FILM HIRE TROUBLES.

New Zealand Herald, Volume LXVII, Issue 20724, 18 November 1930, Page 8

FILM HIRE TROUBLES.

EXHIBITORS HANG BACK.

NEW CLAUSE IN CONTRACTS.

TERMINATING AGREEMENTS

FUTURE TAXATION QUESTION

[ny TELEGRAPH. —PRESS ASSOCIATION. ] WELLINGTON. Monday.

Very little business has been done in film circles since the acting-Prime Minister, Hon. E. A. Ransom, made a statement early last week that the dispute between the Government and the distributors had come to an end. For a day or two after that announcement the film agencies in Wellington awaited instructions from their head offices in Sydney as to recommencing business, but even when the essential word was given there was no rush of showmen desiring to book films which had been accumulating on the shelves of the renters in New Zealand.

When this matter was inquired into it was found that there was an obstacle in the form of a new clause to which exhibitors signing new contracts were being asked to subscribe. Its nature, it is said, was such that the exhibitors have hesitated to make contracts which are not wholl binding upon the renter. Ibis clause is claimed to be a safeguard against possible developments or adjustments in taxation as the result of the inquiry promised to the trade for March.

Members of the executive of the Motion Picture Exhibitors' Association met this morning to discuss matters iri connection with tho clause and as a result negotiations are to be opened with the distributors with a view to having the clause either eliminated or modified. Business in the film world is usually done on annual contract and so far the exhibitors havo been chary of signing when asked also to append their signatures to what is designated "special additional." It reads as follows: — Distributor Sole Judge. "If by reason of the burden of any existing or future duties, taxes, charges or impositions, or the award of any Industrial, Arbitration or Conciliation Court, tribunal, board, or committee, or by reason of any legislation or statutory ordinance, rule or regulation, it should at any time hereafter be, in the opinion of the distributor, no longer commercially profitable to carry on its business as a distributor of films, and (or) sound records, and (or) advertising materials, and (or) accessories, either in whole or in part, or to perform this agreement (of which matters the distributor shall be the sole judge without its decision being subject to review by any Court or tribunal) the distributor may, at its option, terminate this agreement on giving 30 days' notice of intention to do so to the exhibitor, without incurring any liability whatsoever to the exhibitor by reason of such determination. Other Safeguards Provided. " Sub-clause (a) : Such determination shall be without prejudice to the right of the distributor to recover from the exhibitor all moneys due and payable by the exhibitor to the distributor up to the date of ' such determination, and sub-clause (b) : to the right of the distributor to recover from the exhibitor damages for any breach of this agreement committed by the exhibitor up to the dato of such determination; and sub-clause (c): To all causes of action which shall have accrued to the distributor prior to or on the dale of such determination." In a further additional clause the exhibitor agrees that admission to the said theatre during the exhibition of the films contracted for herein or any of them shall be upon payment of not less than one shilling for each adult, children halfprice, at each performance, plus any Government or municipal tax or imposition now or hereafter to be imposed or charged for admission to picture theatres.