Variety (Nov 1932)

54 VARIETY PICTailE s Tueadtij, Noyeml^er 22, 1932 50ME ANGLES TO UNIFORM CONTRACT Optional Standard License Agreement The uniform contract arblliatlon and flexible admissions are adopted so far as distributors are concerned. This announcement was made" Mon- day (21) by producer-I'epresenta- tlves who were so confident it will meet with exhibitor approval that they expressed the belief that any theatre oAvner who wants to trans- ^ £er his present contractual obiiga- 'tlons to uniformity dan .dp so be- fore Christmas by . simply expi'ess- ingr that desire In wrlUngr to all major compdrile's with which he lis doing business, Arbitration, in the latest analysis, will be virtually as binding as in the days before the Thacher de- cree, dlstrlb lawyers . revealed.. It will doubtless cut litigation over contract disputes by oyer 70%. -Ar- bitration awards are enforceable in bt the Country because ■ that percentage has state laws authoriz- ing the validity of an arbitration board decree, it waa further re- vealed. Getting Out Lawyers Under- the new set-up the next shearing In the industry will con- cern legal staffs. By thfe first of the year, according to .- present plans, fully Half of the lawyej-a now In the employ o£ major "film com- panies will be looking for affilia- tions elsewhere. This is stated in cohnectlon rwith,. th~^ .. dieclavation that th? big Influx' of legal talent was due to hundreds of petty con- tract actions yearly following the JBliacher decree. . C'^fixhlbitors at the most, under the new platform, can 'cheat' for just one year. During that time they will be so branded, if they refuse to abide by aii arbitrtil decree, "that (Wmpstni^s • Individually, Instead of collectively, as in the old daya, .may refuse to risk their, product at such bpx.pfflces. Despite the fact that actually to date but two comjpanle^, Fox' a*id ..Bducational. have committed them- selves in ^yritlng to the., new plat- form, the official slant i;i that at. the Very least 75%' of the major dla- trlbs : are set -to iiomii Itt with; the other 26%, including Metro and Warners,, expected .to follpw. The indie decision is a matter that eveii certain of their leaders cannot predict before the reaction at the mass meetings. At the Chl- cago meet on .Nov. 28 the main feu Is that Al SteffCes will throw the wrench. The former head of Allied Exhibitors, .Abrdju' Myers, and his henchman, Sidney Samuelson, are credited with okaying all of thQ ma^ Jor moves In the conferences with Sidney Kent. If Fair, ths Best . In New York on Dec. 1* Ch«M'"l«s O'Reilly, who has disdained being any party to th«-conferences and who has always ciept his Theatre Owners Charnber pf Commerce brood aloof from affiliation with either national .organization, yriH preside oyer the ea,s,te^, qnass meet ing, to, decide all Issues* O'Reilly this week, while nqiaklng the boast th^t he hasn't seen the contract and. doesn't know any..of . the flex Iblllty. details, admits jthat ,i£ ^uni- formity is fair it is the best pro cedure for the industry. .. ," What shaped up as a possible ^^^snag in the atltude of certain dia ^^Htributors toward the -arbltuation ^KKclOMse, which caused hurried sea sions of exhlb representatives last Friday and yesterday (21), H^^re ported'by those Who are thoroughly familiar with thQ platform to be Jiist minpr complaints <9.aslly adjustable Universal raised the point that producers without circuits could not expect fair treatment if they were Involved with a major producer possessed of a circuit. "They pointed put that the theatre end of the ar "bitration board calls for two rep resentatives from the "MPTOA, two from Allied and two from the cir- cuit figuring in the case. In reply to this, other distributor authori- ties maintained arbitration is de^ signed to take care of the outposta and that virtually ©very dispute be- tween major companies has and will he continued to be settled between themselves, in New York. Runout Preventiva . Another slant regarding arbitra- tion awards was a,lso quqcitloned by Universal.. Thjis company oould not aee any penalty where the distrib is allowed to cancel h.is contract with : , ■> (Continued on page 35) -. j i 1933 AGRIDGMBNT of license under copyright made fat on* or-ihore coun tcrparta between ., a corporation (hereinafter refei-red to as the Distributor)-, party of the Urst part, and the Exhibitor (hereinafter named and referred to aa the Exhibitor, operating the tlieatre hereinafter deslgrnated), party of the second part, WITNESSETH: The parties hereto agree Aa follows: License . FIRS'!