Congressman Boggs from Judge Leo B. Blessing of the juvenile court of New Orleans, and from Mr. Lester Loutenschlager of the New Orleans Recreation Department, be incorporated in the record following Mr. Batt's testimony. If there is no objection, it is so ordered. (The telegrams referred to follow :) Hon. T. HALE BOGGS, Ways and Means Committee, NEW ORLEANS, LA., August 4, 1953. House of Representatives, Washington, D. C.: We feel that the 20-percent excise tax on amusement park rides is detrimental to proper recreation facilities and urge that you use your influence to have it removed. NEW ORLEANS RECREATION Department, Hon. HALE BOGGS, NEW ORLEANS, LA., August 4, 1953. Member of Congress, Washington, D. C.: Pontchatrain Beach is operated as a clean, wholesome attraction for children of this community. Children of limited means could enjoy this recreation more fully if 20-percent tax removed. Your interest in your juvenile constituents is well known. Regards, LEO B. BLESSING, The CHAIRMAN. Now we will be very glad to hear from Mr. Kountz. Mr. EBERHARTER. Mr. Kountz is from my home city of Pittsburgh and is highly regarded as an attorney in western Pennsylvania. The CHAIRMAN. You are very welcome here, sir. Mr. EBERHARTER. I am glad to see him here. I do not see him very often, but I am glad to see him today. STATEMENT OF A. E. KOUNTZ, ATTORNEY AT LAW, PITTSBURGH, PA.; VICE PRESIDENT, WEST VIEW PARK CO. Mr. KOUNTZ. Mr. Chairman, I am A. E. Kountz, a member of the Pittsburgh bar, vice president of the West View Park Co., operating an amusement park in suburban Pittsburgh. I am appearing before this committee in my capacity as an officer of that park. That park has been in existence since 1906 or approximately 47 years, and substantially is owned by the descendents of its original founders, with the exception that a comparatively few of its shares are held by the public or by employees or their descendents. It is primarily a picnic park in that it is patronized principally by picnics given public or parochial schools or churches or industrial organizations. Public primary and high-school children and parochial primary and high-school children whose ages range to 18 years are the principal attendants at the school picnics. It is estimated that West View Park each season entertains at school picnics between 150,000 and 200,000 children under the age of 18 years. In addition thereto, a great many children attend church or industrial and other picnics with their parents or others so that altogether it is possible that at least 400,000 children visit the park each season. The park season ranges ordinarily from an opening day about the middle of May until Labor Day. The school picnics ordinarily occur before July 1. There is no admission charge to get into West View Park, and there are 30 rides in the park, including one section of the park known as kiddy land, which caters particularly to children under 10 years of age. The rides and amusements there are adapted so as to be suitable for very young children. They include a small roller coaster and small amusements of that type. In the main part of the park, the amusements include an oldfashioned carousel, a miniature railroad, and many of the types of amusements that we knew when we were young people. Twice a year we have free kiddies' day at West View Park. We have done this for several years. We estimate 5,000 children a day attend there on these free days. In addition to that, we have 3 days a season in which we entertain the orphans without any compensation or pay. We give them free meals and free entertainment and food. It is submitted that this park furnishes a healthful and commendable recreation for young people and a recreation which is entitled to live. It is unfortunate, however, that by reason of its very nature the ordinary amusement park has not been able to raise its prices to keep step with inflation. Its attempt to do so would probably mean that it would price itself out of business. Therefore, in most of the instances the admission to a ride in West View Park today is no higher than it was in 1939. It will thus be seen that in an amusement park such as West View Park, the burden of the present admission tax falls to a great extent upon little children or young people, and it is respectfully submitted that the social aspects of imposing a tax of that kind upon them would be entitled to careful consideration and study. It is my position that the continued collection which the Government makes under this tax on amusement parks is not sufficient in amount to justify the imposition of this burden. We are facing severe competition from television and a great many other sources and are in need of this tax relief. The increased business which would come to the amusement parks from the elimination of this tax would be a blessing to West View Park and to all parks and to the public. It is therefore respectfully suggested that the admissions tax should be eliminated as to amusement parks and the devices contained therein. The CHAIRMAN. Mr. Kountz, we thank you very much for your appearance and appreciate the information that you have given to the committee. Mr. KOUNTZ. Thank you, sir. Mr. EBERHARTER. It seems to me important, Mr. Chairman, that without the free services that these entertainment parks provide, the municipalities would feel compelled to spend