The Exhibitor (1960)

Cou rt Slaps I ndustry W rist On TV Sales Block Booking Illegal, But Government , Loses Battle To Renegotiate Contracts Already Set NEW YORK — In an opinion handed down last fortnight, Federal Court Judge Archie O. Dawson applied provisions of the Sher¬ man Anti-Trust Laws that prohibit the the¬ atrical block-booking of films to the licens¬ ing of features to television stations. He ruled that the defendants, Loew’s Inc., now MGM; C&C Super Corporation, now Television Industries, Inc.; Screen Gems, Inc.; Associated Artists Productions, Inc., now inactive; National Telefilm Associates, Inc.; and United Artists Corporation had vio¬ lated section one of the Sherman Act in their licensing of pre-1948 features to TV. Furthermore, the court enjoined the de¬ fendants from refusing to license features to TV stations on a picture-by-picture, station by station basis. Judge Dawson, however, denied a Government motion that defendants be directed to offer to renegotiate existing contracts involving block booking. The Court said that television stations can institute damage suits designed to recoup money and stated that this was an “adequate remedy.” The trial without jury lasted 36 court days and began last March 7. The issues involved were whether the de¬ fendants had violated Section One of the Sherman Act in the distribution of motion picture films by licensing them to television stations for broadcast in groups or blocks. Judge Dawson held that the defendants had a legal right to offer their films in blocks or groups, but not to condition a license of one or more films on that of others, too. The Court found block booking to exist “only in those cases where the facts show refusal to license one or more films and show that such refusal constituted a condi¬ tion . . . imposed ... to compel the respective licensees to purchase other and additional films.” Judge Dawson noted that, with the post1948 features about to be made available for TV licensing, “We would not want the de¬ fendants to follow certain of the procedures which they followed with reference to the pre-1948 films and which are found in this opinion to be violations of the anti-trust laws.” The Government has sought a decree hold¬ ing that each defendant had restrained inter¬ state trade and commerce in the distribution of features. Of that. Judge Dawson stated that “in view of the findings of fact and con¬ clusions of law of the Court, such decree should certainly be entered. He also said that “an injunction should be granted” as the Government sought, to enjoin the defendants from refusing to license feature films to TV on individual film and station bases. How¬ ever, he said, “the language set forth in the complaints is too broad.” Specifying that the anti -trust laws do not require every owner of a product to offer it to anyone interested in purchasing it, he further noted that neither the laws nor the Paramount decision prevent the owner of films from offering them in groups or blocks. “The law simply requires that a person may not condition the sale of one product upon the (Continued on page 17) Loew's Hotel Activities Spur New Assignments NEW YORK — With the active entry of Loew’s Theatres into the hotel field and the acceleration of plans for the opening of The Summit of New York in July, 1961, James Shanahan, assistant to Ernie Emerling, Loew’s ad -publicity head, has been appointed director of publicity for Loew’s Hotels. Emerling will supervise advertising and promotion for both the theatres and the hotels. Russ Grant has been named assistant to Emerling in charge of advertising and publicity for Loew’s out-of-town theatres, and Ted Amow playing a similar role for Loew’s theatres in the New York area, in¬ cluding the State and Capitol, on Broad¬ way. Ann Bontempo, who has been handling publicity and advertising for Loew’s Thea¬ tres in New Jersey, has been assigned to hotel promotion. UA Net Up Again In Nine-Month Span NEW YORK — The net earnings for the first nine months of 1960 of United Artists Cor¬ poration, after provision for taxes of $1,893,000, were $2,987,000 compared with $2,885,000 for the comparable period of the previous year it was announced by Robert S. Ben¬ jamin, chairman of the board. It was concurrently reported that the board of directors of United Artists Corporation de¬ clared a regular quarterly dividend of 40 cents per common share, payable Dec. 30 to stockholders of record Dec. 16. UA’s gross world-wide income for the first nine months of 1960 totalled $80,595,000, against $72,061,000 for the same period in 1959. The nine-month net represents earnings of $1.79 per share compared with $1.73 per share for the first nine months of 1959. The above per share earnings were based on 1,664,218 shares outstanding on Oct. 1, 1960, and Oct. 3, 1959. Byrne Back In Distribution NEW YORK— J. P. (Jack) Byrne, a veter¬ an in distribution and former MGM sales chief, is resuming activities, independently, in that field. Roadshow Pix Boost Theatre Remodeling NEW YORK — The large number of road¬ show attractions in 70mm during the past year and in the offing is having a salutory effect upon the physical condition of theatres throughout the United States and Canada ac¬ cording to the recent findings of F.J.A Mc¬ Carthy, Universal Pictures sales head for “Spartacus,” and Jeff Livingston, executive coordinator of sales and advertising, who have inspected theatres in most key cities in con¬ nection with “Spartacus” bookings. Rehabilitation of theatres in order to com¬ pete for roadshow product has ranged from the mere projection and sound equipment and new screens to the complete refurbishing of the theatres, generally long overdue, usually including a reduction in the number of seats and modernizing of the front of the house and lobby. For “Spartacus” 70 mm showings alone, more than a third of the 18 theatres which will be playing the picture by Christmas will have been refurbished and remodeled. These include the DeMille, New York; RKO Pantages, Hollywood; and Madison, Detroit, where “Spartacus” is already playing; the newlyconstructed Wometco’s 163rd Street, Miami, which was built with 70 mm showings in mind; the Delman, Houston; Loew’s Uptown, Toronto; and Music Box, Seattle, which start roadshow engagements of “Spartacus” on Dec. 22. MPEAA Appoints Two NEW YORK — Eric Johnston, president of the Motion Picture Export Association of America, announced two new assignments in the European area. Leo D. Hochstetter moves to Rome from Frankfurt, Germany, as manager for the Mediterranean area (Italy, Spain, Greece and the Middle East), succeeding Frank Gervasi; and Stephen Beers, assistant to G. Griffith Johnson, MPEAA vice-president, European area, goes to Frankfurt where he will be re¬ sponsible for Germany, Austria and Scan¬ dinavia. Sinatra, UA In New Pact NEW YORK— Arthur B. Krim, United Art¬ ists president, and Frank Sinatra, head, Essex Productions, announced the signing of a $15,000,000 deal. General Drive-In Corporation recently held a division managers' meeting at the Boston home office. Seen, standing, left to right, are Harvey Elliott, Samuel Springer, Herschel McManus, Knud Lentz, James Collins, Joseph Saunders, C. Richard Darby, R. M. Daugherty, N. Lavidor, George Moffit, and Harry Broude. Seated, left to right, are Howard Spriess, Melvin R. Wintman, Richard A. Skith, Samuel Seletsky, Edward E. Lane, and Willard Alexander. 8 MOTION PICTURE EXHIBITOR December 14, I960