The film daily year book of motion pictures (1936)

workable protection and run schedules and that they call to their aid for this purpose the local conciliation committees, and if they are unable to arrive at definite conclusions on the subject, they present the questions to the National Board for conciliation. The findings and recommenda tions of this National Board will without doubt be regarded as so representative and so convincing that they will be freely accepted and followed. It is not intended to compel any exhibitor or any distributor to resort either to the local or to the national conciliation boards, nor to bind any of them by contract to do so, but it is intended to make available to all parties earnestly and honestly seeking aid in working out their common problems, a machinery in which they can have confidence of a fair, impartial and understanding hearini: and consideration. In order that the National Board of Appeal^ and Conciliation shall not be unreasonably burdened with matters which should from their very nature be disposed of locally and in order that it may function with the best results, the National Board of Appeals should have final authority in itself to determine in any specific instance other than those recommended by any local arbitration board under the arbitration provisions of the optional standard license contract, whether it will or will not undertake to hear any complaints sulimitted to_ it upon appeal from any of the local committees. If this rule is followed, a majority of the National Board could decide to hear and attempt to conciliate any extraordinary or unforeteen controversy not possible of conciliation locally. It must always be borne in mind that it is not intended that the National Board shall be concerned with the rentals of pictures which have been fixed in the negotiations which preceded the execution of any exhibition contract, nor attempt to raise or lower film rentals agreed upon by In contract disputes, the procedure to be followed is specified in the optional arbitration clause (Clause Twentieth) of the Optional Standard License Agreement. Contract disputes not arising iiiuler an Optional Standard License Agreement as to which the exhibitor has elected to include the arbitration clause, will not be considered by the National Board of Appeals. Personnel and Selection of Members For the purpose of hearing appeals or conciliating complaints not involving a circuit of theaters affiliated with a producer or distributor, the National Board of Appeals shall consist of three unaffiliated exhibitors and three distributor representatives. For the purpose of hearing appeals or conciliating complaints involving a circuit of theaters affiliated with a producer or distributor, the _ National Board of Appeals shall consist of either (a) four unaffiliated exhibitors, _ two distributor representatives and two affiliated circuit representatives; or (b) two unaffiliated exhibitors, one_ distributor representative and one affiliated circuit representative, and the action of a majority shall be the action of the National Board. It is important that both parties to the controversy have fair and equal representation of disinterested parties who are generally familiar with the business. Selection of unaffiliated exhibitor members can be made by the national exhibitor associations or by lot from a panel of unaffiliated exhibitors conveniently located. Procedure for Referring Complaints for Conciliation to National Board Before referring any matter to the Natioiul Board of Appeals, the proper local arbitration board, protection committee or conciliation com mittee must hear the complaint or controversy and shall first exhaust their efforts to determine, conciliate or dispose of the controversy. After this is done the local board or committee may then refer the complaint or controversy to the National Appeal Board for a hearing. The local board or committee will forward to the National Board, in connection with each case or complaint. (1) A full and complete statement of their finding of facts. (2) All of the evidence submitted to them in the case or controversy. (3) Their recommendations for a settlement which was not accepted by the parties. Each party to the controversy will be permitted to also submit their own statements of facts, arguments and recommendations. In regard to protection and run controversies, it is contemplated that a local committee representative of all first and subsequent run exhibitors will be established in the city or territory where it is desired that an attempt be made to work out by conferences a protection and run schedule or arrangement that will be acceptable to all such exhibitors. If these negotiations become deadlocked and all reasonable efforts are exhausted to bring about a local argreement, then the questions in dispute may be referred to the National Board for conciliation by such local committee. If a protection and run schedule is_ agreed upon by the local exhibitors and established in the territory, and in connection therewith a continuing zoning committee is established to hear and conciliate complaints in connection with the established protection and run plan, this continuing committee may submit any disputed question they are unable to agree upon to the National Board for conciliation after they have exhausted their efforts to effect an acceptable adjustment. In regard to complaints of alleged unrcasonab!r overbuying by a circuit or any Other exhibitor, it is contemplated that a local Conciliation Committee on which there is a fair and equal representation of distributors and exhibitors should be established to whom complaints of unreasonable overbuying by any exhibitor may be referred for investigation and conciliation. If the local Conciliation Committee is unable to bring about an acceptable adjustment, and in their opinion there is merit to the complaint, then this Committee may refer the complaint to the National Board for conciliation, hearing and recommendation. The National Board of Appeals and Conciliation will by its prestige and personnel give impartial consideration and arrive at fair and intelligent solutions of the more troublesome and irritating controversies and problems not possible to solve locally, as well as solve the unforeseen difficulties that may arise in the future. It should be considered as the industry's supreme court of selfregulation. Because of its standing in the industry, if properly conducted, its findings and recommendations will carry great influence. The success of this program will depend obviously upon the earnestness and open-mindedness with which it is applied by the Industry. Being an innovation it cannot at the outset be presented in complete detailed form in all respects and many details of procedure may arise from time to time which must be determined as the occasion presents. The spirit and principle, however, underlying the proposals appear to be so fundamentally sound and fair that we have complete confidence in its successful outcome. 792