*; The Distributor grants the Exhibitor and the Exhibitor ac- cepts, a limited license under the respective copyrights of the motion pictures designated and described in the Schedule hereof and under the copyright Pf any matter included in any sound recorded therewith, tp exhibit publicly said motion picture and to reproduce for public perform anceq such recorded soiind in synchronism therewith, but only at the said theatre for the number of consecutive days specified in the Sched- ule and for no other use or purpose; provided that the. reproducing equipment in .the said theatre will operate reliably and efficiently to re- produce such recorded sound with adequate volume and high quality; and provided-further that If copyrighted musical cemposltlpns are in- cluded in such recorded sound, the E^chibltor now has or wlH ha,ve at the . date or dates of the exhibition' of each of suph motion; plcturea a- license, from, the copyright, proprietor .ther,eof .or from any .licensee of such copyright proprietor ..to perform publicly , the said. cppyrJghted mu- ,.slCial compositions. If mori^ than pne theatre la heteinafter deaighated the said motion pictures are.licensed for exhlbltlon.at only-one of suPh theatres unless otherwise in the Schedule specifically provided inrwriting. Term and VVsirranty - -i SECOND: (a) The term of this Agreement shall begin with the'date fixed or determined for the exhibition at the said thea4j«: of the. first motion picture deliverable hereunder and shall < cpntlnue for. a period of one year thereafter unlesis otherwise in the .Schedule, provided. ' 7he Distributor, agreeis during said term, to deliver to the E2xhthltor,i and .the Exhibitor ag:rees to exhibit at said theatre during said-term rOPon the date or dates herein provided for,. a'positive print eaclr.ot :said mo- tion t>lctures (except Quch as may he excluded aa provided In-Olauses Fifteenth and Seventeenth hereof. . The Distributor Warrants that ©ach positive print will, be in good physical ^condition for projection and ex- hibition, and will clearly reproduce the recorded' SQund~ In synchronism therewith^if propei^ly used upon standard reproducing equipment; If the recorded sound is not-recorded, upon a print, all references herein to a print. shall be deemed to Ihclud© the records, discs and any ^other device ilipon which sound may be . recorded: for reproduction with the exhibition of a print, . . Damasat-^Failure .'to Deliver (b) If the Distributor shall fall or refuse tot deliver; or'thie 'Ex- hibitor shall fail or refuse to exhibit during the term hereof, any ot 'said motion ' pictures, excepting' those Wbioh mky be' eliminated as prPvided in Clause Fifteenth hereof, and those which may idot. be generally released aa provided in'Clause Seventeenth hereof, or If the Distributor shall deliver to the Exhibitor a print of any ihotion picture which print shall be determined was not In condition for exhibition and for the reproduction of sound aa provided in Clause Second, the Exhibitor or the Distributor, as the caae may be, shall pay as . liquidated damages a. sum equal to the fixed sum herein specified as the rental of 'each stich motion picture or a sum com- . put(a.d as provided in Clause Third (q) hereof, it the rental., of. any such mptlon picture is to.be dete^mln^d,,, either In whole or In-part upon a percentage of the. admission . recieipts oC atdd-. theatre, or any 'part .thereof pr upon a percentage of suoh reoelpit».ra^d <(rfixed sum.. . .. ■■ \ ■•■ Payment .- /^ • ' ■THIRD: '(a) Exhibitor agrees, to .pay for auo^ Iloense. aa to, each such motion picture the fixed sums 'spe<iifled In the Schedule .at least three'(3) days in advance of the date'of'deliverj- of'it print thereof at the! Distributor'^ exchange Or of this dato'of shlknnent to tho Exhibitor from another'exhibitor, unletts after the iCccoptahbe of this apblictttiOh by the Distributor 'such payment shall be-othetWise'ietgriBed'to'by fhb Dls- trlbuior in wtlting; -algned by the Distributor at its mate offlpe'In New York City. ° All 'payments* hereunder shall 'be made to the' Dlstributor at thO City in Which is located-the exchange froui WMoli the/'EMiibltor Is.served. •''' Percentage Book! ngs (b) If the rental of any of subh niotlon pictures la to be deter- mined either in Whole or in part upon the admission receipts of said theatre, or any part thereof, the Exhibitor agrees to pay such . rental immediately after the last exhihitlon upon the, last data of the exhibition of each such motion picture, or it requested by the 'Distributor at the end of each day's exhibition. In each such case the Exhibitor shall deliver to the Distributor Immediately after