The motion picture industry (1933)

Arbitration o <^ <^ <^> <^ <^ <^> <^> 279 imposed on the exhibitors". It was further asserted that the "rights given the distributors and all the obligations imposed upon the exhibitors have been very definite and explicit, while the principal rights of the exhibitors and most of the liabilities imposed upon distributors are indefinite and uncertain". And, finally, that "the so-called arbitration system in the motion picture industry primarily is a system for the collection under duress or threat of duress of debts due to distributors from exhibitors and that the system departs widely from the usual principles of commercial arbitration in that the procedure an'd the principles of law requisite to the decision are prescribed, and the enforcement of the decisions is controlled by the dominant factor in the industry, the distributors".24 Particular analysis was made of Articles 2, 3, 4, 8, and 19 of the 1928 contract. Article 2 provided among other things that the photoplays designated in the contract schedule had to be exhibited "during the period of one year commencing with the date fixed or determined as hereinafter provided".25 This provision was inserted presumably for the purpose of insuring to the distributor a reasonable promptness in compliance by the exhibitor with the contract schedule. In view of the general absence from the contract of specific play dates 24 Government Brief, p. 50. 25 The method of prescribing play dates under the contract was somewhat complicated. Very briefly the provisions were as follows. The distributors had to mail to the exhibitors fifteen-day advance notice of availability. The exhibitor within fourteen days thereafter was to select play dates falling within a thirty-day period from the availability of the film to him. If the dates so selected were not open to the exhibitor, one of two procedures was followed. First, the exhibitor was to select other dates within this period if any were open. If he failed to do so the distributor was to designate the dates, giving the exhibitor fourteen-day notice thereof. These dates had to be within not less than two or more than six weeks from the date first selected by the exhibitor. Second, if no dates were open within this period of time, the exhibitor was to select dates not less than two or more than six weeks after the thirty-day period. If none were so selected, then the distributor was to designate the dates within the same period on which the pictures should be shown. If for any reason the exhibitor at any time failed to designate dates within the time limit allotted him for such selection, the distributors were to name the play dates.