The Film Daily (1943)

'•.:"":■■■ ' ' ""• mi mil. i. 3*te Friday, May 7, 1943 ' Allied Asks Divorcement, 11 Decree Changes Manner of Seeking Relief is Up to Board Itself, Myers Asserts (Continued from Page 1) period, then the consent decree should be amended in accordance with the recommendations set forth in the general counsel's report." Myers, in his report, amended his recommendations to include further changes in the arbitration set-up; namely, that if the consent decree is continued, an attorney should be retained in each exchange center to represent independent exhibitor complaints. The purpose of this, it was said, was to insure proper representation through attorneys and to cut the cost to exhibitors. The cost of these attorneys, like public defenders in court, would be part of the general expense of arbitration borne by the defendant companies. It was decided that copies of Myers' report and resolution should be sent to every exhibitor organization not affiliated with Allied to secure "unity of thought and action" on the decree. Eleven suggestions for changes in the New York consent decree were advanced by Myers, in his report to the board of directors at the Book-Cadillac Hotel here yesterday. The report embodied the 11 suggestions plus an extensive analysis of events leading up to the adoption of the consent decree and the situations which developed as the result of it. Myers pointed out that the board should decide for itself whether it should press for relief through amendments to the decree or through divorcement via court action. He declared that while the alternatives were rigid so far as the Attorney General was concerned, "there is no reason why the board cannot reassert Allied's long-standing policy in favor of divorcement and at the same time submit its views and suggestions in reference to amending the decree in case the Attorney General shall deem it inexpedient at this time to pursue the more complete remedy prayed for in the original petition." Reducing Myers' calculations of the decree to single paragraphs, the suggestions for decree changes may be summarized as follows: 1. Acquisition of theaters. The decree should prohibit absolutely the acquisition or construction by the defendants of additional theaters; or at the very least, should follow the precedent set by Judge Davies in the STORKS Buffalo — Constantine J. (Gus) Basil of the Basil Bros, circuit became a grandfather when a ninepound son was born in Baltimore to his daughter, Helen, wife of Dr. Theodore Alexander of Johns Hopkins Hospital. Establishment of a Film Museum After the War Is Seen As Co-op Step By Trade and the Gov't Suggestion by Carl L. Gregory, of National Archives, in a paper delivered at this week's SMPE semi-annual meeting, that he believes "the motion picture industry itself should foster and endow a historical museum and library embracing ail the phases of the motion picture both technical and cultural," has evoked considerable comment in the trade. Consensus is that such an undertaking may be under discussion in Washington, which is viewed as the logical locale for such a museum, particularly in light of the probability that the Government may plan a repository for its own historical war films so that they can be preserved for future generations. Another trade reaction yesterday was that if the Government built such a museum, the industry itself might contribute not only to its construction and subsequent contents, but might be interested in the structure containing a large theater for Washington film premieres, in addition to screening rooms for college and other school groups studying motion pictures as an art and science. 200 at Chicago Dinner To Honor Bob O'Donnell Chicago — Two hundred industryites attended the Variety Club dinner at the Blackstone Hotel last night for National Chief Barker Bob O'Donnell. Clifton Utley was toastmaster. It was announced that as its charity project the club would support the Larabida Children's Sanitarium. Authority Over 35 mm. Projectors, etc.. Given Smith Washington Bureau of THE FILM (DAILY Washington — WPB announced yesterday that full authority over 35 mm. projectors and other equipment has been given the Service Equipment Division, with Allen G. Smith head of that division's amusement section taking charge of allocations and requests for the equipment. The authority formerly rested with the Consumers Durable Goods Section. Crescent case and prohibit further acquisitions or constructions "except after an affirmative showing that such acquisition (or construction) will not unreasonably restrain competition." 2. Franchises. Section XV providing that the decree shall not apply to franchises signed prior to June 6, 1940, should be eliminated, at least so far as franchises with affiliated theaters are concerned. Judge Davies' decision also is a precedent for this. 3. Licensing own theaters. Section XVII providing that nothing in the decree shall impair the right of each defendant to license pictures to its own theaters on any terms it pleases should be dropped. It is ridiculous that a decree respecting this right should have been entered in a case that was brought primarily to divorce the defendants from their theaters. 