Boxoffice (Apr-Jun 1939)

Report Incomplete, Is Charged by Rodgers Warning Against Move To the Government (Continued from preceding page) indeed conclusively, that the distributors already are taking steps to circumvent and nullify the moderate concessions offered, and “4 — Acceptance of the proposals, particularly in view of the preamble thereto, would handicap the exhibitors in seeking further relief from oppressive and monopolistic trade practices, would hinder the government in the prosecution of pending actions under the anti-trust laws and would supply the distributors with additional ammunition with which to combat the Neely bill and other remedial legislation.” The break came at the conclusion of the full report by Cole. Granted permission to again speak, Rodgers, for the distributors and obviously angered, strode to the rostrum and said: ‘‘The entire substance of the negotiations has not been given to you. There were certain matters which your committee agreed to forego at the very outset. To tell you I am shocked is to put it mildly. This is the first time in my career that my integrity has been attacked and I speak this for my associates as well. In view of this, there is no alternative left for us but to withdraw. We will not negotiate further with Allied as a group.” This kicked out the planned vote from the floor on code acceptance or rejection. Cole described the .issue as “a dead horse” and the conventioneers, apparently, agreed with him. At this juncture, the distributor group, en masse, left the hall. Included were Rodgers, Sears, Montague, Austin C. Keough of Paramount, William A. Scully of Universal, William Sussman and William Gehring of 20th Century He Did Come— ~*mord studi Deep in notes is Ed Kuykendall, president of MPTOA and an unusual figure to appear at any national Allied convention. Kuykendall spent five hours preparing a speech on his way to Minneapolis, then destroyed it on behalf of a new one. On the Code— -sifford studi0 W. F. Rodgers, chairman of the distributors’ sub-negotiating committee, in a candid shot. His speech drew applause. Fox, and Jack Flynn of M-G-M. Despite their individual and collective anger, the distributor group observed the social amenities involved and attended the convention dinner which officially closed the sessions at the Nicollet, Thursday evening. About 370 exhibitors had registered. Reported, but not confirmed, was the persistent rumor department of justice men had attended all of the sessions. The code situation moved all previous developments on the final day into the far background. The sessions opened shortly before 2 o’clock with an address by Keough who, in general, defended the majors’ lawyers who had been accorded a brutal tongue lashing throughout the course of the entire deliberations. "Spirit" in Code "Whatever you think of the code,” he said, “it does not vary from the spirit of the original discussions by one iota. There are no distortions or statements in ‘lawyer language’ which were not agreed upon. Naturally, many of the clauses are presented in clearer language form, but that’s all. That’s why lawyers exist.” He pointed out there had been many points of view to consolidate, but that, in the final analysis, no group of lawyers could prevent the distributors from including what they had determined to embrace in the code. Neil F. Agnew, vice-president in charge of Paramount distribution, spoke very briefly over the floor “mike.” He said, “The industry has been looking for unity and clamoring for it. Therefore, this code ought to get a chance to see what it can bring about in that direction.” Sussman, eastern divisional manager, and Gehring, central divisional manager for 20th Century-Fox, then declared their company was pledged to observe the pact and all its provisions. Scully, general sales manager of Universal, followed and made the identical pledge. For the first time “on the other side of the fence,” H. M. Richey, former Allied leader in Michigan and now director of exhibitor relations at RKO, spoke. He urged that the code be given an operating trial. “It is significant that some type of formula is being tried. Let’s not close any doors. The code is at least a start. In my travels,” he said, “I have found that exhibitors want something done about something. This attempts to do it and so RKO lines up for the code. I cannot believe that distributors are dumb enough to write a set of rules they don’t intend to follow.” Unusual, also, at any Allied convention was the presence of Ed Kuykendall, president of the MPTOA, declaring he did not feel out of place. He touched on a variety of subjects, including an endorsement of the work of the Variety Clubs, the need to offset Ascap and the seating tax, and a plea at large for a general working together of all industry interests. He warned against any encouragement of government regulation and cited a “fixed movement” in Washington seeking to have the government, in one form or another, interfere in the business. “This would mean regulation of exhibition as well as of production and distribution and it is something you ought to discourage,” he said. He attacked the presence of stars on the air and the Neely measure as unfair and as an entering wedge for government in business. The industry had brought the government suit on itself, he also charged, adding that nothing in his opinion could now stop it. On the code, he remarked, “I wonder if the distributors, because of their stubbornness, have not waited too long. I have never seen such a lack of foresight on the part of those who should have brought this about a long time ago. Anyway, I hope the code does it.” Attacking the open reading of the cur ( Continued on page 30-B) From the ITOA— smoTd studi0 Not allied, but an Allied convention anyway. Harry Brandt, president of ITOA of New York, and Milton C. Weisman, attorney for the association. Brandt, in New York now, urges exhibitors who want code to join ITOA. 24 BOXOFFICE :: June 17, 1939