Boxoffice (Oct-Dec 1940)

r? Prophesy on Intervention New York — In light of the political forecasts, straw ballots and prophesies that are filling the air these pre-election days, a prominent attorney feels he is not out of order in offering the reasons he believes Federal Judge Henry W. Goddard will put forth in denying exhibitor associations and leading theatre operators the right to press for amendment of objectionable provisions in the consent decree. The attorney has the floor: "I think Judge Goddard will be very courteous and receptive to the people who will have something to say against the decree the way it now stands. After listening to their complaints he may even take them under advisement. Whether he does this or not I think this will be his decision: 'Gentlemen, despite what appears as a certain degree of merit to the complaints you offer I do not deem it sufficient to upset the decree purely on the speculation that the provisions of the decree will impose an undue hardship on your operations'." Three-Year Span for Theatre Acquisition (Continued from page 11) 1942, for the exhibition of features released prior to such date and subsequent to August 31. 1941. (c) If, prior to June 1, 1942. a decree shall have been entered against the defendants. United Artists Corporation, Universal Corporation and Columbia Pictures Corporation, containing provisions requiring each of them to trade show its features before licensing the same for exhibition, any consenting defendant may at any time thereafter file herein a written notice of its election to be relieved from further compliance with Section III of this decree and to comply with said provisions of such decree against said defendants United Artists Corporation, Universal Corporation and Columbia Pictures Corporation, and thereupon an order or supplemental decree shall be entered herein on the application of the defendant or defendants so electing which shall subject said defendant or defendants to such provisions of such other decree and entitle it or them to the benefits of any terms thereof providing for the suspension, modification or vacation of said provisions, and relieve it or them from further compliance with the provisions of Section III of this decree. (d) If, prior to June 1. 1942, a decree shall have been entered against the defendants United Artists Corporation, Universal Corporation and Columbia Pictures Corporation containing provisions limiting the number of features which may be licensed in a single group, any consenting defendant may at any time thereafter file herein a written notice of its election to be relieved from further compliance with subdivision (a) of Section IV of this decree and to comply ■with said provisions of such decree against said defendants United Artists Corporation, Universal Corporation and Columbia Pictures Corporation, and thereupon an order or supplemental decree shall be entered herein on the application of the defendant or defendants so electing which shall subject such defendant or defendants to said provisions of such other decree and entitle it or them to the benefits of any terms thereof providing for the suspension, modification or vacation of said provisions, and relieve it or them from further compliance with the provisions of subdivision (a) of Section IV of this decree. (e) If, prior to June 1, 1942, (1) a decree, con taining the provisions referred to in subdivision (c) hereof, or (2) a decree containing the provisions referred to in subdivision (d) hereof, or (3) a decree containing the provisions referred to in both of said subdivisions, shall have been entered against the defendants United Artists Corporation, Universal Corporation and Columbia Pictures Corporation, but an appeal therefrom has been taken or any of said provisions have not become operative and of full force and effect, then the operation of the provisions dealing with the same subject matter contained in Section III or subdivision (a) of Section IV of this decree shall be suspended and shall be of no binding force and effect upon any consenting defendant except ■with respect to licenses entered into prior to September 1, 1942, for the exhibition of features released prior to said date and subsequent to August 31, 1941, unless and until such decree shall become final and such provisions shall be in full force and effect against the defendants United Artists Corporation, Universal Corporation and Columbia Pictures Corporation. After such decree shall have become final, any consenting defendant may at any time exercise its right of election provided for in subdivision (c) and (d) of this Section. (f) If, at any time, an Act of Congress or a rule or regulation made pursuant to an Act of Congress shall require the trade showing of features before licensing the same for exhibition, each of the consenting defendants shall be relieved from further compliance with Section III of this decree, and if, at any time, an Act of Congress or a rule or regulation made pursuant to an Act of Congress shall limit the number of features that may be licensed in a single group, each of the consenting defendants shall be relieved from further compliance ■w'ith subdivision (a) of Section IV of this decree. In either of such events any consenting defendant may at any time make application to this Court, of which notice shall be served upon Petitioner and all other consenting defendants, for an order relieving the consenting defendants, and each of them, from further compliance with Section III or subdivision (a) of Section IV of this decree, or both, as the case may be. and vacating the same, and thereupon this Court shall make and enter such an order. (g) At any time after September 1, 1943, any consenting defendant may move to vacate the then effective provisions of Section III and subdivision (a) of Section IV of this decree by filing an application under oath stating that during any consecutive twelve-month period preceding the filing of such application either (1) distributors of motion picture films have licensed 25 per cent or more of the features released for ex hibition in the United States otherwise than in accordance with the then effective provisions of Section III and subdivision (a) of Section IV of this decree (Footnote No. 29) or (2) 12% per cent or more of the total gross income from licenses for the exhibition of motion pictures in the United States, excluding the gross income of states rights exchanges, has been derived from pictures licensed