Boxoffice-December.20.1952

B.
^=.01
LETTERS
Two Exhibitors View the Tax Question
To BOXOFFICE:
As a motion picture exhibitor for many
years. I read with much interest your edilorial
entitled "A Tax Angle for Study" in
the December 13 issue of BOXOFFICE.
Your point is very well made and worthy
of study by every exhibitor. This question
will most certainly arise when presentation
is made of our request for removal of the 20
per cent federal tax on theatre admissions.
My answer to this is simple and direct. Of
course, we need the amount represented by
this tax, because during the years of steadily
Increasing costs, the years of Inflated values
and wages, the years in which the average
index of living has advanced tremendously,
motion picture admission prices, at least in
small cities and towns, have been advanced
very little and, in some cases, not at all. The
20 per cent federal admissions tax, therefore,
represents part of the increase we need to
bring us part way up to the present average
living index. Admission prices have not been
rnlTA WINNER!]
WIRE
WRITE
PHONE
MimtQfh$:
HALLMARK I
B«anns^
The Fix
For You
In '52'
HALLMADK tLDG., WILMINGTON. OHIO
liVIRLY HILLS • CHICAGO • CLIVftAND • TORONTO
MfXICO CITY • AUCKLAND • SYDNEY • SINGAPORE
HONGKONG • CALCUTTA • KARACHI • CAIRO • ATHENS
I . RARIS • LONDON . AMSTERDAM • STOCKHOLM
raised nearly so much as most items in other
industries. This is due. in part, to the difficult
period through which our industry is
now going and, in part, to fears of motion
pictiu-e exhibitors that any raise in admission
prices would lower our attendance volume
even more.
Even if we should be able to retain the 20
per cent, our admission prices will not be as
high as the cuiTent average price index. We
have been handing over to the government
an amount representing a moderate increase
in prices which every other industry has been
able to apply to its own use. Now. when we
are facing bankruptcy, we are asking for what
should rightly have been ours for many years
past.
It was my understanding that this admissions
tax was legalized "for the diuration" of
World War II. If this is true, and no amendments
have been made since, this tax has been
illegally collected since the end of the war.
Every exhibitor should express his ideas
through our industry publications, or in some
other manner, in order that they may come
to the attention of industry leaders, who, in
turn, may "divide the wheat from the chaff"
in their efforts to help us all.
Dopp Theatre Service,
Johnstown, N. Y.
C. H. DOPP
To BOXOFFICE:
Your editorial, "A Tax Angle for Study,"
BOXOFFICE, December 13, seems to miss the
point and does not present a true picture of
the federal admissions tax as applied to theatres.
The facts are that the tax was levied
at a time when regular admission charges
were at a low level and. because of the tax,
exhibitors have been unable to raise their admissions
to meet the rising cost of repairs,
replacements, taxes and the higher cost of
living. Because of this, exhibitors were actually
obliged to absorb the tax without passing
it on to the customer.
Now, the admissions tax becomes unfair
because it does not apply to our competitors.
And, believe it or not, most of our competition
comes from local activities such as schools
and other tax-free organizations that have
gone out for public entertainment at a profit.
In most cases the exhibitor is, for one reason
or another, obligated to support these activities.
So, in the end, the exhibitor finds that
[HESTER
* f
he is helping to support his competition by
EDIT
taxes AND donations and is also paying a 20
per cent admissions tax of which his competition
is free.
In fairness to all, the admissions tax should
apply to all—or be repealed.
In the matter of taxes imposed on other
lines of business, to which you referred, these
do not seem to me to have any bearing on the
admissions tax to which exhibitors are subjected.
Dealers in the lines you mention carry
lines of stock, which if not sold today will bel
sold tomorrow. Motion pictures are a highly!
perishable class of merchandise. If, because of
illness, bad weather and other uncontrollable
factors, the exhibitor is not able to sell his
program on the date scheduled—he stands to,'
take a loss.
A motion picture theatre is a community
asset—it should not be subject to an unfair
"
tax or any other form of discrimination.
H. F. HIGGINS
St. Marys, Kas.
Los Angeles, New Orleans,
Vancouver Win UA Drive
NEW YORK—Top honors in the Unitedl
Artists Bill Heineman sales drive went to Los
Angeles. New Orleans and Vancouver. They
led in their individual divisions. The drive wasj
launched last June with Max E. Youngstei
as drive captain.
Runnersup in each of the three grou]
were: San Francisco and Chicago. Group
Charlotte and St. Louis. Group 2. and New
Haven and Buffalo. Group 3.
Prize money has been forwarded to branch
managers, salesmen, bookers and cashiers in
the winning offices. Special awards have gone
to George Pabst, southern district manager
and James Velde, southern-western division
manager, for their showings in their terri'
Iflrffoi
tories.
ILju Colien, i
MGM to Up Advertising
On 'Clown' for Yuletide
NEW YORK—MGM will increase the ad-
Red ^
vertising plans for "The Clown," starring
Skelton and Jane Greer, to include TV andf"
radio spots during the holiday season, accord-i
ing to Howard Dietz, vice-president and di-i
rector of advertising, publicity and exploitaip«i
tion.
Approximately 40 Christmas week bookings, n
half of them Loew's situations, have already
been set. The picture will be nationally tn rade-t "l
shown December 22.
Infori
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38
BOXOFFICE December 27, 1952
lOXOFncEj