Motion Picture Herald (Jul-Aug 1943)

.A u g u s t I 4 , I 9 4 3 MOTION PICTURE HERALD 25 CLARK GETS DATA, CHARTS U.S. TRUST SUIT COURSE Justice Department Field Offices Open for Exhibitor Complaints Field offices of the anti-trust division of the Department of Justice in 12 cities are open to receive complaints and suggestions from exhibitors on trade practices and the Consent Decree. Theatre operators were invited last week by Tom C. Clark, assistant attorney general, to make their views known to the Government. An anti-trust lawyer in each of the field offices has been specially assigned to checking motion picture complaints. All reports, Mr. Clark said, will be in strictest confidence. They are for guidance, not for use in court. The list of offices and field investigators follows: BOSTON: Edmond J. Ford, 805 Shawmut Bank Building, 82 Devonshire Street. CHICAGO: Lewis J. Whiteman, Suite 820, 208 S. LaSalle Street. DALLAS: Horace L. Flurry, 1024 Allen Building. DENVER: George Haddock, 427 First National Bank Building. DETROIT: Stewart Kerr, Room, 2248 Buhl BuiJding. KANSAS CITY: Sheridan Morgan, 818 Scarritt Building. LOS ANGELES: Harold Collins, 1602 U. S. Post Office and Court House. NEW ORLEANS: Victor O. Waters, 616 Carondelet Building. NEW YORK: Joseph T. Quinan, 14th Floor, 30 Broad Street; Seymour D. Lewis, 2203 U. S. Court House, Foley Square. PHILADELPHIA: John B. Brumbelow, 4054 U. S. Court House, 9th and Chestnut Streets. ST. LOUIS: Joseph J. Cella, 519 New Federal Building. SAN FRANCISCO: Joseph Alioto, 422 Post Office Building. SEATTLE: Robert McFadden, 712 U.S. Court House. CLEVELAND: Willis Hotchkiss, 1412 Standard Building. Allied, Minneapolis Unit File Decree Criticisms; Schine Case Delayed All branches of the industry are responding to the Government's invitation to record their views as to disposition of the Consent Decree. In Washington at midweek the Department of Justice heard from the board of directors of Allied States Association on the •eve of its special decree meeting at Baltimore. The North Central Allied Independent Theatres, Inc., of Minneapolis filed a long criticism of current trade practices. Friday at New York, Tom C. Clark, assistant attorney general, conferred with representatives of the Society of Independent Motion Picture Producers. Final Action in Schine Case Js Delayed Four Months To clear the decks for consideration of the basic trade practice and trust issues of the Government's New York complaint it was reported that final action on divestment of theatres by the Schine circuit, at Buffalo, had been postponed for four months. Attorneys in the motion picture unit of the Department of Justice were reported digesting briefs and reports for submission to Mr. Clark. They would augment information gathered by him in talks with exhibitors on his recent trip to the West Coast. Field offices of the department are preparing to check trade practice complaints at first hand. Friday Mr. Clark talked with John C. Flinn, secretary of the SIMPP ; James Mulvey, eastern representative of Samuel Goldwyn, and other eastern agents for the unaffiliated producers. The Government attorney and film men were reported to have chatted informally on trade practices. But spokesmen for the independents pointed out that they were not parties to the Consent Decree and would file no brief. However, recalling their protest against the proposals of the United Motion Picture Industry a year ago, it was believed likely the independents would protest any return to large block sales. New York Case Will Set Precedent for Others In order to establish a uniform principle for disposing of all motion picture trust cases, Mr. Clark said Monday no further action would be taken with respect to the disposition of theatres by the Schine circuit until a determination had been reached on what is to be done with the New York Consent Decree. It is understood the New York case will set the precedent for all other field actions. The decision will give the Schines another four months, at least, in which to attempt disposal of the remaining theatres which the court at Buffalo ordered divested. Recently they reported that only 10 of the 16 houses had been sold. A committee of national Allied leaders, headed by Abram F. Myers, general counsel, and including M. A. Rosenberg, president; H. A. Cole, and Caravan members, met Monday at Washington with Mr Clark. Hugh Bruen and H. V. Harvey, delegates from the Pacific Coast Conference of Independent Theatre Owners, also attended. The decree in general and Mr. Clark's quest for exhibitor action were discussed. The Allied members were to report the conversation to the full Allied board of directors meeting in Baltimore on Wednesday and Thursday. They were expected to pledge Allied aid in collecting trade practice complaints. At the Monday meeting the Allied committee reiterated the decree changes urged in the brief submitted last May by Mr. Myers. Their recommendations were reported to have followed closely the 11 changes urged by Mr. Myers in his 30-page brief. It covered theatre acquisitions, blind buying, block booking, clearance, circuit preferences and the cost of arbitration. The meeting Monday did not discuss a new sales formula. Any such suggestions will follow the Baltimore Allied sessions. The North-Central exhibitors group at Minneapolis forwarded a list of grievances to the Department of Justice, asking that the alleged injustices be corrected by the Government. Don Guttman, president, and Henry J. Greene, secretary, prepared the message. The brief charged forcing of undesirable features, short product and foreign reels; inflationary rentals; discrimination in favor of affiliated circuits; pooling of confidential account information by distributors; unfair and arbitrary contracts favoring distributors; denial of fair cancellation; and insistence that independents buy pictures for all their theatres. North-Central came out in favor of divorcement, saying: "It will go a long way in destroying a guaranteed market for product and place the independent exhibitor in the position of a desirable, worth while customer." The group also urged no limitation on the number of pictures which may be bought at one time; injunctions against conditioning of one feature upon another ; and a new flexible sales plan to permit buying in the size group suitable to a particular theatre operation.