Schenck Plan

Happy squeals to the effect that the cinema industry might leave California have been heard from Florida since before the real estate boom of 1923-26. Disgruntled threats to go to Florida have been heard from the cinema industry every time California proposes a new tax on cinema production. Last week the California Legislature was considering a 35% income tax that would affect all cinema studios. President Joseph M. Schenck of United Artists, accompanied by wily little Alfred Cleveland Blumenthal, real estate man, boarded a Manhattan plane for Miami. In Miami, Producer Schenck, who said he was also acting for MGM's Louis B. Mayer, proposed that Florida-- which recently ratified an amendment exempting cinema companies from taxes for 15 years--should also build $10,000,000 worth of cinema studios by popular subscription, rent them to cinema companies for $250,000 a year. Producer Schenck explained his extraordinary plan:

"When the public has invested its money in studios, we then have a very definite guarantee that to protect their own interests they will not permit detrimental legislation. . . . Civic-minded contributors are mostly desired. . . . We want to move to Florida if we are guaranteed security. . . . Florida will benefit tremendously. . . . The Hollywood companies spend $150,000,000 a year."

Less disadvantageous than it used to be in the days of much outdoor photography is the fact that southern Florida, besides being hotter than southern California in summer, is flat as a pancake, lacks all scenery except swamps, beaches, palms, truck gardens and fruit groves. Said optimistic Joe Schenck last week: "Transportation is the major asset and you have that. . . . If we have to have mountains, it isn't very far to the Carolinas."

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