The film daily year book of motion pictures (1941)

portment oi lustice would consent to a settlement which did not divest the Big Eight of their theater holdings. Senator Neely introduced a bill to make the operation of theaters by producers and distributors unlawful. At a hearing on the bill in May, Assistant Attorney General Arnold made a statement which led his hearers to believe that he would remain firm on that issue. By the middle of June it became apparent that theater divorcement would not be abandoned but would be postponed. Allied kept in close touch with the negotiations throughout the summer, examining each draft of every proposal as it emerged from the conference room. On four separate occasions Allied sent detailed statements of its views on the entire subject to the attorney general. The board of directors held two special meetings and the executive committee held an equal number during the course of the negotiations. Several provisions of the decree, more especially those relating to the licensing of pictures on some run and to clearance, reflect the suggestions and criticisms of Allied. Many of Allied's important suggestions were not adopted and the five-group selling plan was written in over Allied's protest. It is fair to say, however, that the decree would have been much less acceptable from the standpoint of the independent exhibitors if Allied had not kept in such close touch with the situation. No other group rendered any such service. By direction of the board of directors the general counsel appeared before Judge Goddard to oppose entry of the consent decree. The argument offered was to the effect that the court had no jurisdiction because it did not "enjoin and restrain" violation of the Sherman Act. The basis of the contention was that the decree perpetuated and condoned the evils set forth in the Government's complaint instead of ending them. But as was to be expected. Judge Goddard was not disposed to listen to objections to the settlement from third parties in view of the fact that the alternative was a laborious and protracted trial. Allied has not abandoned the fundamental principles of theater divorcement and the Neely Bill. The Neely Bill with minor modifications would be much less radical and drastic than the selling scheme prescribed by the consent decree. It has the support of the public groups whereas the decree has not. Theater divorcement would end discrimination more effectively than the decree because it would end the incentive to discriminate. Both Neely bills have been re-introduced into the 77th Congress. As soon as it became apparent that the decree would go through in the form in which it was published on August 3, Allied embarked upon a campaign to educate its members as to their rights thereunder. This was not because Allied had abandoned its guns, but for the common sense reason that it is wise to make the best of a bad bargain. Organizations that have merely issued monthly bleats about the decree have done nothing to advance the exhibitors' cause. Allied has laid its plans to place in the hands of every member a Manual of Arbitration and a Buyer's Handbook which will be designed to odd Allied members in extracting from the decree whatever of benefit there is in it, and in mitigating as far as possible its hardships. No other group has rendered any such service. A notable accomplishment of Allied during the year was the organizing of Allied Information Department (AID), with Sidney E. Samuelson as chairman. AID is charged with the duty of collecting, compiling and disseminating proper information and statistics which ■vriW be of benefit to exhibitors. It has already published two summaries based on nationwide surveys relative to the prices and terms demanded by the several distributors of film. It has also published a condensed summary of contract provisions. In addition, it has carried on various negotiations and other undertakings strictly in the interest of Allied members that have not been publicized. AID's work to date has been pronounced invaluable and its field of usefulness will be greatly enlarged when the new selling method goes into effect. No other group is rendering any such service. Allied has adopted a policy of cooperation with the American Arbitration Association and with the Department of Justice in the administration of the arbitration system and other provisions of the decree. Allied believes that now the arbitration system is in force it should be made as successful as possible. All possible aid will be rendered to Allied members involved in arbitration proceedings whether as complainants or intervenors. In addition. Allied will report to the Department of Justice all violations of the decree coming to its attention and also will report all instances of hardships suffered by independent exhibitors under its provisions. This is because Allied is convinced that the most direct and effective way in which to secure needed reforms in the decree is to present the facts — not fears or fancies — to the court through the Department of Justice. No other group is rendering any such service. Allied looks back with pride on the magnificent annual convention held in Chicago in June under the able management of Jack Kirsch. A high mark has been set for Sid Samuelson to shoot at in staging the 1941 convention in Philadelphia. No other group has been able to muster a national convention for several years. At the Chicago convention Allied pledged full support to and cooperation with the Administration in the campaign for national defense. Allied members stand ready to perform whatever service the Government, through its authorized spokesmen, may request. Allied suffered a serious loss in 1940 when 698