Motion Picture Herald (May-Jun 1946)

141 MOTION PICTURE HERALD picture by picture. No contracts for exhibition shall be entered into, or if already outstanding shall be performed, in which the license to exhibit one feature is conditioned upon an agreement of the licensee to take a license of one or more other features, but licenses to exhibit more than one feature may be included in a single instrument provided tlie licensee shall have had the opportunity to bid for each feature separately and shall have made the best bid for each picture so included. To the extent that any of the pictures have not been tradeshown prior to the granting of a license for more than a single picture, the licensee shall be given by the licensor the right to reject a percentage of such pictures not trade-shown prior to the granting of the license to be fixed by the decree. But that right to reject any picture must be exercised within ten days after there has been an opportunity af?orded to the licensee to inspect it. The defendants shall be enjoined from entering into or continuing to perform existing pooling agreements whereby given theatres of two or more exhibitors, normally in competition, are operated as unit or whereby the business policies of such exhibitors are collectively determined by a joint committee, or by one of the exhibitors,, or whereby profits of the "pooled" theatres are divided among the owners according to preagreed percentages. They shall also be enjoined from making or continuing to perform agreements that the parties .may not acquire other theatres in the competitive area without first offering tliem for inclusion in the pool. The making or continuance of leases of theatres under which defendants lease any of their theatres to another defendant or to an independent operating a theatre in the competitive area in return for a share of the profits shall be enjoined. Each defendant shall cease .and desist from ownership of an interest in any theatre, whether in fee or in stock or otherwise, in conjunction with another defendant-exhibitor. Each defendant shall cease and desist from ownership, Study Skouras Arbitration Plan Officials of the Motion Picture Theatre Owners of America and" Allied States Association of Motion Picture Exhibitors have been giving consideration to the suggestion by Spyros Skouras, 20th Century-Fox president, that exhibitors offer their ideas of arbitration changes. Mr. Skouras advanced his "invitation" at the testimonial dinner to Jack Kirsch in Chicago, May 25. "The desirability of discussions by exhibitor and distributor could be very beneficial to all if done in fairness," Ed Kuykendall, MPTOA president, declared. "Trade practice discussions must always prevail where the exhibitor is concerned. The average exhibitor seems to have a lot of faith in present-day arbitration." Abram F. Myers, Allied general dounsel and board chairman, took the position that "the law is in control." He said it would be a "bold — even foolhardy — group that would undertake to set up or reform an industry arbitration system until Old Doc Law has had his say." Mr. Myers said that "if the court should by its decision open the way for amending and strengthening the system, it goes without saying that Allied will have suggestions to offer." He said it probably would seek to offer them directly to the court "by brief or intervention." jointly with an independent, of an interest in any theatre, greater than five per cent, unless such defendant's interest is ninety-five per cent or more ; and where the interest of such defendant is more than five per cent and less than ninety-five per cent, such joint interests shall be dissolved either by a sale to, or by a purchase from, such co-owner or co-owners. Rearrangements of such joint interests with an independent, if by purchase, shall, however, be subject to the direction of this court so that their effectuation may promote competition in the exhibition of motion pictures. Where a defendant owns a ninety-five or greater per cent interest in any theatre, such theatre may be considered as its own so far as this opinion and the decree to be entered hereon are concerned. Each of the defendants shall be enjoined from expanding its theatre holdings except for the purpose of acquiring a co-owner's interest in jointly owned theatres, and this only in cases where the court shall permit such acquisition, instead of requiring an outright sale of the undivided interest of the defendant in question. The foregoing provision as to divestiture of partial interests in theatres shall apply both to interests held in fee and beneficially and to those represented by shares of stock. But it shall not prevent a defendant from acquiring theatres or interests therein in order to protect its investments, or in order to enter a competitive field ; if in the latter case, this court or other competent authority shall approve the acquisition after due application is made therefor. Each defendant shall be enjoined from operating, booking or film-buying through any agent who is also acting in such matters for any other exhibitor, independent or affiliated. The decree shall also provide for arbitration of disputes as to bids, clearances, runs, and any other subjects appropriate for arbitration in respect to all parties who may consent to the creation of such tribunals for adjustment of such disputes. It shall also provide for an appeal Columbia Sets Next Sales Meeting for June 1 7 At the conclusion last Thursday of the Columbia Chicago three-day meeting of home office executives and district managers, Abe Montague, general sales manager, announced a second meeting would be held June 17 at the Drake Hotel in Chicago. The meeting will be attended by home office executives of the sales force, the district managers, and all of the branch managers from the Columbia offices throughout the country. It is expected the company then will reveal the reason for its having notified all branches last Thursday to stop selling the organization's 1946-47 product until further notice. RKO To Distribute Films Of Louis-Conn Fight Arrangements have been made by RKO Radio to film and distribute the Louis-Conn championship boxing bout to be held in New York's Yankee Stadium June 19. Harry J. Michalson, short subjects sales manager, has announced that prints will be released in New York and most eastern areas June 20, and elsewhere throughout the U. S. and Canada June 21. Worldwide distribution is also planned. Release Air Force Film "The Last Bomb," two-reel Technicolor subject produced under the supervision of Frank Lloyd and in cooperation with the U. S. Air Force, will be distributed by Warner Bros. board generally similar to the one created by the consent decree as to any parties consenting thereto. It shall make such disposition of the provisions of the existing consent decree signed November 30, 1940, as may be necessary in view of the foregoing opinion. In order to secure compliance with the decree to be entered, duly authorized representatives of the Department of Justice shall on the written request of the Attorney General or the Assistant Attorney General in charge of antitrust matters, and on reasonable notice to the defendant or defendants affected, be permitted reasonable access to all books and papers of the defendants and reasonable opportunity to interview their officers or employees, as provided in Section XVIII of the Consent Decree. Proceedings under the decree to be entered shall be stayed pending appeal or for the purpose of enabling the parties to adjust their business without an unfair burden or as practice may require upon such terms as the decree shall provide. Jurisdiction of this cause should be retained for the purpose of enabling any of the parties to the decree to apply to the court at any time for such orders or directions as may be necessary or appropriate for the construction or carrying out of the same, for the enforcement of compliance therewith, and for the punishment of violations thereof, or for other or further relief. Findings should be proposed by the parties for the assistance of the court, but such proposed findings will form no part of the record. Dated June 11, 1946. AUGUSTUS N. HAND U. S. Circuit Judge. HENRY W. GODDARD U. S. District Judge. JOHN BRIGHT U. S. District Judge. Navy to Use 1 6mm Prints in Future After using 35mm prints of the major distributors for years for the entertaainment of personnel, the United States Navy last week announced it was negotiating with individual distributors for 16mm prints, to be paid for on a percentage arrangement. All 35mm prints, in the past, have been purchased outright. The change to narrow-guage film is in line with the Navy's expectations that its 35mm equipment overseas and on ships will give way to 16mm by the end of the year. In the past year the Array has taken the opposite move. During the war years 16mm was used almost exclusively in all Army overseas areas but recently the Army turned to 3Smm for entertaining occupation forces. The Navy's change is understood to have been prompted by the desire to speed up distribution, since 16mm prints can be shipped faster than 35mm, and also by the fact that 16mm films are non-inflammable acetate, while 35mm prints are flammable nitrate. Already the Navy is buying six 16mm prints for every six 35mm prints. The percentage arrangements being worked out are similar to those under which the Army buys entertainment films, based on a theoretical basic 10-cent admission charge for each person seeing a picture. In buying 35mm prints before, the Navy had paid about six cents per foot for black and white prints and nine cents a foot for color.