Boxoffice (Jul-Sep 1940)

New Draft Clarifies And Tightens Terms (Continued from page 9) shall not be conditio?ied upon the lease of another feature or group of features. (b) — No exhibitor shall be required to lease short subjects, newsreels, trailers, or serials (hereinafter collectively referred to in this article as “shorts”) as a condition of leasing features. No exhibitor shall be required to lease reissues, westerns, or foreigns (hereinafter collectively referred to in this article as “foreigns”) as a condition of leasing other features. Controversies arising upon a complaint by an exhibitor that the leasing of one group of features was conditioned upon the leasing of another feature or group of features or the leasing of shorts or foreigns shall be subject to arbitration. An exhibitor shall have no right to assert any claim that the leasing of such features was so conditioned unless he shall have mailed to the distributor at its home office notice in writing of such claim and the grounds therefor not later than two days after notification to exhibitor of distributor’s approval of exhibitor’s signed application for such features, shorts and foreigns. The power of arbitrators in any such dispute shall be limited to (1) a finding as to whether or not the leasing of such features was so conditioned: and if the finding be in the affirmative; then (2) an award cancelling the license agreement or agreements for (or to the extent that they may relate to) such additional feature or group of features, “shorts” or “foreigns.” (c) Cancellation for Cause. An exhibitor may cancel out of any group of features leased by him, any picture which is generally offensive in the locality served by his theatre on moral, religious or racial grounds, provided written notice of his election to cancel together with a statement of his reasons therefor shall be mailed to the home office of the distributor not later than seven days after the contract has been executed. Any distributor may arbitrate the question of whether any picture is in fact generally offensive in the locality served on moral, religious or racial grounds. 3. Leasing of Feature Motion Pictures IN Exchange Districts. No license for features to be exhibited in theatres located in any exchange district* shall include theatres located in another exchange district, as from time to time constituted, nur shall the leasing of features in one exchange district be conditioned upon the leasing of a feature or group of features in another exchange district. 4. Pictures Available on Some Run. Controversies arising upon a complaint by an exhibitor that a distributor has refused to lease its pictures on any run shall be subject to arbitration. Distributors shall not refuse to lease their pictures on some run to be designated by the distributor for exhibition in any situation provided that the exhibitor can satisfy reasonable minimum standards of theatre operation and the exhibitor is reputable and responsible, unless the granting of a run on any terms to the complaining exhibitor will prejudice the distributor’s business interests in the area where the complainant’s theatre is located. If the arbitrator finds that a distributor has refused to lease its pictures contrary to the provisions of this section he shall issue an award directing the distributor to offer its pictures for license to •Changes in the territory embraced within a particular exchange district shall be made only after two weeks’ notice to the Department of Justice. tr Another Columbia '^Bell-Ringer^ ^ Hollywood — Columbia's enviable reputation for producing bell-ringing sophisticated comedies is further and substantially enhanced by ”He Stayed for Breakfast," a delightfully brilliant mixture of farce, subtlety and satire. It should prove an entertaining tidbit of the choicest variety for discriminating entertainment seekers, but at the same time is sufficiently down-to-earth to have considerable mass appeal. With so much serious agitation concerning fifth column and ism activities, its theme, which subjects Communism to a merciless ribbing, is particularly timely and appealing. Melvyn Douglas and Loretta Young are ideal in the star positions, and the picture is ably produced and directed by B. P. Schulberg and Alexander Hall, respectively. — SPEAR. —>J the complaining exhibitor for a run to be designated by the distributor upon terms and conditions fixed by the distributor which are not calculated to defeat the purpose of this section. The burden of showing that granting a run on any terms to the complaining exhibitor will prejudice the distributor’s business interests in the area where the complainant’s theatre is located shall be upon the distributor. 5. Arbitration of Clearance Disputes. Disputes as to clearance shall be subject to arbitration under the following provisions: Clearance, as used in this section, shall be deemed to mean the period of time which must elapse between the successive runs of a motion picture in a given area, pursuant to the express provisions of a license agreement. It is recognized that clearance, reasonable as to time and area, is essential in the distribution and exhibition of motion pictures. (The clause on a distributor’s right to select its own customer and designate the run is omitted from this draft and is to be inserted in clauses containing general reservation) . In determining whether any clearance complained of is unreasonable, the arbi-. trators shall take into consideration the following factors and accord to them the importance and weight to which each is entitled, regardless of the order in which they are listed: (1) — The historical development of clearance in the particular area wherein the theatres involved are located. (2) — The admission prices of the theatres involved. (3) — The character and location of the theatres involved, including size, type of entertainment, appointments, transit facilities, etc. (4) — The policy of operation of the theatres involved, such as the showing of double features, gift nights, giveaways, premiums, cut rate tickets, lotteries, etc. (5) — The rental terms and license fees paid by the theatres involved and the revenues derived by the distributor from such theatres. (6) — The extent to which the theatres involved compete with each other for patronage. (7) — All other business considerations, provided that the fact that a theatre involved is affiliated with a distributor or a chain of theatres, shall be disregarded. The power of the arbitrator in any dispute relating to clearance shall be limited to: (1) — A finding as to whether or not the clearance complained of is unreasonable and, if the finding be in the affirmative, then, (2) — An award fixing the maximum amount of clearance which may be granted in all license agreements thereafter entered into. In any case where there has been a reduction in clearance by an award of the arbitrator any distributor or exhibitor affected by such an award may thereafter petition for a modification of the maximum Takes a Dark View Of Ind'p'fs' Fate (Continued from page 4) at our expense.” In regard to the proposal to sell in blocks of five, Cohen states it is his belief the government is trying to protect and insure the right of the subsequent exhibitor “to stay in the business.” “Any mandatory provision which interrupts a steady flow of product to independents would create a hazardous condition in that the said exhibitors would constantly be at the mercy of onerous sales conditions on the part of distributors. “Furthermore, in double feature territories where independents need from six to eight pictures a week, you can readily understand the hardships to be overcome if purchases of pictures were limited to blocks of five, thereby preventing the proper setting up of film requirements for the ensuing year. “The right of proper cancellation, a provision for which we have been fighting for years, would be lost to us forever. “The problems of the independent exhibitor vary all over the country. The evils and abuses take on different forms in different territories. It is obvious that one prescription for all complaints cannot become the cure-all. Two important points confront every independent nationally. Let there be applied proper cancellation to wholesale buyers and arbitration to take care of clearance.” In a plea for “common sense, sane reasoning,” he observes, “Every move being made is closing in on us and trying to push us out. What uncommittable sin has been made by the independent exhibitor that he is being pushed off the map?” He urges that the government ignore “a lot of rabble rousers. Get down to the meat of the thing. Take those who have complaints into confidence and work out the problem,” he demands. Setting up an arbitration system where an exhibitor does not have to fear sitting on a panel against another exhibitor would be a boon to the industry, in his opinion. “We’ve been sold down the river so often in the last few years, it is about time we bought the river before we get drowned in it.” clearance fixed by the award, and if it shall be shown that since the making of such an award the conditions in respect of the theatres involved in the award have so changed as to warrant modifications there(Con tinned on page 14) 12 BOXOFFICE :: August 10, 1940