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6
MOTION PICTURE
DAILY
Thursday, May 17, 1934
New Setup of Code Asked by Review Board
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contents of the report secret, what are believed to be the most important findings on the film code "leaked out" today.
Contrary to previous rumors, it is said the report does not charge Division Administrator Sol A. Rosenblatt with mis-use of his office, but does censure him for his alleged failure to protect the interests of the independents adequately and recommends the transfer of jurisdiction over all amusement codes from him to some other official of the Recovery Administration. The report, it is said, charges that through his relationship with Nathan Burkan, he has become unduly sympathetic to the major interests in the industry.
Majors Held Ignored
In its report the board is said to have ignored entirely the brief filed by the major producers following the conclusion of the hearings. In explaining this action, the report does not contend the brief was received too late to be given consideration but is reported to assert that it should not be given weight because it was intended to "discredit" witnesses complaining of the code.
The Darrow board in several other ways is declared to have ignored matters which would normally be given weight in a government investigation as, for instance, its failure to consider the Federal Trade Commission's Paramount case where the orders of the commission were held invalid by the Federal courts, when the report declares that block booking has been held illegal in a number of cases.
Outstanding among the recommendations said to have been made is one for the creation of a commission to devise a code provision insuring the right to buy as a substitute for block booking.
Selection of Commission
The commission would be selected by the Code Authority following a revamping of that organization and would consist of two major producers and two distributors, to be elected by a majority vote of the five members representing the major interests, four independent exhibitors selected by the unanimous vote of the five independent members, and a ninth member to be picked by the elected eight to serve as chairman. In the event the independents cannot agree upon their representatives, Darrow offers to appoint them, and the report suggests that if the chairman cannot be satisfactorily determined the Federal Trade Commission shall name him.
It is recommended that the commission be given until August 1 to file its report and that in the event oi failure to complete its studies by that date the code should be amended to outlaw block booking and provide specifically for application of the rightto-buy principle.
The report will recommend the revamping of the authority to provide for 15 members to be divided equally among the major interests, the inde
pendents and the government, each group to have five representatives.
Members of the present Code Authority are said not to be referred to by name, nor are any charges leveled against them, but the report holds that eight of the 10 members either directly represent or are sympathetic to the majors.
The local boards also should be reorganized, the report is sajd to hold, Under an outline submitted by the board, the grievance boards would be elected in each exchange territory by the exhibitors thereof and would consist of one distributor, one affiliated exhibitor, two independent exhibitors and one government representative. The report will recommend the lifting of all time limits on the filing of complaints.
New Board Makeup
The clearance and zoning boards, under the Darrow recommendations, would be so organized as to give the independents a six-to-three or sevento-two majority, on the ground that the independent interests have the major investment. These boards, it is said, should consist of one affiliated distributor, one independent distributor, one affiliated first run exhibitor, one unaffiliated first run exhibitor and four bona fide subsequent run exhibitors, and one government representative. Whether the report suggests the method by which the members of the board would be selected could not be learned.
A number of provisions of the code should be eliminated, the board holds. It recommends that the forcing of shorts be prohibited by deletion of the provision linking shorts with features, that distributors should be divested of any control over admissions, that no prohibition should be imposed upon double features, and that distributors should be denied the right to specify playdates.
There is little or no discussion in the report of the labor provisions of the code, which, it is said, will be considered in detail in later reports.
Some doubt exists whether the White House will make the full report public or only a summary setting forth the highlights. However, it is understood Darrow will issue a statement explaining the position of the board, and it is probable that Johnson's reply also will be made public.
Overstepped,SaysLazarus
New Orleans, May 16. — Henry Lazarus says the NRA compliance director had overstepped his authority in forbidding the Coliseum to have an "odds and ends night." He asserts he had planned to set up a table in the lobby where each woman ticket-holder could have her choice of one object, all of which had the same value, but the compliance director warned him not to do it, although the Avenue had obtained permission to do so, according to Lazarus.
Lottery Slant Out
Contending it is now conforming with provisions of the code in staging "Race Nights" by elimination of lotteries, General Film Products of Hollywood is notifying exhibitors of Campi's approval. Secretaries of Code Authority have been forwarded letters of the compliance by General Film Products and when cases come before grievance boards, such nights are to be permitted, provided lotteries are out.
