Exhibitor's Trade Review (May-Aug 1925)

Page 32 Exhibitors Trade Review LAEMMLE APPEARS AT CONVENTION TO TELL INDEPENDENCE STAND In the heart-to-heart talk from the rostrum at the Milwaukee convention, Carl Laemmle, president of Universal Pictures Corporation, told the delegates that ne had no desire to own a tneatre in competition with his customers and that he would join them in a fight for independence. Mr. Laemmle said : "I'm an independent, and I don't care who knows it. I always will be and 1 always have been an independent. I need your support now. I need it more than I have ever needed it in my life. Why, you got to stand by me exactly as I'm standing by you. "One or two or three companies cannot monopolize this business nor can they force you any longer to buy their product and thereby lock out all cf the others in the industry. I want a fair share of the business. The true exhibitor will divide among all the good companies his playing time. And I know I'll get my 10 or 15 or 20 per cent of his time. I don't want any company of mine to get the worst of it. That's fair and square. "The wise exhibitor believes in dividing his playing time, and he is usually more successful than the one giving all of his time to one single company. "I don't want to btrld theatres. I'm not an exhibitor. I don't want to compete with my customers. I do insist on getting the share of business I think I am entitled to. I propose to get my share even if I'm going to have to buy and build theatres. There can be no success in film production unless there is a great and good outlet for the producer. Poor outlet can only mean poor product. "Practically all of the theatres that we own we have been forced to buy. We were shut out and had to get into these territories. Our interest in the Schme Enterprises is only a minority one. Schine Brothers are managing the theatres as before. "We wanted the Hoffstetter Circuit because of the poor business in Omaha territory. We had been locked out. We made up cur minds that we either had to quit our Omaha office or get our own theatres. "We are all here to protect our interests, you and I. I want to say I don't want to be a competitor of my customers. I am willing to sell every theatre that we own, providing that we get a long time contract for our products and that not the best of our houses are picked and the lemons left to us. There're no if s and buts ! I want to tell every one, so long as we can get a contract guaranteeing us an outlet and protection. "It is up to you to keep alive the independents. You have to do it in self-preservation. It is your only defense. "Did you ever think what would happen if the industry were controlled by one or two companies? Imagine what would happen if Fox, Universal, Producers Distributors and all of the independents were gone? Figure what the rental charges would become. Double your figure and then triple that and you would have the future film charges. How many of you would be left in business? A few of you — as managers. "I believe in encouraging competition. It spells betterment and protection. If you wipe out competition business will stagnate. There is room for all. I have never been jealous of a competitor. "I'm fifty-eight years old. Ours is the most fascinating industry. What shall I do? Shall I quit? Or shall I continue to give the best that is in me? "I want all of you to build more theatres, the more the merrier. ELVEY QUITS FOX TO MAKE OWN FILMS HOLLYWOOD, May 22— Maurice Elvey, British director, secured a cancellation of his contract with William Fox. Sol Wurtzel, general manager \pf the local studio, at a conference with Elvey, acceded to the request of the director and granted him his release. Elvey had made some eighty pictures in England and on the European continent when his productions attracted the attention of Mr. Fox and other American producers. Offers to come to America followed and the director was signed by Fox. It was understood that Elvey had considerable program material which he would produce for the Fox organization, but it seems little opportunity presented itself, so the director has decided to go "on his own." "While Universal can take care of itself, we've done all we can to counteract the influence and now we must have your rupport. "Booking combines are bad for the business. They're the worst thing that could have happened to us. Forcing down prices is the same as forcing down quality. We need your encouragement. Pay greater rentals so that the producer can make pictures and a profit. Present rental prices are nothing short of disastrous. If the prices of this season are to continue, I for one am ready to quit this business. I'm not it it for glory alone. We've done the greatest foreign business this season in our history. In our country we've had to fight to keep above water. Buying combines have to go, as they are not for the benefit of the producer. ^Ten per cent profit! That's our new basis. "Are you going to support all I'm asking?" I've instructed all our branch managers to sell all our product on this 10 per cent charge. "The little fellows are the bulwark of this business and of the independents. And I'll go a long way to help him along, even to selling him our entire product below cost. Excepting the super-Jewels, he gets all of our serials, two-reelers, Westerns, single