Boxoffice (Apr-Jun 1939)

DISTRIBUTORS, AFFILIATED CHAINS GROUPED TOGETHER UNDER ARBITRATION BOARD SETUP Echoes Re verbera te On St. Louis Case New York — Repercussions of the two equity anti-trust suits by the government in St. Louis several years ago in which a jury gave major company defendants a “not guilty” verdict in 32 minutes and which was followed some time later by an out-of-court settlement of the civil proceedings against the same parties, were heard here this week as L. Jack Schlaifer, vice-president and western sales manager for UA, was examined before trial by Seymour Krieger, special assistant to the attorney general, in the all-industry suit. After questioning the witness at length on first, second and subsequent run deals UA has made in the far west and mountain states, Krieger then came to St. Louis He asked who, in addition to Loew’s and Panchon & Marco, operated first runs in the territory. The question apparently nettled Edward C. Raftery of O'Brien, Driscoll & Raftery, attorneys for UA, who declared the government had successfully whittled down the first run situation to these two circuits. To make his point more emphatic, Raftery said: “You’ve blocked all competition there.” Another Question Irks Another question riled the UA attorney when Krieger was discussing Salt Lake City and wanted to know what theatres play the distributor’s “B” product. Raftery rose to his feet, a deep red painting his cheeks and shouted: “B” product? Man, all of UA’s pictures are ‘A’s’ ”. The Monday sessions at the federal court building moved to the Bar Ass’n Bldg, the following day. Paul Lazarus, home office executive, was called on again to detail his duties. In approving or rejecting contracts, he said, he always sought to get better terms. Most contracts are based on past performances and how pictures are doing in other situations also is a factor in determining rentals, he said. Schlaifer, who started as a film inspector for Warners in 1912, now supervises sales for UA in Detroit, Chicago, Minneapolis, Omaha, Kansas City, St. Louis, Milwaukee, Denver, Salt Lake City, San Francisco and Seattle. He was made western division sales manager by George J. Schaefer in 1936. He personally handles deals with Fox West Coast, and its subsidiaries, B&K, Golden States circuit in which Bob McNeil and Mike Naify are partners. Intermountain circuit of Salt Lake City, A. H. Blank in Des Moines, J. J. Parker in Portland, Ore., Jensen & Von Herberg in Seattle and Joe Blumenfeld and Herman Cohen of San Francisco. The producers and owners of the pic( Continued on page 12) As Many Independents to Have Seats as Other Segments Combined New York — Distributor and affiliated circuit representatives will be treated as one in setting up personnel of local arbitration boards, it is learned by Boxoffice. Under the proposed plan promulgated by sales managers during the past 10 days, the number of men to sit on the local boards will be determined in the territories, but in any event there will be as many independents as arbitrators as there are sales and major circuit representatives combined. Allocations Rigid In other words, it is pointed out, if it is decided to have an arbitration board of lour-, the personnel is to consist of two independents, one major circuit representative, if an affiliated theatre company operates in the territory, and a distributor. In the event there is no affiliated circuit in the area, then two sales representatives shall sit. A neutral man may be brought in by the board in case of a tie vote. Where it is decided to have a board of two, one independent exhibitor will be chosen from the panel of 10 and the second either will be a distributor or affiliated representative. In the case of a board of six, three independents will sit and the balance of the board will be made up of either one affiliated circuit man and two distributor representatives, or two circuit men and one distributor executive. On the question of re-allocations, distributors are understood to have agreed to stand by designation set forth at the beginning of the season. That some film companies have switched allocations from time to time was one of the four major complaints from independents, and the indication now is the practice will be stopped. Approved by Weisman Milton C. Weisman, attorney for the ITOA and regarded as an authority on arbitration because of a plan he formulated for the dress industry and which is said to have been upheld by the courts, within the past two weeks approved the proposals on arbitration as outlined by distributors’ attorneys. The new trade pact, which is believed the final one, is being awaited by various independent exhibitor units which participated in the negotiations as well as other theatre organizations. Previously reported in Boxoffice is the comment of a spokesman for distributors who stated the next revised plan will be “fool proof” and is certain to win the approval of independent exhibitors. More on Trailers at Paramount Meet New York — Further details in connection with Paramount’s distribution of its own trailers will be outlined by Neil F. Agnew, general sales manager, at the company’s annual sales convention at the Ambassador, June 8-10. Two types of trailers will be released on all productions starting January 5, one designed for de luxe houses and the second for subsequent runs. About 250 division, district and branch managers, salesmen and newly elected members of the 100 per cent club will attend the coast meetings. A trip to the San Francisco World’s Fair also is on the agenda. There will be a number of foreign branch heads in attendance in addition to John W. Hicks jr., George Weltner and Albert Deane. Following the regular business meetings, Robert M. Gillham, director of advertising and publicity, plans to hold a series of meetings with his coast staff and Alec Moss and A1 Wilkie of the home office to map out campaigns on pictures on the new lineup. The home office contingent leaves June 4. Included in the party will be the eastern and New England sales forces and a group of trade paper representatives. Further AFM-Producer Talks Have Channel New York — The door has been “left open” for further conferences this fall between producers and the American Federation of Musicians over a plan to alleviate unemployment among AFM members, it is authoritatively said. Although a meeting between producer representatives and the executive board of the AFM at the home of Joseph M. Weber, AFM president, broke up without a commitment from either side, it is said Weber is anxious to report “progress” at the organization’s convention in Kansas City, June 12, so that the matter can again be taken up in September. Attending the session were Joseph M. Schenck, Sidney R. Kent, Barney Balaban. Major Albert Warner, Ned E. Depinet, Harry D. Buckley, Pat Casey, Adolph Schimel, Leonard Picker and Joseph Hazen. Loew Has Only Two Major Deals for Met Area New York — Only two major product deals will be negotiated by Loew’s for next season for the metropolitan area. These are with Paramount and Universal. Other deals had been made on a two-year basis and do not expire until the next selling season. 8 BOXOFFICE :: May 27, 1939