TO PROVIDE REVENUE FOR WAR PURPOSES. WEDNESDAY, SEPTEMBER 11, 1918. UNITED STATES SENATE, The committee met pursuant to adjournment at 10.30 o'clock a. m. in the committee room, Senate Office Building, Senator F. M. Simmons presiding. Present, Senators Simmons (chairman), Thomas, Jones, Gerry, Nugent, Penrose, Lodge, McCumber, Smoot, Dillingham, and Town send. The committee resumed the consideration of the bill (H. R. 12863) "to provide for revenue and for other purposes." The CHAIRMAN. When we adjourned yesterday morning, Mr. Weil was to have been heard in the afternoon. He was the only gentleman asking to be heard in the afternoon, and by arrangement with him, we did not hold an afternoon session, with the understanding that he should be the first one this morning. If Mr. Weil is present, we will hear him. ADMISSIONS. STATEMENT OF MR. MILTON WEIL, 501 FIFTH AVENUE, NEW YORK CITY. Mr. WEIL. Mr. Chairman, I represent the Music Alliance of the United States, of which I am treasurer; the National Music Managers' Association of the United States; and the Musical America Co., publishers of Musical America, a periodical published in the interest of music. This is an argument on the war revenue tax amending title 7, section 700, of the act of October, 1917, with proposed title 8, section 800, of the proposed war revenue act, on amusement admissions. I am here representing the Music Alliance of the United States, an organization of which I am the treasurer, which was formed for the purpose of coordinating the various phases of musical activities in this country, which practically represents the interests of 2,000,000 workers in the field. I will submit in my brief the detailed objects of the alliance. I also represent as manager, a musical paper known as Musical America, counting among its readers thousands of people throughout the entire country, who are actively interested in music, and regular patrons of the art. I have been delegated also to represent, in this petition the National Musical Managers' Association of the United States, which activities will materially increase. But if the tax is raised to the 20 per cent, I think I am in a position to say that fully 50 per cent of that musical activity will have to be stopped this season. For example, the other day at Lockport, N. Y., where they have one of these musical festivals, under the auspices of several rather patriotic men up there in that neighborhood, they have the course system, by which people in meager circumstances for $10 can get a ticket that takes in all the concerts. Then they have a 25-cent and a 50-cent admission, by which the people can buy individual tickets, as for a violinist or pianist. It is customary for many thousands of these tickets to be sold to these people. At Lockport the other day, through Mr. George W. Pound, who went up there to speak at this festival, I find that the drawers were full of these $10 tickets. The people had not taken them up on account of even the 10 per cent tax, people who were factory workers, and farmers—-music lovers, but who did not feel they could pay that 10 per cent tax, but picked out individual artists that they could get for 50 cents, and they would wait until the next one they wanted to hear, for instance, Mr. Elman, or whomever they wanted to hear. If the 20 per cent tax was on, you would see even less of buying of those tickets. And that represents between 70 and 80 per cent of the music of the country, and would probably means its absolute curtailment, if not wiping it out entirely. But I believe that with the 10 per cent tax left on the musical activities will be greater, because the demand for músic is becoming greater and greater all the time, as it is the greatest spiritual uplift there is, and I believe the Government will receive more on a 10 per cent tax than they ever will on a 20 per cent tax. Senator SMOOT. In your brief, do you propose an amendment to those titles that will bring about the result you desire? Mr. WEIL. Senator, I have also given that a great deal of consideration, and I can not see how the tax bill could be subdivided to take the speculative and nonspeculative out; and besides, the speculative is such a small per cent of the whole that I do not think it would be material in dollars and cents in the tax bill. The CHAIRMAN. Will you just let me interrupt you a minute? I find it absolutely necessary for me to be absent for about a half hour or so, and I am going to ask Senator Thomas if he will not take the chair during my absence. I suggest that if members of the committee have not any engagement over in the Senate, that we sit until 1 o'clock to-day. (Senator Thomas thereupon took the chair.) (Mr. Weil submitted the following brief, which is here printed in full:) BRIEF SUBMITTED BY MR. MILTON WEIL, REPRESENTING THE MUSICAL ALLIANCE OF THE UNITED STATES, THE NATIONAL MUSICAL MANAGERS ASSOCIATION OF THE UNITED STATES AND THE MUSICAL AMERICA CO., PUBLISHERS OF MUSICAL AMERICA," IN CONNECTION WITH HIS STATEMENT AT THE HEARING BEFORE THE SENATE FINANCE COMMITTEE. Mr. CHAIRMAN AND GENTLEMEN: I beg leave here to submit to you in the form of a brief matters supplementing my talk before your esteemed committee. It is conceded to-day in this country, as it is in every one of the warring nations, and even in the neutral countries of the world, that the greatest factor in maintaining and stimulating the morale of the people at home has been music, and just as strongly has it been the biggest force in sustaining the morale of the Army and Navy. This has been realized to such an extent that General Pershing has requested that all bands should be doubled in size, and to-day our Army when they march into battle are escorted by a band, and