Motion Picture Herald (Mar-Apr 1945)

U.S. DEMANDS COURT HEARING ON DECREE Seeks Trial of Proposals Asked for Last August, Including Divorcement The Government Tuesday revealed its impatience with the consenting companies which last week answered its demands for a drastic revision of the Decree's clearance provisions. Notice was filed hy the Department of Justice in the New York Federal Court that it will ask next Monday for a trial date of its August 7 proposals for decree modifications, involving divorcement ami the dissolution of affiliated circuits. The notice was served on Columbia, United Artists and Universal, as was the Department's memorandum of February 5 outlining its desired changes in clearance practices by the distributing companies In Washington, meanwhile, the Department disclosed that it was fully prepared to submit its case against existing clearance provisions at the hearing scheduled for Monday, March 5, before Federal Judge Henry W. Goddard. Judge Goddard set that date December 20 after denying the intervention of Harry C. Arthur, Jr., and the St. Louis Amusement Company in the Consent Decree case. Department Set for Trial Further evidence of the Department's eagerness to come to trial on the divorcement issue was indicated by its recent application for postponement until next May of its anti-trust case against the Griffith Circuit in the Oklahoma City Federal Court, now scheduled for March 12, in order to concentrate on the New York case. In addition to the theatre divorcement issue, the Department in its August 7 petition aske'' the court for separate licensing of films and decentralized picture buying by circuits. At next Monday's hearing Judge Goddard will consider Department argument for a new clearance provision that would eliminate clearance between theatres charging the same admission price. In its eflort to do away with clearance between houses "not in substantial competition" the Government has leaned heavily on the Arbitration Appeal Board decisions from the inception of the system to date, as was indicated in its memorandum served on the eight companies February 5. Companies Defend Arbitration Last week the five consenting companies served their answer to the Department's clearance proposals upon Judge Goddard and the Department in the form of a two-page letter. In it they contended that the arbitration system was the most satisfactory method of solving disputes between exhibitors and distributors, pointing out that the appeal board and the arbitrators have been assiduous in performing their duties and providing relief in cases where they differed from the business judgment of the distributors and exhibitors which they reviewed. The full scope of the reforms which the Department wants were included in its August 7 modification petition as follows: Trade showing of all features. All features to be sold singly. No forcing of shorts, newsreels, trailers, serials, westerns, reissues or foreign pictures. Prohibition of conditioning feature sales to one theater upon sale to another. 14 Compulsory granting of some run. Cancellation on local, moral, racial or religious grounds. "Unreasonable clearance" for arbitration purposes would be any which "unreasonably restrains competition." Arbitrator could eliminate clearance in a given case. Arbitration, for money damages, of any alleged discrimination which violates the Sherman Act. Divorcement of theatres from distribution. Barring of pooling agreements. Voiding of franchise agreements made by defendants. Rental terms to affiliated theatres not to "unreasonably restrain competition." Queried after the December 20 hearing in New York on the possibility of the Government and the companies coming to a compromise on the issues, Robert L. Wright, head of the motion picture section of the Department's anti-trust division, characterized the prospect as "very slim." Board Upholds Buffalo Award The Appeal Board has affirmed the award of the Buffalo tribunal cutting the clearance of the Bailey theatre over the Genesee, both Buffalo, from 14 to a seven-day maximum, the American Arbitration Association reported this week. The complaint was filed by Basil Brothers Theatres, operator of the Genesee, against the five consenting companies. Dipson Theatres, Inc., operator of the Bailey, intervened. Paramount, Loew's and RKO did not appeal. The seven-day clearance of the Granada theatre, Corona, L. I., over the Fair theatre, Jackson Heights, was eliminated in the New York tribunal last week. The award applies only to Paramount, RKO, Loew's and Warner product, Twentieth Century-Fox having been eliminated from the proceedings because it licenses to the Granada on a franchise extending to 1948. Skouras Theatres Corporation is the