Evening star., 1934-05-21

Wide World Photo.
visions to make the authority so con-
stituted self-perpetuating.
Linked With Big Eight.
| In case Of the retirement OF any
member, he is to designate his sue
cessor subject to the approval of the
rest of the authority. or failing to
do so, the authority is to name the
successor. The authority consists OF
10 members, of whom eight are shown
to be directly or indirectly connected
with the eight large companies.
| These companies are distributors Of
pictures as we'll as producers. They
are also interested in certain theaters
that are in competition with inde-
| pendent theaterS.
At the hearing before this board,
March 26. 80, April and 4. repre-
! sentativeS of the independent theaters
presented definite complaints of the
operation of the code under the
| authority thus constituted. The
deputy administrator of the code was
| present at the first hearing and was
invited to testify, but refused to
do so.
Subsequently, seven Of the eight
companies implicated by the testi-
mony of independent theater owners
filed brief. attempting to discredit
the testimony given against them.
This brief, because of its unsuhstan-
tiated nature and the preponderance
of testimony against it, the board
| deems to be of small moment In this
| issue.
Complaints Listed.
The chief complaints OF maladmin-
istration under the code for the bene-
fit Of the large producers and dis
tributors and against the smaller
enterprises are as follows:
/. That they although constituting
numerically much the greater part
Of the industry, were not allowed to
share in the making Of the code.
2. Unfair practices, In that the
large producers and distributors In
sist independent exhibitors shall buy
also a certain number of what are
called short subjects" (meaning short
| reels) and Of news reels in order to
obtain the great and vital feature
pictures from which profits are mostly
derived.
1t was averred that some of these
independent theaters have in this way
been forced to buy and store away
more short subjects" and news reels
than they could show in a year. They
must pay for them, nevertheless,
whether they exhibit them or not. BY
this practice also small producers
that produce only short subjects"
and news reels are put at diSad-
vantage
g. The large producers require a
large percentage of the gross receipts.
sometimes 35 per cent or more, for
the use of popular pictures and then
dictate the days upon which they are
to be shown.
In the business generally, Saturday,
Sunday and holidays are the best
days, but it was pointed out that this
arrangement deprives the independent
theater of any control over its pic
lures, as the large producer dictates
the day the picture is to be shown,
whereas it may not be suitable for
certain localities upon such days.
Deprived of Choice.
4. The theater owner Is deprived
of any choice In the presentation OF
pictures, since he must show what is
allotted to him. This works in prac-
tice to shut from the theaters the
pictures of other than the large pro-
ducers, since they can choose all the
best days for themselves.
5. The code gives to the distrib-
utors generally the big eight) the
right to fix admission prices through
the provision that allows them to in
sist upon a minimum admission price
for their own pictures.
1t was brought out that such con-
troll might cause to theater the loss
of large part of its clientele through
resentment against what would be
deemed an unjustifiable advance in
prices while the theater owner would
be powerless to meet such an attack.
6. That the large distributors are
allowed to insert into their contracts
with the theaters, provisions that are
not authorized by the code, and are
| detrimental to the independent thea
tiers. These extra-legal provisions, it
was set forth, were often in the shape
of an agreement against the show
| ing of two feature pictures on the
same program.
The courts have held this stipula-
ton to be unfair. In practice, 1t de-
prives the independent theater OF
one means to meet the competition
of the affiliated theaters, which are
the theaters affiliated with or con-
trolled by the big eight.
Theaters Classified.
7. The code set up boards to clas-
sifv theaters in the order in which
they can have the use of popular and
desirable pictures, and these boards,
it is averred, are controlled by or in
the interest of the large producers
and distributors. The result is that
| in many instances independent thea
tiers cannot get the popular pictures
until their competitors have largely
exhausted the drawing power therein.
Findings: 1t is the opinion of this
board that the code adopted for this
industry should be amended in ac-
cordance with the attached brief.
Retail Solid Fuel: The dominating
power in this industry Is the National
Retail Coal Dealers Association. The
code was made and the code author
ity chosen by members Of this asso-
citation without due representation OF
coal dealers that were not members.
The operation of the code thus made
and administered tends to oppress
the small enterprise.
The code requires certain conf
Dental business information to be
disclosed, which constitutes q perilous
practice and one liable to abuse.
Power is given to divisional code
authorities to prohibit the marketing
of blends" a prohibition that seems
unnecessary and is the occasion for
complaint.
1t is in these particulars that the
small enterprise seems most oppressed.
The evil can and should be renedied
by amending the code and by giving