the last exhlbttidn upon each date of exhibition of each such motion picture a Porrect itemiised statement of the groaa receipts of-said ' theatre for admission thereto upon each such date. Such state- ment, if requested by the Distributor, shall be made upon forma furnished by the Distributor and shall be signed by the Exhibitor or the Manager, or Treasurer of said theatre and the Cashier thereof and shall' include a statement of such facts and figures as may be provided in the Schedule to be furnished br the Exhibitor, upon the exhibition date or dates of each motion picture an authorized representative of thO Distributor Is herehy given tiie rl^ht to verify the sale of &II tickets of admission id'said theatrey tod the receipts therefrom; and for such purpose shall havO acceias ib the theatre, Including the box office, and also the right to examine all releviant .entries relating to such gross, repelpts In all .the Exhibltor'a books jand records, , and. If hereunder it is provide^, that tho Exhibitor make certain expenditures and/or deductions, to examine all entries re^ lating to .such expe|iditures. and/or deductions. Su<A -right ot ac- cess and examination of the Exhlbito^a boofcfi and records limited aa aforesaid, shall continue' for a period of four' (4) months after - .the receipt by the ^Distributor ot eaoh such statement' The Dis- tributor agrees, unless such representative la In thai cohttnuoud' em- - ploy- of the Distributor, or employed as'a-checker, hot to Employ as ' . . a representative for such purpose any person a. resident of oir em- ployed .in the place where the said-, theatre la located, other ^Ihan a person engaged in business aa'dn< accountant. The Distributor agrees: that any information obtained pursuant to the pi^vlsiPiis of : thia .clauso will be treated as confidential, excepting in any arbitra- tion, proceeding or litlgatipa in reapect-to thia license.- • Liquidated Damao^e-^Percentafie BbOkiiiga . (c) If the Exhibitor falls or" refuses to' exhibit'any of said "motion {>lctures ad'herein provided and the rental or any part thereof is to be computed in whole or in part upon a pei'centage of the admission receipts of said theatre, the Exhibitor shall pay the Distributor as liquidated damages for each day the Exhibitor fails or refUses to exh'ibit'such motion pictures, in addition to any fixed sums payable hereunder in respect of such motion picture, a sum equal to such percentage of the' average dally gross receipts of such theatre on each date any feature mPtlon picture distributed by the Distributor was exhibited thereat during the period* of ninety (90) days pr;ior to the date or dates when said motion picture should have been so exhibited hereunder, or if ha feature motion picture distributed by the Distributor was exhibited at such theatre during said ninety- day period, then a sum equal to such percentage of the average dally grosa receipts of such theatre during the period of thirty operating days immediately prior to the date or dates when such motion pictures should have been exhibited; provided, that if the . Exhibitor shall exhibit such motion picture for less than the full number Of days provided for in the Schedule, for each day less than said 'full number of days, the sum equal to such percentage shall be ■ computed upon a sum equfil to sixty-five (66%) percent of the gross receipts of said theatre during the last day of the exhibition thereat of such motion picture. A sworn statement of the said dally gross receipts shall be. delivered by the Exhibitor to the Distributor upon demand therefor. Delivery and Return of Prints FOURTH: (a) The Distributor agrees within a reasonable time after , each of said motion pictureil is generaliy released for publlo exhibitloh and, bieoomes available for exhibition hereunder b^ the Exhibitor, to deliver a print..thereof Xo the Exhibitor. • • : (b> < The public exhibition of any of said motion pictures for three , .