Record #822

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Reel 9
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MPTOA - Allied States Meeting
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MPTOA-Allied States cooperation over proposed federal-legislation the result of breakdown in exhibitor-distributor relations, which is distributors" fault. Previous cooperation over resisting legislation means exhibitors now know how to lobby effectively - issues are protection, zoning and block-booking.


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October 13, 1932. Memo from Hess to Hays. On September 20, 1932, at Chicago, the representatives of the allied association and the MPTOA met, and having concluded that all means to cure the evils of the industry had failed, proposed legislation, both federal and state. The representatives of these associations announced that federal control was the only weapon left to them to combat the evils which, if allowed to continue, would close thousands of theatres. The evils they complain of are: 1. Exclusive selling 2. Excessive protection. 3. Unfair contracts. The federal regulation that they propose which is more drastic than that contained in the Brookhart Bill 1. would prohibit block-booking in groups of five or more pictures, unless the exhibitors is given the privilege of cancelling 20% of his buy; 2. would make exclusive runs illegal; 3. would prohibit zoning and protection beyond a reasonable time; 4. would make the Federal Trade Commission an investigator, arbitrator, and regulator, with power to determine all disputes; 5. would amend the Clayton Act to include therein license agreements and leases, as well as sales in interstate commerce. In addition to federal legislation, the meeting favored state tax legislation to inhibit exclusive runs, and further supplementing federal legislation to cure the evils complained of.

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