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The Independent Exhibitor <^ <^ <^ <^ 307
small-town and subsequent-run houses, formed the nucleus from which the Allied States Association hoped to formulate a unified organization. Although definite information was not available, the Allied States officials estimated the purchasing power of their potential membership to be sufficient to return a sizable profit to at least three producers whose output averaged around 30 feature pictures each per year. In March, 1932, there were 22 territories representing 36 states affiliated with Allied with a total membership of approximately 6,000 theaters.
Shortly after accepting the presidency of the Allied States Association, Mr. Myers succeeded in getting an injunction 3 to restrain sound-equipment manufacturers and sound-film producers from prohibiting justified interchangeability. In Mr. Myers' opinion, the case was similar to that of United States v. Motion Picture Patents Company. While it may be true that the practice of restraining interchangeability was doomed in any event, the injunction was valuable in that it hastened a general recognition of the problem and in that it marked a definite accomplishment on the part of Allied.
Another major task confronting the association was to establish some reasonable assurance that members could secure a supply of pictures on satisfactory terms. To accomplish this purpose an agreement known as the Allied States Franchise Agreement was drawn up. The agreement involved Tiffany Productions, Incorporated, and the RKO Distributing Corporation as producer-distributor members; the Allied States Association in the field of exhibition; and RCA Photophone, Incorporated, as suppliers and servicers of high-quality sound reproducing equipment, the prices and terms of which were within the reach of the small independent exhibitor. The agreement was drawn up in such a manner as to provide a basis for cooperative advantages.
3 Exhibitors Herald World, February 2, 1929.