Motion Picture Daily (Jan-Mar 1934)

6 MOTION PICTURE DAILY Monday, January 22, 193' Allied Starts Court Test on Industry Code (Continued from page 1) C Flinn, executive secretary of the Code Authority, and all members of the authority, including its own Allied board member, Nathan Yamins Members of the code authority named in the complaint, additionally, are Merlin H. Aylesworth, Sidney R. Kent, George J. Schaefer, Nicholas M Schenck, Harry M. Warner, Robert H. Cochrane, W. Ray Johnston, Ed Kuykendall and Charles L. O'Reilly. Abram F. Myers, general counsel and chairman of the board of Allied, is identified in the complaint as being of counsel for the complainant. Norman H. Samuelson, a brother of Sidney Samuelson, head of the New Jersey Allied unit, is attorney for the complainant. An affidavit by Sidney Samuelson accompanies the complaint. Claim Confiscation The action alleges that sections of the code, if they require exhibitors to waive all "rights and remedies" at law outside of the code, amount to a confiscation of property for public use without compensation, in violation of the Fifth Amendment to the Constitution, and an invasion of powers reserved to states. It charges that various processes in the drafting of the code were illegal in that they violated provisions of the N. I. R. A. by not being "representative" of the industry at the time some of the sessions were held. It contends that the interpretation of the President's Executive Order which held that the Code Authority, rather than the Administrator, would be the final court of appeal under the code, is "erroneous and illegal" and "denies independents their rights." The complaint charges further that the membership of the Code Authority, and the proposed membership ratio of local grievance and clearance and zoning boards, represents an independents' minority which would enable the defendants, under the code, to "promote monopolies and eliminate and oppress small enterprises" and that the code would operate to discriminate against the independents. W. Ray Johnston Also Named While Yamins, a resident of Fall River, Mass., and outside of the southern Federal court district of New York, is named as a defendant, the bill recites that Administrator Hugh S. Johnson is not made a party defendant only because "he cannot be found in the Southern District of New York." The comolaint also lists W. Ray Johnston, president of Monogram Pictures, with affiliated producer-distributor members of the Code Authority. Immediately following the filing of the complaint a publicity statement was released to trade and newspapers from the headquarters of Allied of New Jersey. The statement mentioned as defendants by name only the affiliated producer-distributor members of the Code Authority, giving their company affiliations, omitting the names of the defendant exhibitors and those of Rosenblatt and Flinn. The principal allegation of the complaint is that exhibitors may be required to waive remedies outside the code if they sign the existing code assent forms which ban acceptance of the code with qualifications. The lull recites that the complainant submitted an assent to the code "under protest" and with the qualification that he could withdraw it if he found Code Authority administration costs to be more than he could pay, and with the further reservations that he did not agree to arbitrate controversies before clearance and zoning boards or the Code Authority; that he did not agree to the interpretation of the Executive Order by General Johnson, and that he waived no rights outside of the code. His assent, the complaint states, was returned to him by Flinn with the standard form of assent prescribed. The complaint asks a temporary injunction restraining closing of code assents on Jan. 31 and a permanent injunction restraining the Code Authority from requiring signers to use the unqualified assent forms. If these are denied, the bill asks that the code be adjudged contrary to the N.l.R.A. and in violation of the Fifth Amendment and that the Code Authority be enjoined from enforcing it against the complainant. The bill also asks for costs of the action. Allied to Discuss Code Cancellations (Continued from page 1) Allied members were up in arms because some major exchanges here were refusing cancellations on the ground that the code was signed after 1933-34 film contracts had been made and was not applicable to them. Saperstein wired Abram F. Myers in Washington to get a ruling on the point from Division Administrator Sol A. Rosenblatt. In the meantime Rosenblatt had issued a public statement in which he ruled that the 10 per cent cancellation privilege was retroactive to Dec. 8, regardless of contracts. When he passed through here Saturday on his way to the coast he reiterated his opinion on the Dec. 8 date, not knowing, apparently, that home offices of the major companies had definitely lined up to fight his ruling as illegal. Rosenblatt was met here by Jack Miller, Edward Silverman, and Emil Stern and was whisked to the Stevens between trains. Ben Berinstein, head of the Southern California independents, joined him on the Chief later, as did Harold S. and Mrs. Bareford. Allied leaders are steamed up over the cancellation issue, as independents claim the code will give them nothing this year unless the