Campi to Receive Ideas on Charges
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was told that for the first half of the year, none could be made since the plan agreed upon was the best of those submitted to the committee.
Division Administrator Sol A. Rosenblatt has approved the plan and it is likely some alterations may be made for the second half of the year.
Campi has not received the wire reported to have been sent by Omaha independents requesting withdrawal of assents and asking at the same time to be relieved from further financial responsibility under the code. It was said at Code Authority headquarters that no action had been decided upon in the event the Omaha exhibitors refused to pay allotted levies. Until the withdrawal request is received no action by Campi will be taken.
Distributors Winners Of Decisions in K. C.
Kansas City, Mo., May 16. — The grievance board here today found in favor of Fox against the Charles Stanley Columbian, Wamego, Kan., holding the latter liable for the full amount of its contract. The board held Stanley guilty of transferring the house to his father-in-law's name to avoid fulfilling the contract.
The board dismissed the complaint of Charles Esterly of the Nu Era, this city, against Paramount, Warners, Fox and M-G-M, charging the companies with refusal to sell him product. The board ruled that it had not been shown Esterly was short of film. The distributors maintain they cannot sell Esterly, who only recently opened the theatre, without jeopardizing a long-established competitive account in the same neighborhood. The decision may be appealed to Campi.
Omaha Board Stops "Merchant Nights"
Omaha, May 16. — Merchant coupon tickets alleged to have been distributed by George Werner of the Orpheum, Fairfield, Neb., have been ordered stopped by the grievance board. It was the board's first decision. The complaint was filed by T. C. Schipley, Clay Center.
Film shows open to the public at which admission has been charged by the Jefferson High School, Council Bluffs, Iowa, have been adjudged unfair competition.
A complaint of William N. Youngclaus, Columbus, Neb., against Central States Theatres, Des Moines, charging overbuying will come up May 25.
Philadelphia Hears Clearance Protest
Philadelphia, May 16. — Decision was reserved by the clearance and zoning board at its first hearing today on a complaint of the Broadway Theatre, Bridgeport, against the Norris Amusement Co., Norristown, that the 42 days' clearance enjoyed by the three Norris theatres is excessive. James Egnal of the Broadway asked that the clearance be cut to 14, 21 and 28 days for the Norris, Grand and Garrick, respectively.
Union Count Low; Strike Talk Flares
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strike would be called as soon as plans for executing it were completed.
The checkup, agreed to earlier by the circuits and the union during an arbitration conference called by Division Administrator Sol A. Rosenblatt in an effort to avoid a strike at Loew's Metropolitan, Brooklyn, three weeks ago, was to determine whether or not the circuits would recognize the union. Had the checkup shown a majority of union members among the employes involved, circuit representatives said yesterday they would have agreed to a closed shop. The results showed 13 per cent union membership among Loew's service employes and 28 per cent in RKO.
The count was conducted under the supervision of the Department of Labor, Washington. Levey charged yesterday that employes had been intimidated during the count, and asserted that circuit representatives accompanied the Department of Labor agent throughout the checkup. He said he was convinced the union represented a majority of the employes and would call the strike.
Indies to Test Dual Ban in Sales Pacts
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been retained as counsel to discuss plans for a test case of the double feature question. They seek to have defined the right of six major companies to forbid double featuring in contracts.
The independents have chosen for the purpose the case of the Grand Jackson Theatre against the Venice Theatre, which comes up before the grievance board tomorrow. Golder will represent the Venice at the hearing. Regardless of the board's decision, the exhibitors plan to carry the case to the courts.
K. C. Protests on New Clearance Up Soon
Kansas City, Mo., May 16. — The local zoning board will hold open meeting Monday afternoon to hear protests on the new clearance schedule, which has precipitated widespread denunciation, chiefly from unaffiliated suburbans.
Ed Dubinsky today added his voice to that of other protestants. He said he intends filing a protest, adding the only one helped by the new arrangement is Fox Midwest. He asserted it helps the circuit's position with respect to subsequents and is advantageous to Kansas City, Kan., houses, but is otherwise a serious threat to subsequents.
The board will notify all local exhibitors and distributors, giving all a chance to express their views.
New Orleans, May 16. — The grievance board holds its second meeting May 21, when it is expected several complaints will be filed. The suggestion of Norman Carter, a member of the board, that meetings be closed to the trade press, will be discussed.