Boxoffice-Septemeber.19.1953

BOXOFnCE
i,^°tfi
St*"**
Ai^
i
EXHIBITOR ASS'N OF MANITOBA
MARSHALS TAX RELIEF FACTS
Province Treasurer Gives
Word 'Concrete Results
Will Ensue'
WINNIPEG — A fact-jammed petition
stressing the necessity for reduction or complete
elimination of amusement taxes in
Manitoba has been presented to R. D Turner,
provincial treasurer, by Ken Beach, secretary
of the Manitoba Motion Picture Exhibitors
Ass'n and chairman of the special committee
appointed to survey the amusement
tax problem.
The province now levies approximately 12
per cent on theatre admissions, which has
been in force since May 1948 when the Dominion
government repealed its wartime emergency
amusement tax of 20 per cent. At that
time Manitoba hoisted its ticket tax to take
up the full 20 per cent, but enacted the
slightly lower figure after protests by exhibitors.
H. A. Bishop and S. R. Miles served with
Beach on the committee preparing the brief.
PROMISES CONSIDERATION
Treasurer Turner assured Beach that the
provincial government would give "definite
recognition" to the exhibitors' petition and
that "concrete results" would ensue.
In short, the committee's argument is that
motion picture attendance in Manitoba has
declined while operating costs have risen, and
repeal or drastic reduction of the tax is the
only salvation for many small theatres, both
independent and circuit. The committee
emphasized it was not trying to sound a false
cry of wolf, for "patronage continues steady
at most theatres," but operations have
reached sucli a critical state in many houses
that prompt action is necessary.
FAVOR OTHER AMUSEMENTS
Another strong argument made for repeal
of the tax is that "high-priced amusements"
such as horse and stock car racing, wrestling,
etc., were favored to the disadvantage of motion
picture theatres by the provincial tax reduction
of May 1, 1952, when the levy was
slashed on admi.ssions over 80 cents, but retained
on all under that figure.
The provincial levy, the brief discloses, has
produced during each of the four years since
May 1948 more than the Manitoba authorities
anticipated. Tliis gain over budget estimates
has resulted entirely from raises in boxoffice
prices. Thus the provincial government has
been taking an even higher share of the boxoffice
dollar at the same time that gross attendance
has been declining.
"During the past four years," the brief
emphasizes, "the tax has pre-empted for the
provincial coffers a portion of the normal
rise in admission prices, thus enfeebling the
financial structure of the industry.
"Furthermore, it is unfair for any government
to continue to impose in peacetime
an excessive rate of taxation which was imposed
under wartime conditions.
"Actually the amusement tax is a tax on
the motion picture industry itself, since it
comes out of the total moneys which the
theatregolng public has available to spend on
Several New Theatres Are Opened
In British Columbia and Alberta
VANCOUVER—Several new theatres have
been opened in this British Columbia-Alberta
section.
Lloyd Merrit has opened his 300-car Lloyd's
Drive-In near Prince George, B.C.
Les Young was ready to open his 700-car
new Westminster Drive-In situated a mile
from New Westminster.
The new Carib Theatre, built by Paul
Gauthier. at Quesnel in the Cariboo district,
was opened with a benefit performance of
"The Sword and the Rose," the proceeds going
movie entertainment. Because of the large
increase in the cost of living the general public
no longer has the extra cash to spend on
motion picture entertainment; as a result
attendance at all theatres in the province
has dropped. In 1946 the average paid attendance
per theatre in the province was
103.142; in 1951 this figure dropped to 83.356.
according to the Dominion Bureau of Statistics.
"Price increases may be made only after
very careful consideration of the probable
effect they will have on the volume of attendance
. . . During the past four years, increases
in admission prices have been made
from time to time but the resulting increase
in revenue has fallen considerably short of
meeting increased operating costs. The point
now has been reached where it is considered
inadvisable to raise prices further for fear of a
critical decline in attendance.
"The present situation is of great concern
to the General hospital. Admission was $1
straight. Harry Howard of Theatre Equipment
Supply Co. installed all equipment, including
a wide .screen and 3-D. The Carib
seats 650. Gauthier will clase his Rex, a
250-seat theatre which is one of the oldest
in British Columbia.
Isadore Shaker, owner of the Capitol in
Hanna, Alta., will build a drive-in there.
Pete Ubertmo has opened his 300-car
Brooks Drive-In at Brooks, Alta.
A $100,000 theatre construction and Improvement
program has been announced by
Herb Steven.son. president of Trans-West
Theatres, which operates two thea'.res In
Prince George. The program includes a
500-car drive-in and an addition of a 100-seat
balcony in the 372-seat Princess, which will
be modernized and given a new front
to exhibitors in that several houses are operating
at a loss while many others are resorting
to the depression day activities of premiums,
giveaways and other media in an
effort to maintain attendance."
The brief emphasizes that the industry
offers the principal means of entertainment
and relaxation to the low wage earner and his
family. Prior to the war, those families
which depended on the neighborhood theatres
for their entertainment paid no amusement
tax since admissions of 25 cents or less were
exempted. At the present time, however,
those families are taxed as high as six cents on
each adult admission since the neighborhood
theatre prices now range as high as
50 cents, the most common price being 45
cents.
On top of the high amusement tax, higher
operating costs and declining attendance, the
brief describes another pincher on the theatre
operator; namely, the tremendous upsurge
in summer outdoor activities such as baseball,
football, wrestling, horseracing, stock
car racing, carnivals, fairs and club promotions.
"These Increased surruner activities, limiting
the exhibitors' revenue, are products of
daylight saving time," the brief contends,
"and undoubtedly will increase as long a?
daylight saving time continues.
"In a very short time the motion picture
industry in this province will be faced with
the new TV competition, which is known to
have cau.sed the closing of innumerable theatres
in the States. Manitoba exhibitors feel
that, armed with the experienced gained from
events in the U.S.A. they can successfully
cope with this new competition, but In order
to do so, they require the sympathetic understanding
of civic, provincial and dominion
government bodies," it is asserted.
"Effective May 1, 1953, amusement tax rates
for admissions over 80 cents were reduced,
thus causing a reduction in the amusement
tax paid by patrons of high-price entertainment,
patronized mainly by persons in the
higher income brackets. Exhibitors were
keenly disappointed that the reduction did
not include admi.ssions below 80 cents, the
range within which the regular prices to
theatres fall ... A decrease in this bracket
would benefit the low^ wage earner primarily.
Motion picture entertainment is more worthy
of the government's consideration in the matter
of tax reductions than are the forms of
entertainment benefitted by the reductions
effected on May 1, 1953."
The brief points out that the Manitoba tax
scale is higher than that imposed by other
provinces with the exception of two.
A comprehensive survey ranging from 1946
to 1951 shows that, in spite of increased admissions,
there has been only a slight rise
in total theatre receipts in the province, attendance
in 1946 being over 14 million, with
a gradual drop through the years to slightly
over 13 million persons in 1951. The average
admission price starts at 24 cents and slowly
rises to 35 cents by 1951.
The number of theatres in the province
rose from 137 to 161. This figure should be
much higher for the current year, with the
recent building restrictions lifted. Seating
I Continued on next page)
:: September 19, 1953 K 103