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THE MERCHA
FOR WARNER BRO
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#1
1. We announced on March 14, 1939 that we would release 48 feature pictures, 104 short subjects and 48 trailers. We also stated that "Quality is not a Passing Fashion". Our production performance since this date and the pictures finished and available for release justify that statement and announcement.
2a An exhibitor who licenses all feature motion pictures offered shall have the right, if he be not in default, to eliminate proportionately among the several price brackets, 20% of the total number of features licensed, if the average of the license fees for all features shall not exceed $100,, and 10% if such average is in excess of $100.
3* We confirm our policy of long standing of allowing an exhibitor to eliminate any feature which may be locally offensive on moral, religious or racial grounds.
4a We expect all top bracket pictures to be played on preferred playing time.
5a We will license a run designated by us of our features in any situation to any exhibitor of good reputation as a theatre operator and customer, whose theatre is in good condition and who operates under a policy which will not substantially reduce our revenue from any other run, provided such exhibitor and we can agree upon the number of features to be licensed, and other terms and conditions.
6. We confirm our policy of long standing and our intent to continue to license our pictures to our regular customers who prove to be satisfactory.
1m No exhibitor will be required to license short subjects, trailers or reissues as a condition of licensing features.
8a No recording charge will be made in connection with the licensing of any of our feature pictures.
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