The Exhibitor (Jun-Nov 1944)

23 ATT. GENERAL BIDDLE LISTS GOV'T. AIMS D of J Files Modification Proposals New York — Complete divorcement of theatre operation from film production and distribution and the immediate stoppage of theatre acquisitions by signers of the consent decree were asked in an applica¬ tion to modify the decree filed in New York Federal Court, Attorney General Francis Biddle revealed last week. Twelve other proposals are also sought by the De¬ partment of Justice. Attorney General Biddle’s action came after he rejected a voluntary modification of the existing decree which would have extended divorcement proceedings for another five years. The following are the modifications sought for a new decree: 1. Eliminate block booking. 2. Prohibit conditioning of a license in one theatre on the making of a license in another theatre. 3. Eliminate arbitrary requirements lim¬ iting the persons who may arbitrate, and substitution of money damages for in¬ dividual licensing as the relief granted. 4. Extend arbitration to cover any dis¬ crimination which violates the Sherman Act. 5. Eliminate the statement that clear¬ ance is essential to distribution, and sub¬ stitution of a definition of unreasonable clearance which holds that any clearance which unreasonably restrains competition between theatres is unreasonable. 6. Extend the arbitrator’s powers to make awards affecting a run so that they could eliminate all clearance even where theatres involved are highly competitive. 7. Make subject to arbitration unrea¬ sonable clearance held by distributorowned theatres on the owning distribu¬ tor’s product. 8. Prohibit theatre acquisitions by de¬ fendants. 9. Make effective complete divorcement of production and distribution from ex¬ hibition within a three-year period. 10. Void pooling agreements between defendants and prohibit future pools. 11. Provide for supplemental proceed¬ ings directed at situations where defend¬ ants now monopolize theatre operations for the purpose of divesting defendants of theatres in order to restore competition. 12. Eliminate the exemption of affiliated theatres from certain arbitration with re¬ spect to terms on which their films are licensed in their own theatres, and the substitution of a general prohibition against licensing affiliated theatres on terms which unreasonably restrain un¬ affiliated houses from competing. 13. Void all existing franchises and get an injunction against renewal. Certain franchises would be exempted under the present decree. 14. Have trade showings again be made effective. Trade Awaits Further Developments New York — The trade was this week awaiting further legal developments, fol¬ lowing the filing of the application last week by the Department of Justice of a petition for modification of the consent decree, in effect an attempt by the Gov¬ ernment to obtain relief sought in the suit without trial. muv\ mm The Government Proposes— ( Editor’s Note: Here is what the Gov¬ ernment proposes as an amended consent decree, as filed last week in U. S. District Court in New York.) Sections 3 and 4 (A) of said decree have been inoperative since Sept. 1, 1942, and the restraining provisions of Section 1 1 have been inoperative since Nov. 20, 1943. Said decree is now inadequate to perform its intended function of restraining the vio¬ lations of law alleged in the complaint, and con¬ forming the operation of the decree defendants to the requirements of the Sherman Act. Plaintiff re¬ spectfully submits that an order to perform said functions of said decree should be modified in the respects set forth in the following paragraphs. Where no mention is made of an existing section, no change is requested. As to Section 3, trade showings, no change in the form thereof is requested, but plain¬ tiff prays that said section may again be made operative. Plaintiff prays that Subsection (A) of Section 4 of the decree be stricken therefrom, and that the fol¬ lowing subsection (A) be substituted: No distributor defendant shall condition the licens¬ ing of one feature or group of features upon the licensing of another feature or group of features. Plaintiff further prays that the last two paragraphs of Subsection (B) of Section 4, which appears on pages 6 and 7 of the decree, be amended, as prayed herein, to read as follows: (A) No distributor defendant shall condition the licensing of one feature or group of features upon the licensing of another feature or group of fea¬ tures. (B) No distributor defendant shall require an ex¬ hibitor to license short subjects, newsreels, trailers, or serials, (hereinafter collectively referred to as shorts) as a condition of licensing features. No distributor defendant shall require an exhibitor to license