Every evening, Wilmington daily commercial., 1920-06-11
The Theatre Tax
By Frederic j. Haskin

into moving picture show and an
additional one or two or three pennies
for tax To the government, rarely stops
to visualize the sum total of these pennies
when they are finally scraped together
and turned over to the Treasury DePalt-
ment at Washington to be used IN de-
fraying the expenses OF government were
they TO arrive Mt the treasury IN t"o-
horse draws there would be stnng OF
them six miles long bearing Z,Uoo tons
o! pennies.
Few people appreciate the organization
that is necessary III the collection o' 'il'fe
pennies the Comphcatlons oi the ,,sh
of seeing 10 it that every theatre that
Soils tickets tu,ns in the taN norey to
the government
DELINQUENT THEATRES
Last week United states special agents
stationed ia Chicago mad" n survey oi
Tho situation to determine whether or not
Tho government is getting all that is
coning 10 il from this amusement tax.
II found that in the internal revenue
.li.trict in which Chicago is located there
wore $50 theatres which were IN arrears IN
tbo novmerts Of the amounts due the
government.
Orders immediately went forward from
Washington for drastic action IN bringing
these delinuucnt theatres up to the mark.
a. tho same time n blanket order Was sent
o1,t IA tho SiNty-fuur collectors ot internal
rc,,enuc in the siNtV-four dRtrCts m
st,,,rtinr each to survey his field TO deter
mine what theatres were IN arrears and 10
take the necessary action 20 collect al
morcys due to date. lhls acton cars
attention to the necessity which hes with
1bo Federal government OF knowing every
tickct which il sold 10 every performance
everywhere and getting its tcn per cent
tax on that ticket.
That H. may collect the money due the
government it is necessary that cach
collector Should know Of every theatre
that is operating in hIs district here
ar two requirements which make
irnDossihlc for theatre 70 give an enter
tainmcnt without the authorities know
iug aEou It In thc first place lt must
have license ioSucd by the community
In which it exists. ne o'ai PouCr
I,tborities scc 10 il that no places oi
aur.sch.ent rm without the necessary
license. In addition 10 this, tederai
license is rCqul al of thea res, NIUE
rnovInp picture show which has seating
!. no,,tv III not more than 250 must take
o,,t ) ircnsc for which it pays the govern
saats and not more than 500, Il must pay
500 wear II it has nsorc than 900 and
not more than 500 seats it must pay sl3o
4 yea. and if il more than SUI eats
II must nay 5000 n wear The law further
provides tIlat in cities oi 5000 or less INC
tox viii Ee half The amounts named above.
This diStrlc ax on theatres nets the
Federal government nearly msllon
..nd i hol{ dollars q wear This tax Is paid
HI tho theatre itself. while tho tax on
admission i rad by the individual who
h,Ivs the ticket The fact that places q
amusement must take out tins Federal
license pives the government complete
list of an theatres operated.
now rHF COUNTRY Is DIVIDED.
Op, of the 64 internal revenue districts
MAY. cover an entire State orlt may cover
I'M States. The Maryland district, for
avample includes that State and in addi-
fIon thc District 81 Columbia The coilec-
for has his headquarters a. Baltimore,
hut he has deputy collector IN Washing
ion. II the duty Of this deputy collector
Ia sec that Washington pays all OF Its
Internal revenue taxes Among these are
tho taxes on admissions to theatres and
this deputy collector must make sure that
c,-crybodv who goes to a show IS paying
the nrorcr tax and that the tax is finding
lis wav regularly into the Treasury.
The deputy collector AZ NashInr on
has eighteen revenue agents working
undcr hlm and the city IS divided among
them. Thcy look over the list regularly
and see that collections do not taIl. In addi-
dition "a this, they must know that each
theatre j. paying IN the full and correct
amount due the government hat they
NAV assure themselves on tins point they
have the privilege OF gong 10 any place q
entertainments AT any time and examining
he books. This. however, Is not sufficient
because they must know that books are
NOT being falsifed 10 the benefit Of the
individual theatre manager.
PROTECTION THROUGH THE PRINTER.
There are many devices to which the
internal revenue agents resort TO assure
themselves that the government Is not
being defrauded. he most ingenious
Of these, and one for winch provision IS
n1ade IN he law itself. Is that Of requiring
thar all printers who make tickets Tor
theatres shall report all work done to the
collector Of internal revenue. Most of
The theatre tickets in the United States
are nrinted bv four or FIVE firms that
s1,ccislize lIpou this work. Not more than
FIVE per cent Of tickets are printed IN
local shops. The detail Of clearing all
tickets printed through these large cs-
tabEshr1ents IS wel syslematlzed and
from them the government gets copies oi
every bin presented every theatre manager
on their list,
These bills are distributed 70 the col
lectors and the deputy collectors and
finally to the individual agents who are
assigned to the examination Of gwen
theatres. An agent knowing that q
certain theatre had ordered million
ticketS iii wear, would expect the sales
reported and the stock of tickets on hand
| to tally q million II there Is any dis
/ crepany he is sure 10 90 to the theatre ~
question and ask an explanation i
/ tickets have been printed by any other
/ apency his examination viii develop that
/ fact because all tirkets must be subject
/ Id inspecton II tickets were found, the
printing of which had not been reported
Ia Interval revenue both the printer and
The theatre would have violated the Law,
/ 1t would be a performance 50 dangerous
! that there is little probability OF either
! Drintpr OF exhibitor rcsortIng to u.
| The law requires that all places ot
/. amusement must use tickets and that
| these must show the price of ADMISSION.
/ The arnollut of the tax and the total, and
] also imposes penalty for failure to use
/ ticket OF for the use Of tickets Improperly
| printed Thus does it become Impossible
/ FOR theatres to print tickets that sell 1oI
any other amount thah that which appears
1 on them SO the government IS assured
| that it vii ultimately receive from any