Monday, May. 04, 1953

Sick Report

Whenever an outsider suggests that the movie industry is slipping, the charge is resented. But when the industry has a good reason--such as the prospect of a tax reduction--for dwelling on its own troubles, things really look tough. Last week the Council of Motion Picture Or ganizations (COMPO) was pleading with the House Ways & Means Committee to kill the 20% federal admission tax. Said a COMPO spokesman: the business is "so desperately sick that if relief ... is not immediately forthcoming, the very existence of the industry will be imperiled."

COMPO submitted some canned evidence--a 22-minute film showing "For Rent" signs on theaters (most of them in districts represented by the House committee members). The moviemen also had plenty of dismaying statistics: P:Since war's end, 5,038 U.S. theaters have closed; 270 shut down during the first 90 days of this year; 5,347, now in the red, will close by the end of the year. (Total, including drive-ins, now in operation: 18,306.)

P:Without income from concessions (popcorn, candy, etc.), exhibitors would have lost $147,785,000 in 1952. P:Last year, 33% of "four-wall" theaters and 28% of drive-ins lost money. P:TV has cut box-office receipts 40% in "saturated"' areas, 22% in the "fringes." P: Every time the sale of TV sets goes up 2%, theater grosses drop 1%.

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