The film daily year book of motion pictures (1948)

tlie right of each distributor-defendant to license, or in any way to arrange or provide for, the exhibition of any or all the motion pictures which it may at any time distribute, in such manner, and upon such terms, and subject to such conditions as may be satisfactory to it in any theater in which such distributor-defendant has or may acquire pursuant to the terms of this Decree, a proprietary interest of ninety-five per cent or more either directly or through subsidiaries. V The provisions of the existing consent decree arc hereby declared to be of no further force or effect, except insofar as may be necessary to conclude arbitration proceedings now pending and to liquidate in an orderly manner the financial obligations of .he defendants and the American Arbitration Association, incurred in the establishment of the consent ilecree arbitration systems. Existing awards and those made pursuant to pending proceedings shall continue to be enforceable. But this shall in no way preclude the parties or any other persons from setting u jj a reasonable system of arbitration either through the use of the present boards or any oihers as among themselves. VI For the purpose of securing compliance with this Decree, and for no other purpose, duly authorized representatives of the Department of Justice shall, on written request of the Attorney General or the Assistant Attorney General in charge of anti-trust matters, and on notice to any defendant, reasonable as to time and subject matter, made to such defendant at its principal office, and subject to any legally recognized privilege, (1) be permitted reasonable access, during the office hours of such defendant, to all books, ledgers, accounts, correspondence, memoranda and other records and documents in the possession or under the con trol of such defendant, relating to any of the m. liters contained in this Decree, and thai during ihe limes that the plaintiff shall desire such access, counsel for such defendant may be present, and (2) subject to the reasonable convenience of such defendant, and without restraint or interference from it, be permitted to interview its officers or employees regarding any such matters, at which interview, counsel for the officer or employee interviewed and counsel for such defendant company may be present. Information obtained pursuant to the pro\ isions of this section shall not be divulged by any representative of the Department of Justice to any person other than a duly authorized representative of the Department of Justice, except in the course of legal proceedings to which the United States is a party, or as otherwise required by law. VII Paragraphs 7 and 8 of Section II of this judgment shall not become effective until July 1, 1947. VIII Jurisdiction of this cause is retained for the purpose of enabling any of the parties to the judgment and no others, to apply to the Court at any time for such orders or direction as may be necessary or appropriate for the construction, modification, or carrying out of the same, for the enforcement of compliance therewith, and for the punishment of violations thereof, or for other or further relief. IX The operation of this judgment is stayed for sixty days from the date hereof, and, if an appeal is taken, for thirty davs thereafter in order to enable any appellant to move before the Supreme Court for a stay in respect to any portion of the judgment from which an appeal has been taken. Memorandum on The Bidding System and Arbitration "In order to meet some of the objections raised at the hearing to the system of bidding for features described in the opinion of the court, we have modified the system there proposed so that competitive bidding will only be necessary within a competitive area and in such an area where it is desired by the exhibitors. In other words, the decree provides an opportunity to bid for any exhibitor in a competitive area who may desire to do so. "The arrangement for arbitration and an appeal board has been terminated except as to unfinished litigation and other matters referred to in the decree, because of the unwillingness of some of the parties to consent to their continuance. Nevertheless. a9 we have indicated in the opinion, these tribunals have dealt with trade disputes, particularly those as to clearances and runs, with rare efficiency, as both government counsel and counsel for other parties have conceded. "Indeed, the arbitration 6ystem set up under the consent decree of November 20. 1U40. was created pursuant to the prayer of the amended and supplemental complaint by the United States filed November 14. 1940. in which, among other things, the plaintiff prayed that 'a nation-wide system of impartial arbitration tribunals or such other means of enforcement as the court may deem proper be established pursuant to the Sua! decree of this court in order to secure adequate enforcement of whatever general and nation-wide prohibitions of illegal practices may be contained therein.' "We strongly recommend that some such system be continued in order to avoid cumbersome and dilatory court litigation and to preserve the practical advantages of the tribunals created by the consent decree." 988