Independent Exhibitors Film Bulletin (Sep 1934 - Aug 1935)

4 I X DK FK N D K XT EXHIBITORS FILM BULLETIN ALLIED HITS M-C-M FOR THREATS' AGAINST CHICAGO EXHIBS that a film company can refuse to sell any account, but if several producers refuse and an exhibitor is damged by their refusal, he has the basis for a conspiracy • suit. The withholding of film and the buying-booking rackets "can be licked in the Federal Courts," Myers declared. Metro's Chicago Stand Denounced Terms U nfair . . . Subject slated for most attention during the convenion was M-G-M's threat to build theatres in opposition to indie exhibs who are boycotting them. Called upon to explain the situation, Aaron Saperstein, Windy City Allied leader, said that the failure of Metro and the Chi exhibs to get together is due to the film company's unreasonable demands for high percentages and preferred playing time. "They couldn't accept Metro's terms and continue in business," Saperstein told the meeting. He stated further that M-G-M was the only producer demanding percentages and preferred playing time in Chicago. Instead of being reasonable and taking into consideration the exhibitors' problems, M-G-M proceeded to threaten retaliatory theatre building. Saperstein declared that the Chicago exhibitors were determined to see this fight through to a finish. Committee Adopts Resolution . . . A special committee was appointed by Prexy Sid Samuelson to investigate the Metro-Chicago fight further and report the following day. A resolution was prepared by the committee and read by Morris Wax. IEPA of Philadelphia, president. "WHEREAS, it has become generally known through the trade press and through other reliable sources that M-G-M has adopted an unfair and unethical policy of intimidation, coercion and threats to build theatres in Chicago in opposition to existing theatres operated by exhibitors who have refused to accede to the unreasonable terms demanded by Metro in the sale of their pictures. "NOW, THEREFORE, be it resolved that such action by Metro either implied or executed will be condemned by every delegate present at this convention, and that each and every delegate is hereby pledging himself to submit to his respective organization for adoption a resolution expressing such condemnation of M-G-M's policy as will in no uncertain terms declare the wholehearted sympathy of such organization with the stand of the Chicago exhibitors and its intention to take a similar stand if Metro persists in its aggressive policy. "BE IT FURTHER RESOLVED, that the committee appointed at this National Convention of Allied States Association be authorized to draft a copy for a trailer to be used on the screens of all Allied members throughout the nation to acquaint the public with the unfair and aggressive tactics employed by Metro, and with the manner in which the public will eventually be affected." Exhibs Seeking Law's Protection... While the Convention was in session, the Chicago exhibitors were instrumental in introducing a bill in the State Legislature making it illegal for producing companies to build or lease theatres, when the move is directly shown to be actually an attempt to coerce exhibitors in buying pictures. The vital provision of the measure reads: "It shall be unlawful for any distributor to threaten to or to commit any overt act evidencing an inention to, or to build, lease or otherwise acquire directly or indirectly any competing motion picture theatre, or to exhibit any motion pictures in any competing motion theatre in which it has any interest for the purpose of coercing or intimidating any exhibitor into entering into any proposed contract for the exhibition of motion pictures." Saperstein urged every state unit of Allied exhibitors to bring similar measures into their respective Legislatures. Wax Says Metro Would Compromise . . . Morris Wax told the assembled exhibitors that Robert Lynch, Metro boss in Philly, had advised him that his company would be willing to compromise in Chicago if they could do so without jeopardizing their sales policies in other territories. Wax had also been told by Lynch that Metro had tried to compromise, but found the exhibitors unwilling. This was refuted by Saperstein and others of the Chicago contingent. When apprised of what Wax had told the convention, Lynch declared, "Wax's remarks are plain cuckoo. When M-G-M goes into anything, it is after careful advance planning." Wax maintains that he repeated only and exactly what Lynch told him, regardless of what Lynch now claims. Buying-Booking Racket' in the South An Amazing Story . . . A tall, white-haired, typical Southern gentleman strode to the platform after Barrist to tell the amazed theatremen of a new stunt being pulled by an affiliated chain in Texas. Colonel Harry A. Cole was the man and the pathetic story he related became the principal topic of conversation around the hotel lobby for the remainder of the convention. Colonel Cole declared that he is about to be driven out of business. One of his theatres is closed and the other is operating "from day to day." And he blamed his plight on chain theatre oppression. An affiliate of Paramount in Texas has started the practice of "reserving" major film products for towns in which they do not operate theatres. When the independent theatre owner goes to the exchanges to buy, he is advised that this circuit has the product tied up and the only way it can be obtained is through them. The indie is therefore compelled to buy pictures through the circuit, paying, generally, four per cent of the gross for the "service." The mild-mannered Texan warned the meeting that if this practice is found successful in his state it would spread to other territories. Another Trick . . . Continuing, Colonel Cole disclosed another unfair practice used by the chain to crush independent competition. They force contracts on the indies requiring them to charge a minimum of 25 cents on any picture which play their first-run towns at 40 cents or more. Small neighborhood theatres are thus compelled to (Continued On Page Six) COLONEL H. A. COLE, Texas . . . Told about a new "racket."