when they come back worn out and tired they go to their rest camps met by a band, as it has been found that music is the greatest mental recreation and restorative for the soldier; that the greatest stimulant to-day that the soldier, well and wounded, is receiving in France, is music in all forms, all of which is officially recognized by our Government. The tremendous influence of music on the morale of the civilian population is no less than has been demonstrated on the strictly, military side, as has been evidenced by the action of the National Council of War Defense throughout this country, for the purpose of stimulating patriotic sentiment, by making us a "singing" nation. There is not a single phase in the production of this great world war work which is not essentially helped in some way by music. It begins with the recruiting of the soldier; it develops in the training of the soldier in the camp: it is essential with every agency for the raising of funds for the conduct of the war, and in addition every war charity invariably falls back upon music. Can we afford to allow this agency for the maintenance of morale among both our military and civilian population to suffer? Can we afford to curtail the musical activities of the country which have done so much for the upholding of the morale of the people, and by their curtailment strike at the very source of the supply, namely: The musical artists and their performances that have meant so much in every development in the carrying on of this war? It is the purpose of this brief to show both the ethical side as it affects the morale of the Nation and also the practical side of the musical situation, as will appeal to you, gentlemen. from the standpoint of war revenue. Our belief in this contention is based upon thorough investigation made through every available source of information on this subject throughout the country, and we lay before you the following exhibits on this subject: Exhibit A. Bulletin issued by the Musical Alliance of the United States. Exhibit B. No. 1, Mr. Charlton's letter; No. 2, statement of Mr. Edw. Ziegler, business comptroller of Metropolitan Opera House; No. 3, letter from Chicago Apollo Club, Miss Mai N. Rea; No. 4. letter from Pittsburgh, Pa. Orchestra Association, signed by Miss May Beegle: No. 5, letter from Albert Steinert, Providence, R. I.; No. 6, letter from Mr. Tom Ward, Syracuse. N. Y.; No. 7, letter from W. A. Fritschy, Kansas City, Mo.: No. 8, letter from Michigan Music Teachers Association, Lansing, signed by Kate Marvin Kedzie; No. 9, letter from Max Swarthout, Decatur. Ill.; No. 10, letter from St. Louis Orchestra and others, as published in issue of the 24th, signed by A. J. Gaines; No. 11, letter from Geo. W. Andrews, Oberlin, Ohio; No. 12, letter from W. W. Norton, University of North Dakota (published in issue of the 24th); No. 13, letter from Apollo Club, signed by Geo. L. La Vayea, Minneapolis; No. 14, letter from Mrs. Norton Jamison, chairman of club, Los Angeles, Cal.; No. 15, editorial page 18 of Musical America, issue of the 17th; No. 16, letter from Frank W. Healy, of San Francisco; No. 17. California Federation of Musical Clubs, of Los Angeles; No. 18, Federation of Music Clubs of Texas, letter; No. 19. letter from Mrs. George Richards, of Duluth; No. 20, letter from Ferdinand Duncley, Seattle, Wash.; No. 21, letter from Carl Fique, of Brooklyn, N. Y.; No. 22. letter from the Harmony Club, Fort Worth, Tex.; No. 23, copy of letter signed by William G. Frizell, chairman of the Civic Music League of Dayton, O.; No. 24, copy of telegram by F. C. Coppicus, manager Metropolitan Musical Bureau; No. 25, letter (copy) from the St. Cecilia Club of Grand Rapids, Mich. ; No. 26, copy of telegram written by E. R. Lederman, president of the Association of Presidents of State and National Music Teachers Associations. Exhibit C. Aims of the Musical Alliance of the United States. We have not submitted naturally all the replies but merely give you sample letters from musical clubs connected with the best musical activities, from the mass of replies received by the Musical Alliance. These have been selected from the different sections of the country and are unanimous in showing that the proposed tax will paralyze musical activities. It should be remembered these replies are in many cases from persons who are conducting musical activities on a no-speculative and unprofitable basis, as was shown in the hearing accorded the petitioner before your committee. EXHIBIT A. The Ways and Means Committee of the House of Representatives, which is revising the war tax schedule, has agreed on a 20 per cent tax on admission to all amusements, which included opera and concerts. This includes also all musical performances which have hitherto been looked upon as educational. According to the judgment of many concert managers, this tax is prohibitive and will mean, not only the contraction of musical schedules throughout the country, but in many cases, the total elimination of such concerts. The Musical Alliance of the United States stands squarely behind the Government in its plan to win the war by the quickest possible method. We do not believe, however, that the 20 per cent tax, recommended by the Treasury and now accepted by the Ways and Means Committee, will serve the purpose for which it was devised. It will so reduce the musical activities of the Nation that the proceeds from the tax will be considerably less than they are under the prevailing schedule. At a time when the musical forces of the country are being marshalled to arose patriotic interest, for the sale of Liberty bonds, for the raising of funds for the Red Cross, to stimulate recruiting, for the sale of war saving stamps