Investigation of concentration of economic power; monograph no. 1[-43] (1940)

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CONCENTRATION OF ECONOMIC POWER 57 THEATER SERVICE DEPARTMENT This is an affiliated exhibitors relations department. Among its activities it assists "trade associations of theater owners in develop- ing in constructive ways their own usefulness and service to ifee local theater owners in their own state and zone * * *" ^ > FOREIGN DEPARTMENT Through this department, "the Association assists members in securing fair treatment in the distribution of American films abroad. In the 17 years, the Association has taken a loading part in successful negotiations to solve difficulties due to. restrictive legislation. The department keeps member companies closely informed on legislative and economic developments in foreign markets." ^ MISCELLANEOUS Among the other activities are the Conservation Department, whose function it is to eliminate fire hazards in film exchanges; the Com- munity Service Department, whose function it is to stimulate public interest in and patronage of film^ of the higher type; the general Counsel, who represents the organization before the legislative bodies; the Legal Department, which is adviser to the Association and its mem- bers; the Public Information Department, the Treasury and Accounting Department; and the Office of the President. COPYRIGHT BUREAU The function of this bureau is to ferret out violations of copyrights. It is contended to be separate from the Hays organization, but is financed by the same companies. FILM BOARDS OF TRADE These boards of trade were established in various key cities by and for the producers and distributors. The film boards of trade undertook to settle disputes between exhibitors and chains of producers. Attached to each film board of trade was a credit committee. If a credit committee reported adversely to an exhibitor, all of the member pro- ducers and distributors withdrew their product from the affected theater. The Untied States v. First National Pictures et al. (282 U. S. 44) decreed that certain acts of the credit committee constituted an illegal restraint of trade.■* It is denied by the Hays organization that there is any connection between it and the film boards of trade, but they are financed by the same organizations and both groups have the same general counsel and general attorney,^ ASSOCIATION OF MOTION PICTURE PRODUCERS OF CALIFORNIA, INC. This is an association of the California producers. Its composition is similar to that of the Hays organization. It operates the Central Casting Bureau, which supplies the members of the association with » "Film Facts," published by the Motion Picture Producers and Distributors of America, New York, 1940. 3 Ibid. < Cit. from hearings before a subcommittee of the Committee on Interstate Commerce, U. S. Senate, pursuant to S. 3012, "Compulsory Block-Booking and Blind Selling in the Motion Picture Industry," 74th Cong., Feb. 27 and 28, 193G, p. 16. «Ibid.