Independent Exhibitors Film Bulletin (1951)

ALLIED S 'NEW LDDK (Continued from Page 5) ceeded in invoking a monopoly law to bring about "interchangeability", as it was called, in the reproduction of recorded sound, and prevailed upon RCA president David Sarnoff to market a high-quality installation for small theatres at a fractional cost of the so-called "approved" installations. Allied gained prestige, more members, but not recognition by the film companies. Less than a year after Allied's formal inauguration, the first attempt at "conciliation" (there were to be seven more fruitless trips to the well over the next 20 years) was made when the late Billy James, president of MPTO of Ohio, invited the Allied leaders to its convention. Upon arrival, they found Paramount's Sidney Kent and the Hays organization's Charlie Pettijohn on hand. As Myers describes it, "At the banquet the storm broke. Kent deplored the 'destructive' policies of Allied and proposed that an effort be made to 'settle all differences within the industry.' Pettijohn went him one better and declared that unless the shooting subsided he would see to it that the affiliated theatres became duespaying members of 'consructive' exhibitor organizations." Myers picked up the gauntlet, branded Pettijohn's statement "a threat" and said that to bow to it would be "pusillanimous." Thus was fired the opening round on record of eloquent expletive that was to characterize the relations between Allied and its antagonists. Early Years M ild Strangely enough, Allied's first years of distributor relations were comparatively mild. Steffes' brawn encased a gentle heart much more disposed towards friendly negotiation than fighting invective. In the belief that industry problems could be settled over the conference table. Allied formulated a program toward this end, submitted it to Kent, who, in turn, asked the other majors and MPTOA to send representatives. Out of this grew the 5-5-5 Conference, which reached an abortive end a year later after a series of unproductive huddles. It was the first and only time that Allied was able to sit down with a head of a film company. In all subsequent attempts at negotiating differences, the Allied people were shunted off to underlings who had no power to make binding commitments. The film company lawyers, cognizant of Myers' canny knowledge of legal intricacies and his nose for loopholes, were always on hand to prevent any rash concessions. Over the next five years there were several attempts to arrive at suitable arbitration systems, all submitted by the Will Hay's Organization. None was acceptable to Allied and finally the Supreme Court put an end to the Hays arbitration systems, declaring them illegal. Many Allied leaders risked retaliation by testifying against the systems. As far Lac!; as 1935, Myers felt that the only way left for the independent exhibitors to come into their own was to force legislation upor >'iC distributors and "to sue hell 20 out of them." Steffes, however, felt the major companies should be given another opportunity to make peace. He prevailed upon Allied to send another committee to Will Hays. The movie "czar" disclaimed responsibility for competitive practices; his only function was, he said, "to pour oil where the squeak is" in his own organization. That settled it. The next year, at the 1936 Convention, divorcement and divestiture were mentioned as the remedy to the affiliates domination of exhibition. From that time on, Allied's stand did not deviate. Steffes, impatient with the miles of red tape involved in Federal action, managed to get a divorcement bill approved in the North Dakota Legislature. The law was challenged and upheld, but the victory was shortlived. Film company lobbyists descended on the State Capitol and the law was repealed. But a victory, more significant than any in previous Allied history, had been won — the doctrine of divorcement had been given legal sanction. Shortly thereafter the Department of Justice filed suit against the eight majors for anti-trust violation. In the lush war years and immediately after, there was not too much incentive on the part of the exhibitors to push the antitrust fight. Allied, however, continued its militant attitude, gained more units and was steadily increasing its influence on the independent exhibitors of the nation, and, consequently, branding the distributors' hide with its importance as a force to be respected. Allied's greatest victory, the triumph that was the real prelude to its respect as an integral and vital organ of the industry body, emerged from the Federal Court decision that separated exhibition from production-distribu A. F. MYERS 'Pusillanimous?" Xever, tion. Steadfastly maintaining its stand o divorcement and divestiture as the sole rem edy for the majors' monopoly, despite tempt ing offers of compromise, the Allied leader ship tasted the sweet fruits of its long struggle as the Supreme Court cast its bless ing on divorcement. The reforms Allied has fought for over th years have, to a large extent, been accom plished. Affiliated chain expansion, freezing out independents, selling away of products and runs, compulsory block-booking an blind selling, and other abuses have been erased by Court decree. Its struggle against increased admission price films, its check on film rentals through Caravan, the ASCAP victory, the admissions tax battles and host of other accomplishments have also help ed to reserve a stature for the organization that cannot be tossed off as "crackpot", terloper" or "no-account". It has earned its place as a part of the industry foundation and, except for a few die-hards, the intelli gent film man accepted this. Talk Comes Easier It is, consequently, not actually a miracle but a simple evolutionary process, that the relations between Allied and the film com panies have reached the respectable stage More and more, distributor and producer top executives are attending Allied meetings both regional and national. The atmosphere has softened, the tenseness that attended the few earlier visits by film men to these con venions and in private meetings has relaxed. As a result of the "new look", many of the Allied leaders are less rigid and more amen able to talk. On the other side, the distribution leaders are finding that they are not dealing with long-haired, bearded, bomb-throwers, but men who have no more than a desire to get a fair shake, men who will attain their just ends by amicable means if they can, but who have demonstrated that they can fight both wisely and well when they have to. Unlike the Hays office, its successor, the Johnston Motion Picture Association has been cordial and interested in any Allied overtures. Eric Johnston, noted for his diplomacy and conciliation practices, stands in direct contrast to the Hays model of dis tribution organization. This, too, has been a not inconsiderable factor in the rosier relations. Allied's whole-hearted support of COMPO! and its business-building campaign, the honest desire for a fair arbitration system, and other recent actions, give, for the first time, indication that an industry unity unprecedented in movie history can be achieved, a unity that will maintain the integrity and autonomy of each faction. The Allied lead ership, fired in the crucible of struggle against great odds, and strengthened by hard-won victories, is hardly the soft clay that can be molded and absorbed by their well-heeled erstwhile adversaries. The entire industry stands to benefit from the new mutual respect, for much more good can be accomplished when the veil of suspicion is lifted and only the actual issues to be settled are laid bare. W hen the thorny glove is removed, the handshake is firm and smooth. FILM BULL E T I N