(^) consecutive'days at prices usually charged for admission to the I theatre .where so exhibited In the territory wherein is located the. exchange from which the Exhibitor is served, excepting any "road show," "tryout,^ "preview," or "pre-release" exhibltiona thereof, shall be deemed the'general release for public exhibition of such motion picture, but only In auch territory. A. "pre-release" exhibition shall be deemed' any' exhibition because of seasonal conditions making .' desirable exhibitions In advance of general release as herein defined, (c) The Exhibitor agreea to exhibit each of said motion plcturea In the order of Ita general release by the Distributor In the ex- change territory in which said theatre-Is located. The Exhibitor ■ shall havo the right to select &ny of the motion plcturea for exhlbU tlon out of the order of Its general rdleaae,' subject, to prior runs and/or protection granted other exhibitors, on the date or dates de- termined as provided In Article Sixth hereof or otherwise agreed uppn, hut only upon the following conditions :(a) that the Exhibitor Is not in default hereunder and shall have- fully complied with all the provisions, if any, set forth In the Schedule fpr the exhibition of .on? or more pt said motion pictures at specified intervals; and (b) that the Distributor and the Exhibitor. shall theii agree upon the date or dates upon which all of the motion pictures generally released prior to the general release of such motion picture and available for exhibitfon hereunder shall be exhibited by the Exhib- itor, which date or dates shall be within thirty (30) days from the first exhibition date of the motion picture to be exhibited out of the. order of its general release; or in the alternative the Exhibitor 'shair then pay to the Dlstrlbutdr the license fee for each of such motion pictures then^ generally released and available for exhibition hereunder, and as to any thereof which shall not be exhibited by the Exhibitor within thirty days from the first cixhibltlPn date of the ' motion .i>lcture to be' exhibited out of the Order of its general re- : lease, the grant of the run and protection period in respect thereof shaU be deemed waived by the-Exhibitor. ' Upon the failure or re- fusal, of-the Exlilbitor to exhibit any of such motion pictures then generally released and available for exhibition hereunder within said thirty • day period or to pay the license fee thereof, the right of the Exhibitor to thereafter select for exhibition any motion picture out . of the order of Its general release shall be forfeited. The provisions of this, paragraph (c) jshall not be deemed to limit or qualify the provisions of -Article Sixth hereof excepting as In this paragraph . (c) .specIfipaUy provided, i (d) The Distributor shall make deliveries hereunder to the Exhlb-^ itor pr to . the Exhlbttor^s .authorized agent, by. delivery at the Dis- tributor's exchange, or to a common carrier, or to. the United States : Ppstal authorities. If deliveries are made to a ,carrier or.to a po'gt- ' office, they shall.be made in time for prints to reach the place where , the said theatre Ip located in time for inspection and a projection thereof before the us.ual time for opening said .theatre. " - (e) Exhibitor agrees to return Immediately after the last exhibi- tion on thp last date of exhibition licensed, each print received hereunder, with Itti reels and contialners, to the exchange of the Distributor from which the Exhibitor is served or as otherwise • directed by the Distributor in the same condition as when received, reasonable, wear and tear due to proper use'excepted. Exhibitor agreea to pay all costs of transportation ot such prints, reels, and containers from the Distributor's exchange, or the last previous exhibitor having possession of the same, and return to the Dls- tributor'a exchange; or If directed by the'DlstributPr, to ship such tMsItlve prints elsewhere than to the Distributor's exchange trans- portation charges collect. It is agreed that the delivery of a positive print properly directed and packed, in the container furnished bv the Distributor therefor, to a carrier designated or used by the Dis- tributor and proper receipt therefor obtained by the Exhibitor, shall constitute the return pf such positive print by the Exhibitor. (f) If Exhibitor falls to or delays the return of any positive print to the Distributor or fails to forward or delays forwarding (as di- rected by the Distributor) any such print to any other exhibitorr the. Exhibitor agrees to pay the Distributor the damage. If anjt ~ ,so caused the Distributor and In addition the damage. If any, so '-caused such other exhibitor. The Exhibitor shall have the right to ■'participate In any compromise of or IntervenO in any arbitration or Idgal proceeding based ut>on any claim for such damage asserted against the Distributor by another E:thlbltor; notice of which ahall. be given the Exhibitor by the Distributor. Loas and Damage to Printa •FIFTH: .."fhe Exhibitor,shall pay to the Distributor a sum equal to the cost, ipf replacement, at the Distributor's exchange for each .linear foot of aniy print, lost, .stolen or destroyed or injured in'any way In the Intei^iral: between the delivery to and the return thereof by-the Exhibitor in, ^uU settlement of all claims for such loss, theft, destruction or Injury.. Such payment,: however, shall not transfer ititle to or any . Interest In any. such positive print to the Exhibitor. Or any other party, nor release the JBxhlbltor frpm any liability arising out of any breach of this .