Motion Picture News (Jul - Sep 1930)

July 5, 1930 Motion Picture X e w s 17 Exhibitors Expected To Show Speed in Ratifying "Moral Arbitration" Contract Different Atlantic City — "There is a different attitude," was the way one prominent 5-5-5 conferee characterized meetings on the new contract as against the sessions at Chicago two years ago. "At that time," he said, "it was all antagonism, and there was 16 days of fighting tooth and nail. The new deliberations, however, are being characterized by a spirit of fairness and a desire to work for the common good. The contract should reflect this new spirit." Disputes Slated For New Board Of Conciliation Atlantic City — Proposition made by Abram Myers that arbitrators be permitted to go outside the terms of the contract in determining the equity of a case was rejected by Sidney R. Kent just before the noon adjournment on Wednesday. During the recess a compromise plan was prepared to the effect that where a majority of the arbitrators agreed that there were exceptional phases in any case where the contract terms stood in the way of complete adjustment that they recommend to a central court in New York a review of the matter. This court would be composed of two distributors and two exhibitors and a possible fifth member selected as required from outside the industry. Its decision would be final. Myers said that the language of the substitute was ambiguous. Here a heated discussion took place between Hess and Myers. At this point one of the bigger distributors sent in word from New York that it would not agree to any proposition which would admit of consideration of matters outside the contract, as that would put the business in the hands of the arbitrators. During the morning session it was agreed that in arbitrations the members of the board be selected from two panels of ten each with two from each side and that if these arbitrators cannot agree a fifth is to be selected from outside the industry. A system of compensating arbitrators was agreed upon. Complainants, not members of exhibitor organizations, will be obliged to use the arbitration system without the participation of organization arbitrators, the loser paying the fifth arbitrator's expense. The final work of the meeting was an agreement to create a conciliation board to adjudicate exceptional cases. This board will be composed of representatives of distributors and exhibitors and on such cases its decision will be final. When a case is before an arbitration board and presents aspects outside the contract provisions, it may either be sent to this conciliation board or automatically go to this board for settlement. 5-5-5 Hurdles Jams and U. Contempt Bugaboo In Drafting Pact S. Its speedy ratification by 98 per cent of the nation's exhibitors predicted by its sponsors, draft of the new standard license agreement has been completed and soon will be ready for submission to the rank and file of theatre owners. The new agreement will go into effect as soon as ratified and will be retroactive to apply to 1930-31 season contracts. The new contract, which will establish a voluntary system of arbitration in the industry, virtually was completed Wednesday when representatives of the distributors, the M.P.T.O.A.. Allied States Ass'n. and affiliated exhibitors came to agreement upon controversial terms, which had been held over from the conferences of sub-committees of the various groups. The only clause left open is that which seeks to warrant the theatre has paid its music tax. A study of producers' recording contract is to be made to determine phraseology of this point. Some of the Benefits Major benefits secured in the new contract by each group are : Distributors — Return of a system of arbitration. Unaffiliated exhibitors — Privilege of five per cent cancellation on blocks of 20 without payment for films excluded. Affiliated exhibitors — Ban on advertising of pictures by subsequent run before completion of showing at prior run, unless subsequent follows prior run house by 15 days or less. Proceeding warily lest they violate any of the provisions of the Thacher decree alleging a conspiracy in the compulsory arbitration system which the court outlawed, committee members hurdled difficulties and disagreements which at times threatened to break up the conference, to emerge with a proposed standard agreement. All exhibitors of the United States are to be asked to accept the new agre«ment, but will not be compelled to do so. If they do not wish to accept the new form, they will be sold pictures on the various individual forms being used today by the respective companies. Arbitration Optional No exhibitor will be bound to accept arbitration. If they elect to adopt the standard form, they will have the option of agreeing to or crossing out the arbitration agreement. The distributor is to have a similar option. (Continued on page 20) Repartee Atlantic City — First runs are more ethical in their advertising than subsequent runs, declared Ed Schiller of Loew's at the 5-5-5 confab. "Sure," replies Al Steffes, Northwest exhibition leader, "there are fewer of them." Wants Indictments Washington — Indictment of all participants in the 5-5-5 conferences held this week at Atlantic City has been demanded of the Dept. of Justice by Frank J. Rembusch, Indiana exhibitor, according to information received by Motion Picture News. His complaint to the department contends, it is understood, that the conference violates the Thacher decree, which ruled the arbitration system in the industry illegal. Officials of the department decline to comment on the Rembusch demand, for complaints to the department are not made public. Way Cleared for Distributors to Obtain Deposits Atlantic City — Fearful of violating any provisions of the Thacher decree restraining compulsory arbitration or any concerted effort which might have the effect of compulsory arbitration, the contract committee declined to consider a deposit clause for exhibitors who refuse to agree to arbitration. No mention of deposits will be made in the contract. Exhibitor members of the committee, however, admit the right of the individual distributor to demand a deposit to insure fulfillment of contract, as is being done under the varied forms of contract which have been used since the arbitration system was outlawed. This system will be continued by distributors, acting individually and demanding deposits in individual cases as they see fit. Distributors are enabled to write in a deposit clause in their individual contracts through the right given them by the contract committee to add clauses which shall not be inconsistent with the provisions of the standard license agreement. Block System Demanded By Exhibs, Kent Avers Atlantic City — Exhibitors want pictures sold under the block booking system and wouldn't let distributors sell them any other way, according to Sidney Kent. Of the 1,250 accounts sold on the new Paramount contract, only five have declined to contract for the unnamed 10 pictures on the program, he said. Paramount gave exhibitors the option of taking or refusing the pictures which were not listed in the announcement. Kent declared that five per cent of the nation's exhibitors would not support am action against the block booking system.