Independent Exhibitors Film Bulletin (1956)

Official Account cjf TOA-ALLIED COMPACT In view of the significance of recent developments affecting the exhibitor body, Film BULLETIN is publishing herein the text of official intelligence dealing with the joint action of TOA and Allied. PRESS RELEASE BY TOA January 24, 1956 Rube Shor, president of Allied States, Myron N. Blank, president of TOA, Walter Reade, Jr., Horace Adams, vice president of Allied States, Abram F. Myers, general counsel and chairman of the board of Allied States and Herman M. Levy, general counsel of TOA met in Washington, D. C. on January 18th, 1956 and adopted and signed the following platform: "The undersigned representatives of Allied and TOA agree that the procedures set forth below represent their joint understanding, and that they will use their best endeavors to obtain, within one week from the date thereof, the approval of their respective Boards of Directors, to the following : That TOA will represent to the Department of Justice and to the Senate Select Committee on Small Business that it will approve a plan of all-inclusive arbitration, including arbitration of selling policies and film rentals ; and, that Allied will join with TOA in urging to the Department of Justice and to the Senate Select Committee on Small Business that the theatre circuits, including the socalled divorced circuits, be permitted to produce and to distribute motion pictures with pre-emptive rights for their own theatres, which they now own, and legal replacements thereof, and not to theatres they may hereafter acquire. AND IT IS FURTHER AGREED that we shall use our best efforts to bring about these results. The platform has been approved by the Boards of Directors of TOA and of Allied States. Pursuant to the platform Myron N. Blank, Rube Shor, Herman M. Levy, Abram F. Myers and Truman T. Rembusch met with the Department of Justice in Washington, D. C. Today. TOA has notified the distributor representatives of the Drafting Subcommittee that its Board, the members of whom were polled by telephone, has voted temporarily to withdraw its approval of the Arbitration plan and to give the plan, in view of changed industry conditions, full consideration and revaluation at its next meeting, commencing March 4th. Meanwhile, the appropriate officers of TOA have been authorized : 1. To make every possible effort to broaden the scope of arbitrability so as to make arbitrable any and all issues arising out of the customary film licensing contract. 2. To do everything possible to bring more product on the market. 3. To do everything possible to stem the tide of everincreasing film rentals, even to seeking the arbitration of film rentals. 4. Especially in view of the acute seller's market which has developed since October, 1955, and because of harsh trade practices that have developed since that time, to withdraw approval, temporarily, of the proposed system of arbitration so that the entire matter may be reviewed and revaluated at our Board meeting starting on March 4th, and that the interim period be used to attempt to accomplish all of the projects above outlined. 0 ALLIED BULLETIN January 31. 1956 An Area of Agreement Allied and TOA leaders in an informal exchange of views on the state of the theatre business found themselves in agreement on two points: 1. The film shortage is the most serious problem facing exhibitors today. 2. Arbitration to be effective should include arbitration of film rentals and selling policies. On point 1 it was conceded that efforts by both organizations to stimulate production by such devices as the Makelim Plan and EFFG had not been successful. The only potential source of additional films appeared to be the major theatre circuits which are themselves suffering from the shortage and have the capital and credit with which to go into production. The immediate obstacle is that the divorced circuits are hobbled by the decrees in the Paramount Case and cannot branch out into production without the consent of the Department of Justice. It developed that those circuits, or some of them, had been in touch with the Department on this question but had received no encouragement on the point, which is vital from their point of view, that they have priority on their own pictures in their own theatres. On point 2 it was agreed that arbitration of everything (Continued on Page 14) Film BULLETIN February 4, 1954 Page 11