Independent Exhibitors Film Bulletin (1938)

MAY 14th, 1938 3 THE GOALS OF ALLIED By ABRAM F. MYERS General Counsel, Allied States Association An invitation to discuss the goals of Allied is not as much of a challenge as some might think. Those objectives were in the minds of the organizers of the association and were outlined in the first draft of constitution. They have altered only slightly in the intervening nine years. They have been many times re-affirmed at national conventions, at board meetings, and by the affiliated regional associations. The trouble is that the ends have too often been confused with the means. The ends are crystallized and unchangeable, the means have varied from time to time. In the beginning it was believed that, with the leading independents mustered under one banner, the objectives could be attained by the usual methods of negotiation and understanding. Overnight it became apparent that the politicians in New York wanted no truly independent national organization and that they were determined to disrupt it or prevent its spread at any cost. Thus Allied from the very beginning was forced into an aggressive policy that has been followed ever since. The basic principle of the Allied philosophy is that the theatres belong to and should be operated by the exhibitors. At first, this merely contemplated that the distributors should abandon or modify trade practices which prevented the exhibitors from exercising an intelligent selection in buying pictures and which interfered with the exhibitors' control over the operating policies of their theatres. Thus block booking, interchangeability, unreasonable protection, admission price control, percentage playing (especially with guarantees), checking, etc., were among the problems which first occupied the attention of the association. It was soon recognized that at least some of these practices were being stimulated by the expansion of the producer-distributors in the field of exhibition. Protection, control of admissions, and checking gave the producer-distributors strong competitive weapons against the independent theatres and facilitated their absorption of the latter. No progress having been made in securing modification of these practices by negotiation, there followed a switch in the procedure but not in the objectives. At the Cleveland convention it was decided that divorcement of production and distribution from exhibition by legislation was the only course left open. Security for the theatre owners was the next great principle. Naturally no one supposed that membership in a particular association could protect any exhibitor against losses resulting from lack of showmanship, business acumen, or energy. But it was felt that men of character and ability who have spent their lives and invested their all in the business should not be exposed to loss or ruin by the exercise of arbitrary power inherent in the control by the Big Eight of necessary supplies of film. In this connection it was felt — (a) That independent exhibitors should not be exposed to invasion by the producer-distributors where there was no need for facilities which the independent could not supply and where the only object to be accomplished was the taking away of the independent's business by depriving him of his product. (b) That where competition already exists between affiliated and independent theatres (or until the producer-distributors can dispose of their theatres), power resident in control of the films should not be exerted to deny independents of the priority of run or choice of product which they otherwise might enjoy, nor should the independents be discriminated against in any way. (c) That the right of the exhibitors to earn a fair return on their investment in the theatres, no less than the right of the distributors to earn a fair return on their investment in the studios and films, should be fully recognized; and while no precise pricing formula is feasible, manifest unfairness in the draining off of theatre earnings in the form of film rentals should be adjusted. Embodied in these fundamentals of the Allied creed is a magna charta which, if subscribed to in good faith, and interpreted and administered by fair and disinterested tribunals, would accomplish all that Allied has ever sought to accomplish. The wonder of it is, in view of the attempts that have been made to pin the red badge on Allied leaders, that this program holds no threat to the property, prosperity, or legitimate operations or practices of any other branch of the industry. Most remarkable of all, Allied never has been and is not now committed to any particular method or means for translating these principles into practice. This much I believe: Allied is closer to its objectives today than at any time since the association was organized. Lacking evidence of a bona fide purpose by the producer-distributors voluntarily to curb their predatory practices and to set up honest tribunals as a guarantee for the future, the Pittsburgh convention undoubtedly will insist upon a renewal of the legislative program with even greater vigor. I predict that the exhibitors will insist that the organization and practices of the motion picture trust be included in the broad investigation to be made pursuant to the President's recent message. Whether as a result of fact finding by the investigators, new legislation pursuant to their report, action by the Department of Justice under existing law, enactment of the Neely Bill and State theatre divorcement bills, or a combination of any or all of these, the monopolistic practices of the motion picture trust are doomed. An Independent Film Trade Publication issued bi-weekly on Saturday. Publication Office: 1323 Vine St., Philadelphia. Pa.; phone: Rittenhouse 7424. Mo Wax. Publisher and Editor; Roland Barton, Associate Editor. Advertising Manager, Edward Larkin: Advertising Office: 505. 729 Seventh Avenue. New York City. N. Y.; MEDallion 3-2943. David J. Hanna. West Coast Editor, 223 Loew's State Theatre Bldg., 7th and Broadway, Los Angeles, California. Subscription Rates: One Year— In U. S. $3.00; Canada, $4.00; Europe, $5.00 — Single Copies 15c