Boxoffice-October.01.1955

ARBITRATION PLAN DRAFTED;
AWAITS EXHIBITOR APPROVAL
If Justice Dep't Gives OK.
May Become Effective
In Next Three Months
NEW YORK—An industry arbitration
and conciliation plan finally has been approved
by the distributor-exhibitor committee
which has had it under consideration
since April 25, 1953. The draft carried
the date Jan. 10, 1955—an indication that
the text of the plan had been agreed on
by the exhibitor-distributor conferees
nine months ago, although some modifications
were known to have been made in
May.
One exhibitor organization. Independent
Theatre Owners of New York, already has
approved it. It probably will go before the
Theatre Owners of America convention at
Los Angeles October 6-9. In the meantime
committee meetings will discuss it.
The Southern California Theatre Owners
Ass'n is expected to act shortly.
TO BE TESTED FOR ONE YEAR
The next move then will be to pre.sent
It to the attorney general in Washington to
find out whether it violates any provisions
of the consent decrees in the antitrust litigation.
It is expected that these preliminaries will
be completed within three months and that
the plan will then go into effect for a 12-
month test period.
If it is not renewed at the end of the 12-
month test, the plan will continue until
cases on which orders have been issued .shall
have been disposed of.
No definite plan for financing the project
is contained in the mimeographed forms, but
provision for charging fees on all cases filed
is made. These facts will be fixed later.
There also will be fees on appeals.
A simplified conciliation plan is appended
to get quick, inexpensive decisions in controversies.
Complainants can write to exchange
managers. They will hear the complaint.
If no decision is reached by the exchange
head, the exhibitor can take the
matter directly to the general sales manager
who can hear the case himself or designate a
representative. If the exhibitor isn't sati.sfied
with the ruling, he still has the privilege of
going to arbitration.
The entire method of procedure is less
complicated than the old American Arbitration
Ass'n plan set up by Judge Goddard.
That system cost $350,000 a year. Al Llchtman,
director of sales for 20th Century-Fox,
recently estimated that this plan would cost
$150,000, with the costs equally divided between
exhibitor complainants and distributors.
UNDER NATIONAL SUPERVISION
A Nntloniil Administrative Committee will
supervise the over-all activities and al.so the
work of the exchange center boards, which
will be .served by paid clerks.
Exhibitors are the only ones who can file
complaints, although distributors can file appeals.
Each side. Including Interveners, can
be represented by one lawyer each.
Two principal subjects discussed in the plan
New York ITOA Okays
Full Arbitration Plan
NEW YORK—Independent Theatre
Owners Ass'n of New York has approved
the arbitration plan and a proposal for
a new ticket tax campaign to remove the
tax entirely. The action was taken at the
first fall meeting. Max A. Cohen, who
was the ITOA representative on the allindustry
committee, explained the details
of the proposed arbitration.
The ITOA urged the Council of Motion
Picture Organizations to go ahead
with a tax drive. It also was decided to
notify members that every effort should
be made to forestall legislation designed
to bring about federal control of the
business.
New directors were elected as follows:
Richard Brandt, Samuel Einhorn. Norman
Elson, Sam Freedman, Jack Hattem,
Ben Knobel, Larry Kurtis, MuiTay Le-
Boss, Martin Levine, Al Margolies, Melvin
Miller, Walter Neithold, Irving Renner.
Ray Rhonde, Jack Rochelle. Al Shukat
and David Weinstock.
New members of the association are the
72nd Street Playhouse, operated by Martin
Lewis, and the Avon and Stamford
theatres, operated by Samuel Weiss at
Stamford, Conn.
are clearance and runs.
Exhibitors can complain that clearance is
being granted by the distributor against the
complainant's theatre and in favor of a theatre
or theatres not in substantial competition
with complainant's theatre, or
Clearance is being granted by the distributor
against the complainant's in favor of a
theatre or theatres in substantial competition
therewith in excess of what is reasonably
necessary to the licen.se of a competitive theatre
on the runs granted to it.
The burden of sustaining the reasonableness
of clearance is on the distributor.
Factors to be taken into consideration are:
Admi.ssion prices, character and location of
the theatre, type of entertainment, appointments,
transit facilities, etc.
Arbitrators can dismi.ss complaints, find in
favor of complainant, i.ssue cease and desist
order: award damages, if asked. Distributors
can institute further proceedings for a
modification if they can prove conditions
have changed.
Controversies on runs originating before or
after effective date of the arbitration plan
can be considered. If the exhibitor can show
that he has been refused product. Arbitrators
will take into consideration type of theatre
and other factors similar to clearance,
including capacity of theatre for producing
revenue.
Competitive bidding must close ten days
before an award of a picture and an exhibitor
must be allowed to .see the picture In
advance of bidding.
Failure to deliver prints in time for exhibition
is arbitrable.
Conditioning one license upon another is
forbidden. This includes shorts, newsreels, or
reissues, westerns or foreigns. An exhibitor
must mail his complaint to the arbitrators not
less than ten days after the request for conditioning
takes place.
Under the heading: "General Provision" It
is stated that unless damages are claimed at
the time of filing a complaint, none shall be
awarded.
A National Administrative Committee is to
be formed. Apparently there will not be a
single national administrator. The committee
will have three members designated by
Theatre Owners of America, one by Independent
Theatre Owners Ass'n of New York,
one designated by Southern California Theatre
Owners Ass'n, one by International
Drive-In Theatres Ass'n and three by the
distributors signing the agreement. Others
may be added later, but not more than three.
There will be local arbitration committees
subject to the supervision of the national
group. Each local committee will include a
member chosen by exhibitor members of the
national group, an equal number chosen by
the distributor members of the national body.
The national group will decide the location
and area of authority of local groups.
Each local committee must provide a panel
of neutral arbitrators and file it with the
national committee. Each regional committee
will have a clerk. Arbitrators will be
entitled to fees and expenses.
A national appeals board will be organized
by the national committee. It will consist of
three impartial non-industry members. First
terms of office will be for 18 months. Thereafter
tenure will be decided by the national
body. Appeals will be heard in various cities.
Rules of practice and procedure say complainants
must supply three copies of all
names and addresses of those who may be
affected by a complaint. Where only one
exhibitor and distributor are concerned they
shall pick a third arbitrator.
Expenses and other payments will be fixed
by the national group. Witnes.ses must testify
under oath. Exhibitors can withdraw complaints.
If no request for damages is included and
no request for a stenographic record, none
will be made.
After an award has been made the case
can be reopened for correction of errors.
Appeals must be filed, with a fee, with local
clerks. Tlic appeals board may increase or
decrease an award.
NT Hearing Set on Bid
For Las Vegas Drive-In
WASHINGTON—National Theatres will
have a hearing on October 10 in New York
City on a bid to acquire a 1,200-car capacity
drive-in at Las Vegas, Nev., according to
Justice Department officials on Tuesday (21).
Interested parties may testify.
The drive-in is already in operation, but
the present owners wish to dispose of it.
National Theatres at the present time does
not have any Las Vegas theatres.
The hearing will be at 2 p.m. before Federal
District Judge Clancy.
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BOXOFFICE :: October 1, 1955