Motion Picture Daily (Jan-Mar 1944)

8 Motion Picture daily Friday, February 25, 1944 U.S., Not Rank, Is British Films' 'Big Bad Wolf, Say Lords (.Continued from page 1) that "monopolistic control" here is much more likely to come from American companies in England rather than from Rank. The subject of the American companies' "Hays organization" here, it was brought out, is being given careful consideration. It was stated further that the necessity of striking a medium between chaos and monopoly, thereby preserving the small man's place in the industry, is recognized. The belief was expressed that the British industry has a great future and the government will do all in its power to help it. Generally Grateful to U. S. A more or less general view expressed was that Britain should be grateful to the American industry for producing thousands of films to the approximately 30 produced for it by the rest of the world. It was stated that it also is fortunate for Britain that its film industry is dominated by an Allied, rather than an enemy country. Caustic and unexpected reference was made during the debate to a certain producer who finds urgent business to transact in the United States when bombs begin falling on London, and who returns here with grandiose schemes when the blitz quiets. Cinema Stocks Slump; See Rank Manipulation London, Feb. 24. — Cinema securities prices on the local stock market, which have fallen gradually during the last three days, today took a spectacular dive, with Odeon, Gaumont British and Associated British Picture Corp. all affected. General market information sources are blaming the slump on the renewed blitz, which has cut theatre attendance, but those on the "inside" see the movement as part of a plan of J. Arthur Rank's associates to peg stock prices at a rational level. E. M. Loew Offers Comment on Suits (Continued from page 1) ever, he conceded that other claims amounted to several thousand dollars per house. Loew stressed two points that are prominent in his defense : the issue of the legality of contracts under which he says he has been forced to book pictures, and, his contention that the distributors "operated under a smoke screen" in sending an auditor for a blanket examination of his books rather than examining them individually and giving him a chance to settle any possible claims. Adding that he had been given no chance to examine the distributors' books for evidence of overpayment, which he felt existed, Loew said, "I urge independent exhibitors in this country to wake up and organize if they want to stay in business." He held that through such methods as changing "C" pictures to "A" pictures, the majors had collected more than was their due. Distributors 9 Proposals for Amended Decree as Submitted to Justice DepH (Continued from page 1) therefore, discontinue the publication of exhibitor statements attesting to their lack of information on the decree proposals as a result of the secrecy imposed upon the trade press by the Department of Justice at the outset.) Preamble. The same 13 consenting companies, representing five parent companies, Loev/s, Paramount, RKO, 20th Century-Fox and Warners, and their distributing and exhibiting subsidiaries which were named as defendants in the original New York anti-trust suit, reassert their innocence and consent to the entry of the amended and supplemental decree on condition that it shall not be construed that any defendant violated or is violating the law, or that any of the acts enjoined would constitute a violation of any law. Section 1. The parties recognize the Court's jurisdiction for the enforcement of the amended decree and for that purpose only. Section 2. Each consenting defendant, its successors, officers, directors, agents and employes, and subsidiary corporations and agents, are enjoined from doing acts prohibited under decree and are directed to do acts required by decree. Section 3. No feature film to be licensed for commercial exhibition until tradeshown in each exchange district. Tradeshowings must be preceded by published notice in a trade publication of general circulation among exhibitors. Section 4. Consenting distributors can license only one film at a time to any exhibitor if the distributor does not offer the licensing exhibitor the following cancellation rights in connection with the licensing of a block of pictures : fa) "not less than 20 percent cancellation of the total number of features in the block if the average of the license fees paid by the exhibitor to the distributor for the same run in the same theatre during the preceding season did not exceed $100 per feature ; (b) "not less than" 10 per cent if the average license was more than $100 and less than $200, and (c) "not less than" five per cent if the average exceeded $200. Notice of Cancellation Notice of cancellation must be given to distributor by first run exhibitors not later than 14 days after the mailing by distributor of notice of availability, and, for other than first runs, not later than 14 days after the close of the first exhibition in the subsequent run's city or town, or not later than 14 days after distributor first mails notice of availability, whichever is later. Disputes under the section are subject to arbitration. A picture once cancelled shall not be offered to the same exhibitor again except bv itself. No distributor shall condition the licensing of a feature on the licensing of shorts, newsreels, trailers, foreigns, serials, reissues or Westerns. Controversies under this sub-division subject to arbitration. Arbitrators may enter awards either cancelling the contract or contracts involved or affixing a penalty of not more than $250 