Independent Exhibitors Film Bulletin (1948)

BULLETIN Volume 16, Number 15 JuK 19. 1948 IVews €Bnd Opinion ALLIED TO STUDY FOX CONCILIATION PLAN; EXHIBITOR LEADERS HOPEFUL, BUT DUBIOUS Is it possible to settle all (or most) (or some) of the troublesome issues between exhibitors and distributors by conciliation, rather than litis;ation? That question is the subject of much thoughtful cogitation by exhibitors throughout the U. S. ever since Benny Berger and Andy Smith put forth the proposition by their agreement a few weeks back to try it in Minneapolis. The plan for a trial "System of Conciliation and Mediation" was sponsored by Berger, president of North Central Allied, and Smith, general manager of 20th Century-Fox, as a device to forestall "wholesale" lawsuits that threatened to break out in the Minneapolis territory. A grievance board of three NCA members was named to consider exhibitor complaints and to present them to 20th-Fox officials for consideration. Launched as a local move, the Minneapolis plan quickh' assumed national proportions when several other exhibitor units evinced interest in instituting a like program in their territories. MYERS — NO COMMENT Naturally, since NCA is affiliated with Allied, the industry has been conjecturing on the attitude of the national body toward the conciliation idea. Abram F. Myers, general counsel and board chairman, has offered no comment on the Minneapolis plan, his attitude apparently being one of watchful waiting. Allied operates under a policy of local autonomy in local matters, and the Berger-Smith plan is viewed in that light by Myers. Left to speculation on what National Allied's approach to the conciliation idea mi?ht be, if it becomes a national issue, one must mount an opinion on the base of certain historical facts about the independent orgimization. Allied regards the industry's ills as being too deep-rooted to be cured by local mediation schemes. Representing the largest organized segment of America's independent theatre owners, the leaders of Allied are convinced that the logical solution to the basic troubles in the industry is divorcement of exhibition from production and distribution. This view is also held by the Department of Justice. Thus, there appears little likelihood that any conciliation program can ward off final adjudication of the major anti-trust suit now pending in the courts. This probably does not mean that National Allied would refuse to consider any program to alleviate intra-industry strife. Local, or even national, conciliation might be acceptable, it assumed, outside the scope of the principal issue of the monopoly case. What transpires in Minneapolis will probably be watched closely, meanwhile, and the board of directors will make the decision for ,\llied on the Berger-Smith program. Among a group of prominent exhibitor leaders whose views on the conciliation pl.nn Film BULLETIN sought, a number of Allied unit heads declined to be quoted prior to a declaration by the national board. The consensus, however, was that the plan has merit, but most of those answering indicated a tendency to view any such scheme with a jaundiced eye. They hope it will work, but thev doubt it! William L. ,\insvvorth, president of National Allied, reiterated his statement made at the recent New Jersey convention that "any movement originating within any branch of the industry, which was good for the industry, would have the sincere support of Allied." He advocated a "watch and wait" policy until the plan has had a fair trial. Trueman T. Rembusch, president of the Associated Theatre Owners of Indiana, advised that since Andy Smith will attend that unit's convention on July 27, it would be unwise to discuss the conciliation plan until the Fox sales chief had been heard. Martin G. Smith, president of the ITO of Ohio, expressed the view that the local conciliation plan would not be the answer to intra-industry litigation, but he advocated an open-minded attitude during its trial period in the North Central territorv. Other Views on Conciliation Plan J.\CK KiRSCH President Allied Theatres of Illinois, Inc. I personally favor any move in this industry that will bring about a better understanding and a more harmonious relationship between distributor and exhibitor. If the conciliation plan recently affected between North Central .Allied and Twentieth Century-Fox Film Corp. will serve to accomplish this fact, then 1 am all for it and the sooner the plan becomes operative and the other distributors indicate a similar cooperative attitude as Andy Smith of Fox has, the better. Throughout my tenure of office as National .Allied President, I have consistently advocated such a course. In fact, from the day that I became active in National Allied affairs, upon assuming the Presidency of Illinois Allied, I always preached the doctrine that distributors and exhibitors could honestly work out their problems if both approached the matter with a sincerity of purpose. I need onl\ remind you of the UMPI Conference in which I was extremely active ; also I want to call your specific attention to the address which I delivered in June of 1947 before a convention of the Allied Theatre Owners of New Jersey in which I suggested a plan for the adjustment of differences arising between distributor and exhibitor. Although the mechanics of my proposed plan differs somewhat from the North Central Allied-Fox conciliation move, nonetheless the basic principles are about the same. Too often such movements have failed because the distributors injected their legal staffs into the picture. I think the following statement which I made at an exhibitors convention back in 1941, { Continued on Page 8) JOSEPH ARTHUR RANK With Honeyed Words Rank Cools Indies Burn Against Quota And Terms By a superb display (if salesmanship, Joseph Arthur Rank last week again deiiKinstratcd why he is the kin.gpin of the Rruish film industry. W ith h:)ne\e(l words of conciliation and ardent appeals to tlieir patriotism, he appeared to have been successful in bringing; British independent exhibitors amund to his views on the 45% (|Ui)ta. When Rank liad finished his address before the Cineniatographers Exhibitors Assn. meeting last Wednesday in London, the seething rage of exhibitor resentment, which had threatened to erupt into open revolt against J.AR's film vast er.terprises, simmered down to an almost inaudible ''phflft." Stating that his "heated words" had been misunderstood. Rank assured the assembled exhibitors that he would not advocate prosecuting those who failed to fulfill the quota. He also assured them that he would not take advantage of it to demand inordinate film rentals for his product. "Our business is one of negotiation and mutual understanding," he told them. TO ARBITRATE RENTALS As evidence of his good faith, the British filmogul proposed that three-man tribunals be set up to arbitrate claims by exhibitors that any JAR films were overpriced. The tribunals would be composed of one exhibitor named by the afTected party, one member of General Film Distributors and a third nie.inber. an exhibitor, to tx; chosen by the two. CEA approved the proposal. Rank told the British exhibitors that the quota was, in effect, a defense against the possibility of any future embargo by the American film companies. He pointed to the action of (Continued on Page 7) nlrVr ^ Independent Motion Pictur« Trade PaDer poblishod every other Monday by Film Bulletin Company. Mo Wax, Editor and Publisher BUS MESS OFFICE: Suite 622. Hanufaeturers Trust BIdg., 1819 Broadway. New York 23. 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