4. Block-booking and blind-selling. Sections III and IV (a) should be amended so as to permit the licensing of more than five features in a group with adequate safeguards against a return of the abuses of blindselling and unrestricted block-booking by providing in respect of the pictures above the number that can be trade-shown either (a) proper identification with a right of selection or (li) an adequate cancellation privilege. 5. Blind-pricing. There should be included a provision requiring that allocations be made in the license agreement or otherwise when 'he pictures are licensed. 6. Pictures generally offensive. Section VII should be amended so that an exhibitor shall have the right to cancel a nicture onthe ground that it is generally offensive on moral, religious or racial grounds, subjec to the right of the distributor to dispute the claim in an arbitration proceeding. 7. Conditioning the licensing of one group of pictures upon the licensing of another This lapsed provision of Section IV should be restored. 8. Clearance. Section VIII should be strengthened by adding provisions to the effect that clearance shall not be based oh one-way competition ; that the gas and rub ber situation be added to the factors to be taken into consideration in deciding whether any clearance is justified and in fixing maximum clearance, and that a provision be inserted requiring that clearance be measured from the close of the run in the first theater in case of move-overs. 9. Withholding prints. A substitute for Section IX previously was proposed by Allied as follows: "In booking prints for exhibition by exhibitors in a given exchange territory, the distributor shall not withhold delivery of prints available in the exchange from one exhibitor in order to give another ex hibitor a prior playing date or clearance not provided for in its exhibition contract." Allied had informed the Department of Justice that the real evil of the section consisted in the "withholding of prints from a subsequentrun exhibitor, presumably at the behest of a prior run, in order to grant the latter greater clearance than is specified in its contract." 10. Circuit discrimination. Myers recommended that Section X, covering this subject, be entirely re-written, especially as to the scope of arbitration and the definitions of an independent exhibitor and a circuit theater. 11. Cost of arbitration. Rules of arbitration should be amended so that costs can be assessed against the complainants only in cases patently lacking in merit. Myers reported that the view is still advanced that the arbitrator should be a person with a background of experience in the picture industry instead of impartial men with no connection with any branch of the business. Industry men, however, could be only used under a system whereby they would sit as boards or committees, with some sort of a balance, he said. But, he added, an even balance is well-nigh impossible of accomplishment and it is not necessary to review the many attempts along this line that have failed. "I personally," he declared, "should hate to see any attempt made to substitute interested arbitrators for impartial arbitrators." Myers praised the work of the arbitrator* and added that the reasons for the results having appeared to be disappointing were du to the defects of the decree, not to any lack of ability on the part of the arbitrators. "As regards the appeal board," Myers said, "a less conservative group might have been selected by a less conservative judge. But as to the essential integrity and ability of the board and the wide grasp it now has of industry practices there can be no question." Delay in Obtaining Parts to be Probed {Continued from Page 1) A. Julius Brylawski were a_ ized by the board yesterday t/ fer with A. G. Smith of the on the matter and to see if the delays could be eliminated. The board yesterday decided to take no action on the St. Louis unit's move to halt double features. The directors took the position that the St. Louis plan was of a strictly local nature and that such issues should be handled locally. A shortage of advertising material also was mentioned at yesterday's sessions. Rotus Harvey and Max A. Cohen were delegated to confer with Paramount, M-G-M and RKO accessories departments and with Herman Robbins and George Dembow of National Screen Service to see what could be done to speed up the delivery of the materials. The matter of reduced admission prices for service men was declared to be a local issue and not one for the national board to set a policy. The directors adjourned at 12:45 yesterday afternoon after two and a half days of meetings. Sessions were said to have been constructive in that they permitted representatives from all over the country to present their own views and problems. S. A. Lynch Leaves Para. Florida Post Next July (Continued from Page 1) in charge of Paramount theater operations, announced yesterday. Lynch will retire from active management in July, 1943 but will serve in an advisory capacity thereafter. Circuit operates some 15 theaters in Miami, Miami Beach and Coral Gables. George Hoover, who has been general manager of the circuit, will continue actively in charge of the string, it is understood. WEDDING BELLS Indianapolis, Ind. — Feme Melcena Brimberry, Universal booking department and Donald McDaniel, who were married May 1, will reside in Bicknell. Kingston, Pa. — Rita M. Klein, cashier of the Kingston Theater was married to Ensign John J. Bus tin, USN, at Georgetown, Pa. Buffalo — Gertrude Dickman, oi Universal exchange's staff, is the recent bride of Pvt. Harry Lewis stationed in Texas.