Motion Picture Herald (Jul-Aug 1943)

July 3 1, I 943 MOTION PICTURE HERALD 23 CLARK GOES TO HOLLYWOOD TO STUDY DIVORCEMENT Justice Department Official Says He Has Open Mind on Decree Question Department of Justice action in November to seek divorcement of exhibition and production and a renewed prosecution at New York of the Government's anti-trust complaint against the major distributors was still a distinct possibility, it was indicated this week. Tom C. Clark, the new assistant attorney general in charge of the anti-trust division of the Department of Justice, arrived in Hollywood Saturday to study divorcement and other trade practices from the point of view of the studio capital. "I am approaching this matter with an open mind," Mr. Clark told Motion Picture Herald. "The Department of Justice has come to no conclusion on the matter. We are now attempting to determine what would be in the best public interest." To Determine Whether Divorce Necessary Remarking that defense steps must be taken very shortly, in view of the expiration of the Consent Decree on November 20th, he :ontinued, "There are a number of people in the industry vitally concerned with this matter and I will confer with them while I am here. What I am trying to do now is to get the picture and thereby determine whether or not complete divorcement of exhibition from production is a necessary step." A former Department of Justice field supervisor in charge of west coast anti-trust actions, Mr. Clark, who hails from Dallas, spent two days in southern California discussing film matters. Mr. Clark's intimation of important trade practice decisions came at a moment when many potentially affected interests were preparing to make their voices heard on the question of the Consent Decree. Company presidents and their general counsel were reported to be studying their probable positions in the light of possible Department of Justice courses. Important meetings were held last week among representatives of the five distributors who are party to the decree, it was reported by Sherwin Kane in Motion Picture Daily. Allied To Discuss Decree At Meeting of Board National Allied, its brief on the decree on file with the Department of Justice since May, scheduled a meeting of directors in Baltimore for August 11th and 12th. New statements on the Allied position in respect to theatre divorcement, reopening of the trust suit and revision of the decree are expected then. Meanwhile, in New York, independent exhibitors seek continuation of the Government's anti-trust suit against the majors. Under the "Unaffiliated Independent Exhibitors, Inc., they will carry their request to the Department of Justice in Washing ton. They claim membership of 65 in the New York area. Crescent Amusement Company and affiliated defendants at Nashville last Friday demanded the dismissal by Judge Elmer D. Davies of the appeal by Assistant Attorney General Tom C. Clark and Special Assistant Robert L. Wright, for complete control of the District Court over all acquisition of theatres by any of the corporations that have been held guilty of violating the Sherman Anti-Trust Law. George H. Armistead, Jr., and William H. Wallker, defense counsel, argued that the appeal to the Supreme Court in Washington was premature in that at the time of the filing there was pending a motion of Crescent Amusement to amend the finding of fact and conclusions filed May 27th. Crescent Not Opposed to Federal Supervision Attached to this motion was a certification that motions by Rockwood Amusement Co., Cherokee Amusement Co., Kentucky Amusement Co., and Cumberland Amusement Co., filed on March 23rd and supplements to these motions filed three days later and still pending before Judge Davies. "These motions and petitions were not addressed to mere matters of form," the defense claimed, "but raised questions of substance since their purpose was to seek a reconsideration of certain basic findings of fact and the alteration of the conclusions of the Court." The defendants asked that copies of all these pending motions and petitions and certain other documents be included in the records of the case brought before the Supreme Court. Crescent and its affiliates are not opposed to Federal court supervision of their theatre transactions, as might be inferred from the recent appeal by the Government to the Supreme court in an effort to insure a District Court review of every proposed theatre acquisition by one of the defendant exhibitors, it is revealed in a proposed plan of reorganization offered by Mr. Armistead, Jr., chief defense counsel, several months ago. This proposal said, in part: "The plan may contain provisions whereby theatres now owned and operated by the defendant exhibitor corporations may be transferred or leased to another defendant exhibitor corporation; but such provisions, as well as all other provisions of the plan, shall be subject to the approval of the Court after a hearing at which all interested parties shall have the opportunity to present objections and be heard." U. S. Asks Dissolution Of Griffith Holdings In Oklahoma City, Judge Edgar S. Vaught in Federal District Court has ordered pre-trial conferences for September 13th in the Justice Department's anti-trust suit against the Griffith Amusement Company. The Government charges violations of the monopoly laws and asks dissolution of certain of the circuit's holdings. Majors Promise Adjustments Five distributors have replied to the approaches of a Motion Picture Theatre Owners of America grievance committee, which asked procedure for receiving complaints, and willingness to do so. The companies, Loew's, Paramount, RKO, Twentieth Century-Fox and Universal, replying through their sales managers, gave assurance they would adjust complaints, but all noted they would rather do so individually with an exhibitor. The replies are in the current MPTOA bulletin. Edward Kuykendall, MPTOA president, remarked in the bulletin, "any exhibitor who considers himself aggrieved may now in seeking relief proceed to follow the method authorized by the particular distribution in question." He added that the exhibitor might consult his local exhibitor association for information and help in preparing the complaint; but that thereafter he was on his own. He was that way, Mr. Kuykendall explained, because the purpose in the MPTOA approach to the distributors was to arrange for direct exhibitor-distributor contact. MPTOA Warns on New Federal Taxation Mr. Kuykendall commented: "What is needed is a method, a workable procedure, by which an exhibitor in trouble because of unreasonable demands for increased film prices and who has a provable case, can proceed to get a prompt and fair hearing by someone in authority who can and will give genuine attention and consideration to his grievance. The Committee believes it can ultimately get every distributor to set up and prescribe such a method of obtaining relief in specific situations where personalities or prejudice or indifference or just plain lack of knowing how to go about it to get such consideration may prevent meritorious complaints and cases from reaching the attention of the proper authority." In Mr. Kuykendall's MPTOA bulletin message, there is a warning that exhibitors may face new taxes from the Federal Government, on admissions, and "quite possibly other special taxes levied on our business out of resentment against our dollar publicity^ boastful statements about record breaking box office receipts, huge increases in corporation profits, fabulous prices paid for screen rights to books and plays, and so on." He asked members to communicate with local Congressmen. O'Brien in Aleutians The U. S. Navy last Monday revealed the whereabouts of Lt. Commander George O'Brien, former motion picture star. The officer is in charge of Navy recreational facilities on Adak Island in the Aleutians, heading a program which includes showing of films, boxing, stage shows, a solarium and fishing.