Exhibitors Herald (1927)

18 EXHIBITORS HERALD October 22, 1927 New Uniform Contract Is Voted Committee Is Elected To Map Changes in Code Affiliated Exhibitors to Sit in Without Vote — Arbitration Rule to Be Revised Says Hays: “The result of the conference is, of course, a material progress. The industry s position on several matters heretofore not understood is made definite and plain.” (Special to the Herald) NEW YORK, Oct. 18. — As one of the most important results of the Federal Trade Practice Conference, a new uniform contract will be drawn and put into use by all of the distributing companies. This is to be worked out by a joint committee of exhibitors and distributors and is to be ready for use in time for the selling season of 1928-1929. The subject was brought up early in the conference by a resolution presented by the unaffiliated exhibitors and objected to by the other three groups. After considerable debate it was suggested by Commissioner Myers that the several resolutions committees get together and try to work out something that would be acceptable to all sides. The uniform contract presented by the exhibitor group, and which they for a time threatened to stand pat upon, reads as follows: WHEREAS , it has been shown by past experience that the present Standard Exhibition Contract now being used by the members of the Motion Picture Producers & Distributors of America , Inc., contains clauses which are inequitable and which work hardships upon the exhibitors, and WHEREAS, it is the aim and purpose of exhibitors to obtain the best possible attraction for the public and under terms and conditions so as best to serve the public well, and WHEREAS, under the present conditions under which film is bought and sold, the exhibitor is not certain as to what pictures will be delivered to him and under what conditions, and at what times, because of indefinite roadshow provisions and other indefinite and inequitable clauses, and, WHEREAS, under the present practice the exhibitor seemingly is given some rights but no corresponding remedies to enforce these rights under the contract, AND WHEREAS, this Standard Exhibition Contract is the sole and only instrument by means of which an exhibitor can lease motion picture films , NOW THEREFORE, be it resolved that this condition constitutes an unfair trade practice. Finally unofficial word came to the conference floor that Will H. Hays had appeared at the meeting of the exhibitoi group with a proposition that would end the deadlock and bring about a condition that would be pleasing to all concerned. Later in the day C. C. Pettijohn read the following resolution, which was adopted by the entire conference and accepted by the commissioner : WHEREAS, the motion picture industry recognizes that commercial arbitration promotes goodwill, economy and better standards in business and is endeavoring to develop in the most complete way possible a system of arbitration for the settlement of disputes between distributors and exhibitors which will be both fair to all and speedily expedient ; and WHEREAS, it is the desire of all branches of the industry to use a uniform exhibition contract both to standardize its contractual relations and to provide for such arbitration ; and WHEREAS, it is the further desire of all branches of the industry that the Standard Exhibition Contract so providing for such system of arbitration shall be as fair as possible at this time and shall be changed or modified as from time to time experience may demonstrate that it should be changed, and the further desire that the present provision of such contract and all future changes or modifications therein shall themselves be subject to arbitration, and the further desire that the rules and regulations for the arbitration of disputes arising under such contract shall be as fair as possible at this time and shall be changed or modified from time to time by arbitration as experience may demonstrate and warrant that they should be; and WHEREAS, it is believed that changes can be effected in such Standard Exhibition Con'.ract to improve the same; NOW THEREFORE, BE IT RESOLVED: 1 That to carry out the purposes of this reso * lution and the desire of all branches of the industry to promote fair arbitration and contractual relations, a committee of six shall be immediately designated consisting of three members chosen by the exhibitor delegates not affiliated with any producer or distributor here assembled and three members chosen by the Producer-Distributor delegates here assembled; that such committee shall immediately institute a study of the provisions of such Standard Exhibition Contract and the rules for the arbitration provided for therein and develop improvements in such contract and in such rules for arbitration and develop a plan for the further operation of such arbitration. In the event the exhibitor members and producer-distributor members of said committee are unable to agree, a seventh member of such committee shall be designated , such seventh member to be chosen unanimously by the six members and if such six members cannot unanimously agree on such seventh member, then the chief justice of the Supreme Court of the United States shall be asked by such committee to appoint its seventh member. 