Motion Picture Herald (Jul-Aug 1943)

July 24, I 943 MOTION PICTURE HERALD 49 U. S. GOES TO SUPREME COURT WITH CRESCENT APPEAL Asks Decree Be Remanded to District Court to Be Made More Specific The U. S. Department of Justice filed an appeal at Nashville on Saturday to the Supreme Court of the United Statets in the Crescent Circuit anti-trust case. A brief by Charles Fahy, Solicitor General of the U. S., asked the Supreme Court to remand to district court the decree entered against Crescent by Judge Elmer Davies in May. The brief seeks an order from the highest court requiring the insertion in the decree of a specific prohibition against future theatre acquisitionby Crescent or any of its co-defendants. The solicitor declared that the decree as it now stands is based on action taken after the illegal action occurs. He asks that the circuit be required to secure court approval for every theatre acquisition by an affirmative showing that it will not unreasonably restrain competition. Mr. ' Fahy, in his brief, stated that the Government's experience at Nashville, as well as in the New York and Schine anti-trust actions, showed that the "elimination of independent theatre competition by large circuits by action taken after the offense occurs" is inadequate. Unless the Government is given the remedy which Judge Davies in his findings of fact "concluded it was entitled to but rejected on administrative considerations" in the decree, the Government "will be unable to secure the continued existence of independent theatre competition which the Sherman Act contemplates." Crescent defendants were cited to file answers in Washington on August 25th. It is doubtful if the case will reach the Supreme Court until well into the autumn calendar. Contend District Court Erred in Its Findings The Government's application to remand was filed in Nashville by Tom C. Clark and Robert L. Wright, assistant attorneys general in the anti-trust division. They contended that the district court erred in its finding and decree in holding "That the exhibitor defendants, and each of them be, and they hereby are, enjoined and restrained from acquiring a financial interest in any additional theatres, outside Nashville, Tennessee, in any town where there is already located a theatre, whether in operation or not, unless the owner of such theatre should volunteer to sell to either of the exhibitor defendants, and when none of said defendants, their officers, agents or servants are guilty of any of the acts or practices prohibited in Paragraph Nine hereof." The Government brief said that: "The court erred in declining to enter in lieu of said Paragraph (19) of the final decree the provision contained in Paragraph 20 of the proposed decrees submitted in accordance with the court's conclusion of law No. 20, which provision reads as follows : "That the exhibitor defendants and each of them be, and they hereby are, enjoined and restrained from acquiring a financial interest in any additional theatres outside of Nashville, Tennessee, except that an affirmative showing before this court that such acquisition will not unreasonably restrain competition. "Wherefore, plaintiff prays that the final order and decree of the District Court granting the relief set forth in Paragraph 19 thereof and denying relief in accordance with the court's aforesaid conclusions of law No. 20 may be reversed and the cause remanded for the entry in lieu of said paragraph of a provision in accordance with said conclusions of law and for such other and fit relief as the court may deem just and proper." Possibility of Important Precedent Is Seen Attorneys at Nashville and New York saw in the Government appeal of the Crescent case the possibility of an important precedent affecting all other anti-trust actions against the motion picture industry. If the high court affirms Judge Davies' decree it would make the Nashville ruling conclusive and possibly limit the scope of pending actions at New York, Buffalo and Oklahoma City. Otherwise the Supreme Court could amend the decree itself, or send it back to Nashville for further hearings and possible change. A counter appeal by the Crescent group is also considered probable at Nashville by court attaches. They point out that the case will go to Supreme Court in any instance. An appeal by the defendants would open the way to a broader consideration than would be permitted by the Government's motion to remand. It would also open the way to a far more sweeping precedent. Alberti Named Assistant To Spyros Skouras Jules Alberti, who has been associated with the U. S. Treasury Department as coordinator of celebrities and talent for Bond rallies, will succeed Stirling Silliphant as assistant to Spyros Skouras, president of Twentieth CenturyFox Film Corporation, and as aide to Larry Kent, executive assistant to Mr. Skouras, it was announced last week. Mr. Alberti will assume his new duties August 2nd. In addition, it is understood that he has offered his services as consultant to the New York War Finance Committee. Prior to taking the Treasury post, he was a producer-director for the NBC Blue Network. Mr. Silliphant is leaving the company to join the U. S. Navy as an ensign. RKO Pathe Cameraman To North Africa Neil Sullivan, RKO Pathe News cameraman, is scheduled to leave shortly for the North African front as an accredited camera correspondent. Mr. Sullivan has received his certification from the War Department and will leave for his new assignment as soon as transportation is available. Meanwhile he is busy making shots of the N ormandie preliminary to the raising of the liner, which Government authorities have announced as imminent. Post Names on Honor Roll The names of IS members of the Cincinnati Variety Club have been posted on an honor roll in the organization's club rooms signifying their service with the armed forces. The names include: Joseph F. Goetz, Jack Flood, Vincent A. Kramer, Ross Spencer, Dr. R. E. Raitz, Paul Hodges, William J. Devaney, Mike Chakers, John Fielden, S. David Shor, William G. Haas, W. B. Oldham, Jr., and Elstun Dodge. May Give Schine Time to Dispose Of 10 Theatres The Department of Justice probably will grant the Schine circuit three to six additional months in which to continue attempts to dispose of the 10 theatres remaining from the 16 which the Federal Court at Buffalo, N. Y., ordered sold a year ago. The film unit of the anti-trust division has received the Schine report on its attempts to sell the theatres and is considering the request for extra time. After conversations between counsel it was reported in Washington that three to six months extension would be granted. If the theatres still are undisposed of at the end of that time, however, it was indicated that the Government would take the case back to court in Buffalo. The court would be asked to determine whether all reasonable efforts have been made to sell the properties and to consider the appointment of a trustee. Tom C. Clark, assistant attorney general, said that the court would be asked to examine the condition of the theatres, their marketability and the extent of Schine's efforts. He was sharply critical of the portion of the Schine report which compared its situation with the theatre-operating distributors in the New York antitrust case. Mr. Clark charged that the Shine circuit bought the theatres in order to destroy evidence of abuses against which they complained, while the New York defendants bought theatres to maintain competitive standings. Mr. Clark left on Tuesday for field conferences with U. S. attorneys in Denver. He admitted a possible visit to Los Angeles and said that he planned visits in the future to field offices in other cities, including Buffalo. He will examine film matters and meet with industry lawyers on the trips. Series of Frank Capra Films Are "Drawing Well" On June 30th the Pix theatre, 13th and H. Streets, Washington, D. C, inaugurated a "Special Summer Program," cavalcade of Frank Capra pictures. According to Samuel Cummins the theatre's manager, the program has proved highly successful. The opening film was "Mr. Deeds Goes to Town," "Lady for a Day" and "It Happened One Night" followed. "Lost Horizon" is currently showing. "Broadway Bill" and "Mr. Smith Goes to Washington" will follow. Starting August 11th, "You Can't Take It With You" will conclude the series. Release Four Producers Metro-Goldwyn-Mayer has released four producers due to the reduction in the company's short subjects schedule, it was reported last week. They include Samuel Coslow, B. F. Zeidman and Robert and Raymond Hakim. Reports Reissues Strong Reissues have been reported favorably received by John Shaffer, manager of the Surf theatre in Chicago. Grosses have equalled many recent productions at his theatre, he said.