The New York herald., 1921-01-06
Public Glad of Exposure.

And I'd like 10 add that nothing
! have tried to do has been received
more favorably by the public than the
announcement a little while ago that
the investigation was under way. No
end Of people have written to me
about IT,"
! In tho inquiry Collector Edwards's men
also have verified rumor of long
standing. 1t is established as fact
that the box office men of good many
theatres are in the habit of receiving
annual presents from the outside ticket
brokers
For week in the early part Of No
yember, Mr. Edwards required all the
atres to send to the Custom House the
parts Of the tickets which they retain
when the doorman tears off the stub and
gives IL to the theatregoer. Later. GER
tain members OF the Internal Revenue
staff, in the guise OF simple youth with
yearning to see plays whose tickets
could not be had a the box offices, went
from speculator to speculator making
purchases. A study Of the cancelled tick
cts from the theatres. and the unused
tickets bought from the spectators, mas
disclosed a number Of interesting facts.
In the first place. certain spectators
stamp the prices on the tickets in such "A
way as to conceal from the Government
the amount of the extortion. This is a
direct violation. of the law The Revenue
Act of 1918 says that whenever a ticket
is sold at other than its established price
(which is indicated on the face Of the
tcket) there must be stamped or printed
or written on the back thereof the name
of the vendor. the actual sale price. the
admission tax paid and the total. And.
f. is to be noted, this data must be rc-
corded on that part Of the ticket which
Is taken up by the management Of the
theatre or other place Of admission
Yet down in the Custom House. Col
lcctor Edwards has a great collection OF
used tickets. bought by the public from
SPECTATORS. in which the stamping or
printing is so done that II runs over on
the detachable stub and the price ap-
pears not on the part OF the tickets taken
up at the door but on the stub The
buyer eventually throws away the stub.
The theatre has no evidence that the
ticket was sold at more than box office
price. Nobody has such evidence. The
speculator, In making up his income tax
return--if he makes one--can figure the
ticket as having brought him only nifty
cents above the box office price. That
many Of the gypping spectators have
done just that is the belief Of tho In
ternal Revenue men. Far too many tick
cts have been Illegally stamped 10 Justify
belief that the error was Intentional
Mr.. Edwards believes that q ruling re-
ceived by him from Commissioners OF
internal Revenue Williams and passed
along yesterday TO the theatres and
ticket brokers will help to relic.c tho
Public from gouging. some OF the c'-
ers themselves' are not so sure Of &
All patrons OF brokers have noticed
that when "A broker hasn't in hand n
ticket asked for he telephones to the
theatre arranges TO have the ticket put
IN an envelope in the patrons name and
gives the patron a slip Of paper which
upon presentation at the box office II
exchanged for the ticket This Is known
as the telephone and order system As
IL works. the broker cannot comply with
tie law by stamping his name and the
advanced price on the back OF the ticket,
as the Ticket is not In his possession.
The theatres have said that Il Is physi-
tally Impossible for them 20 keep track
OF all the brokers and prices and do the
stamping The Internal Revenue De
partment says that these tickets usually
have not been stamped at all, despite the
law Commissioner Williams insisted
that the tickets be stamped.
In order to have an exchange Of ideas
regarding ticket speculation as II is re-
lated 10 the Internal Revenue office.
Collector Edwards has invited these men
10 meet him In his office at II o'clock
this morning: Lgon Johnson repre-
senting the United Managers Protective
Association 1ohn Mcbride. head of the
Mcbride agency Henry Young treas
urcr Of the Globe Theatre. and Leonard
pcrcman. treasurer Of the New Ainster-
tam Thea;Te.