reissues, westerns, or foreigns (hereinafter collectively referred to as foreigns) as a condition of licensing other features. Plaintiff prays that the following be substituted for Section V: (A) No decree defendant shall condition the li¬ censing of films in one theatre or group of theatres upon licensing of films in another theatre or group of theatres. Plaintiff prays that Section 8 of the decree be modified by striking therefrom the sentence: "It is recognized that clearance, reasonable as to time and area, is essential in the distribution and exhibition of motion pictures," and substitute the following sen¬ tence, "Clearance shall be deemed to be unreasonable whenever its effect is to restrain competition be¬ tween two or more theatres unreasonably;" by add¬ ing the following clause to the provisions defining the power of the arbitrator: "An award providing that a theatre holding clearance found to be un¬ reasonable should take no clearance over the com¬ plainants7 theatre may be made regardless of whether or not there is substantial competition be¬ tween said theatres/7 and by striking the following two provisions: ( Continued on page 24) Meeting of attorneys for the distributors followed the filing of the petition, which seemed to come as a surprise. The Government action means also that Wendell Berge, Assistant Attorney Gen¬ eral in charge of the anti-trust division, is now handling the case instead of Tom C. Clark, who had been conducting the nego¬ tiations with the representatives of the distributors, and who had been conferring with exhibitors and others. Reports were current that there was al¬ ways a possibility t)hat a compromise might result, inasmuch as what the Gov¬ ernment had requested was believed to be entirely different from distributors’ views on trade practices. GOULD REVEALS UA FOREIGN PLANS Speaks To Men From L. A. Offices New York — Announcement of United Artists’ new lineup of product, including several foreign features, and disclosure of the company’s plans for theatre expansion in Latin America with special emphasis on the post-war period were the highlights of the opening address made by Walter Gould, UA foreign manager, at the initial session of the sales meeting of the com¬ pany’s Latin-American managers in the Warwick Hotel last week. The business session was preceded by a luncheon attended by home office execu¬ tives and foreign department staff mem¬ bers, producers’ representatives, trade paper representatives, and the six UA managers: Sam Seidelman, Argentina; En¬ rique Baez, Brazil; Joe Goltz, Mexico; Vic¬ tor Schochet, Peru; Jorge Suarez, Chile, and Henry Weiner, Cuba. Guy C. Smith, manager in the Canal Zone arrived later. Discussing the forthcoming lineup, Gould announced that during the next 12 months UA would distribute in the Latin-American market a minimum of four Spanishlanguage films, one French picture, and a jungle feature, in addition to more than 40 domestic pictures, plus a new series of Technicolor cartoons. The quartet of Spanish films, the first of which, “Alma de Bronco,” is already completed, will be produced by Dudley Murphy in Mexico City. These films, Gould declared, would have themes of special interest to Latin-American audi¬ ences, and would be made with outstand¬ ing local stars and directors. Convinced that a world interchange of products is inevitable in the post-war per¬ iod, Gould emphasized that the company intended to meet the competition from native producers by offering them its in¬ ternational distribution facilities, rather than by fighting them. The French language feature, Gould stated, is “Une Femme Disparait,” first French picture to be made since the fall of France. It was produced in Switzer¬ land by Guyot, directed by Jacques Feyder, and stars Francoise Rosay. UA will distribute it not only in all Latin-Amer¬ ican countries, but also in Turkey. Port¬ ugal, and the Dominion of Canada. Gould discussed the jungle thriller the company has acquired, “Dangerous Jour¬ ney.” UA will release it in all foreign countries, while 20th Century-Fox has the domestic distribution rights. Turning to the company’s plans for the¬ atre expansion, Gould disclosed that as a result of the successful operation of its showcase theatres in Sao Paulo, Brazil, and Bogota, Colombia, plans were under way for the acquisition of more theatres in Central and South America. Announce¬ ment will be made as quickly as the deals are completed. Playing Time Falling Off New York — Playing time for American product is falling off in Mexico, Chile, and Cuba, according to the reports of United Artists’ managers in the above named countries as presented at a press con¬ ference last week. ( Continued on page 24) August 16, 1944 THE EXHIBITOR