Canadian Film Weekly (Aug 29, 1945)

~~ August 29, 1945 is the head. Because of the WPTB regulations, some of the points do not have direct application to business methods here. However, we reprint the entire code and the exhibitor may decide those points which will benefit him, 1. If we make a mistake in designating a picture in a bracket higher than justified by results, it is not necessary or expected that our customer be required to ask for an adjustment in terms, but when called to our attention with the supporting facts, and they must be facts, we will reclassify the picture in the bracket where it rightfully belongs. 2. There is no policy in our company that prevents one of our top bracket pictures being reclassified even to the balance or lower bracket, if that is the proper classification based on results at that theatre. 3. We intend to retain our right of designation as there is no other means we know of to intelligently price our merchandise. 4, We intend to continue to sell on the sliding scale; that this basis is considered by us and by thousands of our customers as being a fair method of dealing. 5. We will, where justifiea, change the unit figure if results on record disclose a hardship, and by hardship I mean either a loss, or a minimum of profits to the theatre on pictures of ours played on this basis. 6. We recognize the effect because of shifting populations, industrial inactivity and other reasons, in some small localities, on some of the subsequent runs, and I mean Jater runs in cities and small towns, and are prepared in such situations to adjust our terms to meet present-day business levels. In such situations we are prepared to forego socalled preferred time in exchange for what our managers consider its equivalent in the way of midweek playing time. In such instances it can be incorporated in the contract with our customers as optional. 7. This is a matter of negotiation between our representatives and our customers and in our desire to help in specific situations which need help it is not to be considered that we are going to forego entirely preferred time, because, to the contrary, we expect to continue to seek and we hope to get our pictures played under the most favorable circumstances. But we do want to do everything in our power to assist deserving cases. 8. We deplore the thought that exhibitors must come, as they Canadian FILM WEEKLY Kaur Business Code Issued by MGM Some Points of Code Issued by W.F. Rodgers, Vice-President and General Sales Mgr., Wouid Fit Into Canadian Dealings (Continued from Page 1) cite it, with “hats in hand” looking for an adjustment. That is very definitely contrary to our policy, and the sliding scale was devised to automatically take HENRY NATHANSON Head of Regal Films, MGM’s Canalian outlet. care of an adjustment. So far as flat rentals are concerned, we can have no knowledge of the results unless we are informed, and we are prepared to rectify any unintentional error made by reclassifying the picture immediately when authentic facts justifying it are presented. 9. Our branch and _ district managers have authority to adjudicate what appear to be unintentional errors; they can when justified adjudicate any business contracts. 10. We do not want, much less expect, any unfair terms or advantages. 11. Our policy of fair dealing will be carried out in the future as in the past. 12. We do not exact as a policy, home office approval or reclassification or adjustment in terms when presented with facts. 13. It is not necessary for our customers to come or write to New York for relief, but if it is not granted where absolutely justified they are invited to lay their case before us for consideration and attention. 14. For some time we have been cognizant of the problems of what we term the sub-subsequent runs. Our definition of this type of operation is a theatre following the key runs in a Zone located generally within the corporate limits of a metropolitan city, not necessarily the second run in a city but those which follow the key or first runs in individual zones. Hence, for this type of run and for this type only, we will offer the pictures sold in a group on a basis whereby those who desire can lease such pictures in the top brackets on a fiat-rental basis. This will be optional at the time of negotiation. It must be understood that where flat rental in this direction is desired it is not contemplated to offer pictures in this category at bargain prices; we do not intend to price our pictures below that which we believe our top bracket justifies, neither will we ask premium prices for the privilege of playing flat rental versus percentage. We want only the proper terms. We, of course, prefer to play on a participating arrangement with this type of run, as well as all other runs, but because of conditions as they have been reported to us and because of our desire to cooperate with our customers, we will in such cases where this type of exhibitor so desires, offer all of our pictures sold in a group on a flat rental basis. 15. As to News of the Day, short subjects and trailers, each unit must stand on its individual merit and be priced accordingly. There will be revisions upward or down, depending upon the situation involved, and precedent is not the determining factor. Present-day conditions only should govern. Under no circumstances will we tolerate, much less sanction, the leasing of feature attractions as a condition of buying either one or all of these units. We repeat, each unit must be offered and negotiated for independent of the the other and in no way made part of any negotiations for any other product. Weekly payment plans are not acceptable. 16. Proposed new theatres are not to be given assurance of any specific availability, and we will not negotiate for renresentation in such theatres until they become a reality, and then only for such a run and product as is then available, Page 7 17. Every effort possible is to be made to avoid arbitration and by “effort” we mean, as you have previously been advised, that you are to try your level best to adjudicate differences before they reach the arbitration stage. District and sales managers’ aid is to be requested by branch managers where needed and, if necessary, the matter should be brought to the attention of the general sales manager. 18. Runs or accounts are not to be changed, nor applications even signed, until after complete facts are first submitted to the general sales manager through the district and sales manager, and then such proposed changes are not to be acted upon until proper authority to do so has been received from the general sales manager. 19. Complete support is to ge .given to War Activities Committees in all of their undertakings, and gratis pictures or participation in any wartime activity is not to be given except when it has the endorsement of the War Activities Committee or the home office. The WORLD in ACTION AUGUST RELEASE :} Wé SEGREY die PEACE