The Film Daily (1929)

THE Wednesday, August 21, 1929 <2^ DAILY STEFFE8 HITS CONTRACT AS TO THE E (.Continued from Pane 1) Ass'n, told the M.P.T.O. of Eastern Missouri and Southern Illinois yesterday the entire standard contract was bad from beginning to end. The Statement came as answer to the challenge hurled down by Charles C. Pettijohn for Allied to name specific complaints against the contract as it stands today. Steffes answered Pettijohn's address (published elsewhere in this edition) in a fiery address. He urged local exhibitors to withdraw from the arbitration board as now constituted on the premise that the uniform contract was unfair to the exhibitor. "1 am not trying to sell you men the idea of abandoning arbitration but T object to the present system of things," he remarked in declaring 18 states have withdrawn from arbitration proceedings. Steffes charged that as early as the first showing of "Don Juan" in New York in 1926 he had warned Will Hays and Pettijohn that they should exercise the necessary sense and courage to protect the industry from an avalanche of sound installations, pointing out that if they failed to do so. every small independent theater in the country would be put out of business, lie emphasized the point that he didn't want to remain in the business by sufference, but believed he had a right to continue because he was part of the business and had helped to develop it. Touching on the work of the M. P.T.O.A., Sleffes said the organization had accomplished wonderful things, but not enough. He said as far as he was concerned his interests centered entirely around the exhibitor and that he didn't care if any producer or distributor continued in business. Tiffany-Stahl and RKO with their five year franchise plan he said, made possible sale of film, to theater owners at a price they can afford to pay. "We have crashed the market," he continued. "There is no longer a score charge. That is out and any exhibitor who pays that charge today is just a simple sap." R. F. Woodhull. president of the M.P.T.O.A.. followed Steffes. He said this was no time for wisecracks or the playing of politics, but that the small exhibitor had reached the crossroads and something had to be done promptly to relieve the situation. "We adopted arbitration as a forward step in the progress of a great industry," he declared. "There are still some spots where the arbitration system can be improved upon and it will be." "I am still sold 100 per cent on the principle that we should settle our disputes from within the indusI try and not resort to the courts," he added. It was his opinion that legal battles would only open the way to governmental regulation and the fixing of prices by the government. Allied States Challenged To Point Out Contract Ills (Cunt in licit from Page 1) want an intelligent business organization of theaters owners in each of the recognized distributing centers of the United State-." Pettijohn in his speech did not mention Allied by name, but the pointed reference was obvious. "Il is about time for somebody to get up on his hind legs at one of these conventions and tell the truth. Possibly Missouri. The 'show me state', is a good place to do it," said Pettijohn, "You men are business men and you are confronted with serious business problems that can only he solved in a business-like way. Agitators, soap Ikix orators. Calamity howl cm-, and personal publicitj seekers have nevei solved a single problem in the history of this business and they never will. Petty politics has no place in the councils of this business and must be kept out of it at any cost. "Let me make one thing clear right in the beginning. The M. P. Producers and Distributors and Film Hoards of Trade recognize the need of, and sincerely want, an intelligent. constructive business organization of theater owners in each of the 32 recognized distributing centers of the United States wherein are located Film Boards of Trade and arbitration boards. These 32 exhibitor units need the national office of a national organization, if vou prefer to call it by that name, located in the city of New York, or elsewhere, which can co-operate with the national organization of any other branch of the industry. Such •xhihitor organizations, all honestly and emeient'y officered, would be welcomed by every other branch of the industry anil be a Godsend to all branches, inoludine exhibitors. of course. There is considerable room for imp-ovement in certain spots. That is your bosines and not mine. There is also con•dcrahlc room for improvement in some of the Film Boards "f Trade and that is mv business. "In this room now are several 'saviors' of your business. They have traveled ninny miles in order to be here and save you. Now. let's compare what these gentlemen have done for vou and with vou. with what vou have accomplished through orderly, gentlemanly and sincere co-oneration with producers and distributers. Tt will not take long to cover the record of their achievements through political agitation. To date it is nil. "Some advocate the Brookhart Bill, which would double your rentals. Others the abolishment of arbitration of commercial disputes, which has saved the industry more monev. time and grief than anything we have ever attempted. Some more advocate the abolition of t''e standard exhibition contract, which would m»an tlW each and everv rlist"huto'" :n America would draw its own form of co" *ract to fit i*s own sales nolicies. and each -onipan* would have to decide for itself what form of secritv. and how mtieh. woo Id h'ttstified and necessarv under the particular leniK of each and everv contract. "Block-hook-ine hsfc been another favorite war-cry. hut it does not seem to be so ponul»i anv more, esnecially since these s-uue gentlemen have become advocates of five year franchises. "This rust about covers the record of their "onstructive achievements. Now l*»*'s see what these terrible producers and distributors have dooe in co-operation with vou. "When vou theater owners wanted advance denosits done awav with who did it for vou ^nd with yon and set up arbitration in lieu ffcot-eof? The producers and distributors When you theater owners reouested all d'S tributors to use a uniform contract who did tbat for von and in co-oneration with vou' Tbp answAf 'S the n-oducers a.irl distributors Vnd d'n't fo'-get that exhibitors helped to write that contract. "This vear when manv theaters throughout the countrv found themselves with nhn contracts on their hand= that wf" hiir+'n<r, and with other increased costs, for which r*-odncers and distributors were not resnonsible ><ho sat dav after dav with vour renresentafives natientlv and sincerelv working t^ q~1ve vonr problems? The producers atid d'strihu torc "And then somel>odv whined, as T rememh»t it. 