Motion Picture News (Apr - Jun 1927)

June 10, I '.) 2273 M.P.T.O. Convention Details Set Election, Talking Films and Chain Iheatres Leading Issues; Record Attendance Expected June Seventh ALL details of the cifrhth annual convention of tlie ^lotion Piclurc Theatre Owners of America have been settled and final arranjjcnients are beinc; completed at Convention headquarters, Neil House, Columbus, Ohio, wliere the sessions will be held Juiu' 7, 8, and 9, with a fjolf tournanuMit scheduled for June (ith, the day before the meetings are officially called to order. Reports from Columbus indicate a large representation from all quarters ns the central geographical location of the convention makes it very convenient for exhii)itors. It is predicted that 2,000 theatr" men will answer the roll-call. Election of officers and the debates on talking film will be among the highlights of the meeting; chain theatres will be one of the most important topics discussed and, with a constructive policy outlined for the delegates, indications are the circuits will be considered in the light of an inevitable revolution in the industry. Speakers line up thus far include Governor "Vic" Donahey, C. C. Pettijohn, Nathan Burkan, S. L. (Roxy) Rothafel, Harry Reichenbach, H. M. Warner, Judge Moses Grossman of the Arbitration Society of America, and Edward A. Guest, the poet. It is possible that Nicholas Longwortli, speaker of the House, will be among those to address the convention; Mayor James J. Walker of New York has not as yet defilutely decided whether he will attend, d\v: to pressure of official business. P. J. Wood, business manager of the Ohio M.P.T.O., who is acting as secretary of the Mayor James J. Walker congratulating President R. F. WoodhuU, of the Motion Picture Tlieatre Owners of America, on his assumption of the duties of that office and wishing the organization and theatre owners the fullest measure of success at the coming Columbus Convention. convention conmiittee, reports all space at the motion picture exposition taken. The exposition, which will be on the same floor of the hotel where the convention meeting.-; and banciuet are held, will comprise close to fifty exhibits. J. J. Harwood, chairman of the greneral convent mil <(iimnittee, issues a final appeal to exliibitiors to take advantage of the fareand-a-half rate offered by the railroads. In order to secure this rate exhibitor must first secure a certificate from his local railroad station and, an-iving nt Columbus, must present it at convention headquarters where it will be authenticated. I'pon presentation of the authenticated certificate the exhibitor (and his party) gets benefit of the h;df-r!ite on the return trip. Secretary Wood announced this week that a complimentary ticket will be issued .-ill delegates which admit theuLselves and party to all Columbus theatres, summer [larks and American Association baseball games. Ohio exhibitors got together at a last moment rally and pledged support of their resources for the convention. It wa.s also stated that Station WAIU, broadcasting station of the American Insurance Union, will co-operate with convent i(m officials by broadcasting the banquet speeches for which Harry Reichenbach will act as toastmaster. There is considerable speculation as to the next president of the M.P.T. O.A. for the Middle West, long powerful in organization circles, is declared to be grooming seveial for the presidency. R. R. Biechele, William M. James, Frank J. Rembusch and W. A. Stetfes are among Middle West leaders whose names are being mentioned. StetTes, it is stated, will come to the convention determined to bring the I92S convention to St. Paul, where business men are making a strong bid for the event. (Contitiued on page 2278) Eastman Wins in Supreme Court Rules Federal Trade Commission Without Authority to Order Disposition of Developing Laboratories ACCORDING to a decision handed down this week by the United States Supreme Court the Federal Trade Commission "had no authority to require that Eastman Kodak divest itself of the ownership of the laboratories which it had acquired prior to the action of the Commission." This opinion, delivered by Justice Sanford, arose from an appeal of the Federal Trade Commission which sought to order Eastman Kodak to dispose of, its positive print developing laboratories and cancel an agreement of Eastman Kodak made Avith independent laljoratories in and around New York whereby the independents agreed to use American-made raw film exclusively if Eastman Kodak would not comjiete with them in manufacturing prints. The Commission issued its order which Eastman took to the xVppelate Court. The Court decided against the Commission on the first point and upheld it in the latter. The order of the Commission was issued following an investigation of complaints against the company; it found that the company acquired three laboratories used in making and developing positive prints whose combined capacity exceeded that of all other laboratories east of Chicago. The Commission's investigation disclosed that Eastman Kodak announced its int<mtion of entering upon the manufacture of such prints, which announcement resulted in th>; indejiendent laboratories entering an agi-eement that they would use American-made film of which Eastman Kodak produced !)4 per cent of the total, only, to the exclusion of foreign made films, so long as Eastman Kodak did not compete with them in manufacturing prints. The Commission directed Eastman Kodak and the independents to cancel this agreement and also ordered Eastman to dispose of the three plants. The company carried the case to the Appellate Court which held that the agreement in question "was an unfair method of competition which the Commission had authority to prevent; but that it was not unlawful for Eastman to equip itself to enter ujjon the business of manufacturing prints and the Commission had no authoi-ity to order the company to divest itself of the laboratories." The Commission thereupon appealed to the United States Supreme Court which, in its opinion, pointed out that in previous decisions, it had been held that the Clayton act has no application to ownership of a competitor's property and business obtained jirior to any action by the Commission. The ])urpose of the act was to prevent the continued holding of stock. "If purchase of property has produced an unlawful status a remedy is provided through the courts," it was further pointed out. "So here," the decision concluded, "the Commission had no authority to require that the company divest itself of the ownership of the laboratories which it had acquired prior to any action of the Commission. If the ownership or maintenance of these laboratories has produced any unlawful status, the remedy must be administered by the Courts in appropriate proceedings therein instituted." A dissenting opinion was filed by Supreme Court Justice Stone, in which Justice Rrandeis joined.