Harrison's Reports (1930)

Entered as second-class matter January 4, 1921, at the post office at New York, New York, under the act of March 3, 1879. Harrison’S Reports Yearly Subscription Rates: ttnited States $15.00 U. S. Insular Possessions. . 16.00 Janada, Alaska 16.00 _exico, Spain, Cuba 16.00 Great Britain, New Zealand 16.00 Other Foreign Countries.. 17.50 35c a Copy 1440 BROADWAY New York, N. Y. A Motion Picture Reviewing Service by a Former Exhibitor Devoted Exclusively to the Interests of Exhibitors Its Editorial Policy: No Problem Too Big for Its Editorial Columns, if It is to Benefit the Exhibitor. Published Weekly by P. S. HARRISON Editor and Publisher Established July 1, 1919 Tel. : Pennsylvania 7649 Cable Address : Harreports (Bentley Code) A REVIEWING SERVICE FREE FROM THE INFLUENCE OF FILM ADVERTISING Vol. XII SATURDAY, SEPTEMBER 6, 1930 No. 36 THE COURT DECREE IN THE FOX-WEST COAST CASE The trade paper accounts about the disposition of the conspiracy case brought in the District Court for Southern California by the U. S. Government against Fox-West Coast Theatres and almost all the leading producer-distributors were somewhat discouraging, for it made exhibitors believe that the courts had established the right of the producer-distributors to grant any kind of protection, in time and area, they desired. But a careful reading of the decree, when it reached East, proved how misleading those accounts were. In order for you to see for yourself how misleading those statements were, I am printing the entire decree : * * * IX THE DISTRICT COURT OF THE UNITED STATES. FOR THE SOUTHERN DISTRICT OF CALIFORNIA, CENTRAL DIVISION. THE UNITED STATES OF AMERICA, Plaintiff, WEST COAST THEATRES, INCORPORATED, et aL, Defendants. In Equity FINAL DECREE. This cause having regularly come on to be heard at this term and the defendants appearing by their attorneys as follows : Fo.x-West Coast Theatres, erroneously sued herein as West Coast Theatres, Incorporated, and Fox Film Corporation, by their attorneys -Alfred Sutro, Esq., Richard E. Dwight, Esq., and Alfred Wright, Esq. ; Paramount Famous Lasky Corporation, by its attorney Frank James, Esq. ; Metro-Goldwyn-Mayer Distributing Corp., First National Pictures, Inc., and Universal Film Exchanges, Inc., by their attorneys Messrs. Loeb, Walker and Loeb and Milton H. Schwartz; Vitagraph, Inc. and Warner Bros. Pictures, Inc., by their attorneys Messrs. Freston & Files. J>. R. Files, Mulroney & Murphy and Robt. E. Mulroney; Pathe Exchange, Inc., by its attorney Neil S. McCarthy, Esq. ; United Artists Corporation by its attorneys Messrs. Mott, Vallee & Grant and John G. Mott, Esq., and Harold B. Franklin, by his attorneys Messrs. Ncwlin & Ashburn and .Allen \V. .Ashburn, and having consented in open courst to the making and entry of this decree, before any testimony whatever having been taken, now, on motion of Samuel W. McNabb, Esq., United States Attorney, John H. Amen, Esq., and -Albert J. Law, Esq., of counsel for the petitioner, and after due consideration, IT IS ORDERED, ADJUDGED .AND DECREED AS FOLLOWS: The term “affiliated exhibitors” as used herein shall include all persons, firms, partnerships and/or corporations which are engaged directly or indirectly in the exhibition of motion pictures at theatres owned, operated or controlled directly or indirectly by any producer or distributor of motion picture films. The term “unaffiliated exhibitor” as used herein shall include all persons, firms, partnerships and/or corporations which are engaged in the exhibition of motion picture films at theatres which are not owned, operated or controlled directly or indirectly by any producer or distributor of motion picture films. 1. That the court has jurisdiction of the subject-matter hereof and of all persons and parties hereto and that the petition states a cause of action against the defendants under the Act of Congress of July 2, 1890, entitled, “.An Act to Protect Trade and Commerce against Unlawful Restraints and Monopolies.” commonly known as the Sherman-Anti-Trust Act. 2. That the combination and conspiracy to restrain and to monopolize interstate trade and commerce in motion picture films as described in the petition herein is hereby declared illegal and in violation of the Act of Congress of July 2, 1890, entitled, “An Act to Protect Trade and Commerce against Unlawful Restraints and Monopolies,” commonly known as the Sherman Anti-Trust Act. 3. That the defendants and each of them, and each and all of tlie respective officers and directors of the corporate defendants and each and all of the respective agents, servants, employees and all persons acting or claiming to act on behalf of defendants or any of them, be and they hereby are perpetually enjoined and restrained from carrying out, directly or indirectly, by any means whatsoever, the conspiracy described in Paragraph VI of the petition herein, and from entering into or carrying out, directly or indirectly, such conspiracy. 4. That the defendants, their officers, agents, servants, employees, and all persons acting or claiming to act on behalf of them or any of them be enjoined from collusively, collectively or by concert or agreement — a. Excluding or attempting to exclude said unaffiliated exhibitors from contracting in the course of the aforesaid interstate trade and commerce in motion picture films for films to exhibit first or second run or first suburban run in the City of Los Angeles, California, and in other cities and towns in the southern half of the State of California ; b. Excluding or attempting to exclude said unaffiliated exhibitors from contracting in the course of the aforesaid interstate trade and commerce in motion picture films for films to exhibit in competition with exhibitions thereof by said defendant, Fox-West Coast Theatres ; and c. Excluding or attempting to exclude from the aforesaid interstate trade and commerce in motion picture films all said unaffiliated exhibitors who — Cl) E.xhibit two feature motion pictures on one program, (2) Donate gifts or premiums to patrons; d. Enforcing or attempting to enforce clearance schedules providing for unreasonable and discriminatory clearances for each and every theatre so operated hv the defendant, Fox-West Coast Theatres, in the City of Los -Angeles, California, and in other cities and towns in the southern half of California. That the defendant, Fox-West Coast Theatres, its officers, agents, servants, employees, and all nersons acting or claiming to act on behalf of it, or any of them, be enjoined from coercing or compelling said distributors, their officers, agents, or employees, with the intent, for the purpose. or calculated to have the effect of causing them — a. To exclude said unaffiliated exhibitors from contracting in the course of the aforesaid interstate trade and commerce in motion picture films to exhibit first or second run or first suburban run in the City of Los Angeles, California, and in other cities and towns in the southern half of the State of California. b. To exclude said unaffiliated exhibitors from contracting in the course of the aforesaid interstate trade and commerce in motion picture films to exhibit in competition with exhibitions thereof by said defendant. FoxWest Coast Theatres, and c. To exclude from the aforesaid interstate trade and commerce in motion picture films all said unaffiliated exhibitors who — n") Exhibit two feature motion pictures on one program, and (2) Donate gifts or premiums to patrons: (Continued on last pape)