Boxoffice (Jul-Sep 1948)

ITS NO GO' ON SOFT DECREE, MYERS WARNS AGAINST DEALS' A National Trend? Distributors Overhauling Clearance in New York Allied's Counsel Opposed To Any Type of a Consent Agreement in Big Suit By WALTER WALDMAN NEW YORK — Allied States Ass’n and regional units would fight any soft consent decree in the Paramount case, Abram F. Myers, general ccunsel, warned this week. His statement, made to BOXOFFICE, was inspired by the current crop of rumors that the five majors and other industry interests are trying to work out consent decree settlements of the ten-year-old case with the Department of Justice. Robert L. Wright, assistant attorney general in charge of the case, said he has heard of no such offers. BLASTS COMPROMISES Myers was hostile to the idea of any consent decree settlement. Consent decrees, he said, are compromises that usually favor the defendants. The 1940 consent decree gave the government nothing, he pointed out. The three-judge New York statutory court has its mandate from the supreme court to draw up a decree ending monopolistic situations, he said. A decree that does less than that would be opposed by public forces as well as by Allied and independent exhibitors, Myers added. The New York court has plenty of precedent for ordering complete divorcement, he pointed out. He mentioned the ease of the Reading Railroad. Reading’s rail and coal mine operations were divorced. Some industry lawyers have said that reports of government-industry negotiations for a new consent decree are based on misinformation about current meetings. These meetings, held from time to time between big five and U.S. attorneys, have to do with provisions for proposed decrees to be submitted to the three judge court following the October 13 hearings in New York. The government’s proposals covering theatres held jointly by defendants and independent operators will be based in part on replies to a questionnaire sent out July 1. The answers to the 17 questions in the document were due July 15, but the government gave the defendants an extension until September 15. RKO and Loew’s will probably have replies in by that date, but Warners, National Theatres (20th-Fox) and Paramount, which have many joint operations, wili probably require more time. Wright has indicated that additional time will be given. TWO LIST HOLDINGS RKO and Paramount have already listed their joint holdings. There were 19 for RKO and more than 100 for Paramount. The majors plan to contest six or seven of the questions before the three-judge court. They claim that several questions covering interests, titles and stock holdings of partners are not in their files and would require outside investigation that should be handled by the Department of Justice. NEW YORK — Distributors are overhauling clearances in the New York area. This is part of a national move sparked by the supreme court decision last May upholding the antitrust decree ban on clearance deals covering theatres not in substantial competition and making reasonable clearance the order of the day. The local situation has been unchanged for years, with Loew’s and RKO enjoying a seven day advance over independent circuit houses throughout the region. The first significant break came as part of the settlement of the antitrust case brought by Max A. Cohen against Warners, 20th Century-Fox and RKO. The settlement provided for day-and-date runs of Cohen’s New Amsterdam Theatre with the RKO Palace and 23rd Street. Within recent w’eeks Century Circuit’s Queens Village. Queens; Rugoff & Becker’s Laurel, Long Branch; Joelson’s Earl, the Bronx, have had their clearance after RKO eliminated. The Walker Theatre, Brooklyn, operated by Randforce, is next on the list of Hughes Withdraws Suit Over 'Red River' Episode HOLLYWOOD — Approximately 30 seconds w'as clipped from the running time of United Artists’ “Red River’’ and a copyright infringement action filed in a Dallas federal court was withdrawn when Howard Hughes reached an out-of-court settlement with representatives of Producer-Director Howard Hawks on Hughes’ charges that a sequence in “River” was an infringement on an episode in “The Gun-duel footage which Hughes contended duplicated a sequence in “The Outlaw” was snipped from the Hawks film after Hughes had conferred with Gradwell Sears, UA president, and Edward Small, who represented Hawks. The latter currently is en route to England for a 20th-Fox directorial assign In the Dallas action Hughes charged Hawks, who had done some work on the story of “The Outlaw,” lifted some of the ideas therefrom and incorporated them in “Red River.” Ohio's Governor Issues 'Youth Month' Appeal NEW YORK — The TOA national office here this week released a copy of a letter from Gov. Thomas J. Herbert of Ohio to all Ohio exhibitors, asking their energetic support of “Yuth Month” in September and calling attention to the documentary film, “Report for Action,” financed to TOA. houses that will be able to play product dayand-date with RKO. The Skouras chain also is seeking the elimination or reduction of clearance after RKO and Loew’s. The RKO circuit plays RKO, 20th-Fox, Warner product. It shares a Universal split with Loew’s. Second feature product is provided by Republic, Monogram and Flim Classics. Their product is often split. So far the day-and-date policy has been put into effect by the RKO and 20th-rox distributors. The next Warner film scheduled for the RKO circuit is “Key Largo” in September. Warner sales and legal executives are trying to work out details for reduction or elimination of clearance. In the past once one of the majors changes clearance, other distributors usually fall in line. Nothing has been decided for Loew’s. The circuit plays MGM, Paramount, Columbia, United Artists and Eagle Lion product and splits Universal. There probably will be a change within the next two weeks. 20th-Fox to Distribute RKO in South Africa NEW YORK — A 10-year deal giving 20th Century-Fox exclusive distribution of RKO product in the Union of South Africa has been announced jointly by the companies. Spyros Skouras and Murray Silverstone represented 20th-Fox in the deal and Ned Depinet and Philip Reisman RKO. The agreement becomes effective September 1 and includes all RKO Hollywood products and those from their independent producers and from their lineup of British films. RKO films named for early South African distribution include “Notorious,” “Sinbad the Sailor,” “Fort Apache,” “The Farmer’s Daughter,” “It’s a Wonderful Life,” “Mr. Blandings Builds His Dream House,” “I Remember Mama,” “The Bachelor and the Bobby-Soxer,” “Crossfire,” “Berlin Express,” “Good Sam” and three Disney films — “Make Mine Music,” “Fun and Fancy Free” and “Melody Time.” Boston Boycott Fails NEW YORK — Attempts to use the boycott weapon to keep the public away from the Boston showings of the British-made film, “Hamlet,” have fallen flat, according to W. A. Scully, U-I vice-president and general sales manager. Not only has the J. Arthur Rank production done a fine business there, he said this week, but the newspaper reviewers have been uniformly favorable. 14 BOXOFFICE :: August 28, 1948