Motion Picture Herald (Jul-Aug 1944)

U.S. Ready for Bitter Divorcement Fight Company Attorneys Prepare Answers to Government Proposals for Decree While the legal staffs of the major distributors buckled down to work this week on preparation of answers to the Government's Consent Decree proposals, spokesmen for the Department of Justice in Washington ' indicated they expected a bitter fight on their bid for divorcement of theatres. , Additionally, it was learned from the Department, one of the chief purposes of the Government's move of last week for a courtordered modification of the Consent Decree entered almost four years ago in the New York anti-trust case, U. S. vs. Paramount Pictures, et al., was to get the industry "back under restrictions." Asked Broadening of Provisions In its modification petition the Department asked for a revival and broadening of the Decree provisions which expired last November, plus divorce of exhibition from production and distribution and divestiture of circuit-owned theatres in areas where there is now no competition. Other developments on the anti-trust front this week included: 1. The Government lost an important point in the trial of the Schine circuit at Buffalo when the court allowed the defense to subpoena Government evidence. 2. The Department of Justice filed its brief as "friend of the court" in the Goldman anti-trust appeal at Philadelphia. 3. Abram Myers, National Allied general counsel, released a 20 page brochure defending and explaining the Government's Decree proposals. Commenting in Washington on the Government's move of last week, a Department of Justice official pointed out that since the most important provisions of the original Decree lapsed last November, the five signatory companies had been operating without any controls. It was emphasized, however, that there was no inference that any of the companies had resorted to practices which had been banned under the first Decree. Expect No Action Before October Department officials would not guess, and distributor attorneys in New York would not say, what course the companies would take in answering the Government's petition. No further moves are expected before the New York Federal Court opens its autumn term in October. On Wednesday, Mr. Myers mailed to Allied members the official Allied analysis of the Government proposals. The Department of Justice action was taken, Mr. Myers said, after "stalling by the distributors" on the Decree negotiations had "worn the Department's patience thin." The document analyzes the proposals in the light of the recommendations of the conference of independent exhibitors on the Consent Decree sponsored by Allied last winter. In general, the brochure points out, the Government proposals fulfill almost every recommendation made at that conference. The Schine circuit has a right to subpoena Government evidence in the latter's anti-trust suit against it, Federal Judge John Knight ruled in Buffalo Federal Court Tuesday. He issued an order granting issuance of subpoena duces tecum to be served upon Attorney General Francis Bid 34 die, his assistant, Wendell Berge, and others of the Department of Justice concerned in the suit. Judge Knight added he believed the documents asked by the circuit material and relevant. Meanwhile, the resumption of the trial has been put off to September 26, a Tuesday. It was to have resumed Tuesday of this week. Chief reason for the postponement was the illness of Saul Rogers, chief Schine counsel. The circuit meanwhile must file answers to a Government request for admission of fact and a bill of particulars. Step Into Philadelphia Case The Government, as a "friend of the court," amicus curae, this week stepped into the anti-trust suit by William Goldman, in Philadelphia Federal Court, against the distributors and Warner Theatres. It filed its brief, of which it previously gave notice, in the appeal by Mr. Goldman in the U. S. Circuit Court of Appeals. Mr. Goldman's case has been dismissed in District Court in that city. The District Court erred in finding that proof of lessening of film commerce was necessary to show Sherman Law violation, and in holding that proof of special public damage is required to show an anti-trust law violation in plaintiff's exclusion from first runs, the Government brief contends. It adds that the District Court also erred in finding that no unlawful combination occurred because distributor defendants acted separately without coercion by the circuit. Midwest Film Delivery Restored After Strike Film Delivery out of Chicago to eight midwest states was restored after last week's strike in which drivers of 103 trucking companies walked out because of the companies' alleged refusal to grant pay increases authorized by the War Labor Board. The strike, which began August 7, was terminated Monday after weekend seizure of the companies by the