'well it better he good.' and 'if it i«. T'll anp'aud it.' Well, it was good. Hundreds of small exhibitors have been helped and that annlause is not only absent, but wholly unnecessary. "That was a most unprecedented thing in American business. It was a conference between buyers and sellers of a product, where prices on goods already contracted for, on perfectly good and enforceable contracts, were voluntarily cut by the sellers. "Now;, what is wrong or unfair about any clause in your standard exhibition contract? lias any clause in that contract ever hurt you or operated unfairly against you? If it has, be specific. What do you suggest in place of that clause that is fair to both contracting parties? Again let's be specific. What is wrong with the arbitration system, or any of the by-laws or regulations in connection with it? What specifically do any of you recommend in connection with it? What specifically do any of you recommend for the improvement either of arbitration or your standard contract? Come now, put your cards on the table. Face up. Be specific. Put in writing any constructive changes that can be made for the betterment of either or both of these two subjects which have too long been used as political footballs in this business. If you have anything constructive to offer or any helpful suggestions to make, let's have them. Why keep them a secret? Surely you do not wish to keep anything so good up your sleeves for political or personal i easons. "Now. just a word so that there may he no misunderstanding with reference to the RKO and Tiffany-Stahl selling plans which will be explained to you at this convention. I applaud in advance any honest effort of any producer, distributor, exhibitor, or anybodv else, from any source whatsoever, which will bring or help to bring any relief or assistance to any theater owner, or to anybody else engaged in the motion picture business. I will not promise my applause if it works. 1 congratulate them for their sincere, honest efforts in the beginning. That is the proper time to show encouragement. I believe that every distributor of motion pictures in the land would welcome the immediate marketing of a good, low-priced, sound equipment that would stand up and deliver the goods, give quality reproduction and be within reach of the pocketbook of the humblest theater in the land. Mr. Sarnoff. Mr. Brown. Mr. Marcus. Mr. Young. Mr. Cook, Mr. Hanson and all of the Gentlemen connected with Tiffany-Stahl. RKO and RCA are splendid business men and they are sincerely engaged in doing their part in the present crisis brought about by the swift advent and development of sound in the moton picture business. I sincerely hope that their sincere efforts will not be misunderstood by anybody and that no false interpretation may result from their honest efforts. "Let me leave just one more thought with you in conclusion. The producers and distributors are fully alive to the fact that this industry is undergoing some rapid changes. Sometimes things come too fast and problems that seem to be unsurmountable have apneared on several occasions. "We will have more of these serious prob'ems to solve and it will require, not only all the brains and ingenuity of everybody engaged in the business to solve them, hut more, — namely, an intelligent co-operation and a pulling together r>f all branches of the industry. Any injury to one branch of the business is an injury to all branches. "The box offices of our theaters is the 'pay-off department' for everybody engaged in the business and all branches of it. Those box-offices and the institutions behind them must be successful. Yet more than that is required. The nublic must be pleased and to please the public, we must not attempt to • etard the natural growth and progress of the business nor must we engage in sabotage, to punish the ingenuity of anybody who brings us something new. The crying necessity of our business today is for closer co-operation, less political agitation so that we mav not be caught again as we were when sound crashed into this industry' like a thunderstorm and we were caught in the rain without an umbrella. T will stop now so that the next sepaker can be funny and say, 'That's why we're all wet'." 3 New Exchanges for N. O. New Orleans — Work is progressine on the three new exchange buildings being constructed in Film Row. Paramount. Universal and Warner Brothers will have new branch homes in the very near future. TALKERS AT SILENT PRICES FRANCHISE GUARANTEE? (Continued from Page 1) yesterday. A series of meetings is planned throughout the country starting Sept. 1, to offer exhibitors opportunity to subscribe to the plans. Several meetings already were held. Myers estimates that there are 14,000 independent exhibitors of the nation, and says it will be possible for 5,000 to become franchise holders. "Negotiations are still going forward with several manufacturers of reproducing apparatus for the installation of suitable machines in houses of 500 seats and under at prices which the exhibitors can reasonably afford says Myers." "RCA-Photophone, a subsidiary of the Radio Corp. of America, has offered to build a machine to sell at $2995 net, and this offer will be accepted if assurances of the company's ability to produce the machines promptly can be obtained. When an agreement has been reached with the Photophone Co. or some other manufacturer, the machines will be offered to the exhibitors at the meetings to be called. WANTED For South America — Man thoroughly experienced, capable installing film distribution system for theatre chain — one with knowledge Kardex systems, etc., preferred — knowledge Spanish preferable but not essential. State qualifications, references, salary, in first letter. BOX M-149 c-o The Film Daily 1650 Broadway N. Y. C. 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