Motion Picture Herald (Nov-Dec 1948)

Charlotte Suit Names Majors TALK DECREES ON EVE OF HEARING Paramount and 20th Fox Still Negotiate with U. S. on Theatre Disposition With further hearings in the Paramount, et al, anti-trust suit scheduled to get under way Monday in New York District Court, last minute attempts were still being made this week to get consent decrees shaped up for pre-trial court approval. Paramount — again — and Twentieth Century-Fox— again — were leading in negotiations with the Department of Justice, conferring in both the New York and Washington offices of the Department, submitting alternate plans, being alternately encouraged and discouraged. Paramount Talks Held Paramount, whose officials have time and again expressed the opinion that they would be able to keep more theatres if they fought the matter out in court, nevertheless was engaged in discussions with Department of Justice representatives Monday in New York, following previous Washington conferences. Otto Koegel, general counsel for 20thFox, and his legal aide, Fred Pride, returned to New York at the weekend from the coast, where, it is officially indicated, a new consent decree settlement was formulated in discussions with Charles P. Skouras, president of National Theatres, the 20thFox subsidiary, and Dan Michalove, vicepresident of the circuit. These conferences are believed to have resulted in an agreement upon a greater degree of divestiture than was decided upon during the October-November conferences, when Mr. Skouras was reportedly reluctant to divest holdings to the extent that other officials though was necessary to win a consent decree. 20th Century -Fox Plan Ready The new 20th Century-Fox plan was to have been proposed to the Department of Justice this week. Paramount was represented at last week's Washington conference by a trio that had previously proposed an earlier settlement: Leonard Goldenson, vice-president in charge of theatre operations; Walter Gross, theatre department attorney, and Robert O'Brien, corporate secretary. They conferred with Herbert Bergson, head of the Department of Justice Anti-Trust Division, and Robert L. Wright, Government attorney who is prosecuting the Paramount suit. While neither side has commented on the progress of the talks, it is known that Paramount's new proposals have been sufficiently interesting to the Department to keep the discussions going. Discussions on previous Paramount proposals were short lived. U. S. TO OPPOSE MORE TRIAL POSTPONEMENTS Washington Bureau The Department of Justice stated flatly last week that it would oppose any further postponement in the Paramount anti-trust suit — even over the Christmas holidays. "We want to get this thing moving," a Department spokesman declared. "We have had postponement after postponement. A delay for the holidays means a delay of at least two weeks. We will press for the hearings to resume on Dec. 20, as scheduled. Loeks Files $600,000 Trust Action Against Majors John D. Loeks, operating the Power Foto News theatre in Grand Rapids, Mich., filed a $600,000 anti-trust action in Detroit Federal Court Wednesday charging that five majors and three circuits had conspired to deprive him of product with which he could have competed with the affiliated theatres. He blames the alleged conspiracy for the loss of $200,000 in the four-year period he has been operating his independent theatre. Named as defendants in the suit were: W. W. Butterfield Michigan Theatres, Bijou Theatrical Enterprises, B and J, Inc., RKO, Loew's, Paramount, 20th-Fox and Warners. Government To Contest Schine's New Evidence Government attorneys in Washington Tuesday said they will oppose a Schine Circuit motion to allow the circuit to introduce further evidence in the new proceedings scheduled for the Buffalo, N. Y., District Court on the Government's anti-trust suit. The Schine motion also asks the court to require the Justice Department to state what new evidence, if any, the Government will introduce. Argument on the motion was postponed Monday until next Monday. MGM Releasing Three Films in South Africa MGM will distribute and exhibit three features of the Selznick Releasing Organization in South Africa under terms of an agreement between the two companies, it was announced this week by Leonard R. Case, SRO treasurer. The three features, to go into release in South Africa early next year, playing the first run Metro theatre in Johannesburg and the first run Metro in Durban, are: "Duel in the Sun," "The Paradine Case" and "Portrait of Jennie." The Center theatre, which H. B, Meiselman Theatres opened in Charlotte October 7, has filed a damage and injunction suit in Charlotte against the eight major distributors, two theatre companies, and the operator of three other theatres, charging them with violating the anti-trust law by refusing to license first runs to the Center. The theatre asks a preliminary injunction, to get the theatre first run product, as well as a permanent injunction later. Meiselman Theatres alleges it has lost $10,000 on the operation of the Center and that it will suffer an additional $250,000 by the time a decision is handed down, if the defendants are not ordered to offer first run product to the Center. According to the complaint, the Center opened in a new business district with the nearest first run two miles away. The Center is willing, according to the complaint, to pay for first run, but the distributors have allegedly refused to give the house anything but second and third run features. The Center suit asks for a realignment of distribution so that it will get not less than one-half of all first runs to be shown in Charlotte. Defendants are : Paramount, Loew's, RKO, Twentieth Century-Fox, Universal, Columbia, United Artists, Warner Brothers, Charlotte Amusement, Strand Amusement, and H. F. Kincey, operator of the Broadway, Imperial and Carolina theatres. Damages Sought Tripled As Isley Suit Resumes The $498,000 damages sought in the Phil Isley Theatres anti-trust suit were tripled tp $1,494,000 when trial resumed Monday in U. S. District Court at Los Angeles. The Isley suit charges a conspiracy of the majors to prevent the Pickwood theatre, Los Angeles, from obtaining first run product. Fred A. Weller, attorney for Isley, said his client is seeking a temporary injunction which would enable the Pickwood to open before Christmas. The amended complaint lists Mr. and Mrs. Earl Collins and Griffith Theatres, Inc., as co-owners with Isley of the newly completed Pickwood. Delay Griffith Trial Until January 24 Further hearings in the Griffith anti-trust suit, resumed in U. S. District Court at Oklahoma City November 30, were postponed last Friday until January 24. Judge • Edgar S. Vaught interrupted the hearings in the middle of a bitter dispute between Government and defense counsel over the reliability of a witness. The Government has placed a long series of witnesses on the stand in an attempt to show the dominance of the Griffith circuit. Judge Vaught ordered the postponement to allow him time to clear other cases on the docket. 14 MOTION PICTURE HERALD, DECEMBER 18, 1948