ACROSS THE FOOTLIGHTS

Taranaki Daily News, 22 June 1935, Page 20 (Supplement)

ACROSS THE FOOTLIGHTS

HOLLYWOOD MAY MOVE TO FLORIDA

CALIFORNIAN TAXATION TOO HEAVY

The fate of Hollywood is lying in the balance. In one year from now those enormous film factories may be silent; the stars’ homes in Beverly Hills may be empty, waiting vainly for new occupants who will never come. Behind the scenes a battle is raging at the moment, the outcome of which will decide the fate of the film city. The producers state that the new taxation in California is so high that studios paying it could not hope to compete with rivals elsewhere.

Florida, whose semi-tropical climate is almost as famous as California’s, is making a bid for the film industry by offering freedom from all harassing taxation. Film-making and exhibiting is one of the 10 biggest industries in the United States, and the studios in California, said to be worth £40,000,000, npt only give a great deal of direct and indirect employment, but attract thousands of tourists as well.

Several Hollywood magnates, including Mr. Louis B. Mayer, head of Metro-Goldwyn-Mayer, have had agents investigating in Florida, and conferring with the State Governor about taxation. Recently Mr. Joe Schenck, who is one of the most important of Hollywood’s “big shots” and head of United Artists, paid a visit there. It was supposed to be a health trip, but reliable information has it that he acquired land and will begin at once to build a large studio in the state. Another important concern is believed to have acquired land elsewhere in Flqrida. The fate of Hollywood depends on how the politicians react to these moves. If they decide to relent on the tax question, Hollywood will stay in California, if the taxes go on, there will be a complete new film city to learn. . Some authorities say, however, that taxation is only one of several factors, and not the most important. Here are some others: 1. The development. of improved equipment makes the brilliant Californian sunshine no longer

essential. A great many “outdoor” scenes are now taken in the studios. 2. The saving that would be effected in transportation and telegraph and telephone' messages if the studios were moved East. 3. Th establishment of the movies in Florida or another Eastern State would almost certainly start a boom in land and yield investors enough to pay for the move. 4. The Wall Street financiers would like to have the studios under their eye. Whatever the reason, rumours of the studios moving are current. If they do, however, Florida is by no means certain to be the new home. Its summer heat is intense, and for this reason, besides greater accessibility, the Carolinas have supporters. And it is just possible that if a compromise be not reached in California, Wall Street may favour a site nearer still—probably in New Jersey. Florida’s two most favoured regions are Palm Beach and Miami (generally pronounced, for some odd reason, Myanuner). If Miami wins, the new Hollywood will probably be Coral Gables, one of the wonderful little model towns built during the boom. Most of them are semi-deserted, with the jungle already seizing upon half-built luxurious hotels and burying the foundations of millionaires’ villas but floral Gables is said already to have the atmosphere of Hollywood’s smartest quarter, Beverly Hills, without the hills.

It would not be the rst time that the film industry moved its headquarters lock, stock and barrel. Years ago, when “Uncle Carl” Laemmle was a pioneer, he found that his rivals in the industry were deliberately interfering with his productions. None too gently at that, for they would send in a gang of hired ruffians to terrorise the unit and smash all its equipment to atoms. “Uncle Carl” was not dismayed. He simply sent the whole of his people packing to the Island of Cuba, outside the United States, and kept them there for over a year until it was safi to resume work in their own country.