Variety (November 1917)

MOVING PICTURE DEPARTMENT PAGES 43 TO SO FILM TRADE FACES RUPTURE AS EXH IBITORS FIGHT TAX Picture Exchange* in Levying "15c Per Reel Tax Daily" Find Exhibitors Presenting Unified Front. Latter Show Their Disapproval by Canceling Big Trade Con- tracts. League Calls December Meeting to Alleviate Present C Late Phases. The 15c. a reel war tax was on a fair way towards disrupting the pic- ture industry this week when con- certed action was taken by exhibitors throughout the country to prevent the exchanges trom levying the tax upon them. With a general condition of apathy existing throughout the land with film rentals higher than they have ever been in the history of the industry and with exhibitors facing a weekly loss that in many instances has forced houses to close the early part of the week, opening only for the Friday, Saturday and Sunday business, the tax on reels has forced them to take ac- tion even more drastic than in the old General Film-Motion Picture Patents days. In Detroit 74 theatres out of 85 have sent complete cancellations to every concern charging the tax and in Cleve- land the exhibitors' local sued for an injunction restraining the film compa- nies from adding the tax to the'exist- ing contracts. Probably the most drastic action was taken in Brooklyn, where a committee of 15 was appointed to receive proxies to enable them to cancel film compa- nies of their selection. This commit- tee met on Monday and decided to cancel all the Vitagraph and Fox con- tracts of the members of the Brooklyn organization, which is the largest in the country. In addition, Seely & Le- vinc, counsel to the local, were in- structed to bring suit against Vita- graph and Pathe to recover taxes which were paid in cases where shows were threatened to be held up. In both these cases the contracts were paid for in advance, the film being serials and running over a period of 15 weeks. Another action taken by the Brook- lyn local was a unsmimouv recom- mendation that the National League secede from the National Association of Motion Picture Industry because of the fact that the distributors' branch of the X. A. M. P. I. did not consult the exhibitors' branch before the 15c. amount was arrived at. This will be a puzzle for Lee Ochs and his national executive committee to solve because if the National League breaks away from the Association, it will forfeit the profits accruing from the two expositions which the two organizations will run together. It is understood over $20,000 worth of space has already been subscribed for, to the New York show. Lee Ochs has called a special con- vention to take place in Washington Dec. 11, 12 and 13. The convention has been called for the purpose of having the representatives of the in- dustry right on the ground in order to impress the legislators that the tax is unfair and that the industry is now heavily taxed without the added bur- den. That the American Exhibitors' Assn. and the National League may get to- gether at this convention is forecasted by the fact that Harry Crandell* one of the directors of the A. E. A., is chairman of the arrangement commit- tee in Washington and has complete charge of all details in connection with the convention. That the exhibitors will have a hard time to have the law changed was the statement made by Congressman Fitz- gerald, Chairman of the Congressional Appropriations Committee. Mr. Fitz- gerald made the statement that Con- gress had appropriated 19 billion dol- lars and that only four billions was in the form of taxation. He said that every industry was complaining that the tax was unjust and that it was very unlikely Congress would modify the existing tax. It was possible, he add- ed, that the tax might be increased. In New York, due to bad business, some of the exchanges which have held out for the tax are now including it in their rentals on their new con- tracts. Since Variety's last issue other exchanges to announce they would absorb the tax are General Film and Pioneer. The General Film announce- ment created considerable interest be- cause Vitagraph and other concerns holding out for the tax are releasing their short subjects through General. It was predicted that before the week was over the George Kleine ex- changes handling the Perfection Pic- tures would fall in line amongst those exchanges not charging a tax. Adolph Zukor, the head of Art- craft-Paramount, on the coast made a statement last week that if his.con- cern had to pay the tax it would be forced out of business. The Marcus Loew theatres have not yet paid reel tax to any of the distrib- uting organizations. CABANNE-LUBIN DEAL. A contract was consummated this week between William Christy Cab- anne, the director, and Herbert Lubin, of General Enterprises, Inc. It is the forerunner of the formation of Cab- anne Super-Productions, Inc., being formed to make special releases. General Enterprises is about to start a state* rights campaign on 'The Liar," featuring Jane Gail, having secured the world's rights. The sub- ject is in six reels, story by Violet Stewart, directed by William Had- dock. A trade showing of the pic ture will be given next week. ANOTHER "LONE WOLF." 