The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-11-11
FEDERAL CHECK
SET ON THEATRE
TICKET GOUGERS
Collector Edwards Asks
Fund to Collect Evidence
Against Scalpers.
ORDERS STUBS HELD
Warns Public of Illegality
of Certain Prices and OF
Buyers Responsibility.
TO COLLECT EXTRA PROFIT
Half Income Over so Cents
Must Be Paid to L. S.
Government.
TO COLLECT EXTRAPROFIT

William II. Edwards Collector or
Internal Revenue, declared war yes
terday on exorbitant and illegal prices
on theatre tickets by firing three tao
tical shots. He appealed to the pub
lie not to share In breaking the law
by buying tickets from extortionate
brokers' He requested the Commits
sioner of Internal Revenue at WASH
ington for fund of $500 or 5000 with
which agents of the Collectors office
may buy tickets in an effort TO get
convictions against scalpers. And,
lastly, q circular letter was sent TO
the management of certain theatres
asking them to hold the stubs of
tickets for the Collectors investiga-
ton.
The Federal Government is inter-
ested in the theatre ticket situation
here not only because of the 10 per
cent. war tax charged on all tickets
at the box office, but because ticket
brokers' are required by Federal statute
to return TO the Government 80 per
cent. Of any excess charges above fifty
cents. Collector Edwards did not be-
lieve this law was being complied
with.
Buyers Share the blame.
at is an impossibility." he said. for
scalpers to maintain lucrative busi-
ness and at the same time comply with
the law. Because of that fact people
who buy theatre tickets at an excessive
price are aiding and abetting in an ille-
gal transaction, and therefore share the
blame for breaking the law with the
gougers.
where $3.50 is the brokers sale
price Of u ticket OF which the estab-
lished price is So the broker receives
only IS cents profit II he complies with
the law. Furthermore, the price to the
purchaser cannot be $3.50, but must be
$3S5. In order to include the 35 cent
admission tax. Three dollars and fifty
cents is n common price at which 81
tickets are sold by small spectators.
and still this Is a price on which II is
impossible for the brokers TO figure out
their taxes and make returns according
TO law. The price would be either under
$3.50 or more in order that the price Of
tickets admission tax and brokers tax
could be figured out Whenever a 81
seat is sold for $3.50 the buyer has evil
dence at the moment the price is made
that the speculator is breaking the law
and becomes a lawbreaker himself"
Instead of $3.50 being the common
price for tickets. Mr.. Edwards added,
paste boards with AN established price
of So to 81 are sold by Illegal spectators
at scale running up to s6, IS and even
$40. The Collector asked purchasers OF
such tickets to notice whether the tick
cts were stamped by the broker with
the amount of excess over the estsb-
lished box office rate. The penalty for
non-stamping Ia 500 fine.
Face Embexzlement Charge.
Brokers who do not make return Of
the 90 per cent. levy on the excess
charge. Mr.. Edwards gave warning. are
liable to charge of embezzlement IN
addition to a % per cent penalty. The
Collector explained however, that
brokers who charge only 50 cents above
the box office price need pay only n
tax of cents, which Is not collected
from the purchaser
In his notice to the theatres, which
was sent to houses from which tickets
are believed to have been most heavily
speculated in. the Collector asked that
all parts OF tickets collected from next
Saturday till the following Saturday be
held for examination by his men. This
is TO check UP the number OF tickets
sold by spectators with the amount Of
tax turned in.
At the District Attorneys office X
was said that this investigation would
have Co be handled by the Federal Gov
ernment The local prosecutors hands
were tied because the courts have held
unconstitutional the municipal ordi-
nance fixing the limit OF overcharge for
a ticket agency at 90 cents. II was not
thought possible that the Board Of AL
dermen could pass another ordinance
which would not similarly be upset, as
tho courts held they had no power 20
act on such measures.