Motion Picture Herald (Nov-Dec 1934)

32 MOTION PICTURE HERALD November 10, 1934 EQUIPMENT CODE HEARD; FILM LEVIES IN EFFECT Large Companies Protest Rules Framed by Authority Agency Committee; Decision Soon With the exception of the hearing on the motion picture theatre supply dealers' revised NRA code at Washington and the final settlement of the controversy between independent distributors and members of the Code Authority over the producer-distributor assessment schedule, the motion picture code front was comparatively quiet during the week. Other developments included : 1. Opposition by major companies to rules framed by the Agency Committee of the Code Authority. 2. Division Administrator Rosenblatt ruled that members of code boards appointed with industry approval may not be dismissed because any particular group fears they may be antagonistic to that group's interest in the future. Equipment Code Presented With a mere handful of witnesses present, a code for the motion picture and theatre equipment and supplies distributors was presented to the NRA through Deputy Administrator Frank H. Crockard on November 2 by J. E. Robin of New York, president of the Independent Theatre Supply Dealers' Association. Proposed as a supplen-v:nt to the general wholesale code, the agreement contained no labor provisions but an amendment regulating hours of employment and wages was submitted during the hearing. In submitting the code, Mr. Robin said his organization represented 56 of the 69 companies in the industry which last year had sales of about $7,000,000, of which non-members of his organization accounted for about $3,000,000. The code was also supported by Mrs. M. G. Ashcraft, of the Sears Ashcraft Manufacturing Company, Los Angeles. While the company would not come under the agreement, Mrs. Ashcraft explained, it is deeply interested because unfair trade practices among the distributors had brought conditions to a point where they were no longer able to meet their bills and the company was in a position where it could no longer finance them. The proposal was further supported by J. C. Hecht of the Daylight Screen Company, Chicago, also a manufacturer. Emphasizing that his opposition to the code was in no way to be construed as opposition to the NRA and explaining that his company was operating under the recovery program, R. P. L^Rue of the National Theatre Supply Company opposed adoption of any agreement on the ground that such benefits as would accrue would not offset the inconvenience and expense. Assessment Schedule Settled Final settlement of the controversy between independent distributors and the members of the code authority over the producer-distributor assessment schedule was reached November 2 following conferences between Harold S. Bareford of the finance committee of the Authority and officials of the NRA. The schedules are now in effect. With but one protest filed, and that apparently designed to lay the basis for future action, should such be desirable, on the ground that it constituted taxation without representation, the exhibitor assessment schedule was approved by the recovery administration, covering contributions for the last half of the current year. No changes were made in the amounts to be charged under the producer-distributor schedule, but provisions were incorporated to safeguard the interests of the independents, and as approved by the administration it is provided that the total contribution of the independent group shall not exceed $18,000. If the contributions exceed that amount they will be credited to the independents, pro rata, against their 1935 contributions and if found to be greater than the sum to be collected next year, the excess will be refunded. Further, it was stipulated, the 1935 schedule shall be revised so as to eliminate as far as possible any chance of collecting excess contributions. As a third concession to pacify the independents, it is provided that any company which believes its assessment is too heavy may appeal to the code authority for relief. Agency Reports Debated Acceptance of the report of the agency committee was urged by Harold S. Bareford and an attorney for the MPPDA November 1 at a brief public hearing at which were present less than a half-dozen persons, none of them members of the committee. As a result of the arguments presented by the producer representatives, it is considered probable the recovery administration will reject the rules proposed by the committee and require it to prepare new rules more in conformity with the instructions of the motion picture code. The rules as written, it was declared, are confusing and ambiguous and deal more with relations between agents and their principals than between agents and producers, although the latter was the only subject contemplated in the code. Further, the committee, it was charged, seeks to have the President sign the order making the rules effective, giving them an importance out of proportion to their place in the code, of which they should properly be a part. As an added argument, the producer representatives asserted that the rules were written on the basis of the California laws and would likely be found to be in conflict with the laws of other states where they might be applied as well as with the Federal statutes. Partial explanation of the failure of any West Coast agents to attend the hearing was found in a letter from Ralph H. Blum, Beverly Hills, Calif., protesting that the meeting should have been held in Los Angeles because "all the persons affected" axe in the West. The statements were challenged by the MPPDA attorney, who declared there are as many agents and nearly as many artists in New York, and that Eastern activities have so expanded in the past few years that the East is becoming recognized as a production center. Laying down the principle that members of code boards appointed with the approval of the industry may not be dismissed because any particular group fears that they may be antagonistic to that group's interest at some undefined future date. Division Administrator Sol A. Rosenblatt last week rejected an appeal of the Independent Exhibitors Protective Association, Inc., of Philadelphia, for reorganization of the Philadelphia clearance and zoning boards. While it was indicated in New York this week that Kansas City's clearance and zoning schedule will in all probability be adopted by the Code Authority and put into effect around December 1, Jay Means, Kansas City Independent Theatre Owners president, said that "it looks as if the major distributors are out to sell protection." B. and K. Answers Newspaper Charge Of Delayed Runs A cartoon drawn by James Tinney McCutcheon, appearing last week on the first page of the Chicago Daily Tribune, and which intimated that Chicago "never gets first run movies until long after they appear in most American cities," was answered this week by circuits in that city as being contrary to fact. While the local motion picture censors were admitted to be the cause of the postponement of some films, and that extended runs of highly successful pictures likewise delay general exhibition, officials of Balaban and Katz declared Monday that the Chicago situation is no different than that existing in other large cities insofar as prompt release of new pictures is concerned. It was pointed out that "Monte Cristo," which is only just closing its Los Angeles first-run exhibition, was shown in Chicago some time ago. "No other city, not excepting New York, has the important neighborhood theatres which Chicago has," said William Hollander, publicity and advertising director of B. & K. "And, to hundreds of thousands these neighborhood houses are their firstrun theatres. When these pictures appear in key houses five weeks after a 'Loop' showing, many feel that Chicago is behind in release schedules. They forget the 'Loop' must come first." Equity Council Approves Screen Guild Affiliation Formal approval of the Screen Actors' Guild as an affiliate of Actors' Equity Association was given Friday in New York by Equity's Council. The Equity approval vote will now be resubmitted to the Class A membership of the Guild in Hollywood. A two-thirds majority vote must be recorded before the organization can be recognized under the Americaai Federation of Labor charter for the entertainment industries, held by Equity. Producers in Hollywood this week declared unanimously that they have no objections to individuals or groups joining either Equity or the Guild so long as such memberships do not instigate labor troubles in Hollywood. The Friday approval provides that any affiliation agreement between Equity and the Guild may be terminated, that where the Guild seeks the aid of organized labor such labor shall be sought through Equity, and that the Guild pay a share of the tax which Equity pays to the A. F. of L. The question of a possible double set of dues remained unsettled. Warner Cuts Prices In Milwaukee Houses The Warner circuit has announced new low price scales for the Egyptian, Venetian and State, Milwaukee neighborhood theatres. Numerous of the cities in the state have instituted double features. Several of the circuit's local neighborhood houses are expected to be dropped in the near future.