Boxoffice (Apr-Jun 1939)

ALLIED IS INSISTENT UPON COMPLETED TRADE PACT; THEN WILL DELIBERATE, ASSERTS COLE Myers Attacks on Neely Bill; Is Cites Myers' Outline of 7 7* i ttt * 1 7 i * Desired Provisions Kindlier on Pact, With Strings of Trade Draft New York — Accusing distributors and their representatives and opponents of the Neely bill with coloring the facts, Abram F. Myers, general counsel for Allied, in a message to the local unit which held its first annual convention at the Hotel Astor, registers a kind word for the film companies on the trade pact, but with reservations. He says, “Up to the present time no enduring agreement has been arrived at on any important problem. But if the negotiations had resulted in a valuable byproduct in the form of a better understanding of each other’s problems, the time and money expended would have been worthwhile. What especially worries me is that the discussion, now carried into the open, still consists of dogmatic assertions of conflicting points of view frequently accompanied by vituperation and abuse. There appears to have been little or no gain in the all-important matters of increased understanding and mutual esteem.” Raps Propaganda After a lengthy discussion of what appears to be concerted efforts on part of distributors to spread propaganda in connection with the Neely bill before and during the Senate hearings, Myers states: “This sort of propaganda may influence the unthinking, but what about its effect on the large public bodies that have studied the industry and are supporting the bill? They know that the bill does not involve government control; that it cannot lead to political graft; that block booking is not necessary, since, otherwise, the distributors would employ it in their own theatres; that any change in distribution methods would not affect the playing time on the screens so that the market will still be there; that the industry is not in financial straits and is recouping in South America more than was lost in Europe; that the bill does not involve censorship; and that the trouble in which the industry finds itself as regards public relations results from the fact that in the past the producers did not produce pictures having ‘a wholesome influence on all those who view them’.” The general counsel for Allied then refers to the organization’s stand on the trade practice negotiations, stating, “During the negotiations Allied pressed for identification of as many pictures as possible in the contracts. As an approach to a gradual relaxation, if not the complete elimination, of blind selling, the Allied committee proposed a larger cancellation privilege for unidentified pictures than for those which are identified. They did this because they realized no steps taken within the industry would bring peace to the industry if they could not be sold to the public groups as a fair solution of the problem. But this proposal met with a flat declaration that no identification of pictures — any pictures — was possible and that, therefore, the suggestion would not even be considered. If the production and distribution processes were such great mysteries that mere exhibitors could not possibly understand them, this declaration would be considered final. But even the dumbest exhibitor knows that the distributors regularly release a substantial number — often a majority — of the pictures featured in the announcement books and they do not see why those pictures cannot be identified in the contract with suitable safeguards against unforeseen contingencies. Urges "Cards on Table" “The inability to discuss the problems on the basis of the facts, more than any other factor, stands in the way of permanent solution of the problems of the industry. Until all the cards are placed on the table both the exhibitors and the public groups are going to be suspicious. Every proposal made by the distributor executives to eliminate or relax onerous trade practices builds confidence and meets a ready response from the exhibitors. Every term and condition written into those proposals reducing their effectiveness and making them easy to circumvent, destroys the confidence. Every suggestion from distributor sources, or overzealous trade paper editors, that independent exhibitors are destructive or insincere merely widens the rift. These sowers of discord should ponder well the moving statement by Nathan Yamins before the Senate Committee.” The testimony of Yamins in Washington then follows. Col. H. A. Cole, president of the national organization, also has a message in the program in which he states the first five of the ten years of Allied’s existence were wasted, “so far as immediate results were concerned, in pleading, arguing and negotiating” for changes in the industry. “And so,” he adds, “we were compelled to carry our case to the higher jurisdiction of the public, the courts and our lawmaking bodies. We knew we were right and had no hesitancy in laying our case before impartial arbitrament.” In conclusion, he says, “The industry (Continued on page 12) New York — Allied’s board will not consider an incomplete trade practice draft and will only take action on one complete in all details, Col. H. A. Cole, president, informs Boxoffice. Cole gives this as his reason for not answering distributors, other than by an acknowledgment, on the third draft. Explaining further, the Allied head states, “Abram F. Myers gave the distributors a full outline of what he thought should go into the trade practice draft. What the distributors sent us did not warrant calling a special board meeting for action. It was not complete. “After all, Myers sent his proposals to the distributors February 7. He met with their attorneys about the middle of March. And yet there is not a complete draft.” Cole met with William F. Rodgers, chairman of the distributors’ sub-committee, at the Astor Monday night. That day, the distributors held another all-day session and Cole was the first to reach Rodgers after the palavers. According to Cole, Rodgers indicated the draft will be ready by the annual Allied convention in Minneapolis, June 13-15. If this is the case, he added, the organization’s directors will vote on it then. Complete Draft Ready Major distributors finished the first complete draft late Tuesday and met again Wednesday at the Astor Hotel for a final legal language checkup. Whether Allied will approve or reject the draft depends on what is in it in the final analysis, the independent organization’s president stated. There will be an open forum discussion in Minneapolis when all industry trade practices will be aired. While the reaction at the forum may influence the board in its final determination, the fact remains that Allied insists it will do nothing officially until Rodgers submits a draft which will have the complete machinery and setup for arbitration as well as other provisions. Cole insisted he was more or less of an observer at the New York Allied convention at the Astor. He said there were several new units in the offing and repeated Allied’s stand not to seek divorcement by state legislation. This was indicatd in Boxoffice March 18. With the arrival of Cole, another Boxoffice exclusive on May 6 was tipped off. The story then had the government ready to file its third anti-trust suit either in Los Angeles or Albany. The story, which broke the day after the Allied head arrived, is a verification of this publication’s inside yarn three weeks ago. Distributors are aware, as they have been in the past (Continued on page 12) BOXOFFICE May 27, 1939 5