Motion Picture Herald (Oct-Dec 1951)

Organization Voices Stand as Opposed to Fixing of Prices, High Rentals Allied favors “all inclusive” arbitration for the motion picture industry. It is also alert to the “illegal” fixing of admission prices and the companies’ policy of asking “excessive” film rentals. These were the outstanding developments last week at the Allied States 18th annual convention at the Hotel Biltmore in New York. Allied’s stand, arrived at after lengthy discussions on the floor, derived from the convention itself in the form of resolutions which were approved by the Allied board. This represented a complete reversal of usual convention procedure but fitted in with the observation of Abram F. Myers, Allied board chairman and general counsel, that “exhibitors should share in the responsibilities for formulating policies.” Mann Opposes Vote, Kirsch and Berger Support Plan The convention’s endorsement of arbitration, which came as a surprise, was passed over the violent objections of a small group of delegates led by Ted Mann of Minneapolis who, just before the voting, declared: “You can arbitrate yourself out of business. Don’t arbitrate when they’re guilty. Let them know we are going to fight them.” He was followed by Jack Kirsch of Chicago and Ben Berger of Minneapolis, both of whom urged Allied to participate in the formation of an all-inclusive arbitration system. The resolution covering arbitration urged that such a system include : Clearances and prints, competitive bidding, film rentals^ forcing of pictures, illegal setting of admission prices, runs and “any important problems affecting the operation of the motion picture industry.” Mr. Kirsch urged arbitration of “everything— film prices — everything.” This, he said, might serve to abolish bidding “and then a split of product between competitors can be worked out.” Mr. Myers came to the microphone briefly to express himself in favor of arbitration. Myers Reminds Hearers He Never Owned Theatre “I think it’s a good thing,” he said, adding with a smile “but remember — I never owned a theatre.” The convention urged an arbitration system under which industry arbitrators will choose the third member of the panel. Following the convention’s action, spokemen for some of the distributors declared themselves puzzled by the “all-inclusive” nature of the arbitration proposal. And several expressed doubts that any of the distributing companies would agree to the arbitration of film rentals. STANLEY KANE, Nicholas M. Schenck, Dore Schary ARTHUR HOWARD. Norman ( Several distribution offic could see no reason for arb rentals. “Would you, as a c a purchase you had made fro arbitrated?” one asked. It w out that no deal is compulsol equities can be adjusted. j If, originally, the impress! that Allied would now worl Theatre Owners of America, y in favor of an arbitration system all along, it was quickly dispelled by Col. A. H. Cole who briefed the press following the post-convention board meeting. He took the place of Mr. Myers who had to return to Washington. Col. Cole indicated that there would be no approach made to TOA and that instead Allied planned to send a committee direct to the distributors to explore the possibilities of an arbitration system. It is possible, he said, that following the meetings with the inexpciiaiv^ .. tional grievances. The Allied convention enjoyed a record turnout, with more than 500 registered for the meeting and the trade show. The convention was under the chairmanship of Wilbur Snaper, president of New Jersey Allied. A resolution praising him for his work was passed by the delegates. The next convention is to be held in Chicago. The “illegal fixing of admission prices” (Continued on page 16) ARBITRATIOBf IS RACKED RY ALLIED COAVEKTIOA 12 MOTION PICTURE HERALD, NOVEMBER 10, 1951