otherwise than in accordance wdth the then effective provisions of Section III, and subdivision (a) of Section IV of this decree (Footnote No. 29). Petitioner and all other consenting defendants shall be served with notice of the filing of such application. Upon such application the Court shall enter an order relieving the defendants from further compliance with the provisions of Section III and subdivision (a) of Section IV of this decree, unless within sixty (60) days after service of such application Petitioner shall establish to the satisfaction of the Court that during said twelvemonths period less than 12% per cent of the total gross income from licenses for the exhibition of motion pictures in the United States, excluding the gross income of states rights exchanges, had been derived from pictures licensed otherwise than in accordance ■with the then effective provisions of Section III and subdivision (a) of Section IV of this decree. (Footnote No. 29). (h) At any time after September 1. 1942, any nonsenting defendant may apply to the court to vacate the provisions of Section III and subdivision (a) of Section IV of this decree, or the provisions of either of such Sections, and upon such application, the Court shall enter an order relieving the consenting defendants from further compliance ■with such provisions, upon such defendant showdng to the satisfaction of the Court that, subsequent to said date and by reason of the competition of persons not selling exclusively in accordance with said provisions of said Sections. or of either of them (Footnote No. 29), compliance by the applicant defendant with such provisions of said Sections, or of either of them, has substantially and adversely affected the applicant defendant’s business. xm. Nothing contained in this decree shall apply to operations or activities of any consenting defendant outside of the continental United States (Footnote No. 31) or to operations or activities of 29. Or with corresponding then effective provisions of a decree against the defendants, United Artists Cori>oration, Universal Corporation and Columbia Pictures Corporation, referred to in subdivisions (c) and (d) of this Section. 30. See Footnote 20 to this Section. Roadshow Designation Rights Are Retained any consenting defendant within the continental United States insofar as they relate to the distribution or exhibition of motion pictures outside of the continental United States. xrv. Nothing contained in this decree shall be construed to limit or affect the right of any distributor defendant, prior to the general release of a motion picture, to road show such picture or to license or otherwise arrange for the road showing (Footnote No. 32) of such picture upon such terms and conditions as may be fixed by the distributor. XV. The provisions of this decree shall not apply to any franchise which was signed prior to June 6, 1940, or to any license entered into pursuant to such franchise, except that Section VIII hereof shall appy to all such franchises and such licenses between parties bound by this decree other than licenses referred to in Section XVII hereof. XVI. No consenting defendant and no officer, director, agent or employee of any such defendant, shall be deemed to have violated any provision of this decree if the arbitration of disputes or controversies arising relative to the subject matter thereof is herein provided for, unless such defendant has refused to arbitrate such a dispute or controversy in the manner and under the conditions specified in this decree and in the Rules of Arbitration and Appeals which are filed herewith, as amended from time to time, or has failed or refused to abide by and perform the final award (Footnote No. 33) made and entered in such an arbitration proceeding. XVII. Nothing contained in this decree shall be construed to limit, impair or restrict in any way whatsoever the right of each distributor defendant (Footnote No. 34) to license the exhibition, or in any way to arrange or provide for the exhibition in such manner, upon such terms and subject to such conditions as may be satisfactory to it, of any or of all of the motion pictures ■which it may at any time distribute (1) in any theatre in the ownership, lease, management or operation, or in the proceeds or profits from the management or operation of wdiich, it directly or indirectly, by stock ownership or otherwise, o^wms a financial interest at the time of the entry of this decree and also at the time of such license, and (2) in any theatre in the ownership, lease, management or operation, or in the proceeds or profits from the management or operation of which, such distributor defendant acquires after the date of the decree and ow’us at the time of such license, directly or indirectly, by stock ownership or otherwise, a financial interest of not less than 50 per centum and (3) in any theatre in the owmership, lease, management, or operation, or in the proceeds or profits from the management or operation of w'hich. a company in which such defendant owuied not less than 42 per cent of the common stock at the date of the decree and at the time of such license (Footnote No. 35), acquires after the date of the decree and owns at the time of such license, directly or indirectly, by (Continued on page 16) 31. The continental United States as used herein means the territory within the boundaries of the forty-eight states and the District of Columbia. 32. Road showing is an exhibition at a theatre wliere a majority of the main floor seats for each evening i>erformanee are reserved and sold at an admission price of not less than one dollar. 3,3. For the puri>oses of this Section the final award in any arbitration proceeding under Section X of this decree shall be only a final award for damages as therein provided. 34. For the purposes of this Section (1) defendant KKO Radio Pictures, Inc., or its successors, shall be deemed to have the same interest in the ownership, lease, management or operation or in the proceeds or profits from the management or oi>eration of any theatre w'hich RadioKeith-Orpheum Corporation, or its successors, directy or indirectly, has; and (2) defendant Vitagraph, Inc., or its successors, shall be deeme<l to have the same interest in the ownership, lease, management or operation or in the proceeds or profits from the management or oi>eration of any theatre which Warner I^rothers Pictures, Inc., or its successors, directy or indirectly, has. 12 BOXOFFICE :: November 2, 1940