Exhibitors Herald World (Oct-Dec 1930)

November 29, 1930 EXHIBITORS HERALD-WORLD 17 Return to Deposits Plan May Follow High Court's Decisions Will Decide Exhibitor Credit By Individual Case, Says Hays New Contract Conforms to Thacher Ruling, Declares M P T O A — "Smashing Victory," Asserts Myers (Special to the Herald-World) NEW YORK, Nov. 28. — Return to the deposit system in the contractual relation between motion picture distributor and exhibitor is seen in trade circles here as a possible result of the decisions handed down by the United States Supreme Court this week in holding illegal the arbitration clauses of the Uniform Contract and the Credit Committee arrangement. Otterson's Dime Left Immediately by Plane (Special to the Herald-World) NEW YORK, Nov. 28.— John E. Otterson, president of ERPI, received the following wire from Walter May, president of the Advertising Club of Portland, Oregon: "Advertising Club of Portlands launching campaign to raise one hundred thousand dimes for funds to produce talking pictures featuring Oregon." Otterson's dime left New York by air mail immediately. J. L. Warner Will Stay in Charge of WB, F N Production (Special to the Herald-World) HOLLYWOOD, Nov. 28.— When Warner Brothers and First National launch their big production program within 30 days, J. L. Warner will continue in charge of all production, with Hal B. Wallis and C. Graham Baker as co-executives functioning for First National, and D. F. Zanuck functioning in a similar capacity for Warners. William Koenig will be general studio manager for both organizations. Upon his return here from the East, Warner announced a program of 70 features to be made by both. This will comprise, he said, the biggest program ever undertaken by the two organizations. Portland Theatres Sign Two Year Contract with Local Operators9 Union (Special to the HeraldWorld) PORTLAND, Nov. 28.— A contract was recently signed by officials of the Motion Picture Operators' Union No. 59 and by officials of the Fox Broadway, Paramount, Rialto and RKO Orpheum theatres whereby the present wage scale will be maintained for another two years from last September, at the end of which period the union operators ask for another raise of $2.50 a week minimum to be added to the present scale. Hopkins and Sherwood To Be Guests of AMP A (Special to the Herald-World) NEW YORK, Nov. 28.— Arthur Hopkins, famous stage producer, and Robert E. Sherwood, noted playwright, will be the guests of honor at the next weekly meeting of the A M P A to be held at the Hotel Dixie on December 4. The announcement comes from Mike Simmons, president. Loew's Votes an Extra Dividend of a Dollar (Special to the Herald-World) NEW YORK, Nov. 28.— Loew's, Inc., has declared an extra dividend of $1, in addition to the regular quarterly payment of 75 cents, payable on December 31, to stockholders of record December 13. The Hays Organization has under consideration whether or not to move for reargument of the case. A sixty day period is allowed in which to take such action. Means Individual Credit Commenting on the court's opinions, Will H. Hays, president of the M P P D A, said in a statement that "the new decision simply means that individual distributors will determine with individual exhibitors a system of credit in each case." This was taken to mean that the individual companies may deem it necessary to require deposits on pictures in order to safeguard their interests. Hays also declared that the decisions serve definitely to clarify the relationship between distributor and exhibitor as to both credits and arbitration. Complaints Brought Uniform Contract The deposit system was the source of constant complaint from exhibitors, complaints which eventually led to agreement upon the Uniform Contract, whereby the deposit requirements were eliminated. There are many who believe that the return to the deposit system will be detrimental both to the distributor and to the exhibitor, especially the smaller theatre owner. They point out that with deposits in force the field of production is opened to many mushroom concerns employing high pressure salesmanship. "These companies," one man pointed out, "make glowing promises, obtain deposits, probably make one cheap picture and then disappear and the poor exhibitor is left holding the bag." Another man asked: "If we return to deposits what is the exhibitor going to do who already is burdened with the cost of sound, many now having their theatres in hock?" There has been some question as to the future of the Film Boards of Trade. It is definitely known that these will continue in operation as in the past for they represent the industry's field force and their activities have become so diversified that arbi tration was but a small entity in the scheme of things. It was pointed out at the offices of the Hays organization that ever since the Judge Thacher decision was handed down in October, 1929, holding the Uniform Contract and its arbitration provisions illegal, the forms of contract used by distributors have not contained a compulsory arbitration clause. A new standard license agreement, providing for voluntary arbitration, was agreed upon at the 5-5-5 conferences of the distributors and exhibitors. This proposed contract was officially indorsed at the M P T O A's recent convention in Philadelphia. Abram F. Myers, president and counsel of Allied States Association, while declaring that the Supreme court action "has an important bearing on other activities of the producers," stated that "fortunately the way is left open for the solution of all problems by negotiation." He said that as a result of the rulings "the Hays Organization can no longer impose their arbitrary will on the exhibitors." The court decisions were read Monday by Justice McReynolds. The one on arbitration upheld former Judge Thacher's ruling in federal court. The Supreme court opinion holding the Credit Committees unlawful was an overruling of Judge Thacher, who last fall had declared them legal. Progress Being Made, Says Hays Hays in his statement on the arbitration ruling said: "The Supreme court affirmed the decision of Judge Thacher of the U. S. District court in New York rendered a year ago last October. Since that time the industry has not operated under the plan questioned by Judge Thacher. Since then distributors and exhibitors have been developing a new system of voluntary arbitration to the end that the values of arbitration may be saved without including any compulsory provisions, and progress is being made in that direction." Of the ruling on the Credit Committees, (Continued on next page, column 3) Papers in R K O-Pathe Deal All Ready; Dupont Not in Assets RKO Is to Get (Special to the Herald-World) NEW YORK, Nov. 28. — The RK O-Pathe deal is all set with the papers drawn and ready for the approval of attorneys, following which the deal will be submitted to the stockholders for ratification. It is in the latter procedure that complications may arise. In the £ve million dollar deal RKO gets certain Pathe assets but the DupontPathe Company is not included in these.