Motion Picture News (Oct-Dec 1929)

32 Motion Picture News October 19, 1929 Contract And Arbitration Held Illegal By Federal Court In N. Y. {Continued from page 27) with the court's ruling. In his statement, he said : "We direct attention to the fact that Judge Thacher finds that •competition between the distributors has been promoted by the adoption of the standard exhibition contract and that, in many ways, general trade conditions have been vastly improved.' The important thing, of course, is to preserve this ; and judge Thacher in concluding his opinion suggests that the Government and the industry indicate provisions to be incorporated in the decree under which the use of a uniform contract containing an arbitration clause might be continued. Therefore the industry will undoubtedly proceed immediately to try to agree with the Government upon such practical changes which may be necessary to accomplish this result." Grosvenor, however, did not continue with that part of the decision immediately following the portion quoted above in which Thacher says : "But the record is equally clear that all this good has been accomplished through the exercise and irresistible economic force consolidated by combination in the hands of the distributors, who collectively control the available supply of films and by virtue of this control have exercised their will upon the industry." A statement issued by the Allied States Ass'n touching on the decision, expressed gratification at it? content and remarked the fact that "the illegal arbitration system" was imposed on the industry by the Hays association, continuing with: "The decision sustains the position taken by the Allied States Ass'n that the system is so unfair that the theatre owners should not participate in it. "It is to be hoped that instead of prolonging the delay in setting up a fair and legal system by appealing from this decision, the producers will cooperate with the exhibitors through their leaders in working out a compliance with the court's decree which will be satisfactory to all branches of the industry and the Government." In attacking the arbitration clauses in his decision Judcre Thacher states: "It will be noted that the effect of these provisions is that if an exhibitor fails or refuses to submit to arbitration any claim or controversy arising under any contract with any distributor, then the right of every distributor to demand security upon every contract immediately arises, and if the demand is not complied with within seven days all pending contracts with every distributor may be cancelled. In view of the exhibitor's necessity to contract in advance with several distributors for the delivery of films to be exhibited in accordance with a program laid out for more than a year in advance, it will at once be seen that the exhibitor's refusal to arbitrate will immediately subject him to heavy demands for security, if not complied with will result in the termination of his entire supply of films for exhibition in his theatre, and probably result in conditions under which he cannot continue in business. It is alleged in the petition that the members of the Film Boards of Trade nave gone beyond the requirements of the contracts and the arbitration rules and have entered into supplemental understandings and agreements, without the knowledge and against the general instructions of the defendant distributors and of the defendant Association, to refuse to contract for the future exhibition of anv motion picture films with any exhibitor who has failed to comply with any decision of any Board of Arbitration. The proofs abundantly establish the fact that this was the consistent practice of many of the Film Boards of Trade until quite recent y, when their ,itte nt ion was catlei to the fact that such action was l tttfied by the run When this was done the members of the Film Boards of Trade were tolH that the qui ' ■ i distributors would deal with any exhibitor who had refused to arbitrate or had failed i v with .mi award was one for the decision of individual diti it ^t the same time it was 1 ' Jren the consistent policy of the distrihii'ors to refuse to deal with exhibitors who failed \\ i ate, or to comply with arbitrator! a wards. The co.rrcJvc effect of this situation has utndoirbtcdly been that unlffa exhibitors submitted to arbitration ami COmp'ied vards rendered aqainst them, they kavt been unable to enter into new contract* atid have required to suspend service \n their theatres ' unless able and willing to comply with the arbitration awards rendered again it them or to deposit security under all of their outstanding contracts." Names Authors Credit for the idea employed in preparing the press book on "Welcome Danger," Harold Lloyd's newest production, and for its development is given by Russell Holman, director of advertising