Boxoffice (Apr-Jun 1939)

No Allied Withdrawal From Legislation (Continued from page 8) land unit and past president of Allied, on interpretations of the manner in which the cancellations are designed to work. Yamins wanted to know if distributors had in mind a deliberate uppage of terms in order to come out after cancellations are applied. Sears, now speaking for Warner Bros., asserted he at no time had any intention of losing any revenue and that if it had to work out as Yamins thought it was, that would be all right with Warner Bros. Steffes’ blanket charge against selling methods in this area elicited a quick response from Rodgers. “If conditions are as bad as you say, it looks like a new set of film men in Minneapolis,” Rodgers said. “The salesman who talks about adding 20 per cent to rentals to cover the 20 per cent cancellation privilege strikes me as a stupid person, for no distributor can possibly live unless there is equity arrived at through negotiations. I remind you each distributor agrees not to ask any exhibitor, independent or otherwise, to waive his rights under the code. I promise you that salesmen will respect to the full that which their superiors have decided. I also draw attention to the fact there is no gain for any distributor in adding pictures to upper brackets unless the films justify it by their draw. Also, you should remember that, insofar as attorneys are concerned, many paragraphs appearing in the code are practically in Myers’ (Abram P. Myers, Allied general counsel) own words. If Myers is in the room, I am sure he will subscribe to this.” Myers did by declaring: “I find much of my own language in it.” Brandt Urges Acceptance Harry Brandt, president of the ITOA of New York, made a plea for approval of the code as it stands. “We are on the brink of a precipice,” Brandt said. “If you weigh the issue, you will find the answer is simple. I disagree with Steffes. I, too, am not satisfied with the code but I am satisfied it is the best we can get at present. Certainly, it is a step in the right direction. On the other hand, it is legislation, which leads to politicians with a lack of understanding of our business. It is a mistaken idea that the distributors will bear the cost. Exhibitors will pay for everything.” Brandt said he viewed arbitration as machinery no honest man need ever fear. He said it is designed to remove restraint in industry and declared he would be the first witness against the proposed system if it fails to accomplish this objective. He, therefore, concluded it was right and proper for the ITOA to sign if several kinks in the arbitration system can be worked out. Later, he described this as a move looking toward a “50-50 chance” in its functioning. He was backed by Milton C. Weisman, ITOA attorney, who urged adoption of the code as “the most forward-looking step ever taken in the industry.” He cited it as an opportunity to go ahead, and de Northwest Breach Is Widened Minneapolis — The Northwest Allied unit has postponed its meeting to elect officers to July 12. Meanwhile, internal dissension continues. W. A. Steffes, president, insists he will not run again for that post. Sol Lebedoff, Minneapolis exhibitor now being sued for dues and no longer a member, says he plans his own organization as a rival unit. Coincidentally, Ben Friedman, another Minneapolis exhibitor, has been approached by an exhibitor group to head still another organization chiefly as a wedge to batter down film rentals. Interested theatre men say they will underwrite Friedman's salary up to $10,000, as Friedman remarks that maybe Steffes and Lebedoff ought to be hired and both kicked out. dared it did not bear on the government suit or earlier plans for relief via legislation. “Because it does not meet all that Allied wants is no reason to say all of it is no good,” he asserted. More Than Allied Meet The gathering actually was more than an Allied States convention. With representatives of independent exhibitor organizations not affiliated with Allied States, non-affiliated independent theatre owners, prominent producer-distributor executives and Allied States members themselves participating, it partook of the nature of an industry conclave aiming to solve trade problems and adjust differences by frank and open discussions. Attendance actually was swelled by the fact that grosses are badly off. Independent exhibitors were on hand in large numbers to try to impress upon producerdistributor heads their contention of necessity for lower film costs. In fact, the note most loudly sounded at the convention was that of a reduction in film rentals. Independent exhibitors declared that unless picture rentals are slashed many of them will be forced out of business. After three days of deliberations it became apparent that the meeting’s net results would include: A decision to continue to back the federal government’s anti-trust suits against major distributors and the Neely anti-block booking bill and to seek legislative and legal relief “when necessary,” despite any acceptance of the code. No immediate action on the proposed national film buying circuit of 2,500 independent exhibitors, sounding, in effect, its death knell. Plans for a more strenuous fight against non-theatrical opposition, including the distribution of 16mm films to non-theatrical accounts that use them for entertainment. An agreement that lower theatre admission scales will not afford a solution for exhibitors’ present boxoffice troubles. A proposal that percentages apply all along the line or be entirely eliminated. Following a board of directors’ meeting, Rule by Government Defended by Cole Minneapolis — A defense of government regulation of the film industry featured the opening address of President H. A. Cole at the Allied States national convention. “At this time,” said Col. Cole, “it is right and proper that some answer should be made to those, some even in our own ranks, who raise the ‘bogey-man’ of government regulation of our industry. “If it is the government suits that have aroused those who express this fear, they bring it up at a late date. They should have objected to the Sherman law and complained bitterly when the Clayton act was passed. If the enforcement of laws on our statute books is government regulation, then the Association of Amalgamated Burglars and Highjackers had better start passing resolutions. “If it is the Neely bill that aroused this fear, bear in mind that there is hardly an industry in our complicated economic structure which today is free from some regulatory law.” Allied States now is in the process of discovering through adjudication in the courts exactly what rights independent exhibitors have under present laws, Cole asserted. "Glad to Negotiate" “We believe these laws are sufficient to cover many of the evils with which we have contended, but in case the courts should not agree with us and with the government in this contention, the department of justice itself has publicly announced when filing suit that it will go with us before Congress and ask for special legislation,” said Cole. “We hope and believe this will not be necessary, but we still have that ace in the hole.” Cole pointed out that Allied last fall had been requested to negotiate and try to settle independent exhibitors’ differences within the industry and “was only too glad” to take that opportunity. “For six months we have negotiated and the results will be laid before this meeting within the next day or two,” he said. Enactment of the Neely anti-block booking bill within a year was predicted by Cole. He also declared that “some of us” believe “questionable political maneuver” brought about the repeal of the North Dakota theatre divorcement law. That theatre divorcement will be accomplished through the instrumentality of the federal government’s anti-trust suit, making legislation along these lines unnecessary, was Cole’s prophecy. President H. A. Cole called the convention to order Tuesday afternoon. The initial gathering was executive, with producer-distributor representatives barred. At all other open forums and meeting, however, the producer-distributor officials were admitted and permitted to have their say along with the theatre owners. Many of the independent exhibitors were loath to give voice to their complaints about film prices, “inferior” product quality, clearance, etc., in the producer-dis( Continued on page 22) BOXOFFICE : : June 17, 1939 19