Motion Picture Daily (Apr-Jun 1936)

MOTION PICTURE DAILY 32 Allied Meets In a Scrappy, Buyers' Mood (Continued from page 1) Court, if necessary, to demonstrate his charge that monopoly and trustification exist. The various keynotes of the impending convention are sounded in Allied's official program. "Right now," declares the foreword, which is unsigned, "several of the producing companies are burning the midnight oil in some nearby city compounding the best arguments as to how to sell exhibitors to the best advantage — Nothing wrong in that, but — "Isn't it time that exhibitors hold a buying convention, compare notes, get expert opinions as to what the various companies delivered last year, what they didn't, discuss the sales policies they are going to be asked to subscribe to, and get a line-up on what they are to be offered next year. Producer Methods Recommended "Producers are organized and talk over mutual problems. To Cleveland will be brought experts who will give the exhibitors assembled the same information. Plans must be made at Cleveland to fortify the position of the independent exhibitor — to make plans to help those who are being oppressed. You must take a part in that. "Legislative destruction waits on every side. Exhibitors must ready themselves for any and all unfair taxation onslaughts." In his pre-convention message, Nathan Yamins, of Fall River, Allied president, starts with a compliment to his Ohio unit which he describes as Allied's "most virulent organization" and asks : "Are we to return to the days of '28 and '29, when with ruthless abandon producers forced hundreds of theatre owners out of business by building and threatening to build, by their ill-advised invasion into the exhibition field, or are we going to devise ways and means that will guarantee to independent theatre owners the right to stay in business, make a normal profit, and leave a small heritage to those dependent on them? Immediate Action Asked "Are we going to face another selling season blind as to what we are to buy and what we are to get? Are we going to sit idly by and accept sales terms that spell ruination for hundreds of us? "Cleveland must sound the warning. Cleveland must find the solution. Cleveland will find the answer, if there are in Cleveland the scores of theatre owners expected, who come not alone to get away from home scenes for a while but come ready to take off their coats and make it the 'workingest' convention Allied has ever sponsored." Hays's influence is "pernicious," states Steffes. It "has squeezed dollars out of the independents and enabled the accomplishment of throttling control of production, distribution and exhibition." He says : "Chief among the tasks of the inde pendent theatre owner, if he is to withstand the continued and insidious attempts being made to trustify the business and eliminate the little fellow, is the removal of Will H. Hays as head of the producer-distribution association." At another point, he adds : "It is no accident that monopoly suits have been instituted on many fronts by the Government which is making efforts to cut the tentacles of the Frankenstein the Hays association has become. Calls Promises "Empty" "Decent thinking men and women the country over have risen in protest against the calibre of pictures we are forced to show. Finding that Hays' promises meant nothing, various organizations, headed by the Legion of Decency organized to protect the nation's morality and forced a partial clean-up. In spite of this, pictures bearing the stamp of approval of Hays' censor committee have been forced upon us which brought down upon our heads the justified wrath of the decent people of our communities. "Allied States Association has tried to work with Mr. Hays to effect industry reforms. The empty promises we received are history. The time, money and energy we spent was just so much waste, for Mr. Hays never intended to give us a square deal, for to do so he obviously believes would imperil his job." Cole Tells of Allied Formation Cole, dipping into Allied history, asserts : "The basic reason for the formation of Allied eight or nine years ago, was that independent exhibitors were convinced that their major problems come from within the industry — not without. A man who is dying from cancer is not interested in a remedy for a wart on his neck. The exhibitor who can get no film — the exhibitor who knows he stands in the shadow of extinction— is not especially interested when his trade association saves him $50 on his insurance premium, or even a $5,000 admission tax. As an extreme example of that, one of my members demanded that I go before our Legislature and advocate a 10% admission tax, so bitter was he against those who were taking away from him his little living. Court Plea Asked "The MPTOA, when it was taken over by distributor-chain interests, and ever since that time, has pictured a united industry fighting its foes, legislative and economic, on the outside. These dangers we all recognize ; but to the Independent exhibitor they sink into insignificance beside the one great threat to his existence that comes from within the industry itself — that would deprive him of product, or that would place such onerous conditions in the line of clearance, price fixing, etc., as would make it difficult or impossible for him to continue in business. I have one suggestion : perhaps it may be a first step toward that end. That suggestion is that Allied National abandon every other activity during the coming year and concentrate on one or two basic court actions to be carried up to the Supreme Court of the United States for final determination. We have cried our wrongs to the high heavens, and still our thea tres are being black-jacked