Government. The states affected were: Wisconsin, Iowa, North Dakota, South Dakota, Kansas, Minnesota, Nebraska and Colorado. An official of the Brady Transfer and Storage Company, which operates in the affected area, said in New York this week he estimated +hat some 500 to 600 houses had not received regular film deliveries during the strike. He added that, to his knowledge, no theatres closed down. New York and Long Island film delivery services shortly will seek authorization from Washington for the purchase of five additional K-7 heavy duty delivery trucks, it was disclosed this week. 2,217 July. Blood Donors From Brooklyn Theatres The Brooklyn Chapter of the Red Cross has reported 2,217 blood donor appointments in Brooklyn, N. Y., theatres during July. Michael Nicholas, manager of the Century Kingsway theatre, was among those singled out for special commendation by the Red Cross during the month. He made a personal drive from the stage for blood donors at every performance. Edward C. Dowden, blood donor national field director for the War Activities Committee, is arranging a mobile unit -visit to theatres in Suffolk County, N. Y., during the next few weeks. John M. Stahr Dies John M. Stahr, comptroller of manufacture for Western Electric, died suddenly Tuesday at Lake Minnewaska, New York, at the age of 60. A native of Denmark, he came here as a child, and after education at Rutgers University, joined Western Electric. His entire business career was with that company. He leaves his widow and three children. United Artists to Handle at Least 10 Rank Films United Artists will handle the American di tribution of at least 10 of J. Arthur Rank's presei British productions, it was learned in London la1 week. Gradwell L. Sears, vice-president in charge i distribution for United Artists, concluded the hi gotiations with Mr. Rank following several weel of conferences, and departed for the United State The agreement implies that certain of the pi tures will be distributed in Great Britain by U as part of its British quota, but their precise sele tion has not yet been decided upon. The deal calls for UA to continue America distribution for Mr. Rank until the peace permi his selling company in the States, Eagle-Lion Filn to set up its own exchange system and start fun tioning. Mr. Sears is accompanied to the United Stat by David H. Coplan, UA managing director Great Britain, and Mr. Rank's distribution repr sentatives, Dr. Alexander Galperson and Barrin ton C. Gain. Edward T. Carr, another of V Rank's representatives, is enroute to India to s vey the Eastern market. It will be necessary for the UA board of rectors to approve the deal before it can be sign and become official. The board is understood \ be scheduled to meet September 5, but it is like to convene before then as an accommodation Dr. Galperson and Mr. Gain, who are maki the trip for the purpose of concluding the deal. John Davis, Odean Theatres head, another Mr. Rank's emissaries, has been touring Cana. and was expected to arrive in New York 1; this week. Add Exploitation Men For "Wilson" Dates Hal Home, director of advertising, publicity 2 • exploitation of Twentieth Century-Fox, has nounced that the field exploitation staff has b( augmented to handle the increasing number advance-admission engagements being arranged Darryl F. Zanuck's Technicolor producti "Wilson." . Working in cooperation with district i branch managers and operators of theatres wh "Wilson" will be shown, the exploitation rep sentatives will be supervised by Rodney Bush, < ploitation manager. The movements of these field showmen will directed by Jules Fields, assistant exploitat manager, who will supply them with special ra|tt show material. A day-and-date opening September 8 has be set for "Wilson" at Warners' Aldine and Ea theatres, Philadelphia. The circuit's Earle cancel its vaudeville shows for the run of t picture. This marks the first time since "Gc With the Wind" that a picture has been boob simultaneously at two first run center-city hous , Twentieth Century-Fox also will open WilsoJ in Kansas City September 8 at the Tower theat ' of the Fox Midwest circuit, instead of the c y cuit's other first run houses, the Esquire, Upto' and Fairway. The Tower, of 2,000 seats, will J able to show the picture as long as expedient, has been used for stage show and screen coral nations. Barney Joffee is manager. Educational Commission Lauds Warner Plan In a letter to Warners, the Educational Polic Commission in Washington has commended t educational promotional material issued for i Adventures of Mark Twain," and urged the relea of film study guides by all companies for maj films, the Warner home office reported last we The letter said that this service would be effecti ly utilized by schools, colleges and other edu tional institutions throughout the country, MOTION PICTURE HERALD, AUGUST 19, 1 h m