Motion Picture Herald (Mar-Apr 1945)

Consent Decree Brief is Filed By Independents A 27-page amicus curiae brief, contending that independent producers have a "vital stake" in the issue of clearance and divorcement, was served last Friday on the five Consent Decree companies by Morris Ernst, eastern counsel for the Society of Independent Motion Picture Producers. Permission for the action was granted by Federal Judge Henry W. Goddard March 5 in New York at the close of the hearing on the Justice Department's application for a temporary injunction ao-Qinst "unreasonable" clearance. Mr. Ernst argues that the independent producers have an interest in the proceeding because they have no theatres and depend upon affiliated theatres for the exhibition of their films. The brief further contends that the industry revolves around the five major companies and three "satellites." The companies, it is charged, control the market, and profits from affiliated circuits are said to dominate industry income. Also, the brief recites the history of motion picture patents and alleges a monopoly of talent. The companies may answer the brief before March 26 when Judge Goddard is scheduled to receive it officially in the New York District Court at a pre-trial conference. Judge Goddard has set October 8 for the beginning of the trial of the divorcement and dissolution issues. Meanwhile, Edward L. Kuykendall, president of the Motion Picture Theatre Owners of America, has issued a bulletin calling exhibitors' attention to the highlights of the Justice Department's motion for a temporary injunction. Mr. Kuykendall concludes that the fundamental question seems to be, "what is 'unreasonable' clearance, or when is clearance 'unreasonable'? "Who is going to decide, in a specific (and frequently complicated) situation, whether the clearance is 'reasonable' or 'unreasonable', and by how much?" Mr. Kuykendall asks. Moreover, Mr. Kuykendall points out, that if a prior run theatre, either independent or affiliated, is going to be punished by a jail sentence under an injunction against "unreasonable" clearance, it had better find an answer to these questions before the subsequent-run exhibitor files a complaint. Allied States last week also issued a bulletin in which it is said that if Judge Goddard denies the Government's motion for a temporary injunction, the entire Consent Decree may be junked, with the case standing where it was in 1938. One difference, however, is pointed out in the fact that the trial date has now been set and the Government is prepared to prosecute it to a final determination. The Allied bulletin also expresses amazement "that the defendants should elect to face the Court on October 8 with a record of flat rejection of all measures of relief, rather than to enter upon the trial with a record of having done all they could to relieve the condition of the independent exhibitors, short of admitting violation of the law." Unnecessary irritations inflicted upon their customers in the licensing of films by the defendants is also charged by Allied. Griffith Trust Suit Will Be Tried Intermittently Trial of the Government anti-trust suit against the Griffith circuit in Oklahoma City Federal Court, will be tried in several periods, both sides have agreed. The first will be May 7 through 26. Counsel for Griffith said this week it did not expect to introduce rebuttal witnesses until the second period, still not set. The trial is before Federal Judge Edgar Vaught. Ideal Promotes Lauer Edward S. Lauer has been appointed vice-president and general manager of Ideal Woman's Group, it was announced by William M. Cotton, publisher. Mr. Lauer for the past three years has been the assistant to the publisher. Harry Arthur May Appeal Intervention Decision Harry Arthur, through his St. Louis Amusement Company, may appeal the decision by Federal Judge Henry Goddard, in New York, last December, denying him intervention in the Government anti-trust suit against the major film companies in New York Federal Court. The right of appeal against this decision was granted the circuit owner Monday, in New York, by Federal Judge Francis Caffey. The appeal may be taken to the United States Supreme Court. Mr. Arthur's company, through intervention, was attempting to upset the Consent Decree's arbitration system. American Arbitration Association decisions, it contended, allegedly violated the Fourth Amendment. Chicago Defendants Deny Conspiracy No evidence has been produced to show that the defendants conspired to establish or maintain the clearance system obtaining in Chicago, defendants in the $120,000 anti-trust action brought by operators of the Jackson Park theatre stated in briefs filed in Federal Court there last week. The defendants are RKO Radio Pictures, Paramount, Twentieth Century-Fox, Warners, Loew's, and the Balaban and Katz circuit. They added that they were "entitled to a new trial" because allegedly the jury saw during deliberations an exhibit not in evidence. The jury had decided against the defendants tor the sum mentioned. Distributors in Settlement Of Coast Ventura Suit The suit for $75,000 damages brought a year ago by the Ventura theatre, Los Angeles, against Fox West