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ALLIED STATES ASSOCIATION 669
consist of three members, one selected by the exhibitor from the ten who were eligible, one selected by the distributor from Film Board of Trade members, and the third selected by the other two members from a group of at least five arbitrators from outside the industry nominated by the American Arbitration Society and approved by the exhibitor organization and the Film Board of Trade. Second, in case the exhibitor so chose, the board should consist of "three and three" as in the past, with a seventh member, to be chosen from among the five outside arbitrators nominated by the American Arbitration Society, in case of a tie.
To obviate the stated principal defect in the existing system of arbitration, namely, the rule limiting the boards to the enforcement of the strict letter of the Standard Exhibition Contract, it was proposed that the board be authorized to exercise sound discretion in receiving for consideration all evidence, documentary and oral, bearing on the essential merits of each controversy, to the end that the awards might work even and exact justice, or the nearest approach thereto possible with human agencies. The board's power under no circumstance was to be extended to the fixing or changing of prices on existing contracts.
The Allied States proposal stated that, once the suggested reforms had been accomplished, it was believed that opposition by several states to the adoption of the uniform arbitration law would abate. It stated, furthermore, that a fair system of arbitration, approved by these states and bearing the full moral backing of the exhibitor organization, would effect compliance with awards in a vast number of cases. As an additional incentive to compliance, the proposal recommended that provision should be made to the effect that anyone refusing to arbitrate or abide by an award should not thereafter receive the benefits of the arbitration machinery, until willing to withdraw his opposition.
Definite expense budgets were also suggested. Exhibitorarbitrators were to receive $5 per day plus traveling expenses. Outside arbitrators were to be paid the fees usually required in such cases. A filing fee amounting to a stipulated percentage of the claim was to be paid by the party filing the claim.
Concerning a new form of sales contract, the Allied States proposal emphasized the need for a concise instrument : one written in a language that would leave no doubt as to the meaning