public money in order to provide picnic facilities and so forth which you are providing practically free. Mr. KOUNTZ. In many instances, sir, that is correct. Mr. KOUNTZ. Thank you, sir. The CHAIRMAN. The next witnesses are Mr. A. E. Litzenberger and Mr. R. D. Martin, of the Roller Skating Rink Operators Association of America. We are very glad to see you gentlemen here. If you will give your respective names to the reporter and the capacity in which you appear, we will be very glad to hear you. STATEMENT OF A. E. LITZENBERGER, OPERATOR, CRYSTAL PALACE ROLLER SKATING RINK, PHILADELPHIA, PA.; REPRESENTING ROLLER SKATING RINK OPERATORS ASSOCIATION OF AMERICA Mr. LITZENBERGER. My name is A. E. Litzenberger. I operate the Crystal Palace Roller Rink in Philadelphia. I would like to submit the statement that we have prepared for the record and relinquished my time to Mr. Martin, who is the secretary-treasurer of the Roller Skating Rink Operators Association of America, and knows the field on a national scale. The CHAIRMAN. Without objection that is so ordered. ' Mr. LITZENBERGER. Mr. Martin flew in today and did not know that he would have to have a prepared statement. Could I have the permission to have him read from his notes? The CHAIRMAN. Certainly. You just file your statement and we will be glad to hear Mr. Martin. (Mr. Litzenberger's prepared statement follows:) STATEMENT BY ROLLER SKATING RINK OPERATORS Respectfully submitted by R. D. Martin, secretary-treasurer; A. E. Litzenberger, member of legislative committee 1. The tax on admissions to skating rinks is (a) Unfair and discriminatory to privately owned enterprises which for the past 2 years have been required to collect admissions tax, whereas publicly owned establishments are not required to collect admissions tax. (b) Unfair and discriminatory to those who participate in skating, because no other participating sport or recreation is subject to such admissions tax. 2. Skating is a sport participated in principally by young girls and boys as recreation and exercise. 3. This sport is the pastime of the youth of America-18 million persons principally teen-agers, and has much to do in curbing juvenile delinquency and is of therapeutic value to those with physical handicaps. 4. The tax on admissions may be a proper levy where the admission is to a place of amusement or entertainment, but it is doubtful that the Congress ever contemplated that the admissions tax would be levied against those who are the actual participants in a sport or recreation. 5. No tax is imposed upon other sports, such as tennis, golf, skiing, horseback riding, and similar participating activities. A proposed tax on bowling, billiards, and pocket pool games, also participating sports, was not, in 1951, accepted by the House and Senate committees. We cannot understand why roller skating along with the sport of swimming was singled out to be imposed upon with such a tax. 6. In 1951 Revenue Bill (p. 274), section 478, subsection 3411, the Congress repealed a 3% percent tax on electrical energy because the tax had been imposed on consumers purchasing electricity from private utilities, whereas no tax was imposed on consumers purchasing electricity from Government-owned utilities. (a) To impose the tax on some consumers and not on others was held by the House of Representatives Ways and Means Committee to be discriminatory. 7. At the same time the Congress exempted from tax any admissions to swimming pools, bathing beaches, skating rinks or other places providing facilities for physical exercise, that are operated by any municipal and other governmental units. 8. This means that any young girls or boys who go skating or swimming at a municipal or other government-owned establishment, do not have to pay an admission tax; but if the rink or pool is operated by private enterprise, a 20 percent tax is levied upon them. Therefore if it is unfair and discriminatory to levy the electrical energy tax on some consumers and not on others, then it is just as unfair and discriminatory to levy the admissions tax on some children and citizens and not on others. 9. Such discrimination is disastrous to private enterprise because government operated units now have a 20 percent tax advantage in prices and no requirement to pay local taxes, assessments, licenses and fees, and furthermore when losses are suffered by government-operated skating rinks or swimming pools, such losses are directly subsidized by tax dollars, our tax dollars. We find this condition insufferable and respectfully petition you for relief. 10. (a) Let us examine the situation today in the huge New York metropolitan area. Of 18 major roller skating rinks, we can find only 3 which are in operation today. Is this normal? We say no, because for more than a decade almost every single rink operation in the New York area has been open to the public throughout the summer as well as the winter. This is the period during which school children enjoy their summer recess and we recognize that every facility, both public and private, should be at their disposal so as to reduce to a minimum juvenile delinquency. Why are not these skating rinks in operation? Only because it is cheaper to keep them closed than it is to operate them, with present returns being bled by a huge volume of taxation. It is not normal for a businessman to claim that it is cheaper