{igrqement. The Distributor shall, at the option of the Exhibitorr repay .or credit to the Exhibitor any sums'paid by the Exhibitor for any^ lost or stolen print, excepting "news reels," upon,the return of such lost or stolen print to the Distributor within sixty (60) days after the date when the same should have , been returned. hereunder. The Exhibitor shall not be liable for the. damage or destruction of any print, provided the Exhibitor establishes suph damage or destruction occurred while in tra,nsit. from the Exhibitor, The Exhibitor pheM. immediately notify the Distributor's - exchange by telegram of the loss, theft or destruction at or damage or injury to any print. If any print shall be received from the Exhibitor by the Distributor or any subsequent exhibitor in a damaged or partially destroyed condition it shall be deemed to haver been so damaged or destroyed by the Exhibitor unless the. latter, im- mediately after the first public, exhibition thereof shall have telegrraphed the Distributor's exchange that, such print was received by the Exhib- itor in a damaged or partially destroyed condition and setting forth fully the nature of such damage and the amount of footage so damaged at destroyed; Selection of Play Dates SIXTH: Unless otherwise.agreed upon or unless definitely specified or,otherwise providod:for in the Schedule, the eipiibitlon date or dates of each of said motion pictures shall be detcrnilned as follows: 1. Subject .to prior runs and/or protection granted or hereafter granted by the Distributor to' the other exhibitors an^ within'a ' reasonable'time after a i>rint ot prliits Of any of said motion ' pictutres 'are received at the exchange of the Distributor'out o{t which the Exhibitor Is served, and provided the Exhibitor Is not in default hereunder, the Distributor shall mall to the Exhibitor a ,notice In 'writing of the date when each such motion picture will bo available ifor exhibition i>y the Exhibitor (which date is hereinafteir ' referred' to ais the "avallablO date"). Such notice shall be mailed to the Exhibitor at least fifteen (IB) days before the available data therein- specified. ' .'' ' ,2. Within fourteen (14) days, afteit the ma!(llhgr Of such notice, the Exhibitor shall select an exhibition date or .daijtes not theretofore . a^^lgned to another exhibitor or other i^xhlbltora, within the period " commencing iipon the, available, date an^ .end|hg .thirty (30) days thereafter, and give to the Distributor written'notice of the date 6r datps so selected, ; ,. . • . , ' s; Upon the failure of the Exhibitor to' so select such date p'r diites the' Distributor shtaill designate such date pr dates by mailing , written notice thereof to the Exhibitor. Protection and Run SEVENTH: The Distributor agrees not to exhibit or grant a license to exhibit any of said motion pictures for exhibition in confiict with the "run" or prior to. the expiration of the "protection period" it any In the Schedule specified at any theatre therein named or within the ter- ritorial limits therein specified. Such period of protection as to each at said motion pictures shall be computed from the last date of the ex^ hibitlon thereof licensed hereunder. If protection la granted against a named theatre or theatres indicating that it is the intention of the Distributor to grant such protection against aSl theatres In the imme- diate vicinity of the Exhibitor's theatre then unless otherwise provided in the Schedule, such protection shall inclifde any theatre in sucH vicinity thereafter erected or opened. Description of Pictures ' EIGHTH: (a) The Distributor shall have and hereby reserves the right In the sole discretion of the Distributor to change the title of any of the said motion pictures, to make changes in, alterations and adapta- tions of any story, book or play, and to substitute for any thereof any other story, book or play. The Distributor also shall have and hereby reserves the right to change the director, the cast or any member thereof of any of said motion pictures, (b) The Exhibitor shall not be required to accept for any feature motion picture described in the: Sohedule^aa that of the following named star or stars any motion picture of any other star or stars: »...,.,.. '..«i<...^..,i.a...4.,, nor to accept any other feature motion pictures tn place of any . thereof in th*