up for the elimina- tion of the other subjects. About four years ago the U turned loose its first release of the serial sub- jects, "Lucille Love" being then of- fered in 15 parts. This subject is now being cut down to about seven reels, with some of the old-fashioned direct- ing "bits" cut out and some new sub- titles given it, with* the U going to supply certain sections that have ap- plied tor the earlier subjects. "The Gray Ghost" has been com- pleted, but in some sections it is just getting under way, with the theatres having played up "The Voice on the Wire" ahead of it. Pathe is showing as much activity as any of the film makers, with word from its officers that the film serial subjects have not deteriorated in the least, show- ing more popularity, if anything. Selig, laying claim to making the first serial ever released (the Kathlyn Wil- liams jungle subjects, as well as Kalem, always strong on the serials), are show- ing renewed activities. WAR PICTURES AT $1. Dayton, O., Nov. 7. George ("Lefty") Miller represent- ing A. H. Woods, who has the official Italian War Pictures, announces they are to open at the Majestic here November 25 for two weeks, and a third week, if business warrants, at $1.00 top. He is billing the town heavily, and good business is ex- pected, as Miller, when at the Majes- tic with "Civilization," did the largest business of any picture at any theatre in Dayton. War pictures open at the Palace, Toledo, Nov. 18 at advanced prices. REID RECOVERING. Wallace I\eid, confined to his home for some time as a result of a badly injured hip, received during the film- ing of "Nan of Music Mountain," will shortly be ready again for active work.