to keep his business closed than it is to operate it. These men need relief-quickly. (b) Let us examine the situation in Philadelphia. Many of the rinks which are open to business this summer are suffering severely. These men have looked to us during the past week for ideas by which they might improve their falling business in that area and even the prospects of the cool weather of fall, ordinarily a good business period, are being watched warily. STATEMENT OF ROBERT D. MARTIN, DETROIT, MICH., SECRETARYTREASURER, ROLLER SKATING RINK OPERATORS ASSOCIATION OF AMERICA Mr. MARTIN. I am Robert D. Martin, of Detroit, Mich. I am here in the capacity of secretary-treasurer of the Roller Skating Rink Operators Association of America. Our association consists of members in approximately 39 States in this country. We have several members outside of the bounds of the country. I would like, Mr. Chairman, to introduce as the first item from page 227, lines 1 to 15, inclusive, of the General Revenue Act of 1951, section 401, subsection 1701-D, explicitly exempting from the admissions tax Section D: Municipal swimming pools, and so forth, any admissions to swimming pools, bathing beaches, skating rinks, or other places providing activities for physical exercise, operated by any State or political subdivision thereof of by the United States or any agency or instrumentality thereof-if the proceeds therefrom inure exclusively to the benefit of the State, political subdivision, United States agency, or instrumentality. For the purpose of this subsection the term "State" includes Alaska, Hawaii, and the District of Columbia. * And it continues into the next subject. Thereupon, we base our appeal and ask, along with our own testimony as submitted, that you please consider favorably H. R. 3421 as submitted by Representative King, of Pennsylvania, now pending action before this committee. The condition of operation of publicly owned and tax-free roller skating recreational facilities which are provided and operated by tax dollars as the capital investment in effect is an active competition by the licensing authority and has created an intolerable situation With this unnatural burden superimposed upon the already extremely heavy local, State, and Federal taxes which are applied to our small businesses, it is no longer possible for the roller skating rink operator to provide the financial margin which is necessary to repair, replace, and rebuild. Admissions in roller skating have not been substantially raised since 1940, excepting by the 20 percent Federal admissions tax which was added by the Government approximately at that time. By freedom of choice, a thing inherent in our Nation, the children have the privilege to select their sport, and you can be assured that the quarter, half dollar, or dollar that is provided them by the head of the house is going to buy the best bargain in recreation. Due to the inequity which now faces us, we are confronted with a crisis. Mushrooming municipally owned rinks now operating and proposed are going, under the provisions of the law as it stands, to eliminate private enterprise in roller skating. That is an eventuality. Another effect of unequal taxation related to facilities concerns the survival of private enterprise. Why should children suffer a 20 percent tax to go swimming or skating at a private pool or rink when they would not be burdened with a tax at a municipal pool or rink? It should not be difficult to see how disastrous such a policy could be to privately operated facilities should private enterprise be squeezed out of business and be forced to close so that eventually we have only governmentally operated businesses. If our way of life is to be maintained it is of the utmost importance that unfair competition from Government not be allowed to drive private enterprise out of existence. It is essential that the tremendous investment in private enterprise be protected. As near as we can determine, the entire admissions tax of the combined participating sports of skating and swimming amounts to only about $5 million annually. Most of the tax would be reverted to the customers. His attendance should increase. Increased attendance should improve business, and consequently should improve the Federal Government's corporation and income taxes. The net income of the industry should be improved also, and thus we feel the adjustment of the admissions tax would be a blessing to all-the customer, the Government, and our industry. In times of stress, in times of alarm, and in times of want, the recreation industry is the first to be hit. When times become good, when normalcy returns, the recreation industry is the last to enjoy normalcy. By all that is right, the vital necessities of life must come first, and this faces the most heavily taxed industry of all with privately owned roller skating still carrying the heavy burden of a 20 percent admissions tax. Gentlemen, we ask your personal study and immediate consideration of relief, and we thank you for the interview before you. The CHAIRMAN. You have made a very excellent statement, both of you, and I congratulate you. I was going to ask one question: You rent the skates, do you not? Mr. MARTIN. The skates are provided free in clamp skate form, Mr. Chairman, and there is also a rental skate provided for those who desire that type of equipment. |