Boxoffice (Jul-Sep 1940)

Outcome of Decree On Escape Clause (Continued from page 4) 5” went along. On such a basis, the suit would be continued against Paramount and the company brought to trial, probably with the “Little 3” — Columbia, Universal and UA — as co-defendants. As soon as members of the “Big 5” reach an agreement among themselves, provided they do, they will request another conference with the government, which is waiting on them. These sessions will concern themselves with an effort to iron out kinks in the latest proposals. Once those kinks are removed, the negotiators are expected to direct their attention toward the development of arbitration machinery. Thereafter will come the task of finally reducing the agreed upon formulas into formal decree language for submission to the federal court. Meanwhile, there is plenty of guesswork afoot as to the time necessary to mount all these hurdles. Speculation ranges from a minimum of 30 days to several months. It all depends on who indulges in the speculation. For instance, one legal quarter subscribes to the belief that, because of the nature and far-reaching importance of the final document, there will be no disposition to rush it through to completion. Sidney R. Kent, president of 20th Century-Fox, interrupted his vacation at the Thousand Islands to return to New York early in the week to personally direct formulation of his company’s stand. [< Western, Action and Foreign Explained New York — Generally following the outline employed in the ill-fated trade practice code, the August 3 decree proposals include this definition of westerns, action pictures and foreigns: "Westerns are those western pictures which are not of the usual character and type of, and are inexpensively produced as compared with, the distributor's general line of features. "Foreigns are features produced outside of the United States except such as were produced in the English language by the distributor or a subsidiary or affiliate thereof." V.V ■ J Consolidated Net New York — Consolidated Film Industries, Inc., reports a net of $374,767 for itself and subsidiaries in the first six months of 1940. After the usual tax deductions, this represents earnings of 931/2 cents a share on the 400,000 shares of $2 preferred outstanding. Second quarter net is $195,468, equal to earnings of 49 cents a share on the same outstanding preferred. Marking Time New York — David O. Selznick’s future production plans are uncertain because of unsettled conditions. He is spending the summer at his Torrington, Conn., farm with his family. Sees Rentals Hiked Up the Line to 50% (Continued from page 4) tirely since the distributor would sell in blocks of five. This, it is my opinion, would mean block booking with a vengeance since the distributor could always group one or two very desirable attractions in a block and hook on two or three clucks. “3 — The plan would afford the distributor an opportunity to make cheaper and worse ‘B’ and ‘C’ pictures since the mediocre film could be passed on to the exhibitor from time to time with the top attractions of such desirability that the exhibitor would be reluctant to refuse buying the block even with the aforehand knowledge he would have to absorb the duds. “4 — The distributor would use an excuse that this plan would cost him more to sell. Naturally, the uppage would be passed along to the exhibitor by requiring him to pay higher rentals for top bracket pictures which means 40 and 50 per cent would be demanded. “5 — There would be a terrific disadvantage to the independent in the outlying territory because he would not always be in a position to make a quick deal while those closer or closest to the exchange center could buy immediately on release date which means they will automatically play them ahead of the outlying operator. This is particularly true where franchises are in effect. Obviously, exhibitors holding franchises will receive the product as quickly as it is available. “6 — There will be a constant danger signal staring the exhibitor in the face because, under this plan, any person could step into the picture by bidding for blocks every time they are available. This would constitute a constant menace in the nature of unfair competition because there are many towns already overseated although the outsider doesn’t know it and normally thinks all he has to do is to open a picture show as a means to a quick fortune. Finding how easy it would be to enter the market for films, this eventuality would wreck the business for many worthwhile exhibitors. With this situation in mind, the producer would have an unfair club to wield over the exhibitor under the blocks of five method.” Spyros Skouras Delays NT Tour Till Aug, 19 New York — Spyros Skouras, head of National Theatres, has delayed his departure for Milwaukee, Kansas City, Denver, Seattle and Los Angeles until August 19. The tour is to distribute awards in connection with the second annual Spyros Skouras Showmanship Campaign, which wound up last month, and also to announce the fifth annual business drive. Harold J. Fitzgerald’s Milwaukee division was leader in the SSSC until last week, but no announcements will be made of the winner listings until the Los Angeles meeting, which is to be the last of five. Charles Skouras, head of FWC and field marshal in the SSSC, will accompany his brother. 18 BOXOFFICE August 10, 1940