Kinematograph year book (1944)

166 The Kinematograph Year Book. CIRCUITS AND MONOPOLY. THE tendency noted last year of circuit expansion was accelerated during 1 943 and provided one of the political and industrial sensations of the year by reason of the Government's veto on the further widening of the exhibition (and studio) interests of the three major circuits. The participants in this increasing extension of circuit activities were Associated British, controlled by Mrs. John Maxwell and Warner Bros., and Odeon and Gaumont-British, of both of which J. Arthur Rank is chairman. Owing to the latter's continually growing predominance in the fields of theatre, studio and equipment, and the huge value of his interests, the question of monopolistic tendencies began to exercise the minds of every-one associated with the Trade. The Trade Unions were especially concerned at the fact that two of the circuits and their ramifications of film production and distribution, kinemas, theatres, music halls, television, equipment and furnishings were under the control of one man. It was contended that it is against public interest that so formidable and powerful a medium should remain as a monopoly, particularly after the war. A similar expression of opinion was used by the Cinematograph Films Council in representations to the Board of Trade, and the allegation of trustification was mentioned in the House of Commons. The result of these conversations was the intervention in July of the President of the Board of Trade, who by an unprecedented action, the application of which was the more effective by the very conciliatory method of approach, declared that the Government would not agree to any form of film trade monopoly. In the exchange of letters Mr. Rank frankly acquiesced in Hugh Dalton's view, and although contending that some degree of rationalisation was necessary, pledged himself not to extend control further in respect either of additional kinemas or studios without previous assent from the Board of Trade. The agreement, however, excluded a certain number of negotiations that were already in hand for theatre properties. In February of this year Mr. Dalton announced that A. B.C. had fallen in line with Mr. Rank, and that both concerns had agreed to stabilise their theatre interests at no more than 607 theatres, with the result that there will exist two organisations of equal booking power. While Mr. Dalton said he considered the agreement to be a practical method of dealing with alleged monopoly he has taken the precaution of setting up an additional safeguard in the form of a Committee of the Cinematograph Films Council which will advise him as to the practical measures that may be necessary to check the development of monopoly in the Industry. The Committee consists of A. Palache (chairman), Sir Walter Citrine, Philip Guedalla and Professor Arnold Plant ; the secretary is E. Sutton. Arthur Rank undoubtedly dominates the British Film Industry, not necessarily because of the number of theatres he controls, but by reason of the wide ramifications of his production interests, which promise a vigorous challenge to America. His practical control of Denham and Pinewood has been strengthened by the deal for the shares of British and Dominion Film Corporation, a considerable shareholder in D. and P. Studios, Ltd., while on the G.-B. side he controls Shepherd's Bush and Gainsborough Studios and is closely affiliated with Two Cities Films, one of the most successful producers in the country. He has many other subsidiary production interests, including religious and educational film producers. The merger of the G.-B. Equipment organisation with Kalee places Mr. Rank in an exceptionally formidable position in the equipment market, and we are assured that this organisation will be one to bs reckoned with in the post-war export trade as well as in the home market. Television is catered for by Cinema Television, Ltd., and other former G.-B. associated companies cater for the wireless and the music hall patron. The success of the operations of Mr. Rank's companies is indicated by the fact that the gross earnings of the Gaumont-British Corporation for the year ended March 31 were £356,000 above the previous year, but owing to increased taxation the dividend was maintained at 6 per cent. In pursuance of the policy of consolidating the G.-B. financial structure, P.C.T. shareholders agreed to convert two million 1\ per cent, cumulative