Motion Picture News (Mar-Apr 1923)

March 24, 1923 1381 Rules Are Adopted for Arbitration Boards Producer, Distributor and Exhibitor Representatives Approve Broad Principles of Operation THE rules of procedure to be followed by the various boards of arbitration that will be organized under the provisions of the recently adopted Uniform Contract have been drafted, approved by the attorneys of exhibitor organizations and the Motion Picture Producers and Distributors of America, Inc., and will shortly be put into operation by the arbitration committees that are now in process of formation in various parts of the country. As was announced in last week's issue of the News, Page 1260, a board of arbitration constituted in conformity with the provisions of the Uniform Contract is now in active operation in New York City, the first meeting being held last week in the presence of the trade-press representatives. The final draft of the "Rules of Operation " was approved on March 8th at a meeting held in the headquarters of the M. P. P. D. of A., at which representatives of the producers and distributors as well as the following exhibitors were present: William A. Steffes, of Minneapolis; Claude Cady, of Michigan; H. M. Crandall, of Washington, D. C.j Charles L. O'Reilly, William A. Brandt, Bernard Edelhertz, and Leo Brecher, of New York. Following are the " Rules of Operation " adopted at the meeting last week: THE BOARD OF ARBITRATION L " The Board of Arbitration shall consist of six persons, three of whom shall be managers of local offices of the distributors, called distributors' representatives, and three of whom shall be proprietors or managers of theatres in the zone where the Film Board is located, called exhibitors' representatives; provided, however, that in no event shall such exhibitors' representatives be managers of theatres owned or controlled by producers or distributors. " Each of the three distributors' representatives shall be selected by the members of the Film Board of Trade to serve for one year or until his successor is appointed. The three exhibitors' representatives shall be selected and appointed by the local exhibitors' associa Gensorship for Michigan Rilled in Committee CENSORSHIP so far as Michigan is concerned, is now a dead issue, at least for another year. Senate Bill No. 102 introduced by Senator George M. Condon of Detroit, was killed in the committee. The action taken by the Michigan M. P. T. O. on the Arbuckle case, showing that the exhibitors of this state, as a body, are standing for clean pictures and clean people in the pictures, is considered by many as principally responsible for the defeat of the measure. A public hearing on this bill was held last Wednesday by the Senate Affairs Committee, Senator Foss O. Eldrid of Ionia, chairman, presiding. Speakers for the bill were Mrs. A. B. Cramer of Detroit, James H. Engle, of Lansing, executive secretary of the Michigan Sunday School Council for Religious Education, and the Rev. Frank M. Miner of Midland. Opposed were Judge Alfred J. Murphy of Detroit, counsel for the M. P. T. O., and Charles C. Pettijohn of New York. Thos. H. Ince Renews Contract with First Nat'l JOINT announcement has been made by Thomas H. Ince and Associated First National Pictures, Inc., of the consummation of a contract for distribution of a new series of Thomas H. Ince productions by First National. The contract means a continuation of the relations between Mr. Ince and First National for First National is distributing the present season's productions made by Mr. Ince. . Mr. Inces' affiliation with First National began in a contract which was closed in August of 1921 and was renewed in August of 1922. The first release under the new contract will be in September of 1923. There are two more Ince productions on the present release schedule of First National, "A Man of Action" and "The Sunshine Trail" both of which are scheduled for release before June. Work already has been started on "Her Reputation," in which May McAvoy has the leading role and another big special will be "Wives Who Fail." Talbot Mundy, the noted British writer, has been engaged by Mr. Ince and has just finished "The Devil's Own," in collaboration with Bradley King of the Ince scenario staff. He now is at work on a second novel which will be adapted for the screen. tion. In the event there is no local exhibitors' association or if such association fails to appoint, then the President of the Film Board of Trade shall request the President of the Chamber of Commerce, or if there is none or if he fails to appoint, then the mayor of the city in which the Film Board of Trade is located, to select and appoint the three exhibitors' representatives. Failing such selection and appointment the designation of exhibitors' representatives shall be by the President of the Film Board of Trade. Each of the exhibitors' representatives shall serve for one year or until his successor is appointed; provided, however, that any exhibitors' representatives designated otherwise than by the local exhibitors' association shall be replaced by exhibitors' representatives designated by such exhibitors' association as soon as such designation is made. " No member of the Board of Arbitration shall sit in any case or controversy in which he has an interest direct or indirect. " In case of a refusal or disqualification by reason of interest or sickness or other reason on the part of a Distributors' representative to serve on the Board of Arbitration, the remaining Distributors' representatives or representative may appoint a substitute for such member; similarly if a vacancy exists in respect of an Exhibitors' representatives or representative, the remaining representatives or representative may appoint a substitute. " In case of a tie vote the Board of Arbitration shall appoint a seventh arbitrator, and if they are unable to agree then the Chairman of the Board of Arbitration shall request the President of the Chamber of Commerce, or if there is none or if he fails to appoint, then the mayor of the city in which the Film Board of Trade is located to appoint a seventh arbitrator who shall be neither a distrib utor nor exhibitor nor interested in the motion picture business. II " The Board of Arbitration shall have general power after a thorough and impartial hearing of any dispute or controversy, to determine such dispute or controversy, to make findings thereon, to direct what shall be done by either or both parties with respect to the matter in dispute, and in the event of the failure of the Exhibitor to comply with the award, to fix the maximum amount that each Distributor may demand pursuant to Article Nineteenth of the Uniform Exhibition Contract. It shall adopt its own rules of procedure and evidence. These rules shall provide for reasonable notice to the parties of the time and place of the hearing and of the nature of the dispute and afford the parties an opportunity to be heard in person or by counsel and to submit evidence. The findings, determination and direction of the Board of Arbitration upon such controversy shall be conclusive and binding upon the parties thereto." These rules are the broad principles on which the Boards of Arbitration will operate. The rules for the operation of the local boards will be prepared locally by those who operate under them and will be in line with the principles set out herein. Famous Players Net for 1922 Reduced The Famous Players-Lasky Corporation in a report covering operations for the year ended December 30, 1922, shows net profit of $3,375,387, after Federal taxes and preferred dividends, equivalent to $14.72 a share earned on the outstanding 229,203 shares of no par value of common stock. In 1921 net profit amounted to $3,931,999, or $19.01 a share on 206,834 shares of common stock. Following is a tabulated statement of income: 1922 1921. Operating profit $4,718,527 $5,970,671 Federal taxes 607,540 1,275,172 Net profit 4,110,987 4,695,499 Preferred dividends.. 735,600 764,400 Common dividends 1,684,148 1,654,672 Subsidiary co.'s divid's 5,115 11,528 Surplus 1,686,124 2,264,899 The balance sheet of the company as of December 30, 1922, shows a profit and loss surplus of $9,350,113. Net current assets were $18,872,526 and net current liabilities, $8,237,069. Current assets included $2,310,022 in cash, against $2,350,693 in 1921, and $3,154,046 in bills and accounts receivable compared with $5,905,354 in 1921. Liabilities included $4,140,186 in bills and accounts payable, against $5,500,689 the preceding year. Federal tax reserve was $607,806, compared with $1,275,172 in 1921. Newspaperman to Join Will Hays Staff April 1st Arthur Krock, of the Louisville CourierJournal, will join the staff of Will H. Hays on April 1st.