Independent Exhibitors Film Bulletin (Sep 1935 - Aug 1936)

WEDNESDAY, JUNE 10, 1936 7 ALLIED SPEAKERS — AND WHAT THEY SAID Yamins Urges Negotiation NATHAN YAMINS President of National Allied Referred to purpose of convention as taking "inventory of affairs annually." Warned exhibitors to compare conditions in the industry not to previous year, but to several years before in order to have proper perspective. Score charges are equivalent to "paying tribute" for right to stay in business. Can be compared to rackets of Al Capone in Chicago, but these were punishable by imprisonment. Preferred playing time makes distributor the exhibitor's "partner" on best days of week and leaves latter on his own on poor days. Independents are "slowly, but surely, being crushed and forced out of business." Recalled Adolph Zukor's promise to Sidney Cohen in 1920 never to build or buy competitive theatres to coerce independents. Zukor ignored that vow. Affiliated theatres today have power to take any product away from indies who have had them for years. Producers use their theatres to "jack up" rentals by "veiled threats" to build in competition. Believes there is enough vision among production leaders to bring about solution of problems by negotiation, but this must be accomplished by the top men, not lesser lights. Neither producers nor exhibitors desire "outside interference" in the industry, but if negotiations with producers fail, exhibs cannot be blamed for seeking outside aid. Allied leaders have been subjected to "vilification" by producers. They will not continue to carry brunt indefinitely unless whole body of indie exhibitors support them. ■ Is Preferred Playing Time Legal? RAY TESCH Business Manager, Wisconsin Unit "We are witnessing a trend toward the gradual elimination of independent production and independent exhibition." Abram F. Myers prepared the first bill to eliminate compulsory designation of playdates and it was passed by the Ohio Legislature in July, 1935. Wisconsin unit followed suit and introduced similar bill and, after considerable delay, it was passed and signed by Governor. Major distributors have filed suits to have both laws declared unconstitutional. Ohio case will probably be heard before August 1st. Supporters of the bill base claim of constitutionality on state's right to regulate "incidentals of interstate commerce," meaning that which protects the health, morals and general welfare of its people. This is a proper exercise of the police power of a state. If successful in this case, exhibitors may be able to convince courts and state legislatures that block booking and other unfair trade practices fall under police power regulatory rights of individual states. Recommended that other units write and introduce similar measures. 'Fight,' Says Myers ABRAM F. MYERS General Counsel, Board Chairman, Allied "Utter and complete failure" of attempts to negotiate solution to difficulties with producers led Allied leaders to conviction that further efforts in this direction would be "futile and productive of no good." Since interests of independent exhibs "frequently conflict with those of producers, distributors and producer-affiliated theatres, the independent exhibitors must maintain purely independent trade associations for the protection of their interests." Cooperation with other branches in industry is desirable, but must be conducted by real independent leaders, "not through producer-subsidized organizations and leaders." Film industry is "legitimate business" and should be conducted to encourage confidence within the industry and command respect of the public. Following trade practices interfere with efforts of exhibitors to render best service to public: "(1) Compulsory block booking and blind selling; "(2) Unreasonable protection and clearance; "(3) Favoritism in leasing and delivering films to affiliated theatres; "(4) Compulsory designation of playdates; "(5) Regulation of admission prices of subsequent-run independent theatres in favor of prior-run affiliated theatres." Independents are justified in using every legal means for enforcing these principles and encouraging additional supply of films. "It would be interesting to hear the executives of the major companies explain to their stockholders" their rejection of the "moderate" proposals offered by Allied to joint trade conference in 1929. Would also be interesting to hear them justify "huge contributions to finance an organization of stooges" (M.P.T.O.A.). Allied is recognized by public groups interested in films as "representing decency and progress in the motion picture industry." "Allied conventions belong to the exhibitors, they constitute free and open forums." "Experience teaches that nothing can be gained by petitioning the Big Eight for reforms or redress. The only hope for relief is in the direction of legislation and litigation." "Finally, and most important of all, you should continue with renewed interest and vigor your efforts to solve the ever-increasing menace of product shortage by encouraging the establishment of new sources of production." ■ Analyzes Sales Policies P. S. HARRISON Publisher, Harrison's Reports Address (read by H. M. Richey) quoted results of questionnaire on film selling terms sent to several hundred exhibitors to prove that majors do not have uniform national sales policies. Some exhibitors get features without shorts. Preferred playing time not always demanded or gotten by majors. Percentages not uniformly asked. Score charges were not obtained in all cases by companies who insisted that it was part of their national sales policies. Exhibitors warned that majors are concocting new "trick clauses" to insert in contracts and cautioned to watch for them and refuse to sign whenever possible. ■ Pledges Gov't Protection RUSSELL HARDY Assistant U. S. Attorney General The lack of a sufficient supply of good films is industry's real problem. Glad to report that St. Louis case was "successful" for the Government and individual plaintiff's. Traced record of the case. The Government has been "severely criticized for taking sides." Some insist the Dept. of Justice should have stayed out and left Fanchon & Marco to seek their own legal redress. The cost of the injunction bond alone would have been prohibitive for an individual. The major film companies are "a highly organized group in constant personal touch with each other." "Strong arm of the Government" must protect the smaller business man from "oppression." Fact that producers are in competition with their own customers is basis of most complaints brought to Government. A similar situation existed in the railroad business when the roads took an interest in some of their shippers. Congress forced the railroads out of such business. Expresesd opinion that legislation to force producers out of theatre business would be held valid under the Constitution. "Small business will never vanish from the American scene." "The Department of Justice will exhaust every power" to correct situation in film industry. ■ Raps Paramount Poster Plan P. J. WOOD Business Manager, Ohio Unit Explanation of new Paramount poster rental plan. Exhibitors must pay increased price for originals and credits are allow ed only on judgment of condition by Laramount's poster clerks. Exhibitor must be accountant to keep records. This is the first step. If Paramount succeeds, others will follow and cost of posters to exhibitors will increase from $300 to $500 annually. Urged convention to go on record condemning the Paramount plan. (Resolution on this was later passed.) ADDITIONAL NOTES ON ALLIED CONVENTION SPEECHES WILL BE FOUND ON PAGE 13