and taken away from us. We have protested that their whole system of protection is inequitable and illegal : their only contemptuous answer has been to make it worse. We have shouted monopoly and trust; but our only answer has been the feeble echo of our cry. Uncertainty of our legal rights is really worse than the situation itself : for every theatre that has been torced out of business, there are hundreds that have sold out through intimidation and fear. Let's get through with uncertainty. Let's find out if our claims of illegality are justified. Then, at least, if we go down, we'll go down nghting." Myers on Arbitration Abram F. Myers, general counsel and board chairman, maintains adjudication of exhibitor problems is not possible by negotiation. Citing the 5-5-5 conterences as proof, he describes efforts in the past as a "disillusioning experience." "In the first place," avers Myers, "the autocrats of the industry will not negotiate in reference to the special privileges they enjoy and regard as rights unless the pressure of exhibitor agitation becomes too strong to resist and even then will not participate beyond the point where the danger has Deen averted or the exhibitors' solidarity has been dissipated. Attacking Hays, he states : "Mr. Hays has often stated that it is his function to put the oil where the squeak is. When he first entered the industry he appeared genuinely anxious to correct injustice and promote good feeling by dealing directly with the complaining parties. But flies soon gathered about the Great Emollient, flies whose purpose it was to create suspicion and unrest rather than allay it. Hays by virtue of his contract will be with us for many years, but the flies need not be. Public Regulation a Possibility "All of these maneuvers ignore the realities and merely provide additional ammunition to be used against the industry in the next encounter with public authority'. It is all so palpable that nobody is being misled; on the contrary large bodies of interested citizens and persons exercising public authority are gazing on the proceedings with amazement. Unless the industry gets wise to itself, casts out the dead flies and deals with exhibitor problems seriously and in good faith, public regulation will be inevitable." Members Arriving Rapidly The delegates for whose benefit these statements of their leaders had been prepared, began to arrive during the afternoon with a fairly representative attendance on hand by late this evening. H. M. Richey, chairman of the national convention committee, flew in from Detroit Monday evening; Sydney Samuelson of New Jersey arrived during the day and made for the golf course. P. J. Wood, business manager of the I. T. O. A. of Ohio, checked in about noon and Abram F. Myers from Washington about the end of the day. H. A. Cole, president of Allied of Texas, and regional national vice-president, arrived early this evening. By Wednesday morning the arrivals will reach their crest. Computing on the basis of reservations at the Hol Wednesday, June 3, 1936 Members from Many Sections Attend Meet lenden late today, Richey predicted the heaviest attendance at any exhibitor convention held thus far. He said the hotel reported 235 reservations which do not include space for a delegation of 45 which he said western Pennsylvania is sending. He computed major delegations as follows : 34 from Michigan representing eight theatres, 12 from Philadelphia, 22 from New England, six from Texas, two from California, 14 from Minnesota, 20 from Wisconsin, 30 from Chicago, 20 from Indiana, 12 from New Jersey and 150 from Cleveland and neighboring Ohio cities. Detroit Delegation Heavy "Detroit registered 345 bona fide exhibitors. The Chicago convention went to 375. I predict between 400 and 450 here representing 1,500 independent theatres," he told Motion" Picture Daily. Richey quoted Myers as stating the purpose of the presence of Russell Hardy, special assistant to the Attorney General of the U. S., who prosecuted the criminal and civil suits against Warners, Paramount and RKO in St. Louis was to listen to exhibitor complaints against unfair trade practices with the possible view of gathering material for an investigation by the Dep't of Justice and ultimate prosecution in the Federal courts. Paul Williams, one of Hardy's assistants, will also attend. Daniel Bertrand, who recently made a final NRA report on the industry in which he suggested Government control, will sound an interesting note, according to pre-convention word from Allied leaders already on the ground. While they were reluctant about forecasting the content of his address, which will be prepared and not delivered extemporaneously, one prediction from an Allied source in a position to know tonight was that Bertrand will urge independent exhibitors to strike for Federal intervention and control unless alleged malpractices on the part of distributors cease. Theatre Loan Talk Set James Caffrey of the Federal Housing Administration will speak on Government loans for the reconstruction of theatres and explain to the assembled exhibitors how they may arrange to get them. All through the day M. B. Horwitz, chairman of the general convention committee, was busyr whipping exhibits into shape. Thirty-one companies will be represented with 10 more seeking space to no avail. Rangy, gangly Walter Stoeppleman, exhibitor from the Texas plains, who panicked the Atlanta convention last year with his dry and penetrating wit, arrived this afternoon holding out a promise of fun again being injected into the deliberations. Operating in such metropoli as Silsby, Wiergate, Kirbysville and Jasper, somewhere along the line he will expound theatre problems as seen through small town eyes.