The Moving picture world (April 1920-May 1920)

April 24, 1920 THE MOVING PICTURE WORLD 543 Exhibitors and National Association Clash at Albany Over Deposits Bill Cotillo Measure Already Has Passed Senate and Is Now in Rules Committee of Assembly, Where Distributors Will Try to Keep It— Each Side Issues Statement — Legislature to Adjourn April 24. Albany, April 13. BATTLELINES are being drawn in the Legislature today for the bitterest fight ever staged between the motion picture producers and the exhibitors of this State, the former doing their utmost to down the Cotillo bill, which seeks to amend the general business law in relation to money deposited or advanced upon a contract, while the exhibitors are working tooth and nail in its favor. The bill, introduced and passed last week in the Senate, is now in the rules committee. The State Legislature is slated to adjourn on April 24. Every effort on the part of the exhibitors will be bent toward releasing the bill from the rules committee and getting it to a vote. When first introduced by Senator Cotillo, the bill slipped quietly along without arousing any opposition. A dissection of the measure, however, has brought about a storm of opposition in which the producers are leaving no stone unturned_ in their efforts to keep the bill from getting further than the rules committee. Each side has its representatives on the ground and the storm center about the bill is one of the features of the closing days of the session. Producers Say Bill Would Kill Deposits. According to the producers, the bill, while it appears innocuous, has for its real intent the prevention of motion picture companies from asking or receiving adyance payments on bookings of films. The measure will be watched by the industry throughout the entire United States, for if passed in New York State it is probable similar efforts will be made in other states to bring about similar action. Sydney S. Cohen, president of the New York State Motion Picture Exhibitors' League; W. H. Linton, of Utica, treasurer, and W. A. Callihan, of Rochester, one of the vice-presidents arrived on the scene of action today and lost no time in plunging into the fray. Royal K. Fuller, a representative of the National Association of the Moving Picture Industry, is also on the ground. Senators and assemblymen are being flooded with letteis and telegrams from the producers. Cohen Says Aim Is to Safeguard. Tonight Mr. Cohen gave out the following statement, as outlining the attitude of the State Exhibitors' League in regard to the bill which it is claimed will safeguard the film deposits paid by the exhibitors of New York State: The bill is a constructive measure to safeguard the vast amount of moneys exacted by producers and distributors of film by way of deposit or advance payments from exhibitors doing business in New York State. The exhibitors of the State strenuously oppose the vicious deposit system at present in vogue, but so long as the producers and distributors of film insist on deposits and advance payments from responsible theatre owners, then we in turn ask only what is fair and just, that our moneys which they have in their possession be safeguarded and protected ao that when we perform our contract this money will be available to be applied on the c-ntract. Concerned as to Possible Bankmptcy We also want to make certain that our money will be available in the event of the producer or di.stributor not performing his part of the contract or going out of business, or possibly into bankruptcy. We also want to prevent the moneys exacted from us for deposits or advance payments being used by irresponsible promoters in either building new theatres in competition with us or in wildcat speculation, or to use the same to produce pictures which may take a year or two years before they are offered to us for showing in our theatres, and very often when one of these pictures, which has been made with our own money and has turned out to be a very good one, has been completed, they will not permit us to play it on the original plan, claiming it is either a special or a super-production, and then proceed to sell it to us on a different basis. Says Prodacer Should Not Oppose BUI. This bill ought not to be opposed by any distributor or producer of film who has the interests of exhibitors at heart. The position of the producer and distributor in opposition to this bill, according to the statement of their own representative, creates considerable surprise to the members of the Motion Picture Exhibitors League of the State of New York, because not alone do these people have our moneys on deposit or by advance payments on account of our contracts, but they have a combination known as the F. I. L. M. club, composed of all the distributors in this State, backed by their home offices, which organization prevents any exhibitor in the State of New York from securing film of any kind from any manufacturer or distributor of film if he does not perform his contractual obligations. The exhibitor in this State, as well as in many other Sites, has suffered many injustices and abuses by representatives of film companies in their negotiations and their contractual