Record #828

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David Palfreyman
Mr Will H. Hays, President, MPPDA
Reel 9
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MPTOA - Allied States Meeting
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Detailed account of current state of inter-industry relations between distributors and exhibitors - fuller version of 13 October 1932 document [in D32-30] with additional details on related legislation proposals and other action by MPTOA and Aliied States.


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August 16, 1932. Resume of Intra-Industry Relations prepared by Palfreyman after consultation with Hess, Pettijohn and Wilkinson.... "It is extremely difficult, if not impossible, to suggest or plan a definite program in view of the present frame of mind [among distributors] This attitude, however, may be changed after further consideration is given to the matter by the responsible heads of the companies.{Content is broadly similar to October 13 1932 memo but with more details of problems over protection ... }"... The delay and refusal to use a standard form of contract greatly strengthens the support of so-called anti-block booking legislation and legislation otherwise to regulate and control the business operation of the industry. Already exhibitors are making plans for the introduction and support of such legislation in the states. The center of attack will be the affiliated theatre circuits. Everyone knows that these first runs pay the largest film rentals and disgruntled exhibitors intend to make them a taxation target as a ready method of retaliation against distributors. ...[Law proposed include limiting protection, taxes on chain stores and circuits are a means of "equalizing competition", laws requiring standard leasing agreements ...]" ... Even if these state laws are ultimately ruled unconstitutional, it is not particularly difficult for the local theatre owners to get them enacted if they have the backing of the aroused independent exhibitors. And it costs them nothing. To attack them in court requires long, expensive and unprofitable litigation by the distributors, which is defended by the State Attorney General at no cost to the exhibitor."

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