code provisions are carried out. Portland Fails to Rule on Giveaways Portland, Jan. 21. — Two-for-one tickets are to be eliminated here as a result of a discussion at the Oregon M. P. Club, but no decision has been reached on giveaways and other forms of "business stimulation," as it is described here. After discussing code provisions covering these things and the possibilities of appeals and delays it was decided not to act for the present. New Theatre Union Scale About Ready (Continued from page 1) tors and cleaners employed on theatre work by cleaning contractors can Be worked more than the 40-hour maximum. Cleaning contractors contend that their rates to theatres are based on contracts which require employes to work more than the 40-hour week and that these existing contracts cannot be disturbed by NRA codes. The point was raised when the union complained that cleaners employed by American Building Maintenance were worked more than 40 hours per week in Springer & Cocalis theatres. Levey said that Springer & Cocalis was instructed last week by the NRA regional labor board not to call company employe meetings at the same hour at which meetings of the union were held. Non-Signers to Be Assessed for Code With nine days left for exhibitors and distributors to send in assents, the Code Authority points out that whether or not an exhibitor signs the form he will be bound by its provisions and will have to pay his portion of the tax to be imposed for financing the authority. Those not signing the assents will have to pay, but will not have the privilege of filing protests to grievance boards. Approximately 5,000 assents are now card indexed at authority headquarters. While this is less than half of the 13,500 originally sent out, the authority figures that more than 3,000 theatres are open less than six days a week. Many of these houses operate about two days a week and are not expected to send in compliances. This brings the number down to 10,300 possible assents, of which 80 per cent, or 7,500, is expected to be tallied by the end of the month. All large and small circuits have sent in their forms, it was stated Saturday. Wholesale Code Up To President Soon President Roosevelt is scheduled to sign the wholesale code on Thursday, Jan. 25. It will have a direct bearing on the theatre accessory business. The theatre accessory code recently submitted to the NRA was merged into the wholesale code by government officials. The equipment business is not operating under the President's blanket agreement, and when the wholesale code is signed both retail and wholesale equipment firms will come under this draft. Louisiana Showmen Hear Ed Kuykendall New Orleans, Jan. 21. — Louisiana exhibitors, circuit operators and independent theatre owners meet here today to hear Ed Kuvkendall, president of the M.P.T.O.A. and member of Code Authority, explain the code in detail. Hays Asserts High Standard Must Prevail (Continued from page 1 ) eyes to the continuous progress that must be made socially as well as dramatically in film production. "Whatever progress is made, it is inevitable that the picture which offends, will stand out like an ugh blemish on the general film program and will subject the entire industry to criticism. "Errors of taste or judgmenc will be chalked up as such, regardless of the many more errors which are avoided. The task of self education, therefore, remains as great as ever. It is safer to overrate than to underrate public intelligence." K. C. Choices Vary In Code Selections Kansas City, Jan. 21. — Nominations to the Code Authority reveal a wide difference of selection among the industry here as to choice of the impartial member to represent the public on the clearance and zoning and grievance boards here. Five recommendations for the post have been submitted. Judge Merrill E. Otis of the Federal Court and Roy A. Roberts, managing editor of the Kansas City Star, were recommended by exhibitor organizations. Individuals have nominated Earl Blackman, minister and social worker; Ray M. Wilson, secretary, civic department, Kansas City Chamber of Commerce, and Tom Finnegan, circulation representative for Collier's and Democratic politician. Authority to Hear Vaude Complainants With several complaints being registered by vaudeville groups, the Code Authority will appoint a special committee at the meeting tomorrow to investigate for recommendation modifications in the code. The authority meets at the Hotel Astor instead of the Bar Ass'n Bldg., as originally pl aimed. Code Brochures Out All distributing companies have sent out specially prepared brochures to sales forces detailing the enforcement of the code. One of the points brought out is that when a decision handed down by the grievance board is not observed by an exhibitor, he will not be serviced until he complies. See Seating Gains Washington, Jan. 21. — Present indications are that business in the public seating industry will improve during the current year, chiefly as result of replacement requirements of theatres, churches and schools, it was disclosed at the hearing on the code for that industry. To Reopen Some Codes Washington, Jan. 21. — That some i of the codes against which complaints t have been made will be reopened for amendment by Administrator Hugh S. Johnson has been revealed here.