relations. . Proposed Indemnity Rejected. The Exhibitors' League ®f New York State formed a Credit Indemnity Association, composed of substantial exhibitors in this State, and has offered time and again to put up a fund suflSciently large, $100,000 if necessary, to guarantee the contractual relations of every member of this organization, and made this offer for the purpose of doing away with the deposit system or advance payment which we object to so ^[luch, but this offer has not been accepted. Association's Statement Denied. It is unfortunate that in this big industry of ours the manufacturer and distributor members of the National Association of the Motion Picture Industry have not seen fit to treat with the motion picture exhibitors of the United States in a spirit of evenhanded justice and fair play. The exhibitors' interests have not been considered at any time by the members of this association, and time and again the National Association of the Motion Picture Industry has gone out of its way to antagonize and injure the motion picture exhibitors of the United States. This should be corrected at the earliest possible moment, as there are a number of matters where the combined and concerted efforts of everybody in this Industry are required. To cite one specific instance, we mention the statement issued today by the representative of the National Association of the Motion Picture Industry, who we would not like to believe has wilfully misstated important matters affecting this bill. We call attention to the statement he has made that 99 out of every 100 persons of those engaged in this Industry are satisfied with the present deposit system. It Is our thought that almost every exhibitor in the United States opposes it, and at our convention in Utica March 9 and 10 a resolution was adopted unanimously by the 1,000 members of our State league vigorously protesting against the continuance of the deposit system as it now exists, and urging that the same be done away with. Has Deposits of $27,000. As to this party's statement that it would be difficult to find a bank to accept exhibitors' funds because of their very smallness, might we not mention that one of the members of our league has more than $27,000 on deposit with various film companies, another more than $20,000 and any number of exhibitors have sums ranging from $1,000 to $10,000 on deposit with film companies. It is also our thought that a continuation of the deposit and advance payment system has resulted in increasing the cost of our doing business, as it has been made very easy for some irresponsible promoters to secure large sums of money in advance for objects only In contemplation, and this has resulted in inflation of the worst kind, as these promoters have offered more money to stars and players than their present contracts have provided, enticing these stars and players either to break existinff contracts or at the termination of their present contracts to ask and get two and three times what they were formerly paid and were satisfied with. BeUcTes Bill Constttntlonal. In our opinion the bill is constitutional. It is fair and just to both the exhibitor, the manufacturer and the producer, as all we aak for as exhibitors is that if our money is taken from us we shall at least be assured that the same is in safekeeping. We also hope that the producers and distributors of film will join with the exhibitors of this country at the earliest possible moment to draw and have In use in their business a uniform contract. It is our thought that by encouraging this movement and putting the same in operation it will show good faith to the exhibitor and the same will be repaid to the producers by good will and additional business of their customers, the motion picture exhibitors of the United States. This bill has been drawn to correct and prevent the abuses existing only in the renting of motion picture films. Association Outlines Position. In opposing the bill, the National Association of the Moving Picture Industry, through its representative, outlined its stand as follows : The opposition to the bill Is that it changes the entire method of doing business, built up over a period of years and satisfactory to 99 out of every 100 of those engaged. Even in its amended form, limiting it to the motion picture business alone, the bill is in the opinion of the producers and distributors a pernicious one and the passage of which will work immeasurable injury to the business, provided that it could be enforced, which is impossible for constitutional reasons. In its original form, the bill would have seriously hampered a great many branches of industry entirely foreign to the motion picture business, although there is no question but that the measure was drafted for the sole purpose of taking care of a certain condition of affairs that has brought about unwarranted objection from some quarters. Would Con-rert Deposits Into Trust. In its amended form, the bill now reads that whenever money shall be deposited or advanced on a contract for the use or rental of personal property as security for performance of the contract or to be applied to payments on such contract whea due.