against an offending distributor in a first award, and not more than $500 in a second award involving the same parties. Cash penalties payable to exhibitor complainant. If no license has been entered into, but the exhibitor asserts a claim that a distributor attempted, while negotiating, to condition the licensing of features on the prohibited classes of films, the exhibitor must notify the distributors' home office within five days after the alleged misfault occurred. Penalties in such cases are not to exceed $250 and are payable into the arbitration fund. Section 5. Features cannot be licensed in more than one exchange district, nor be conditioned upon their licensing in another exchange district. Subject to arbitration with a penalty for offenders of not more than $500, payable into the arbitration fund. Section 6. Distributors must license some run if exhibitor can satisfy minimum reasonable standards of theatre operation and is reputable unless the result of the licensing would have the effect of reducing the distributors' total revenue in the exhibitor's competitive area. Section is subject to arbitration. Award can direct a distributor to offer a run. Section 7. Exhibitor can cancel for moral, religious or racial reasons on giving written notice, stating reason, within five days of notice of availability. Section is subject to arbitration. Section 8. Claims of unreasonable clearance are subject to arbitration. Specials are excepted. Awards may fix maximum clearance. Section 9. Distributors prohibited from withholding prints. Controversies subject to arbitration. Section 10. Refusals to license a specific run are subject to arbitration where a complaining independent 'exhibitor is in competition with a circuit theatre. Refusals must have involved five successively released features, which were licensed to a competitive circuit theatre ; complainant must have had insufficient product on hand ; comnlainant and his theatre must qualify in numerous particular respects covering admissions, reputability and prior relations with distributor. Failure of distributor to comply with an award in complainant's favor to be subject to compensatory damages to the exhibitor for resultant loss. Section 11. Defendants prohibited from building or acquiring theatres except upon application "to a District court of the United States," either in New York or the area in which the theatre in auestion is located or to be located. Defendants may replace a former theatre of theirs, may lease one for a show window or for a special engagement, or may build or acquire one where distributor has been "locked out." Distributors must report theatre changes to Department of Justice monthly. Controversies under section are subject to injunctive relief in com Section 12. Defendants agree V dissolve pooling arrangements with other consenting defendants within one year of entry of decree, wherever possible. Section 13. Decree provisions limited to operations within continental United States. Section 14. Distributors retain right to roadshow any picture on own terms. Section 15. Distributors not in violation of decree unless guilty of refusal to arbitrate or abide by awards. Section 16. Defendants retain right to license own affiliated theatres on terms and conditions of their own choosing. Section 17. Department of Justice given access to defendants' books and records and right to interview officers and employes to secure compliance with amended decree. Section 18. Distributors retain right to select own customers. Section 19. Cancellation right to become effective six months after entry of amended decree. Section 20. Department of Justice not to bring an action for divorcement of production or distribution from exhibition for a period of 10 years after entry of amended decree. Section 21. Retention of arbitration tribunals in each exchange center with panels of at least 10 arbitrators in each who shall have, no connection with industry. American Arbitration Association to be continued as administrator ; budget to be provided as now by consenting companies with provision for court order of a budget increase of $50,000 in any one year. Provision made for submission of controversies to arbitration other than those specified in this section. Continue Appeal Board Continuation of appeal board of three judges, appointed for three-year terms at salaries of $17,500 for two members and $20,000 annually for chairman, with offices in New York. Section 22. Jurisdiction retained by Federal court for purpose of enabling "any of the parties to this amended and supplemental decree" (the Government is a party to the decree) "to apply to the court at any time" for enforcement, punishment of violations, for a modification to conform decree to any subsequent act of Congress, and for the purpose of enabling "any consenting defendant" to apply to the court after three years to vacate the decree or any provision of it on the grounds that it is unnecessary, inappropriate, burdensome or oppressive. The court shall enter orders relieving defendants of compliance with provisions in conflict with state laws. Ingram to Memphis Memphis, Feb. 24. — Louis Ingram of the M-G-M Atlanta office has been named acting branch manager at the local office, replacing J. Frank Willingham, transferred to St. Louis. Will Hoblitzelle Dies Dallas, Feb. 24.— Karl Hoblitzelle, oresident of Interstate Circuit here, has returned from St. Louis, where he attended the funeral of his brother, Will Hoblitzelle. BIS Appoints Burnside William Burnside, former director of production for the National Film Board of Canada, has been named adviser to the films division of the British Information Service here.