Record #418

Date:
09/06/1928
Record Type:
Memo
From/By:
Lamar Trotti, Assistant to Colonel Jason S. Joy
To:
Mr Will H. Hays, President, MPPDA
Reel:
Reel 4
Frame Start:
4-2033
Frame End:
4-2236
Legacy ID:
418
Legacy Year:
1928
Legacy Index:
Department of Justice

The industry is being investigated by the Department of Justice -- especially the legality of the operations of the Boards of Trade. Trotti offers Hays some pro-arbitration ammunition from a report by the Special Assistant to the General Attorney. Also included is some information about the situation for the benefit of the press. Many documents relating to the investigation itself are included in the file.

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Long Description:

9 June1928: Trotti to Hays, passing on part of a Department of Justice report on the Film Boards of Trade, stressing there is no criticism of the actions of their General Counsel (Pettijohn, I think), or of the central machinery -- which has always accepted and acted on DoJ rulings. DoJ objections to FBT arbitration have not been against its practical workings, but with "the legal theory in accordance with which these rules and regulations were established and maintained." -- but recognized the economic benefits of arbitration to all concerned. The recent investigation established that almost all the exhibitors who objected to arbitration "have been actuated largely by the desire to avoid having to pay a just debt" -- imposed by the arbitration system. "Probably the great majority of the owners and operators of motion picture theatres approve of the operation of the arbitration system. It is manifest that that system benefits all honest exhibitors because of the economic saving occasioned by ensuring that contracts be fully performed, and because it prevents many unfair practices on the part of dishonest exhibitors." Also X28-18 and X28-19, correspondence between Lott, Rembusch and Quigley -- Rembusch identifies himself as the National Secretary of Unaffiliated Independent Motion Picture Exhibitors of America -- claims to represent 15,000 exhibitors without salary, and accuses Quigley of following Hays' line -- "probably Pettijohn writes your editorials."

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