Boxoffice (Jan-Mar 1941)

NORTHWEST ALLIED FILES BILL TO PRESERVE BLOCK BOOKING Proposed Law Counters 5-Block Plan Under Consent Decree Minneapolis — The die is cast. Introduction into the state legislature this week of a proposed law to contravene the consent decree’s plan for the sale of films in groups of five has embarked Northwest Allied, sponsoring the measure, in a fight to the finish to preserve the present block sale system. The bill requires distributors to offer for sale their entire season’s product to exhibitors, as now is customary, with a minimum 20 per cent cancellation privilege. Under the bill, however, forced buying of shorts, serials, newsreels, foreigns, trailers, westerns and reissues, as a condition to the purchase of features, would be illegal. Penalty for conviction of violating the law would be a maximum fine of $1,000, or a year in state prison, or both. Confident It Will Pass Expressing confidence in the proposed law’s passage, Fred Strom, Northwest Allied executive secretary, has asked every theatre owner to give it his “wholehearted support and indorsement.” No time will be lost, he says, in the vigorous effort to obtain favorable legislative consideration, he says. No opposition is anticipated from the film distributors, according to Strom. In a statement issued prior to the bill’s introduction, Strom asserted “Northwest Allied is firm and unalterable in its opinion that out-of-town situation, many of which are removed hundreds of miles from the Minneapolis exchange center, as well as Twin City subsequent-run exhibitors will be infinitely better off buying an entire season’s output, with a cancellation privilege of 20 per cent, and with no forcing of shorts, than in attempting to operate the consent decree’s terms.” The term “season,” as applying to an entire output, is defined in the bill as “a period of 12 months, as may be selected by the producer-distributor, provided, how ( Text of the bill appears on page 6 this issue) ever, that there shall be no lapse of time between the termination of one season and the start of the next.” A thorough canvass, made prior to the bill’s introduction, has convinced Northwest Allied that the law’s constitutionality, involving the commerce and due process clauses of the Constitution, can be upheld, according to Strom. Preamble Defines Terms A lengthy preamble not only defines the bill’s terms, but also describes certain alleged conditions within the industry. One charge in the preamble is that “producer-distributors impose arbitrary terms and conditions and Minnesota independent exhibitors have been compelled as a condition precedent to licensing feature pictures also to license short subjects,” etc., far in excess of their needs and requirements. It also is charged that Minnesota independent exhibitors “have been unable to cancel feature motion pictures injurious and damaging to his business and have had to play pictures undesirable and harmful to the public.” While “the long established trade practice of licensing feature motion pictures for a full season is essential to the best interests of the producer-distributors, exhibitors and the public,” according to the preamble, “producer-distributors’ conditions have subjected independent exhibitors to unfair disadvantages, preventing him from responding to the community and local public influences and preferences with respect to the selection of desirable feature motion picture films and are inimicable to public welfare and against public policy.” Under the measure’s terms, cancellation would be made proportionately among the several price brackets, if there be such price brackets in the license agreement. It is specified that any number of cancellations to which an exhibitor is entitled may be made from the lowest price bracket at his option. However, if the law is enacted, the right to cancellation would not be effective unless the exhibitor would exercise such right by giving notice thereof to the distributor (r ~~ ft Life for Independents Minneapolis — One effect of the consent decree will be to boost such independent producers as Republic to a new prosperity peak, in the opinion of James R. Grainger, president of that company. Here to visit his local branch manager, Gilbert Nathanson, Grainger expressed the belief that those independent companies which always have maintained a steady product flow, now are sitting pretty. “More than ever before exhibitors now will need a guarantee of sufficient pictures to keep their houses open even if they pass up some of the groups of five/' said Grainger. "Republic and similar companies will be the same as an insurance policy for those exhibitors and that will mean peace of mind for the theatre owners." Big gains over the preceding year were shown by every Republic exchange in 1940, Grainger said. He is now on his way to meet Herbert J. Yates in Hollywood to set up the 1941-42 production schedule. The program budget will be increased, he announces. *fc- V Fate of Measure Seen Dependent on What Opposition Arises within 15 days after being notified of the picture’s availability. The right to cancellation could be waived by an exhibitor before or after the making of a license agreement, but such waiver would have to be in writing. In case of a violation of the act by a corporation, it is provided that such violation shall be deemed also to be that of the individual directors, officers or agents of such corporation who have assisted in such violation, or who have authorized, ordered or done the acts of omissions constituting in whole or in part such violation, and upon conviction thereof any such directors, officers or agents shall be punished by fine or imprisonment, or both, as previously specified. The bill also sets forth that “any provision of any film contract, which is contrary to any of its provisions is hereby declared against public policy and void.” Under its terms, too, the holding invalid or unconstitutional of any of its provisions or the setting aside of its applicability thereof to any person or circumstances, would not affect the act’s validity or the applicability of such provision to other persons and circumstances. Determined on Success The bill went into the lower house last Tuesday and into the state senate two days later. In trade circles the feeling is that its chances for success depend upon whether much, if any, opposition is marshaled against it. Where this opposition will emanate from — if it does develop — cannot be foreseen at this time. It may come from film distributors — although Northwest Allied leaders say they have been assured otherwise — from the federal government, civic groups and women’s organizations opposed to block booking and believing that the consent decree selling plan abolished it. There even may be circuits or individual exhibitors who will try to defeat it, although as yet there is nothing definite in the air, as far as can be learned. Allied is determined to put it over. Kordas Stephen Pallos Confident in Britain Des Moines — A mountain of optimism was Stephen Pallos, Alexander Korda’s representative from England, who visited the Tri-States Theatres Corp. here Tuesday. Pallos, who is in the United States to work out Korda’s production schedule, says he is confident England will win the war. The war has interfered little if at all with production in England, he states. He plans to return to London next month. BOXOFFICE : : February 22, 1941 MW 45