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12
EXHIBITOR
THE SCORE BOARD
( Complete reviews of pictures mentioned will appear in The Pink Section. — Ed.)
COLUMBIA
“Walk East On Beacon” — Intriguing espionage documentary.
UA
“The Fighter” — Unusual fight meller will fit into the top half.
WARNERS
“Carson City” — Good western-railroad drama.
Justice Department Sues National Screen
New York — The Department of Justice last week filed a civil anti-trust suff against National Screen Service and seven of the eight major companies charging violations of sections one and two of the Sherman Act. The film companies are Paramount, Warners, 20th-Fox, RKO, UA, Columbia, and U-I. Warner Brothers Dis¬ tributing Corporation was also named a defendant.
The suit asks that NSS be enjoined from restraining or interfering with the use by exhibitors of trailers and acces¬ sories made or distributed by others, and enjoined from acquiring any manufacturer of accessories, any poster exchanges, and any distributor of trailers. The other de¬ fendants, charged with granting exclusive contracts to NSS, through conspiracy, would be required to permit any appli¬ cant, at reasonable terms and conditions, to make and distribute trailers and acces¬ sories for films produced or distributed by them if the government wins its suit.
The brief states that “National Screen Service has attempted to monopolize, has monopolized, and is now monopolizing” the trailer business in the United States. A second count makes similar charges for the manufacture and distribution of sub¬ stantially all standard and specialty accessories.
The action claims that NSS is currently manufacturing about 85 per cent of all trailers, has acquired the assets or other¬ wise acquired control of the principal manufacturers and distributors in this country, has restrained the use by exhibi¬ tors of trailers made by others, and has conspired with the defendant film com¬ panies since 1923 to make their trailers on an exclusive basis.
The complaint stated that NSS is doing an annual business of $17,000,000, and that NSS had taken over control of 27 smaller companies in the past 15 years.
• Herman Robbins, president, National Screen Service, had this comment to make:
“It is regrettable that, at a time when the motion picture industry is sorely beset by boxoffice problems, this suit, which can benefit neither the public nor theatre owners, should have been launched. The government attorney in charge of the anti-trust division in New York issued a statement explaining his view of the case by saying that restraining the flow of trailers and accessories tends to increase admission prices to the public for a major medium of entertainment.
Distributors Upheld In Clearance Appeal
SAN FRANCISCO— The U. S. Circuit Court of Appeals last week upheld the decision of Federal Judge Ben Harrison, Los Angeles, in deny¬ ing claims of Steve Chorak against 10 film distributing companies and two exhibitors. Chorak, operator, Puente, Puente, Cal., sought $436,187.43 dam¬ ages and $40,000 attorneys' fees, nam¬ ing all major distributors, Republic, and Monogram. He claims his theatre was injured because it was compelled to play 14 days after El Monte, Cal., and other houses in San Gabriel Valley. The other exhibitor defend¬ ants were A. L. Sanborn, operating the El Monte, and the James Edwards Theatre Circuit.
Judge Harrison’s decision handed down, after a hearing in May, 1949, found that there was no conspiracy among distributors, and that clear¬ ances and availabilities were respon¬ sible as far as the Puente was con¬ cerned.
The Appellate Court affirmed Judge Harrison on all points, saying, in part: “An exhibitor does not have the right to compel a motion picture producer to give him a preferred run, because, as a very practical matter, the motion picture industry could not operate under a system of simultaneous re¬ leases. This obvious fact underlies doctrine that clearances and runs are not illegal per se.”
Chorak was represented in the ap¬ peal by Alfred C. Ackerson, and the distributors by Eugene D. Williams, of Freston and Files, and W. B. Car¬ man, of O’Melveny and Myers.
“Everyone in our industry will recog¬ nize how incorrect this statement is. I am heartened by the immediate response of exhibitor organizations who hail Na¬ tional Screen as a constructive advertis¬ ing influence in the motion picture indus¬ try. It is a well-known fact that every unit of cost in theatre operation has in¬ creased tremendously in the past 30 years with the exception of trailers and acces¬ sories. What other business can point to such a record of efficiency and fair deal¬ ing with its customers? Exhibitors, in recognition of our relationship, see only an injury to themselves and an injustice to us in the present suit.
“We are grateful for the expressions of good will which have come to us from all sides, and we are confident that we will demonstrate that this suit is a misguided effort.”
Later, the ITOA adopted a resolution asserting that the government’s anti-trust action against National Screen Service “will not serve the best interests of ex¬ hibition or of the public.”
Nat. Allied Board In Colorado
Colorado Springs, Colo.— The National Allied Board held its meeting here early this week with the industry arbitration conference, “confiscatory film rentals”, competitive bidding, Paramount’s new selling plan in Milwaukee and Memphis, increased admission pictures, specials, ex¬ tended runs, TV, public relations, and other problems due to have been discussed.
Bund Reveals AAFMPS Changes
Washington — Fred Bund, chief, Army and Air Force Motion Picture Service, last week announced the resignation of Alan McCarroll, deputy chief of that service.
McCarroll leaves to fill a key fiscal position with the European Command Post Exchange Service in Nurenberg, Ger¬ many. He will be replaced by Robert E. Quick, present chief, European Command Motion Picture Service. Quick will be replaced in Europe by Raymond W. Beaudry, former chief, EUCOM Motion Picture Service, and at present regional manager, northeast and middle Atlantic area, AAFMPS. Beaudry will be suc¬ ceeded by Harold Tabor, who was at one time assistant manager, Atlanta regional office, AAFMPS and until recently deputy chief, EUCOM Motion Picture Service. Tabor is at present assistant to Jack Nicholson, New York representative, Army and Air Force Motion Picture Serv¬ ice. Tabor will be replaced in this position by John T. Babbitt, former assistant manager, New York regional office, AAFMPS, and at present administrative assistant, overseas branch of that service.
Kreisler Leaves MPAA
New York — B. Bernard Kreisler, execu¬ tive director MPAA Advisory Unit of Foreign Films, Motion Picture Association of America, announced his resignation last week. Kreisler has been elected presi¬ dent, International Film Associates — Television Corporation, known as IFATV, a new foreign film and television syndicate.
The corporation will act as a central clearing house in America for foreign films, and will channel the product, both full length features and featurettes, to television stations and specialized art theatres. The organization will also repre¬ sent foreign film and television produc¬ ers as consultants on production as well as marketing and programming of product.
In addition to Kreisler, members of the board of IFA-TV include: James Frank, Robert M. Davidson, Charles S. Goodman, and A. A. Strelsin.
Irving Maas, who, earlier this month, joined MPAA’s International Division staff, was assigned by President Eric Johnston to take over Advisory Unit activities in addition to his other duties.
FCC Hearings Continue
Washington — In the ABC-UPT hear¬ ings last week, Federal Communications Commission attorneys continued docu¬ menting their thesis that Balaban and Katz tried illegally to suppress competi¬ tive theatres in the mid-1920’s.
Witnesses heard were Paramount’s vicepresident Paul Raibourn and A. H. Blank, United Paramount Theatres’ director.
'Little Three" Hearing Delayed
New York — The Department of Justice announced last fortnight that hearings on the government’s bid to amend the “Little 1 hree” decree have been postponed in¬ definitely.
May 7, 1952