Coast, Universal, Principal Theatres and American Amusement Company under antitrust laws, was dismissed Monday in Los Angeles by Federal Judge Harry Hollzer, owing to the failure of the complainant's counsel to amend the complaint. Originally filed by the late Albert J. Law, dismissal was granted on a motion by Allen Ashbury, FWC attorney. David Cannon, Ventura attorney, said the litigants had reached a compromise settlement. Trust Suit Trial Now Denied by Court Judge John C. Knox in New York Federal Court Monday denied a petition of Hillside Amusement Company for a May 1 trial against the producer-distributors. Judge Knox declared the defendant companies were "not prepared for trial because they have other commitments before Judge Goddard," referring to the Government's antitrust suit. Hillside, operator of the Mayfair, Hillside, N. J., claims triple damages under the Sherman Act, alleging the defendants cut its theatre off from product. Damages of more than $1,000,000 are sought. Reserve Decision on Plea For Endicott Dismissal The motion by the Endicott Circuit, New York, for dismissal of the complaint against it by Twentieth Century-Fox, Paramount, Loew's and Warners, this week was taken under advisement by New York Supreme Court Justice Ernest Hammer. The complaint alleges the defendant committed frauds in reporting box office receipts on percentage films from 1940 through 1944. The defendant also asked, alternatively, that the plaintiffs state separately the causes of action and also argued the alleged situation was one of contract violation, not fraud. Gets Selznick Reissues Charles L. Casanave, president of Ca sanave-Artlee Pictures, Inc., has acquired exclusive rights for U. S. distribution of David O. Selznick's "Prisoner of Zenda," "Garden of Allah," and "Adventures of Tom Sawyer," from Ray Lewis of Jayell Films, Inc. Plans for distribution will be announced shortly by Mr. Casanave. Majority Claimed For Divorcement In Minnesota i A majority of the general legislation comm pledged to report favorably on the pending tre divorcement bill in the Minnesota state lej: ture, was claimed Monday in Minneapolis, by Chilgren, member of the lower house, who ii„ duced the measure. V Aimed primarily at the Minnesota Amusei J, Company, the territory's major circuit, and a Fg' mount partner, the measure would prohibit pror er-distributor ownership or operation of the; in Minnesota. The company would be require divest itself of its theatres within one year ; enactment. The penalty for violation would maximum fine of $10,000 or a year imprisonn or both. Representative Chilgren, who is from L f Fork, a small Minnesota town, has declined to veal who, if anyone, was behind the bill or \ prompted him to introduce it. President H< Greene, Jr., of North Central Allied, indepen exhibitors' organization, said his group had n ing to do with the bill's introduction, and N Central membership last week voted against :: porting the measure. The Minnesota bill is substantially the same the one passed in North Dakota and uphek court, but ultimately repealed by the state legi! P ture there in 1939. A similar measure has H declared constitutional by a court in the Fed | : District covering the territory in which the l1 J> posed Minnesota bill would operate if passed. : In some industry circles it was felt that the ] sibility of quick action on the bill was greater t if it had no precedent, while others were of opinion that the measure will not be pressed un there is delay of the trial of the Government's a trust suit against the Consent Decree compai now scheduled for October 8 in New York. Last week it was announced that although Twin City group of North Central Allied was posed to the bill, some members individu; "might" get behind it and an anti-ASCAP mt ure. The proposed anti-ASCAP legislation wc require that organization or its members to fun a verified list of licensed copyrighted works each theatre and other establishment and to pub it in designated legal publications. ton "Delightfully Dangerous" Opens in San Francisco The world premiere of Charles R. Rogi United Artists release, "Delightfully Dangeroi was held March 21 at the United Artists theatrq San Francisco. This musical romance, starr Jane Powell, Ralph Bellamy, Constance Mo and Morton Gould and his orchestra, was opei; with an elaborate publicity, advertising and ploitation campaign. Cited by Red Cross Two citations honoring blood donors, one Warner Bros, and the other to the Office H ployees Union, were presented by Mrs. J. Wat: Web of the Red Cross at a rally March 15 held the Warner Club rooms in New York. The spe> ers included Ralph W. Budd, Warner person director, representing the company; Martin Bennett, president of the club, and Leo Ha3 representing the union. Awarded Purple Heart Stanley Fishman, only son of Selig Fishm senior member of the Fishman circuit operate New Haven, Conn., was awarded the Pur Heart posthumously. Only a short time before was killed, Mr. Fishman received the Silver Me> for gallantry in action. DuMont Wins Second Award The Allen B. DuMont Laboratories, Inc., N York, has been notified of its second Army-Na Production Award. The company manufactu television and other communications equipment 52