operator of the Granada ; the Fair Operating Corporation operates the Fair. The arbitrator further ruled that the maximum clearance which might be granted to the Granada over the Polk, Corona, operated by Jupo Amusement, Inc., on Paramount, RKO, Loew's and Warner product, shall be one day. In the Seattle tribunal, the some run complaint of Frank Higgins, operator of the Lake City, Lake City, Wash., against Twentieth Century-Fox, Warner Bros, and Loew's, has been withdrawn. New Universal Producing Deal Signed by Walter Wanger A new long term producing deal has been signed by Walter Wanger with Universal Pictures calling for an unspecified number of top budget productions, according to official announcement. Mr. Wanger, who has been on the Universal lot for the past three years, currently has in production "Night in Paradise" in Technicolor starring Merle Oberon and Turhan Bey. Another Technicolor film, "Salome, Where She Danced," is in the cutting rooms. The first production Mr. Wanger will make under the new contract will be "Canyon Passage" the Ernest Haycox story now appearing serially in the Saturday Evening Post. It will be made in Technicolor. Rank's American Publicity Unit Sets Up Shop J. Arthur Rank's newly organized American publicity organization, headed by Jock Lawrence, who is now in London, sent out its first release last week. i The unit is temporarily at 729 Seventh Avenue in New York, but was expected to move shortly to permanent quarters. H. Edward Scofield and Malcolm Kipp are with The Lawrence Associates, as the publicity unit is known. Last week three British technicians from Mr. Rank's production forces arrived in New York en route to Hollywood to study Hollywood production methods. They are Jack Harris, cutter, and John Dennis and Desmond Dew, sound men. They will work with United Artists units during their stay on the coast. Mr. Harris, who will remain here four months, said that after consultation with United Artists sales officials he might authorize the re-editing of certain Rank pictures to meet the requirements of the American market. As a result of his studies here, Mr. Harris added, he would advise British producers on American accent and dialogue to bring their films in line with what is wanted by American audiences. Wesley Ruggles, American producer who signed an independent deal with Mr. Rank last year, returned to London last week following a brief visit to New York and Hollywood. Mr. Ruggles' first picture under the Rank banner will be a Technicolor musical, "London Town." While in Hollywood, he arranged for costume and set designs and the musical score to be used for his British picture. He intends to launch a campaign in connection with the film to glamorize the English girl. Mr. Ruggles will search the British Empire to find young women typifying the various sections of the country to form : Meanwhile, it was reported in London Monday that Mr. Rank is considering producing films in Mexico for the Spanish-language market. It has been indicated for some time that he plans to arrange distribution deals in Central and South America for British films. Barrington Gain and Dr. Alexander Galperson, two of Mr. Rank's envoys and explorers, are expected to visit Mexico, Chile, Peru, Uruguay, Argentina and Brazil this spring. John Davis, managing director of Odeon Theatres and principal adviser to Mr. Rank on theatre interests, reached Johannesburg, South Africa, last weekend, where negotiations reportedly were proceeding satisfactorily for the acquisition of theatres in that territory by the British film leader. DeMille Suggests Action By Congress on AFRA Cecil B. DeMille, producer, last week suggested to the House Committee on Un-American Activities that it might want to investigate the American Federation of Radio Artists, the union which has barred him from a $98,200-a-year radio contract for his refusal, as a member, to pay a $1 union assessment, to fight a proposed amendment to California's constitution which the Federation considered "anti-union." Mr. DeMille wrote a letter to Representative Karl E. Mundt, Republican, of South Dakota, a member of the committee, in which he termed the Federation's action "Un-American and unendurable." "When a union can literally shackle a citizen by forbidding and actually preventing him from working at his trade because he refuses to pay a political assessment," Mr. DeMille continued, "then the people of the United States are in the grip of a tryanny as all-out as Fascism or Nazism or Communism." Cited for Fire Prevention Most of Tennessee's largest theatres have been awarded certificates of recognition of their fire prevention work by James M. McCormack, State Insurance Commissioner. MOTION PICTURE HERALD, MARCH 3, 1945