Harrison's Reports (1950)

116 HARRISON'S REPORTS July 22, 1950 "STOP" PICTURES Early this month, Pete J. Wood, erstwhile secretary of the Independent Theatre Owners of Ohio, sent a letter to Abram F. Myers, National Allied's general counsel, asking his advice as to what can be done to eliminate the practice of a distributor refusing to deliver a newly-licensed picture because of the fact that the exhibitor had not yet played off the pictures he had licensed previously from that distributor. Taking, as an example, the case of MGM, Wood put this query to Myers : "An exhibitor buys four pictures late and has not furnished any play dates. Then sometime later he signs a contract for 'Annie Get Your Gun,' and he wants to play it 'hot.' When he gives the exchange a date he is informed that they will not accept it unless he dates in the other four pictures previous to a date for 'Annie Get Your Gun.' "The Court has said that the sale of one picture cannot be made contingent upon the sale of another picture, or other pictures. How does this apply to the above situation?" The following reply by Mr. Myers should be of interest to all exhibitors : "Replying to yours of the 7th, I do not see how an exhibitor can compel a distributor to deliver a newlylicensed picture until he has played pictures formerly licensed, unless his right to do so is expressly written into the license agreement. "It is true that the decrees, now effective as to all of the Big Eight, provide that the licensing of one picture shall not be conditioned upon the licensing of another. The provision outlaws the old abuse of compulsory block-booking, or forcing. But it applies only to the licensing of pictures. "It is my impression that all companies stipulate in their printed contract forms that the pictures shall be played 'in order of general release in the Exchange district.' That established a procedure with respect to the pictures licensed by the particular agreement. But since you refer to the refusal of Metro to deliver 'Annie Get Your Gun' to exhibitors having unplayed pictures under earlier contracts, let's look at the Metro form. "In addition to the provision above quoted, that form also provides — 'It is also agreed that if Exhibitor shall fail or refuse to date, play, or pay the license fees contracted for under any other exhibition contract (s) between the parties hereto . . . Distributor may at its option exercise with respect to this agreement any and all of the rights granted Distributor under Clause Seventeenth hereof "Clause Seventeenth provides that in case of such default by Exhibitor — \ . . the Distributor may at its option . . . (2) suspend the delivery of additional motion pictures hereunder until such default or defaults shall cease and be remedied.' "Unless 'Annie' is licensed under some special form which does not contain the above provisions, or the substance thereof, which seems very unlikely, I see no legal remedy for the condition described in your letter. So-called 'stop' pictures have long been a source of irritation but the distributors have been unwilling to eliminate these contract provisions, although they have in meritorious cases waived their rights thereunder. "The best and surest remedy is for an exhibitor having unplayed pictures under contract and desiring a later release for exhibition before he catches up under his contracts, is to have his playdates written into the license agreement. For example, he might insist on writing into his contract for 'Annie' the following: " 'Print for this picture shall be delivered not later than July , other provisions of the agreement notwithstanding.' "Of course, this offers no comfort to those exhibitors who have bought 'Annie' without alteration of the form. As to them, I think that they, or you in their behalf, should appeal to Metro to make an exception with respect to this picture. Conditions being what they are, it is to the advantage of both the distributor and the exhibitor that 'Annie' be played while it is hot. I have seen the picture and it is wonderful entertainment, just the sort of picture the theatres need right now. Metro and its customers should cash in on it right now, thereby capitalizing on the national advertising campaign. With the summer slump added to our present difficulties, a little later may be too late to realize on the full potentiality of this picture. "Incidentally, 'Father of the Bride' is going great guns in these parts and if your members want it for early exhibition, advise them to insist on adding the clause herein recommended." THE NEW UNITED ARTISTS SETUP As most of you undoubtedly know by this time, a group of investors, headed by Paul V. McNutt, former Governor of Indiana, who served also as high commissioner of the Philippines and as manpower commissioner during the last war, has acquired control of United Artists from Mary Pickford and Charles Chaplin. The sale came as a complete surprise to the industry, for up to the time of the announcement there had been no indication that Mr. McNutt had been negotiating with Miss Pickford and Chaplin. At a trade press interview in New York this week, Mr. McNutt, other than admitting that he holds 90% of the outstanding stock as trustee, with Miss Pickford and Chaplin retaining 10%, refused to divulge the identity of the principals he represents, thus hanging a veil of mystery over the entire deal. Under the new setup, Mr. McNutt will act as chairman of the board, and Frank L. McNamee, an old associate of McNutt's and a present partner with Jay Emanuel, publisher of The Exhibitor, in several theatres, replaces Grad Sears as president. Miss Pickford replaces Arthur W. Kelly as executive vicepresident. No decision has been reached as to the future status of Sears, whose contract with UA reportedly runs until the end of 1951. While the undisclosed details of the deal would be interesting from the "newsy" point of view, they do not mean much to the exhibitor, for he still is faced with demands for top rentals no matter who heads a film company. United Artists has been in difficulties for a long time, and the general run of product from the company has not been of the best entertainment quality. It is to be hoped that the new owners will revitalize the company and deliver better pictures to the benefit of themselves as well as the exhibitors. Harrison's Reports wishes Mr McNutt and his mysterious backers success.