The Film Daily (1930)

THE DAILY M. P. T.O.A. Delegates Okay Deposit DEPOSITS CLAUSE HITS SNAG AT 2-2-2 CONEERENCE {Continued from Page 1) freres with proofs on the clauses tentatively adopted. After a discussion of the score charge situation the morning session came to the matter of defining shows and agreed on the clause now in use in the old contract. Consideration was then given to the following Allied clause: "The exhibitor shah have the right to cancel this contract in its entirety or to exclude from this conract an) picture or pictures for wliich the distributoi refuses to accept a play-date or dates when a print is available for exhibition." It was agreed that an exhibitor may cancel a pic ture under circumstances specified in the Allied proposal, providing he is up on hi; playing time. Reaching of the distributors' deposit clause proposal brought from Abram F. Myers. A-lied president, the assertion that he coulu never agree to it. "There has never been a credit system involved that justified de posits," declared Myers, and pointed out that the contract provides advance pay. He said he saw "grave dangers" of violating th< Thacher decree in event a deposits clause isadopted, declaring that sucli a provision "can not legally go into the contract." Gabriel Hess, distributor delegate, said that bad accounts have proven the need of such a clause. Deposits are justified, he asserted, but exhibitor possession of prints, di.ping of prints, holding over and bicycling. He denied that the proposed clause was m violation of the Thacher decree. Kent dec'ared that Allied was "trying to put us in an unfair position." Nathan Yamins. Allied representative, expressed the opinion that exhibitors are "not clamoring for arbifatinn P"(\ Hess violently disagreed with the statement." In sircss.ng his statement that adoption of the clause does not necessarily mean that distributors are going to demand deposits from all exhibitors they are serving, Kent said that "90 per cent of the accounts on my books have been there for 15 years. Personally, I'm going to get security or bond." Frank Walker, M. P. T. O. A. delegate, agreed that distributors have a right to seek deposits. Myers commented that adoption of the clause would be "like tieing a dead cat around the neck of the contract." As a compromise proposal, Hess recommended that distributors print a deposit clause on their schedule. Allied objected. Hess then suggested that the deposit clause be left out of the contract but distributors be authorized to arrange deposits individually with exhibitors. Hess continued: "Any system will be attached. Some exhibitor will write to the Dept. of Justice and exhibitor leaders will back them up." Without naming the company he said that one concern plans to demand deposits on every contract they execute owing to the "staggering losses" in the past. Action was temporarily deferred. The deliberations turned to the time allowed distributors to notify exhibitors of their acceptance of contracts and then swung back to deoosits. Enforcement of arbitration awards came into the discussions' spotlight. Hess said that 11 states have arbitration rules and pointed out that exchanges in Salt Lake City serve nine states. He suggested an amendment providing distributors with the right to require security in bad accounts and the M. P. T. O. A. okayed the idea. Walker observed that "arbitration is only enforceable through a credit system." Kent said that 85 per cent of his business would use a contract providing for deposits. Hess, taking exception to Allied's assertions that inclusion of a deposits clause would be an insult to honest exhibitors, remarked that "we're not negotiating a contract for morons. This is an intelligent industi-y", and Kent also failed to view the proposed deposits clause as an insult. Deposits continued as the topic when the afternoon session got under way. Fred Wehrenberg remarked that "this is not a Backsliders There have been 50,000 instances of failures of exhibitors to comply with arbitration awards, declared Gabriel Hess during a discussion of the distributor proposed deposits clause at yesterday's session of the 2-2-2 conference. JNVA Saranac Sanatorium to Admit Screen Players With adUed tunas assured thiougn the cooperation of film exhibitors, the NVA will be able to admit screen as well as vaudeville performers to its sanatorium at Saranac Lake, N. i ., It was announced by the M.P.T. O.A. here yesterday. Theater owners throughout the country have pledged themselves to aid the association in raising $1,000,000 during iNi V A Week, which opens April 27. 6,500 More Play Dates Pledged tor Vitaphone Playing time for 6,500 additional Vitaphone Varieties has been pledged to date by exhibitors for Sam E. Morris Month, which is still four weeks off, it is announced by Paul J. Swift, general sales manager of Vitaphone. These play dates are in addition to the regular contract showings for May. Futuristic House for Ottawa Ottawa — Nolan Theater Enterprises, plan the erection of a futurisic type surburban house in Ottawa's VVest End, to cost $125,000. This will eventually replace the company's Columbia. riy-by-night business." Vainins emiuired if distributors would give exhibitors the interest on their deposited money and Hess replied in the negative. Kent said he would rather not be bothered with the cash and cited a proposition made to him by a surety company which olTered to bond his percentage accounts. He recognized "a question of eciuity" in connection with the interest in eposited money. DiSTRIBUTORSTOMEETON SCORE CHARGE PROTESTS {Continued from Page 1) clear that he believed the matter was one beyond the jurisdiction of the current sessions. Abram F. Alyers, president of Allied, opened the attack at yesterday's meeting. Gabriel Hess, distributor delegate, explained that the Society of Composers, Authors and Publishers charged a tax of 10 cents per seat for the performing right of music. Electric companies, he pointed out, charge a recording assessment against producers. "Then the score charge is reimbursement for producers to pay for their right to record," said Myers, "and nothing to do with the right to reproduce." Paramount assesses Publix theaters with a score charge, Kent stated. Myers asserted that the Society of Composers, Authors and Publishers is "going pretty far" in its tax against exhibitors, and said that matters "would have been simplified originally had the tax been figured into the manufacturing costs of producers instead of a separate charge." Fred Wehrenberg, M. P. T. O. A. representative, said that distributors ought to include the tax in film rentals." Myers asked Hess to furnish him with copies of the license agreement between distributors and the electric companies. Upon receiving the information that the score charge is fixed by distributor representatives, Myers declared that "you can't bargain over a tax," replying to the distributor contention that the assessment is a tax. Schmidt to Cleveland Cleveland — W^arner Schmidt has been brought in from Cincinnati by the Independent Pictures Co. and will remain at the home office here. PANCHARD A\ASSAPEOUA, LONG ISLAND 2-2-2 Delegates to Draft ' New Arbitration Ruls -A.doption of a new set of arbit • tion rules will be one of the fi 1 tasks to be accomplished by the 2-A conference in connection with arbitration system, formally propoi . and agreed upon yesterday. Prov ing an agreement is reached tocl on the deposits clause the delega will go to work on the arbitrati rules. Columbia Now Has All Rights to Two Car tool' In addition to acquiring the fc eign distribution rights to Disnej "Mickey Mouse" and "Silly Syi phonies," Columbia also has taki over the entire domestic distribution of both cartoons, thereby giving ih company the world rights to the shorts. Although Columbia alreac liad been handling the domestic di' tribution of "Silly Symphonies," liad been releasing the "Mick( Mouse" cartoons in only 13 terr tories. Warner Bros. Add Two Ambridge Houses to Chai Two more theaters in Pennsy vania have been added to the Wai ner chain. Another two are planne with construction expected to stai soon at Youngstown and Wilkin; burg. The recently acquired house are the Prince and Ambridge at An: bridge.