New-York tribune., 1919-01-20
90 Per Gent of
Theatres Face
Ruin, Says Gest
Spokesman for Producers
Issues Protest Against
Proposed Tax Increase
'Moguls' Hold Conference
Chairman of Committee of
Managers Says Million
People Will Lose Jobs

If the proposed 20 per cent admis-
sion tax proviso is retained in the new
revenue bill, 60 per cent of the theatres
in the United States will have to close
one month after the measure becomes
operative, according to a statement
last night by Morris Gest, speaking il.
behalf of the most important theatrical
producers in the United States.
This is not guesswork," expla ned
Mr.. Gest. at is plain statement of
fact, based upon an exhaustive survey
of conditions in the business all over
the country. We have carefully con-
sidered the general theatrical situation,
and we warn the public that only 40 per
cent of the industry, its wealthiest sec
ton, will be able to go ahead under the
proposed increase in tax"
Mr.. Gest issued his statement as
chairman of the tax protest committee
of the United Theatre Managers Pro-
statement was drafted at a conference
of theatrical "moguls" in his executive
Offices in the Century Theatre Build
ing yesterday morning.
Prominent Producers Attend
The meeting was attended, Mr.. Gest
said, by David Belasco, Lee Shubert,
William A. Brady, John F.. Golden, Ar
thur Hammerstein, Charles B. Dilling-
ham, Mark Luescher, Marc Klaw, j. J.
Murdoch, E. F. Albee. "Pat" Casey,
Charles c. Shay. of the International
Alliance of Theatrical Stage Employees;
Joseph N: Weber. president of the
American Federation of Musicians. and
Association. MIR. Gest's statement fol-
lows:
I'VE looked over the ground in q
serious way. and after an exhaustive,
conservative survey of the business, we
feel it our duty to warn the public that
should this proviso of the revenue
bill become operative. one month after
the 90 per cent exaction is started
fully so per cent of the theatrical in
terests will be wiped out. Only the
wealthiest producers will be able to
continue and these only in an unsatis-
factory way. By that I mean that big
productions and novelties of all kinds
calling for Investments of capital will
cease. Thus the progress of the Amer
lean theatre will be stopped.
100000 People Face Idleness
"As result of our survey we find
that with the wiping out of this 60
per cent of the business, one million
employees, including men and women,
many of whom have never earned a
living in any other game. will be
thrown out of work. The salaries paid
these employees total about 81 200 ,O0O,-
coo 2 year.
ut is not the big cities that will
suffer most in this event The man
who goes to the Century or ziegfeld
roofs and buys champagne will not
balk at the extra 10 per cent tax. But
the life of the American show business
Goes not lie with them. 1t is in Sche-
nectady, Omaha, Albany and the
smaller cities and towns. where count
less road companies play one-night,
inree-nlght or week stands. There
is the backbone and the sustcnance
OF the theatrical industry here. And
it is there that the blow will fall.
All short runs will cease Hun
dreds of road companies will be called
III at once, causing loss and unemnlov-
Irent- Only the biggest interests viii
tc able 70 go on, and these with the
prospect of heavy losses and ultimate
bankruptcy.
The cessation of theatrical amuse-
nents In the smaller towns will cause
big losses to the railroads. both in
revenue from road companies and in
trattlc from rural communities to
.arger. centres. The tremendous tolls
brought to the railroads in this rvav
are not realized cxcent by railroad off;y
Gals and theatrical men.
81 he loss In real estate and .o,;+,I
Invested when this GO per cent of tho
business is wiped out will be incalcu-
liable. We should only guess this. 50
we prefer not to mention anv figure
Sufflce 1t to say it will run into the
h'il'ons. The protest against this tax.
whlch seems ungrateful after all the
t1eatrlcal interests have sacrificed 10
help the best interests of the countrv
curing the war. has been spontaneous.
II mas come from the people. the
patrons of the theatre We have or
eanized the profession to fight this
proposed increase as matter of self
preservation"
The circulation of anti-tax petitions
continuing all over the country
announced that 100000 signatures
had been obtained up to SATURDAY
night, when the third day of the cam
paign ended.
Soldiers and Sailors Sign
Ihe managers concentrated on on
tanning signatures of soldiers and sail
ors TO the protesting petitions yester-
dag. Mr.. Gcst estimated last NIGHT
mat IoO,oo0 such signatures were OBJ
day. ""''"s ''e
In New York about 4,5O0 men in the
service who attended vaudeville
no" under the auspices of the War
Camp Community Service in the Nsn.
haitian Opera House yesterday. signed
the petitions after they heard speeches
by William A. Brady and George Cor
don Battle. Many soldiers and sailors
signed last night. in the Henry Miller
and ihirty-ninth Street theatres. Sew
ttai thousand wounded men in hos
pitais in the New York distric. have
also signed.