2 That after such adoption of such modified Standard Exhibition Contract and such modified Rules of Arbitration, that it shall be the further purpose of such committee to have periodical considerations of both said contract and rules for arbitration at consistent periods under the plan therefor which said committee shall develop to consider whether changes in such Standard Exhibition Contract and arbitration rules are warranted by experience, and at such periodical deliberations the seventh member may be called in for decisions. O It is understood that such amended Standard Exhibition Contract and amended rules of arbitration shall be ready for use for the season of 1928-29. BE IT FURTHER RESOLVED that the use of a Standard Uniform Contract providing for arbitration both of disputes arising out of said contract and of the provisions of the contract itself, all as herein set out, is a fair trade practice. In the selection of the three members of the contract revision committee, a spirited election was indulged in by the entire group. It was finally decided that the affiliated exhibitors should be represented in the deliberations, but without the right to vote. The committee includes: Exhibitors — R. R. Biechele, Ben Berenstein and Nathan Yamins. Alternates — A. C. Rowe, H. A. Cole and Joseph Walsh. Affiliated exhibitors — E. A. Schiller, Harold Franklin and Fred Desberg. Alternates — E. V. Richards, Dan Michalove and Harry M. Crandall. Distributors and Producers — Felix Feist, J. R. Grainger and Phil Reisman. PRODUCER DELEGATES Ascher, Small & Rogers, F. W . Beetson, Proxy. Bray Productions Inc., proxy. Chadwick Productions, Harry Thomas. Christie Film Co., F. W' . Beetson, proxy. Cecil B. DeMille Pictures Corp., John Flinn. Distinctive Pictures Corp., Absent. Eastman Kodak Co., Eugene Crystal. Educational Film Exchange, E. W. Hammons. Fairbanks Productions, Dennis O'Brien. F B O Pictures Corp., J. P. Kennedy and Jos. Schnilzer. First National Pictures Inc., Richard A. Rowland, Sam Spring and C. B. Hawley. Fox Film Corp., J. R. Grainger and Percy Hellinger. Samuel Goldwyn Inc., F. W. Beetson, proxy. D. W. Griffiths Inc., D. W. Griffith. Inspiration Pictures, F. W . Beetson , proxy. Kane Productions, F. W. Beetson, proxy. Buster Keeton Prod., Joseph Schenck and Dennis O'Brien. Kinogram Publishing Co., Capt. G. M. McBain. Harold Lloyd Corp., F. W. Beetson, proxy. Metro-Goldwyn-Mayer Distributing Corp., J. Robert Rubin, Nicholas Schenck, Felix Feist and Louis B. Mayer. Metropolitan Pictures Corp., F. W. Beetson, proxy. Paramount Famous Lasky Corp., S. R. Kent, Elek John Ludvigh and Ralph Kohn. Principal Pictures Corp., Irving Lesser. Producers Distributing Corp., Philip Rei man and John C. Flinn. Pathe Exchange Inc., Elmer Pearson and Louis Innerarity. Hal E. Roach Studios, F. W. Beetson, proxy. Sam Rork, Inc., F. W. Beetson, proxy. Joseph Schenck Producing Inc., Joseph Schenck and D. O'Brien. Mack Sennett, Inc., F. W' . Beetson, proxy. Gloria Swanson Productions, H. A. Moore. Talmadge Productions Corp., Joseph Schenck and Dennis O’Brien. United Artists Corp., Albert Lichtrnan , Joseph Schenck and Dennis O'Brien. Universal Pictures Corp., R. H. Cochrane , Louis Metzger and Siegfried Hartman. Vitagraph Inc., Sam Morris, and H. L. Beresford. Warner Brothers, Sam Morris and H. L. Beresford. Jack White Comedy Corp., F. W. Beetson, proxy. DISTRIBUTOR DELEGATES Capitol Exchange, Herman Gluckman. Commonwealth Film Corp., Samuel Zierler. Educational Film Exchange, E. W. Hammons and C. E. Catlin. F B O Pictures Corp., J. P. Kennedy and Joe Schnitzer. Fox Film Corp., J. R. Grainger and Percy Helliger. First Division Pictures Inc., Harry Thomas. First National Pictures Corp., Ned Depinet and Samuel Spring. Awyon Pictures, Melvin Hirsh. Lumas Pictures Corp., B. A. Rogers. Montague and McConville, Montague and McConville. Metro-Goldwyn-Mayer Corp., Felix Feist and Robert Rubin. Pathe Exchang Inc., Elmer Pearson and Louis Innerarity. Producers Distributing Corp., Phil Reisman and John Flinn. Merit Film Corp., Harry Thomas. Hollywood Pictures Inc., Jack Bellman. Gotham Productions Inc., B. A. Rogers. Masterpiece Productions, Ben Amsterdam. Columbia Pictures Corp., Jack Cohn and S. K. Brandon. Tiffany Productions, M. H. Hoffman and Ed. Smith. Paramount Famous Lasky Corp., Sidney Kent and Elck John Ludvigh . Universal Film Exchanges, Louis Metzger and Siegfried Hartman. Warner Brothers, Samuel Morris and H. L. Beresford. United Artists Corp., Albert Lichtrnan and D. O'Brien. Vitagraph Enc., Samuel Morris and H. L. Beresford. DeLuxe Film Exchange, Oscar Neufeld. (All other independent or regional distributor members of the 32 Film Boards of Trade represented by proxy and power of attorney by C. C. Pettijohn.)