reels, comedies, Centuries, Gibsons and Hoxies and all the 24 Jewels for the price of a single feature. For the one and twonight stand men, this means they'll buy Our films at $1 a reel, or less, a price we used 12 years ago. This will help to keep him alive, and to keep independents alive. "Use your play-dates where they will do you the most good. And I know I'll get what is coming to me." Mr. Brlowsky asked Mr. Laemmle at the close of his talk to repeat the statement he had made to the board of directors of the M. P. T. O. A. that he would only build or own houses in territories where he was absolutely locked out. "That's correct," he replied. / * * * CHADWICK TO START SPECIAL With completion of the screen adaptation of Denman Thompson's stage play, "Sunshine of Paradise Alley," Chadwick Pictures Corporation will start work on this production shortly. Edmund Lawrence was in New York with Mr. Chadwick conferring on this production. % * % FOX OBTAINS WRIT LOS ANGELES, May 22.— Fox Film Corporation has obtained a permanent injunction in the United States District Court restraining the William ("Bill") Mix Productions of this city from issuing misleading advertising. Fox sought the writ on the ground that the company was encroaching on the name of the Fox star, Tom Mix. SEIDER REPORT ON UNIFORM CONTRACT DECRIES CLAUSES (Continued from page 29) contract which your Committee has approved and which it urges you to respect. "The rules, referred to in the Arbitration Clause of the Contract, provide for the appointment of the arbitrators and the rules and procedure of the Arbitration Boards. "These rules make of arbitration a purely collection medium for the Distributors and the Arbitration Board a collecting agency. "The arbitrators should not assume the functions of a Court of Law. They are neither qualified nor empowered to so function. "The purpose of arbitration is to avoid litigation and the theatre owner involved in a dispute should have the right of definitely and in fact choosing fifty per cent of the members of the Arbitration Board who will arbitrate his particular case. "Evidence should not be limited by rules. All matters pertaining to the dispute involved; should be allowed to be brought out; as for instance, a pamphlet or press book in which the Producer makes representation as to the quality of his pictures, which in our opinion is very important evidence, should be considered by Arbitration Boards. "Provision should be made for the refunding of expenses incurred by the theatre owner who receives a verdict in his favor in a matter of arbitration. Very often the theatre owner is compelled to travel long distances and incur much expense in order to defend himself in a. matter that has no merit. "The present contract is so unfair, so one-sided and the method of carrying out the Board's verdict is confiscatory. I know that $10,000 was paid to a reputed firm of attorneys to draw the arbitration clause, but it appears it was paid so that the illegal procedure should have the semblance of legality. No firm of lawyers can make an Arbitration Board both the judge and the sheriff. It is vicious to have the power to close a person's theatre for failure to comply with the award of a Board of Arbitration, any part of which he may not have had the right to appoint and the arbitration proceedings having been based on a contract which he has had to sign against his better judgment and wishes through not having the choice of any other course. "The independent producers should compete with the present system by setting up in addition, their own arbitration system and tribunal, founded on service a.rid a square deal. "If a contract is agreed upon and approved by this organization, it should be retroactive so that our members in purchasing their new year's product shall have the assurance that it will be under the terms and conditions that are finally agreed upon. "Tour committee recommends that a Committee of five members be appointed by the Board of Directors to serve for the ensuing year. This Committee to be empowered to consummate a mutual and equitable approved standard exhibition contract. "If this is accomplished, this committee shall form with the Motion Picture Producers and Distributors and the Independent Motion Picture Producers & Distributors of America, an Arbitration Committee. "This Arbitration Committee shall with a like number of Distributors constitute a. Court of Appeals with power to review such disputes that are referred to it by locaj. arbitration Boards to prevent any injustice being done to either side in any local or exchange center. "We further recommend with the provision that if an equitable contract is arranged, that this Organization assumes the supervision of the Exhibitor's side of the Arbitration System. "That this Organization establish and maintain an Arbitration Bureau which shall tabulate records and decisions and shall keep every Arbitration Board, each local and subdivisional unfit and their counsel fully advised of decisions in everV .matter and in every territory." PARAMOUNT BUYS STORIES Zane Grey has signed with Famous Players-Lasky Corporation a contract carrying the rights to five of his books. The five stories are "The U. P. Trail," "The Man of the Forest," "Desert Gold," "The Desert of Wheat," "The Mysterious Rider."