Harrison's Reports (1952)

4 HARRISON’S REPORTS January 5, 1952 REASON PREVAILS One of the most significant developments of the year 1951 was the stand taken by practically all segments of the industry for the formulation of an arbitration system that would provide the industry with a speedy and economical means of dealing with disputes that currently plague it. Although there is general gratification over the fact that the different exhibitor groups have endorsed the principles of arbitration, there has been considerable concern over the possibility that the formulation of an arbitration system acceptable to all classes of exhibitors may be stymied by the efforts of one exhibitor group to negotiate a system of arbitration with the distributors without adequate representation of other exhibitor groups. Statements made this past week by Mitchell Wolfson, president of the Theatre Owners of Ameriac, and by Abram F. Myers, National Allied’s general counsel and chairman of the board, should dispel any fears that these two most important exhibitor associations will permit organizational jealousies to interfere with the setting up of a suitable arbitration system. In announcing last week that a “detailed and concrete plan” for an industry-wide arbitration system will be submitted to the board of directors of TOA at its mid-winter meeting in Los Angeles, on January 28-31, Wolfson had this to say: “It is hoped that a formal plan of arbitration may be so finalized that, subsequent to the board action, all distributors and exhibitors will have an adequate understanding of TOA’s beliefs and of the essentials for implementing a sound arbitration system. “While TOA has never subscribed to an arbitration plan that would be inflexible, or demanded a program that could not be modified or amended, we believe that there are certain fundamentals in developing such a system that all sides will accept and approve. We shall not espouse our plan as the one and only solution. We shall be prepared for those adjustments and compromises that will reflect a solid and unified viewpoint of all concerned — and we shall work wholeheartedly and with good will toward the adoption of an industry-approved system. “There can be no final blueprint for an industrywide arbitration plan until all elements are able to sit down and evolve the most practical and most workable system for all interested parties.” Mr. Myers, writing on arbitration in a special article published in this week’s forty-sixth anniversary issue of weekly Variety, in which he points out that the categories of disputes listed as appropriate for arbitration in the resolution approved by the Allied convention is entirely consistent with the U.S. Supreme Court’s own proposal for an arbitration system, had this to say : “ . . . Indignation has been expressed in some quarters that Allied is doing this preliminary work (formulating proposals for an arbitration system) by itself and not in collaboration with other industry elements. Allied is following this course because it feels that the work can be done best by a small group of men who have been working in close harmony for many years and understand and trust each other. When they have completed their work and submitted it to the distributors, and the preliminary conferences indicate that the distributors’ minds are open to the proposals, then it will be time enough to plan for wider participation in the discussions. “Allied is not so vain as to suppose that a part or even a majority of the exhibitors could impose their will in a matter of such magnitude and importance on others. At some stage everyone will have the opportunity to advance their own proposals and urge their adoption.” A reading of the statements made by Messrs. Wolfson and Myers cannot help but leave one with the impression that, though both TOA and Allied have their own ideas on what is needed for a workable arbitration plan, neither organization seeks to force its will on the other, and each is prepared to sit down with the other in a constructive effort to achieve a common goal. The adoption of a workable arbitration system cannot, of course, be effected unless the distributors meet the exhibitors half-way. It is to be hoped that the heads of the major companies will grasp at this opportunity to bring about settlement of intra-industry disputes away from the courthouse. Unless they do, the industry will remain a lawyer’s paradise, and such a condition will continue to do no good to anybody; instead of devoting their energies to making marketable pictures, the major company executives will be kept busy defending lawsuits, and the exhibitors will have to foot part of the bill, not only in increased rentals, but also in deterioration of picture-quality. LET US MAKE IT A GREAT YEAR In a year-end bulletin sent to National Allied’s member organizations, Abram F. Myers, general counsel and chairman of the board, had this to say: “This time let’s not merely wish each other a Happy New Year. That we entertain such friendly sentiments goes without saying. Instead let us pledge each other that throughout 1952 — “1. We will work increasingly to restore moving pictures to their rightful place as the world’s most popular entertainment. “2. We will do all in our power to increase the receipts of the theatres that we control, to the end that the doubts and fears of the entire industry may be supplanted by confidence and optimism. “3. We will strive to improve intra-industry relations by erecting the necessary machinery for cooperative action in the solution of common problems. “4. We will join with other industry branches and elements in rallying to the defense of the industry whenever it is unfairly or unjustly attacked. “5. We will encourage higher standards in production, distribution and exhibition, reserving the right to offer constructive criticism whenever criticism seems necessary, to the end that the industry’s good will and prestige may be preserved and enhanced. “6. We will be ever mindful of our primary duty as organization men to promote and protect the interests of the exhibitors, to be bold in asserting their rights and courageous in fighting for them, always remembering to keep our rapiers clean. “How much more fun it will be a year from now to say, it was a great year than now merely to hope that it will be a happy year.”