Boxoffice (Apr-Jun 1939)

MAJOR DISTRIBUTORS CHARGE ONE AND ALL TO PRODUCE BETTER FORMULA FOR ARBITRATION Will Consider Suggestions On Subject; All Other Clauses Are Closed Majors to Make Final Plea On Draft at Minneapolis New York — Challenging one and all who may have their own ideas, pro and con, on the arbitration plan, William F. Rodgers, chairman of the distributors’ subnegotiating committee, states “if anyone can show us a better formula let them produce it and we will sit down and talk about it.” Contending all negotiations on the terms and conditions of the draft, with the exception of arbitration, are a closed issue, Rodgers says distributors will consider all suggestions on arbitration which may be submitted. He adds that up to the time the formula was completed. Allied was the only group to submit a plan. Rodgers could not estimate the percentage of the Allied proposals incorporated in the plan which has gone out, but holds a good percentage of the points have been included. Emphasizes Independent Voice That independent exhibitors will have an equal voice in the operations of local boards to be established is emphasized by the M-G-M sales manager. Secretaries will be chosen by unanimous consent of all parties as well as the distribution of expenses for operation of the boards. There will be no appeals from local board decisions, it is stated, the rulings by the men in the field familiar with territorial situations being final. Where doubt exists as to the eveness of personnel on special boards to hear clearance and zoning complaints, distributors point out that regardless of the fact a distributor representative will be on the board in addition to an affiliated exhibitor these men are expected to decide all issues on the facts and hand down rulings accordingly. “These men will be expected to make decisions based on the fact regardless of their affiliation if there is to be a fair board and fair decisions.” A two-year trial with the right of any exhibitor to withdraw his consent upon six months’ notice is asked. Several minor changes in the trade draft have been made and sent out to all groups which negotiated with distributors. The changes were mailed the latter part of the week. As soon as the new draft gets around, comment is expected by the distributors, and not until then. One of the changes includes allocation of films. In this respect, Rodgers told the New York Allied group at its convention here “it has been agreed, in a subsequent modification Of this proposal, that once designation has (Continued on page 16) Minneapolis — Having submitted the arbitration draft to Allied leaders, distributors, through William F. Rodgers, chairman of the sub -negotiating committee, will make a final plea for their endorsement of the trade practice draft at the open forum at the Allied national convention here June 13-15. Rodgers will stand ready to answer all questions on the general terms and conditions of the draft as well as the arbitration proposals as he did at the Allied of New York meeting. Some Allied observers anticipate fireworks at the local convention and no mincing of words either by Allied spokesmen or by the distributors’ representatives ready to defend the provisions of the draft. And while every effort will be made to avoid the personality equation, some individuals and their actions during the draft negotiations undoubtedly will be criticized. Neither Abram F. Myers, general counsel of Allied, nor Col. H. A. Cole, president, expressed his views on the terms of the first completed trade draft at the Allied of New York meeting. Myers left the meeting before Rodgers outlined the arbitration proposals and, although Cole sat through the entire open forum, he withheld comment. But both leaders are understood studying the entire draft and will have their say at the local sessions. See "Friendlier Area" There are some who say Allied has been saving its comment for the meetings here because it is felt Minneapolis is a much friendlier territory for expounding Allied’s views than New York where Max A. Cohen, president of that unit, has not been in entire sympathy with the theories and dictums propounded by Allied. Then again, it is pointed out, the draft was not ready in time, as far as arbitration is concerned, for “a thorough going over” at the New York meetings. Allied’s board will meet here during the convention for a discussion of the draft and probably take action. Up to now, Cole has insisted there has not been a completed draft and hence the board could not act on acceptance or rejection. Rodgers took Allied to task at the open forum in New York for obstructing progress in the negotiations. He stated, “Some within your ranks, through statements issued, are doing everything humanly possible to deprecate us in the eyes of the trade and the business world in general . . . The fact that our success assures your success seems immaterial, so long as the destructive attacks can be maintained.” Referring to various statements that “distributors had thrown crumbs to the exhibitors,” Rodgers said, “I definitely charge bad faith in the issuance of such statements or bulletins. The crumbs that are referred to run into the millions ol dollars per year and the only chance whatever producers or distributors have to recoup is in the production of pictures that will attract more attendance to theatres. And furthermore, it was understood that so far as arbitration was concerned we expected the help of all exhibitor bodies in the shaping of machinery for this purpose.” Divorcement "Minority" Idea Declaring the average theatre owner is not interested in theatre divorcement, the sub-committee chairman commented, “that is a pet idea of a minority who believe its prosecution can be used as a smoke screen to justify the continuation of attacks that can only cause dissension between the two branches of an industry absolutely dependent upon each other. “All clear thinking people engaged in this business are of the opinion that such a trade practice code is necessary, that its adoption should be encouraged and thereby bring about a condition never before enjoyed in this industry. “It should be tried and, in doing so,” he added, “understood that all things desired cannot be had at the first attempt, but that through experience we can profit and correct such irregularities that may now for the first time be brought to light through the machinery set up by a united industry. I do believe all this ballyhoo about divorcement, alleged unfairness, must be getting boresome if not to all those engaged in the business, at least to the public; most of us, and I speak to you as well as for our group, would like to get back to running our business.” "One Motive" Actuates In his brief talk before the New York group, Myers said Allied’s desires “have been actuated by one motive and one motive only, and that is to ascertain what is the maximum of benefit which can be attained for those who look to those men for leadership and protection; and secondly that maximum, once attained, whether it is a good thing ... a solid thing, a substantial thing.” The Allied leader added, “You have lived under a lack of system for many years and I think there is no disagreement that has led to undesirable ends. There is, (Continued on page 16) 4 BOXOFFICE :: June 3, 1939