Harrison's Reports (1935)

24 HARRISON'S REPORTS February 9, 193S nation would be controlled completely by a small group." "If the independent exhibitors are destroyed," he stated, "it might be a long time before the monopolistic control and domination could be challenged and broken." Part of the decision reads as follows : "The defendants further contend that there was no conspiracy on the part of the defendants to do the thing complained of. However, from all the evidence produced showing the discussion of this matter, the purpose desired to be obtained by the defendants, the means of combating the double-feature program, the unanimity of action, the Chancellor has no hesitation in saying that this unanimity of action was not a coincidence but in his opinion a well denned, well thought out, well studied intent to accomplish the purposes prohibited by the Federal laws. "The defendants have by agreement determined to prohibit the use of feature films distributed by them in conjunction with other feature films on a double feature program and have proceeded in such agreement. "The defendants have entered into a combination and conspiracy in restraint of trade among the several states and have carried out the purpose of said combination by inserting in their distribution contract the respective clauses prohibiting the use of their feature films with other feature films in double feature programs. "Defendants have combined and conspired among themselves and with others to insert in their respective contracts the double feature clauses which tend to create a monopoly in the trade and commerce amongst the several states of distributing and exhibiting of motion pictures. "conclusions of law "1. The defendants have entered into a combination and conspiracy in restraint of trade or commerce among the several states. "2. The combination or conspiracy of the defendants lessens competition and tends to create a monopoly in trade or commerce amongst the several states. "3. Defendants have violated the Sherman Anti-Trust Law Act (July 2, 1890, C. 647, Section 1) and the Clayton Act (October IS, 1914, C. 328 Section 3, 38 Statue 731) by inserting in their contracts with plaintiff and other exhibitors provisions prohibiting the exhibition of feature films distributed by the defendants in conjunction with other feature films on a double feature program. "4. The provisions in defendants' contracts prohibiting the use of the feature films distributed by them on double feature programs violate the Sherman Anti-Trust Act and the Clayton Act and are illegal and void. "Plaintiff is entitled to an injunction commanding defendants to cease and discontinue their agreement, combination, and conspiracy to prohibit the exhibition of the feature films distributed by defendants in conjunction with other feature films on double feature programs and restraining defendants from makinsr such prohibition a part of any contract with the plaintiff, and from penalizing plaintiff in any manner because of the exhibition of their feature films on double feature programs in conjunction with any other feature film." WHY NOT? Under the heading "Soaking the Circuits," Jay Emanuel, editor and publisher of the Emanuel publications, has said the following : "Ruling of the United States Supreme Court upholding the validity of the West Virginia state tax on circuits may lead some militant folk to endorse such a measure for theatre chains. The idea is not a new one, but the view of the highest body gives it added impetus. "Chances are that some exhibitors in districts where a circuit dominates might figure that soaking the chain might direct the attention of legislators away from a general admission or theatre tax. In that case, the exhibitor with one house might pass the industry burden on to the fellow with more than one. "This hardly is the time for factions in the business to attack the others in the same field. The picture of one group in the trade seeking to place additional burdens upon another division might lead legislators to think otherwise and levies on every one in the exhibition field might follow. "A divided house never did succeed. Those who might desire to tax the circuits will only be hurting themselves if they persist in such an attitude." My good friend Jay is full of magnanimity towards the circuits ; he forgets what the circuits have been doing to him and to all other independent exhibitors. Would the circuits show so much thoughtfulness towards their weaker brethren? Mr. Emanuel warns you against making any attempt to divert the tax from the gross receipts to yearly licenses for chain theatres in rase a bill were introduced in the legisla ture of your state with the purpose of taxing admission prices. 1 his should be a good argument for you to use with your legislators in case a bill taxing admissions were introduced. Ask them to raise the money by taxing the chains. If you do not use such an argument the admissions wilt surely be taxed for the reason that the state must have money to meet its obligations with and this money must be found in some way. As I informed you through the columns of a recent issue of Harrison's Reports a bill has been introduced in the legislature of the state of Nebraska imposing a graduated tax on theatres, which starts from two dollars a year for one theatre and ends with $250 when the chain owns a lar^e number of theatres. The independent theatre owners of that stale should support this bill. EFFECTIVE ANTI-CHAIN FILM PROPAGANDA Frank Wilson, a well known independent producerdistributor, has had a film made out of old shots which he uses as propaganda against chain stores. He shows it, in whatever towns he gets booking, with the cooperation of the local merchants, as an added attraction to the theatre bill. Though the film itself is not anything to brag about, being a collection of old shots, yet the results have been wonderful to the box office. Wherever he shows the film, which he has titled "Forward America," he doubles and triples the receipts for those days. Although the picture may be shown as a business stimulant, the motive for which I am advocating the showing of this film is to arouse the people of this nation against chain operation, for this sort of business has, as I said recently, ruined this country and anything that you can do to arrest it will react to your own benefit. Those who have shown the film have found no difficulty in gaining the support of their local merchants. Mr. Wilson may be reached in care of Economic Films, Inc., RKO Building, Radio City, New York. PAY ASSESSMENT TO CODE AUTHORITY! On January 25 the Code Authority passed the following resolution : "RESOLVED: That on and after February 15th, 1935, such members of the industry who shall fail to pay such assessments or levies shall not be entitled to file any complaint before any local Clearance and Zoning Board or local Grievance Board under any ARTICLE or PART of the Code of Fair Competition for the Motion Picture Industry." The notice from Mr. John C. Flinn, executive secretary of the Code Authority, quoted Article II, Paragraph 1U, Subdivision (c), which stipulates that a person who will not pay his assessment will not be entitled to file a complaint under the Code, as the source from which the Code Authority derived the right to pass such a resolution. If you have not paid your assessment, pay it now, unless, of course, you do not care to avail yourself of the right to file complaints, an act which seems unthinkable. CLASSIFICATION OF PICTURES The following are the latest feature pictures that have been classified by the Chicago Legion of Decency: CLASS A (Good for the entire family) : "Big Calibre," "Carnival," "Dealers in Death," "Devil Dogs of the Air," "The Field Marshal," "The Iron Duke," "Lives of a Bengal Lancer," "Million Dollar Haul." "Scarlet Pimpernel," "Society Doctor," "Under Pressure," "Wings in the Dark," and "Winning Ticket." CLASS B (Unsuitable for either children or adolescents, but are neither approved nor disapproved for adults) : "Angkor," "Behind the Evidence," "Notorious Gentleman," "The Perfect Clue," "Right to Live," and "Woman in Red." Note: "I Sell Anything" has been transferred back aga;n to the "B" column. "The December 29 issue of 'Harrison's Reports,' a service which gives moving picture exhibitors reviews of pictures as they are released, publishes the complete list of the Chicago Council of the Legion of Decency, the same one which appeared in this paper on December 27. To it is added another list, almost as long, of older pictures, divided into the same three classes. P. S. Harrison, editor of the publication, has for years been protesting against the predominance of filth in the movies, and the Legion of Decency campaign, with its results, is a vindication of all he has been saying." — The Pittsburgh Catholic, issue of January 20.