and principally for the establishing of a morale and relaxation of the minds of the people from the strain of the war, we believe that this tax will be a body blow. We believe that it has been accepted by the legislators without due consideration of its actual significance. There is only one way to accomplish a revision of this tax measure and that is by a concerted effort to impress the legislators at Washington that the whole musical interests of the United States are united in protesting against it on the ground that the elimination of music would have a bad effect upon the morale of the Nation as a whole. This means the preservation of our musical life. It can be viewed in no. other light. EXHIBIT B. NEW YORK, August 7, 1918. MUSICAL ALLIANCE OF THE UNITED STATES, 501 Fifth Avenue, New York. GENTLEMEN: I inclose you herewith copies of my letters to Senator Calder and Congressman Carew, in regard to the proposed increase tax on admissions. Cordially, yours, Hon. JOHN F. CAREW. House of Representatives, LOUDON CHARLTON. AUGUST 7, 1918. Washington, D. C. DEAR SIR: In regard to the proposed admission tax of 20 per cent, which will apply to concerts as well as theatrical performances, moving pictures, etc., I wish to emphasize the fact that at least 70 per cent of all the concert business done in the United States is on an "Art for Art Sake" basis, and not more than 30 per cent of the total is speculative in character or for the purpose of making profit. A great mass of this business is conducted by educational institutions, whose only object is to give their student bodies the advantage of hearing the greatest exponents of the best music. These educational institutions are already hit hard by various war exigencies and the doubling of the admission tax will put this class of business out of commission. Women's musical clubs throughout the United States conduct at least 50 per cent of the total concert business of the country, all of which is on a nonprofit basis. These clubs are very timid in their operations and doubling the admission tax will likely put most of them out of business for the duration of the war. An enormous revenue has been realized from concert goers on the 10 per cent tax, but I am positive that the imposition of any tax higher than 10 per cent will result in killing the goose that lays the golden taxes, and, therefore, I am convinced that an admission tax greater than 10 per cent will unquestionably reduce the national revenue from this class of business instead of increasing it, not only as regards concerts, but as regards the theatrical business also. Because of its cheapness, the tax on moving-picture admissions might stand an increase without jeopardizing revenue. But the present tax on concert and theatrical tickets is all the traffic will bear, and any increase will only defeat the purpose of such increase. Yours, very truly, AUGUST 7, 1918. Hon. W. C. CALDER, United States Senator, Washington, D. C. DEAR SIR: In regard to the proposed admission tax of 20 per cent, which will apply to concerts as well as theatrical performances, moving pictures, etc., I wish to emphasize the fact that at least 70 per cent of all the concert business done in the United States is on an "art for art sake" basis, and not more than 30 per cent of the total is speculative in character or for the purpose of making profit. A great mass of this business is conducted by educational institutions, whose only object is to give their student bodies the advantage of hearing the greatest exponents of the best music. These educational institutions are already hit hard by various war exigencies and the doubling of the admission tax will put this class of business out of commission. Women's musical clubs throughout the United States conduct at least 50 per cent of the total concert business of the country, all of which is on a nonprofit basis. These clubs are very timid in their operations and doubling the admission tax will likely put most of them out of business for the duration of the war. An enormous revenue has been realized from concert-goers on the 10 per cent tax, but I am positive that the imposition of any tax higher than 10 per cent will result in killing the goose that lays the golden taxes and, therefore, I am convinced that an admission tax greater than 10 per cent will unquestionably reduce the national revenue from this class of business instead of increasing it, not only as regards concerts, but as regards the theatrical business also. Because of its cheapness, the tax on moving picture admissions might stand an increase without jeopardizing revenue. But the present tax on concert and theatrical tickets is all the traffic will bear, and any increase will only defeat the purpose of such increase. Yours, very truly, B 2. [From Musical America, Aug. 17, 1918.] WILL PRODUCE SMALLER REVENUE THAN A 10 PER CENT TAX, SAYS MR. ZIEGLER, OF METROPOLITAN. The Metropolitan Opera Co. has been watching the tax situation with keen interest. Edward Ziegler, representing the business interests of the company, told a representative of Musical America on Monday that as yet the company was not prepared to make an official statement with regard to its method of procedure in convincing the congressional committees that the 20 per cent tax would be inadvisable, "You may say for me," declared Mr. Ziegler, "that I honestly believe that the Government will collect less money on a 20 per cent tax than it does to-day on the 10 per cent tax." B 3. AUGUST 8, 1918. THE MUSICAL ALLIANCE OF THE UNITED STATES, 501 Fifth Avenue, New York City. GENTLEMEN: You will find herein inclosed copies of the letter to Senator Sherman and telegram to Congressman Wilson. We earnestly trust this |