Motion Picture Herald (Jul-Aug 1943)

August 7 , I 943 MOTION PICTURE HERALD 13 SCRAP OR REVISE DECREE, SAY EXHIBITOR LEADERS Ask Arbitration Changes, Return to Full Season Sales, Divorcement Exhibitors are in solid agreement on revising or completely discarding the Consent Decree as it now stands. They don't like the present selling method. Full season selling -is desired by a large majority. Half of these want rights of cancellation and selection. This is the opinion of spokesmen for regional exhibitor associations expressed in replies to a questionnaire from Motion Picture Herald. Divorcement of theatres by distributors is desired by more than half the exhibitors. There is strong sentiment for renewal of the Department of Justice's anti-trust prosecution of the major distributors. Arbitration has generally been a failure, in the opinion of the exhibitor leaders. They find it too limited under the decree and want it broadened with less legality, more speed and staffed by arbitrators experienced in industry affairs. Want No Federal Rule Over Film Prices Eighty per cent of the exhibitor groups have made their views known to the Departmetn of Justice by brief and letter or intend to do so at an early date. On the question of film price regulations, the majority of the exhibitors made it clear that they want no Federal regulation of this phase, of the business. Two-thirds of the replies indicated conviction that film price is a matter between buyer and seller and not something to be set by Government bureau or legislature. Questionnaires were sent by Terry Ramsaye, editor of Motion Picture Herald, to the officers of local regional organizations. The exhibitor replies made it clear that all groups are dissatisfied with the Consent Decree as it now stands. Not one failed to answer clearly the first question : "Do you want the Decree continued, revised or discarded?" They voted: Discarded 60 per cent Revised .' < • • • . 40 per cent Continued 0 per cent On the question of enforced divorcement of theatre operation the ballot was less decisive. A substantial portion of the replies indicated that many leaders did not feel that this issue was as basic to trade problems as some Government spokesmen and a few exhibitor leaders had argued in the past. "Are you in favor of divorcement?" the exhibitors were asked. Their replies were divided as follows : Yes 55 per cent No 10 per cent No issue 20 per cent Don't know 10 per cent No answer 5 per cent Opposition to the present system of small block selling was the most unanimously expressed reply of any received. WHAT EXHIBITORS SEEK FROM DECREE TALKS This is what the majority of the country's exhibitors seek from pending discussions of the fate of the New York Consent Decree. Summarizing leaders' replies to a Motion Picture Herald poll, the exhibitors want: (1) Discard, or substantially revise, the Consent Decree. (2) Divorce exhibition from distribution. (3) Full season sales, with cancellation rights. (4) Scrapping of arbitration as it now stands, to be replaced by a system with more authority and fewer complications. (5) Renewal of the Government's anti-trust suit. (6) Most exhibitor groups intend to tell the Department of Justice what they want, and why. / (7) No Government regulation of film prices. "Do you want continuance of small block sales ? Or would you prefer full season sales ?" the question read. Small blocks 5 per cent Full season 85 per cent (Full season with cancellation, 45 per cent) No answer 5 per cent Strong support for a system of selling in large blocks, with a cancellation privilege, appeared in notations by 45 per cent of the replies that full season sales was acceptable only with liberal rights to cancel. Many of the exhibitors urged that this cancellation formula be based on the 20 per cent cancellation clause advocated by the Motion Picture Theatre Owners of America and which formed the basis for the selective privileges suggested a year ago in the United Motion Picture Industry council's suggestion for revision of the Consent Decree. "Has arbitration worked? Any changes suggested?" was the fourth question asked. The replies indicated a general belief that the present system has been inadequate, the leaders voting : Yes 10 per cent No 60 per cent Partially effective 28 per cent Sentiment favored renewal of the Department of Justice's anti-trust suits against the major distributors. "Would you favor renewal of the Government suit ?" Yes 65 per cent No 20 per cent Don't care 10 per cent No answer 5 per cent "Have you, or will you, respond to the Department of Justice invitation to file a brief on the proposed revision?" Yes 65 per cent No 15 per cent Undecided 10 per cent Don't know 10 per cent A number of organizations indicated that they would wait for a specific request for their opinion. They did not appear to regard the general suggestion by Robert L. Wright, assistant attorney general in charge of the film unit of the anti-trust division, that exhibitors record their views on the decree as a sufficiently official request for a brief. With Congressional action for price controls of film rentals reported in preparation just before Congress adjourned and a group of New England independents under the leadership of George Farnum of Boston openly crusading for price ceilings exhibitors were asked, "What do you think of legal limits to film prices and admissions?" Votes in favor of and against were divided thus : Yes 30 per cent No 60 per cent No answer 10 per cent In comments appended to their ballots many of the leaders said they considered price control a matter to be worked out within the industry. They warned that government regulation would lead to many political clangers. RKO Executives Get New Pacts N. Peter Rathvon, president of RKO; Ned E. Depinet, president of RKO Radio Pictures, and Charles W. Koerner, executive vice-president of the producing company, have been given new contracts extending their services for a period of seven more years, it was announced this week by Floyd B. Odium, chairman of the board of RKO Corporation. In addition, each of the three executives was given options to purchase 50,000 shares of the corporation's common stock at $8 per share with the approval of the stockholders. Another condition limits the exercise of a portion of the options to the sixth and seventh years respectively. In making the announcement, Mr. Odium complimented the three men, citing the company's satisfactory operations since they assumed their posts. General Curtis Awarded U. S. and French Medals Brigadier General Edward Peck Curtis, on active duty in the European war theatre, has been awarded the American Legion of Merit and French Legion of Honor. He is on leave of absence from the Eastman Kodak Company of Rochester, with which he holds the post of sales manager of motion picture film. General Curtis served as an aviator in the first World War, winning the Distinguished Service Cross, the Croix de Guerre and the Order of St. Anne. His sister, Mrs. Helen Gilman, now with the British Air Ministry in Washington, received word of the awards.