Kinematograph year book (1944)

14 The Kinematograph Year Book. The Government and the five largest distributors : Loew's-M-G-M, Paramount, RKO, Twentieth Century-Fox and Warner Brothers were still trying to get together at the year's end on a formula of trade practices acceptable to both Government and small exhibitors. The Federal Court permission granted three years ago to the five to conduct business under terms of a Government stipulation in lieu of Department of Justice prosecution of them as alleged violators of monopoly laws had expired in the Fall. The Government can prosecute in court under monopoly laws at any time since the expiration of that " consent decree " agreement. Both Government and the five majors have been for months trying to establish a formula for a new trade practice agreement which would preclude the necessity for re-opening the trust suit. Thousands of exhibitors had petitioned the Government that the original agreement was not satisfactory. And, following a study of many briefs from various organised exhibitor organisations, the Department of Justice set forth certain demands upon the distributors for them to incorporate into a new brief. At press time, both sides were trying to arrive at an acceptable system, with the Government insisting that product of a company should be spread around and not confined to the houses of a distributors' affiliate ; that more liquid arbitration machinery be set up for settling disputes between distributors and exhibitors ; that some control be established over the determination of circuit expansion, etc. Additional trade practices are also controlled. Basically, the Department of Justice admits the right of a film buyer and seller to do business normally under proper conditions : but if there are possibilities of conditions interfering with a proper consummation of such arrangements, the Department of Justice demands that those conditions be eliminated by pre-agreement, if possible, or by prosecution, if necessary. Probably no other practice in exhibition has passed into oblivion so quickly and so ignominously, as a result of the war, as the widespread usage of giveaways, free china nights, free grocery nights and other something-fornothings which were used as so-called incentives to build theatre-going attendance. There was noted a growing tendency to assess a small fee to free passes (other than those to Servicemen) by several circuits for the purpose of building their theatre employees' welfare funds, including retirement pensions. Circuit expansion during the year hit a new all-time low, for several reasons : The " Big Five " circuit operators — Loew's, Paramount, RKO, 20th Century Fox-National Theatres and Warner Brothers — are forbidden b}^ the Government to expand without U.S. approval ; theatres belonging to others are just not being sold if they have any profit potentialities ; and those with little earning power are not being bought, although there are comparatively few of the latter. Colour is definitely increasing in new production plans of Hollywood producers. And it is headed for further inclusion in foreign post-war filming, according to Dr. Herbert T. Kalmus, President of Technicolor, who recently disclosed that Technicolor would establish its own laboratories abroad, in addition to England. Another war-time casualtv is the mass national sales conventions of distributors' field forces. Regional meetings, quite compact, are now the order ; and they are now held at least twice a year, with home office executives going to the men in the field. Main reason is transportation difficulties and inadequate hotel accommodations in large cities for large groups. The transportation problem during the year also brought the necessity for film salesmen in the field to conduct much of their business with exhibitor customers far removed, by telephone instead of the previous prevalent visitations by car.