The Exhibitor (Nov 1938-May 1939)

28 THE NATIONAL MIRROR More Anti-Trust Suits Filed by Government Southivest Circuits , Majors Named in Bills Indicating that the basic anti-trust policy of the Roosevelt Administration would be outlined this week by him, Attorney General Murphy last week announced that further anti-trust proceedings were in line for the motion picture industry. The government’s policy toward combinations will be one of rigorous legal enforcement, but the prosecutions will be started with discrimination and not in a blind way which would needlessly irritate private enterprise, the Attorney General indicated. The Department of Justice also announced that anti-trust proceedings would be filed in Oklahoma against four theatre chains in Oklahoma, Texas, New Mexico and against the eight major producing companies. The suit, charging a combination to restrain trade in distribution of films, was described as "essential complement” to the pending case in New York against the larger producers and distributors. The Southwest case, it was stated, is aimed at "local monopolies,” where as the New York suit is against "national monopoly.” Suit was filed in the U. S. District Court for the Western district of Oklahoma, and named Griffith Amusement Company, operating in Oklahoma, Texas; R. E. Griffith Theatres, Inc., operating in Texas, New Mexico; Westex Theatres, Inc., operating in Texas, New Mexico; Consolidated Theatres, operating in Oklahoma, Texas. Total number of houses operated is 149. Announcing the anti-trust suits against motion picture interests, Murphy said "two or three others are in the offing.” Then, in a general discussion of anti-trust procedure, he said all cases under this head would be "handled with dispatch,” and with 'speed like that in a criminal trial.” He was determined, he continued, that any long-standing cases should be wound up soon. The practice of carrying on criminal and civil proceedings against the trusts at the same time will be pursued, the Attorney General stated. The principal grounds upon which the New York case is based, Thurman Arnold, assistant attorney general, explained, are these: "Independently owned theatres are being driven out of business. “The construction and operation of new theatres are handicapped because any new enterprise is subject to the arbitrary control of a present existing monopoly. "New or independent enterprise in the production of pictures is handicapped in the same way because the existing combination substantially controls the most important theatre outlets on a nation-wide scale. Independently owned theatres are so narrowly limited in the choice of films that they cannot by competition and experimentation suit the particular tastes of their communities. This (Southwest) proceeding, aimed against local monopolies, has the same general purpose as the suit in New York, which is aimed against national monopoly. These (local chain) theatres are able to make blanket contracts for all the desirable pictures without competing with local independent exhibitors.” Bill of Particulars Up in Majors Argument Step Answers Consolidated Motion The Department of Justice last week filed a 3 3 -page bill of particulars in the equity action in New York City against the major companies and individual defendants, answering the consolidated motion but not applicable to Columbia or UA. The lengthy document indicated that the Department intends to answer certain points 20 days before trial, in order not to show its hands too soon. It discusses certain alleged industry practices and abuses, asserts that it can not point to any specific contracts between defendants to exclude independent product from first runs, talks of a division of territory as to first runs among defendants without naming actual places, times or names, points to placing stars under dual contracts between companies, asserts monopoly was formed through use of talent, etc. Given also were definitions of coercive selling. The government also reviewed alleged combination of unfair practices, defines certain terms, lists the decline of feature production and generally reviews many industry practices claiming them to be unfair and monopolistic. The bills of particulars was not too specific. “UP” Bow Big News With Cecil B. DeMille and a huge party of Hollywood stars aboard the Union Pacific Special Train at the world premiere of "Union Pacific,” scheduled for Omaha, Nebraska, April 28 in three downtown theatres simultaneously, the City of Omaha completed a four-day program for celebrating both the world premiere of this Paramount railroad epic and ’’Golden Spike Days,” the Mid-west’s challenge to America for civic showmanship. Young Pathe President Kenneth M. Young was last week elected president of Pathe Film Corporation, succeeding O. Henry Briggs. 20th-F. Shows $1,224,250 20th Century-Fox last week showed a profit of $1,224,2 5 0 for the 13 weeks ended April 1, 1939. This compares with a profit of $1,641,5 37 in the same period last year. The suit asked permission to dissolve and rearrange the four exhibiting companies and an order requiring the distributing companies to license pictures “upon a local competitive basis.” Columbia Offers $4,000 in Big “Angels” Contest Competition Continues For Six Months As an incentive to all theatre managers and advertising men to develop campaigns in connection with "Only Angels Have Wings,” Columbia will offer $4,000 in prizes for the best of these campaigns, inclusive of advertising, publicity and exploitation, it announced last week. Contest opens May 2 5 and will continue for six months. First prize will be $1,000 and there will be 10 prizes of $300. A committee of judges, to be announced later, each an expert in his field, will make the awards. These prizes are open to everyone and will be awarded strictly on the merits of the campaigns submitted, regardless of the sizes of the communities. Campaigns do not necessarily have to be based upon material in the press book and development of original ideas is encouraged. All material should be directed to the Contest Committee, Columbia Pictures, 729 Seventh Avenue, New York City. All material should be placed in books and if the nature of any part of the campaign is such character that it can’t be placed in a book, then photos should be submitted. Campaign books will not be returned to contestants; therefore, a duplicate of the material submitted should be kept by the sender. The competition is in line with the company’s policy of encouraging heavy selling of particularly exploitable attractions. Museum’s Daily Programs Daily film programs will be an important part of the large exhibition Art in Our Time with which the Museum of Modern Art will celebrate its 10th anniversary and inaugurate its new building May 11 in New York City, was announced this week. In addition to the programs, the motion picture section of the exhibition will include a gallery devoted to the work of the French film pioneer, Georges Melies, and a series of abstract designs for a film project executed in 1913-14 by the cubist painter, Leopold Survage. The Museum of Modern Art Film Library, which conducts the Museum’s activities in the field of the motion picture, will provide the films for the exhibition. For the first time in its four years of existence, the Film Library will be housed with its parent organization, in the new building of the Museum of Modern Art, 11 West 5 3rd Street. May ), 1939