for Paramount, first to Leslie Whelan of the Harold Lloyd Corp. for conceiving the idea of seeking national exhibitor cooperation in devising advertising angles and exploitation suggestions, and to Messrs. Adams, Moriarty, Daly and Miller of the Paramount advertising department for the actual work of preparing it. Actual authorship of the idea and the press book were unintentionally omitted in the published references to it last week Paramount Pep Club Dinner The ninth annual dinner of the Paramount Pep Club, an organization of Paramount officers and employees, was held last night at the Astor, New York. Incoming officers installed are: Edward A. Brown, president; Fred L. Metzler, vicepresident; Elmer R. Short, treasurer; Aldythe Reichenbeek, secretary. Russell Holman acted as toastmaster. Fitz Patrick In Atlanta Atlanta. — Fitz Patrick Pictures has opened an office here with N. E. Savini as branch manager and W. G. Evans as booker. The branch will cover Georgia, Florida, Alabama, Tennessee and the Carolinas. Beatty Heads News Bureau Jerome Beatty heads the Dews bureau of the Erickson Co. advertising agency, N. Y. Indecision Rife Over Contracts (Continued from page 27) of the legal committee of the association was held. Several of the distributing executives stated that they could see no way out of their present difficulty except to return to the deposit system to insure the carrying out of contracts on the part of the exhibitors. It is a system that they state they do not approve of, but one that they may have to resort to in order to protect them-i'h es. The arbitration system just declared illegal was worked out just prior to the advent of Will H. Hays into the industry as a resuult of the work of the late -Marcus Loew and William Brandt wt'«> was al that. time president of ifre Theatre Owners 1 ill I' Commerce in New York City, and was conceived to do away with the deposit system then in force and the Iioy system of collections from exhibitors. With the advent of Hays he took the New York situation as his mode] and extended ii over the country as part of the arbitration system by the formation of the Film Hoard of Trade. Coast "Dubbing" In Foreign Lines (Continued from page 26) Spain and Germany, besides re-making the "Romeo and Juliet" scene of the production in each of those languages. Pathe is considering language versions and is now experimenting with an old picture to see what can be done in doubling voices. United Artists so far have done nothing beyond doubling voices for the German version of "Lummox." Sono Art is making a Spanish version of Eddie Dowling's "Blaze 0' Glory," with a Spanish east starring Jose Bohr following the Dowling company into sets to record scenes and dialogue in Spanish. An independent company headed by Cardona is making an all Spanish dialogue feature at Tec Art. Universal has done more than other companies on foreign dialogue. Doubled voices for German versions of "Broadway," "Show Boat" and "Eric the Great" and now the same for "The Shanghaied Lady" have been produced, and a Spanish version of "Broadway" now is in production, as well as short sketches in both German and Spanish now being made under the supervision of Paul Kohner with Kurt Neumann directing the shorts for German release. The company has a small group of German and Spanish speaking players in stock at and Spanish speaking players in stock. Fox is doing nothing by way of production in foreign languages, although wherever possible songs in French, German and Spanish are being introduced in all pictures. Clayton P. Sheehan, foreign manager, was here several weeks ago conferring with Winfield Sheehan. Pathe Merger With Shubert Now Cold The contemplated merger of Pathe and the Shubert theatrical properties is cold, Motion Picture News learns. Joseph P. Kennedy refuses to state the reasons for the falling through of the deal at this time. His only remarks are to the effect that it did not appear impossible that the deal would be closed. Negotiations were first started last spring when it looked as though the Shuberts would be in a position to sway all of their associate stage producers in a combination which they would be in a position to deliver intact to one of the larger film producing organizations. At that stage, Kennedy stepped in and started to trade. Then several of the managers who were !•> be a parly to the deal made affiliations of their own with other pieture companies. On his return from abroad Kennedy again started to negotiate with the Shu bcrts and the bankers representing them. Last week it appeared as though all difficulties were ironed out and that the deal would go through. Yesterday merger details were dropped. Loew Dividend In Boston Boston. — Loew's Boston Theatres Co. has declared a regular quarterly dividend of 15 cents, payable Nov. 1 to stock of record Oct. Ifl.