Boxoffice (Apr-Jun 1939)

MAJORS GOING AHEAD WITH DRAFT DESPITE ALLIED DALE; HOPE RANK AND FILE ACCEPT Distributor Executives Meet Soon to Decide When Into Effect New York — Hopeful that a majority of independent exhibitors will play along and sign voluntary arbitration agreements, despite the recent decision by Allied’s executive committee in Washington not to call a board meeting for action on the trade practice draft, distributors are going ahead with the industry self-regulation program, a spokesman for the major company informs Boxoffice. “We have formulated the program for the purpose of aiding the industry,” the spokesman declared, “and, if the provisions are going to help those within the business, we are for it. “If Allied doesn’t go for it, we will proceed without them,” the distributor spokesman added. "We feel confident that, when Allied members individually see what there is in the draft, they will take it regardless of what the national body does.” Distributor executives will meet shortly to decide what date the pact will go into effect. It already has been stated the provisions will apply under all contracts for the new season. As far as arbitration and its procedure goes major company executives are waiting to see how many independent theatre owners adopt the draft and sign pledges. Leaders of the MPTOA and independent exhibitor groups which negotiated with distributors are being asked to secure pledges from constituents. Distributors are anxious to receive as many pledges as they can get. Many Groups Huddle Meetings of local exhibitor bodies were conducted in various parts of the country this week to take action on the proposals submitted. A copy of the latest trade draft has been sent to the department of justice and distributors are hopeful a joint meeting will be held with Thurman Arnold “at the earliest possible date for the purpose of obtaining approval.” In an accompanying letter sent to exhibitor organizations which participated in the negotiations, distributors point out arbitration for specific matters are provided. "We also enclose,” the letter stated, “a proposed basis which we prepared some time ago upon which arbitration machinery may be set up. We realize this is not complete and further elaboration is necessary, but we believe that the statements of principle contained in it and in the memorandum itself will readily furnish the foundation for the machinery desired.” The first draft on arbitration procedure appeared exclusively in Boxoffice on January 28, 1939. Minor changes have (Continued on page 5) Allied Will Not Go for Pact; MPTOA Approval Seen HE'S NOT SATISFIED Washington — Holding that “the trade practice proposals submitted by distributors not only are incomplete, but they do not pretend to abolish compulsory block booking and blind selling, and do not touch on theatre divorcement,” which are among the main issues embodied in the government’s anti-trust suit, Allied will not take any action on the trade practice draft sent out by distributors, an official statement issued by Abram F. Myers, general counsel, states. Myers conferred with Col. H. A. Cole, Nathan Yamins, Sidney E. Samuelson and Martin G. Smith here and the committee decided not to call a special board meeting for official action. The fact that distributors have done nothing on advancing arbitration other than again list the provisions which accompanied the second draft is another vital factor which has determined Allied not to consider the latest draft. The committee also reviewed Allied’s participation in the negotiations with distributors and the conditions set down by the Allied board upon which it would accept a plan for selfregulation. Pointing out the latest draft “will not afford independent exhibitors the relief which they are entitled to and must have,” the Allied statement continues: “This draft contains a re-wording of certain substantive proposals, but offers no change whatever in the skeleton outline of arbitration contained in the second draft. In view of the resolutions of the board to the effect that any proposals to merit consideration must contain all the details of arbitration, the executive committee is without power to consider this third draft, HE'S FOR IT Washington — Motion Picture Theatre Owners will accept the latest trade practice proposals of the distributors as a first step toward achieving the objectives at which they aim, but Allied States will not recede from its demands for “full relief” from block booking and blind selling, divorce and arbitration. These varying points of view were expressed by representatives of the two organizations as they and other interests of the industry met in Washington for the hearings on the Neely bill. Pointing out that the proposed code covers a number of major points, although it is “not all we would wish,” Ed Kuykendall, president of the MPTOA, expressed the belief that his board would accept it when it next met on the subject. “It forms a basis for clearing up a number of important problems,” Kuykendall said. However, he indicated, its effect will depend entirely upon the course of the block booking legislation, and contended that if the Neely bill were passed, the proposed code would be valueless. nor will the board be specially convened to consider it. “Allied has consistently adhered to the position that any program which does not include provision for ending the practice of compulsory block booking and blind selling, as well as provision for the divorcement of distributors from their theatre holdings, will not afford the independent exhibitors the relief which they are entitled to and must have. This position the (Continued on page 5) 4 BOXOFFICE :: April 8. 1939