Variety (June 1918)

VOL. LI, No. 2 NEW YORK CITY, FRIDAY, JUNE 7, 1918 PICTURE INDUSTRY MAKES POOR SHOWING WI TH OTHE R BUSINESSES Prominent Film Man Gives Out Interesting Figures in Which He Ridicules the Idea, Motion Picture Industry Is In Its Infancy and Is Fifth Largest Commercial Enterprise. This is income tax week and Famous Players-Lasky has sent its check to the government for $600,000 in payment for taxes on its combined film manu- facturing and distributing organiza- tions. Paramount-Artcraft does a business at the present time of about $400,000 a week, which is approximately one- fifth of the gross business done by the entire industry in the United States. The gross box office takings may be set down at $3,500,000 per week. The figures given above were sup- plied by a man high up in the film busi- ness, who should know what he is talking about. He made some perti- nent observations thereon, some of which are given herewith: "You have for several years past been handed the statement that 'the motion picture is in its infancy,' and that it is 'the fifth largest industry.' Tf this be so, how do you reconcile the fact that the principal concern, transacting one-fifth the entire busi- ness in the country, only pays $600,000 in taxes and can boast of but $400,000 a week's business? Tf the 'business is in its infancy,' why are there only 12,000 picture houses in the United States today as against nearly 18,000 some three years ago? "Compare the gross business done by all the picture concerns with tires, electrical equipment, tobacco, rail- roads, clothing, arms, groceries, and a dozen others that could be mentioned off-hand. The gross business done by General Electric last week was $23,-' 000.000. "As against the 12.000 picture thea- tres, there are over 300.000 grocery stores and more than 50,000 garages. Campbell's canned soups are sold to over 300,000 dealers. "What with the proposed increase in freight rates, the prospect of a tax of four cents a foot on.all film prints and the prohibition against construc- tion of new theatres, the whole pic- ture industry is in anything but a healthy condition. "Some idea of the relative impor tance of the picture business may be gleaned from the amount of advertis- ing done by the film concerns in the Saturday Evening Post. It is amuse- ment business and hence is supposed to do more advertising than any com- mercial industry. Famous 'Players- Lasky last year spent $70,500 in the Post, placing it 24th in the list of the Post's advertisers. "This year it has contracted for about twice that amount, but even then . it won't go to the top of the list by a great deal for the reason that the Goodyear people spent last year in that publication $688,750. The next large ,t film advertiser in the Post is Goldwyn with a total of $10,000. In 1915 Mutual bought $40,000 worth of space in the Post, but hasn't spent a dollar since then." COMEDIAN AND DIRECTOR BATTLE. Providence, June 5. Frank Moulan made his debut here Monday as the principal comedian of Col. Felix Wendelschaeffer's summer opera company at the Majestic in "Madam Sherrv." He replaced Harry Short who retired from the company after a fistic setto with Sinclair, the stage director of the stock. The battle took place last Thursday night and Short left the field after having lacer- ated both the feelings and person of the director. RED CROSS FAKERS. Chicago, June 5. A man and four girls, the latter dressed in a Red Cross uniform, pulled a speech and a stunt at the Avon, a picture house, and got $100 from the audience. Manager Max Hyman became sus- picious, investigated at headquarters and found the outfit was a fake. A warning has been issued. NESBIT AN ACTRESS. Tt is said that no less than David Rclnsco has thought about makiner an actress in a dramatic play of Evelyn Nesbit. Mr. P.cla^co. according to report, is now considering the possibilities. Nonion m now and thtn. That's CHA8. ALTH0FF. MUSIC FIRM ACCUSED. A* the last regular meeting of the Music Publishers' Protective Associa- tion, Pat Casey, general manager of the Vaudeville Managers' Protective Association was elected to a position on the Executive Board, h^s position being to do special work under the supervision of Maurice Goodman, Chairman of the Executive Board. At the same meeting charges of a violation* of the constitution were brought against Waterson, Berlin & Snyder, it being alleged that Frank Clark of the Chicago office of the firm had utilized a subterfuge to procure the co-operation of artists in including the firm's numbers in their repertoire. Wednesday the Executive Board held a meeting to entertain the charges and it is likely they will result in a trial against the accused firm. The consti- tution of the organization provides that a member in good standing must prefer the charges with substantial evidence, in writing, and the accused will be per- mitted counsel for defence. The Waterson, Berlin & Snyder firm have been accused on various times of showing more than ordinary attention to artists, their professional staff being accused as well of entertaining artists to an excessive degree. At the meet- ing, it was argued that the personality of the professional staff was responsible for their success in "planting" numbers, but the general "good fellowship" credited to the firm is said to have caused an erroneous impression that a subterfuge had been employed in the stated instance. Wednesday the charges were for- mally made and presented to the Execu- tive Board and the hearing will probably be held within a week or two. Should a conviction result, the ace used firm has the privilege of appeal, whereupon the Executive Board will employ an Ex-Supreme Court Tnstice to review the minutes of the trial and his decision will be final. A fine not to exceed $5,000 can be imposed, this to be col- lectible through a court of law. the constitution of the organization pro- viding for such a procecdini' with no defence from the accused. ROSE DAVIES MARRIES. Tuesday, at the home of her parents, 024 West End avenue. Rose Davies became the wife of George Barnes Van Cleve. Mrs Van Cleve has appeared inter- mittently in pictures, and was for a brii-f time upon the stage. She is a >*i<ter of Marion. Peine (Mrs. George W. T.cdercr) and Ethel Davies. Her husband belongs to a number of the Fifth avenue clubs. PRICE TEN CENTS AL JOLSON MANAGING BROTHER. Harry Jolson has placed himself under the managerial direction of his brother, Al Jolson. Harry is a "single act." He opens next week at the Bush- wick, Brooklyn. This is the closest business relations the brothers have had since they were members of the trio, along in 190S, known as Jolson Palmer and Jolson, then popular in the west. Before that the two Jolson boys had appeared as a team, called the Jolson Brothers. It is a possibility Harry Jolson may go under contract with the Shuberts to follow his brother, Al, in the stellar role, for a road tour next season, of "Robinson Crusoe, Jr.," playing the ter- ritory the original company skipped during its trip. SELWYN'S SUMMER PLANS. Two other Selwyn plays follow the opening of Roi Cooper Megrue's three- act comedy, "Tea for Three," which had its premiere at the Belasco, Wash- ington, Tune 3. They are Cosmo Hamilton's comedy, "She Burnt Her Eingers." which opens June 17, and Avery Hopgood's farce, "Double Ex- posure," which will be presented July 1. Selwyns also intend producing a musical comedy during the coming season. The title has not yet been chosen. CUT RATE'S FULL TAX. Pending a final decision in the mat- ter of admission taxes on cut rate tickets, the Public Service Ticket agency has started the collection of t.'ixcs on the face value of all tickets sold. This measure has been adopted to prevent a large sum piling up which would be due the collector in case there is no change in the law as now interpreted. The regulations stipulate that when a ticket is sold by the box office at less than the face value, the tax is payable only on the amount the pur- chaser pays, but when a ticket is similarly sold by an agency, the regu- lations call for a tax on the face value. When a $2 ticket was sold for $1, a tax of 10 cent^ was collected (10 per cent of the purchase price). From now on such tickets will call for 20 rents tax, 20 per cent, of the price paid. FRED THOMPSON WELL. Ei r.brir Thompson is now sufficient- ly recovered from bis recent opera- tion to b'' abb* to visit the theatres and lias <H;irfrfl to work on plans for a resumption of bis legitimate produc- tion activities for next season. He !,.is acquired the rights to two new plavs. which he will send out in the early fall.