Exhibitors Herald (Jul-Sep 1922)

MARTIN J. QUIGLEY Publisher & Editor * ISSUE OF * July 29. 1922 Killing the Hoy System By MARTIN J. QUIGLEY TT now appears that the Hoy System will quietly slip out of existence as far as the motion picture business is concerned. This will be a result for rejoicing upon for many reasons, among them being the fact that exhibitors generally— including those who meet promptly every obligation — do not want the system and also the fact that such a system is thoroughly incompatible with the best principles of business relations which this industry is seeking to put into effect and to maintain in effect. Nothing like the Hoy System should be 'necessary in this business and we do not believe that it is necessary, nor that it ever will be necessary. In fact, should there continue to exist in this business, or in any other business, an indifference toward contractual relations which would necessitate the use of a club like the Hoy System, it must mean, inevitably, that such a business is doomed to disaster. The decision of several of the leading motion picture companies to discontinue the use of the Hoy System is a thoroughly encouraging development, and it is to be hoped that exhibitors will not neglect to pause for a moment in their idaily rush of affairs and consider just what this imeans. * * * IT"* HE decision of these companies to disconI tinue the Hoy System represents to us the ipassing of another milestone in the progress of the industry in those very important matters of internal relations. It appears to us a singularly ■eloquent proof of the desire of distributors to create and maintain a new kind of relation with jexhibitors. And in doing this thing we believe that they not only are risking nothing, but that, in reality, they are better safeguarding their interests and the interests of their customers. The Hoy System, fundamentally, is a scheme of violence under which an exhibitor could be forced to do certain things against his will under threat of losing all film service or suffering some similar penalty which he would be compelled to avoid if he were to stay in business. It is an arbitrary and dictatorial institution which is wholly incompatible with right and proper business procedure. It is a star-chamber, rule-ofthumb system which could not fail, under certain circumstances, to do great injury to those who fell within the scope of its operations. TT cannot be denied that the conduct of certain exhibitors on various occasions seems to warrant the strongest possible action against them. But a thing like the Hoy System is not a right solution even in such cases because however unfair one party to a transaction may act this does not justify the other party to resort to unfair methods and the Hoy System is unquestionably an unfair scheme and one which we have never doubted has not a real legal justification under the existing laws. But the legality or illegality of the Hoy System is not its most important aspect by a wide margin. A thing of far greater importance is that the very existence in an industry of such a scheme precludes the maintenance of those finer principles of commercial relations which are indispensable to progress and advance. In the passing of the Hoy System the distributor will lose nothing; in fact, the development cannot help but yield a great advantage to exchanges and it will stand out in the mind of every thinking exhibitor as a bond of performance, guaranteeing the word of distributors that they are anxious to meet and deal with exhibitors on a new basis — a basis of common faith, understanding and confidence. This is one more bit of evidence of recent date attesting to the fact that the industry is making real progress.