Year book of motion pictures (1940)

would be forthcoming, employing whatever means were necessary, including legislation. On the date fixed the distributors were still engaged in lurther revising the code and the authority of Allied's committee lapsed. Early in February the major companies by a sudden coup d' etat secured the repeal of the North Dakota theater divorcement law, the constitutionality of which had been upheld by a three-judge Federal Court in Fargo. The case was then pending on appeal in the Supreme Court of the United States and the major companies, by their stratagem, prevented what Allied believed would be a certain affirmance of the lower court and an authoritative precedent in subsequent, cases. In April a subcommittee of the Senate Committee on Interstate Commerce held extended hearings on the Neely Bill. Proponents and opponents were given full opportunity to submit their views and arguments. Allied took an active part in supporting the measure and the general counsel summed up for the proponents at the conclusion of the hearings. The bill was favorably reported by the committee and was passed by a record vote of 46 to 28 on July 17. During the hearings Allied's Executive Committee and the representatives of the public groups supporting the bill registered their views that the proposed cancellation privilege as drafted by the distributors was not a fair substitute for the bill. The Senate Committee in its report took the same view, as did Senator Neely on the floor of the Senate. The annual convention at Minneapolis on June 13, 14 and 15 was one of the greatest exhibitor meetings ever held from the standpoint of attendance, interest and importance to the exhibitors of the United States. For this credit goes to Al Steffes and his local committee who had charge of the arrangements. There was a three-day open forum on the proposed code during which acceptance thereof was urged by such industry figures as William F. Rodgers, Gradwell Sears, Austin C. Keough, A. Montague and Ed Kuykendall. The board directed the members of the defunct Negotiating Committee, as being best qualified, to render a report on the proposal. The report, which was adverse, was approved by the board on the last day of the convention after all of the more important proponents of the code had been heard. This led to regrettable and unfounded charges of bad faith which were completely refuted by a comprehensive and thoroughly documented bulletin entitled "Allied Answers." It is noteworthy that the two exhibitors who spoke in favor of the code have since taken occasion to condemn it for its evasiveness and inadequacy and that, so far as we have been able to ascertain, no exhibitor organization, national or regional, has ever approved the code in its entirety. Complete vindication of Allied's position is to be found in the action of the Department of Justice disapproving the proposal. The Allied board in all its resolutions insisted upon a complete and fair arbitration system, especially for major items of dispute, such as unreasonable clearance and overbuying. The general counsel in his speech at the convention approved the proposed arbitration system except as to a few details. The criticisms of the Negotiating Committee were directed more to the substantive provisions of the code than to the provisions for arbitration. However, the distributors made it plain that their proposal was a final one and that Allied must take it or leave it. And they have not, either directly or through their affiliated chains, left the door open for the adjustment of such disputes by fair arbitration. Allied knows of no legal impediment to individual action by the major companies in putting many of the proposed code reforms into effect, if there is a genuine purpose to remedy conditions. Other matters on which Allied hopes for voluntary remedial action by the majors are the curbing of 16 m.m. competition and film star broadcasting. These are serious leaks, costly and menacing to distributors and exhibitors alike, which only the majors can stop. The year saw the accession to membership of small but growing regional associations in West Virginia, Oklahoma and California. The Allied organization in New York was expelled from membership for reasons made public at the time. Allied looks forward with confidence to the New Year. While much turmoil exists in the industry, the position of the independent exhibitors is stronger than ever before. A bold attempt is now being made to divert the attention of the exhibitors from the forest to the trees. Opponents of exhibitor progress would have them believe that each outpost skirmish is a decisive battle. But the prediction made two years ago that monopolistic and oppressive trade practices in the picture business are doomed, still holds good. Only a few moles, with their eyes unused to the light, can not see the handwriting on the wall. And the new day will not merely be a better day for the exhibitors, but also for everyone engaged in or dependent upon the motion picture business. 755