'The Lone Wolf/' ranking among Herbert Brenon's best sellers, will find its way back to the screen through a second version, to be called "The Lone Wolf's Return," also produced by Brenon. That film director just now is en- gaged in transferring "The Passing of the Third Floor Back" to the cellu- loid, with Sir Forbes-Robertson as the chief player. While aiding in making the feature, which has just gone into work, Sir Forbes is thinking about a vaudeville engagement after it is finished, but needs a suitable "vehicle" for the twice daily. That may prove the stumbling block, if salary doesn't take prece- dence over it. 'RAFFLES' 9 PROPOSITION. The releasing of the film version of "Raffles, Amateur Cracksman," may be indefinitely postponed if the propo- sition made by a prominent theatrical manager is accepted by the L. Law- rence Weber Co., producers of the pic- ture. The manager saw the picture and liked John Barrymore's performance of "Raffles" so well he wants to revive the play and have Barrymore play the role originated by Kyrle Bellew. The proposition to the Weber people is a share in the stage revival if they will postpone the release of the pho- toplay version, and in addition buy all or any part of the film feature. Weber and his associates have the matter under consideration. STRIKERS SUMMONED. Some unexpected phases of the strike the m. p. operators belonging to Union Local 306 (I. A. T. S. E.) are conducting against theatres branded "unfair to organized labor" bobbed up last week when officials and members of the union as well as pickets were handed subpoenas to appear in court at 1130 St. Nicholas avenue at 9 a. m. Nov. 25 to answer to the charge of "disorderly conduct." All this hap- pened in the vicinity of the Odeon theatre and the Odeon Annex at 260 West 145th' street, which have refuted to sign the new union operators' agreement. The union put over a new one on the Odeon management by pressing women pickets into duty. So far none has been molested. The union men say that the court summonses filed on complaint of Mil- ton Gosdorfer for the Odeon proper- ties were handed out like handbills and that the St. Nicholas courtroom will be jammed to the doors when the cases are called. Robert S. Mullen, a former assistant district attorney, has been engaged to represent the union members. The union held an executive session this week at its headquarters, when progress of the strike was reported as well as the report of the American Federation of Labor meeting at Buf- falo by President Samuel Kaplan and Business Agent Harry Mackfer. Everything has been set for a big open meeting to be held at midnight Nov. 27 in Schutzen Hall, 12 St. Mark's place (downtown), when offi- cials of the A. F. of L. will be present and make addresses. Charles C. Shay, president of the I. A. T. S. E., has also signified his intention of being pres- ent. All operators holding licensed cards will be permitted to enter the hall. The union is issuing a warning to un- licensed operators to file their applica- tions immediately, as the initiation fee will be raised from $25 to $75 Dec. 1. At the executive session of the union Tuesday afternoon the heads sanc- tioned calling a strike on the Irving theatre in the Ridgewood section of Brooklyn. The management of the Irving flatly refused to recognize the unions. ENGAGES BLIND ORGANIST. The Broadway theatre playing pic- tures has engaged, commencing this week, Guy Hunter, the blind organist, to handle the instrument for its film entertainment. Zukor on His Homeward Way. Los Angeles, Nov. 21. v Adolph Zukor leaves here today for the east and is due in New York Mon- day. Samuel Rothapfel, also here on a vacation (and a few speeches), may accompany Zukor on his return trip. Hedda Nova It Vita-Engaged. Vitagraph has engaged Hedda Nova, a young Russian actress, to be starred in super pictures. Mile. Nova achieved a big success in the screen production of "The Bar Sinister." ,