Showmen's Trade Review (Jan-Mar 1947)

SHOWMEN'S TRADE REVIEW March 1. 1947 9 NATIONAL NEWSREEL Big Five Decree Attack Covers Broad Front Appeal Highlights (For Appeal Quotes, P. 11) Bones of contention in the various appeals filed against the decree during the past week seem to be in brief: BIG 5 — Court is wrong to prohibit minimum price fixing, clearances, pools with independents, in ordering disposal of theatres in which defendants do not own 95 per cent or five per cent when such interests do not constitute restraint of trade, in dropping arbitration and in interfering with the right to dispose of a copyrighted product under the latitude of the copyright law. GOVERNMENT — Court is wrong in denying divorce, in assuming competitive bidding is a remedy or will work, in not prohibiting future clearing agreements among defendants and in failing to grant a ban on cross-licensing. AMERICAN THEATRES— Competitive bidding is wrong, will damage the exhibitor and legalizes practices hitherto illegal under the anti-trust laws. Competitive Bidding Feels Its Way; Exhibitors Await Further Tests Wants Right to Retain Theatres, Fix Prices; Paramount Hits Bidding A nine-front attack on the New York statutory court decree was under way this week as the Big 5 filed an appeal to the United States Supreme Court Wednesday, adding its protest to that already entered by the Government and the Little 3 defendants. The Big 5 appeal, though divided into two parts, with Paramount filing separately and the remaining four — 20th Century-Fox RKO. Warner Bros., Loew's (MGM) — filing jointly, basically seeks to show the statutory court erred in outlawing certain theatre operating practices and ownership and in denying the defendants the right to admission and clearance fixing. Paramount, making almost identical points with the remaining four, additionally attacks the court's right to order competitive bidding, to prevent conditioning of the sale of one feature upon the sale of another, and to grant the exhibitor 20 per cent cancellation on blindbuying. Agree on Houses All five seek the right, when authorized by the court and when not in restraint of trade, to retain their interests in houses where they do not at present own the required 95 per cent. All seek the right to pool with independents and to expand their present holdings. Only Paramount contests competitive bidding. Coming as it did after the Government last week filed an appeal reiterating the need of theatre divorce and disavowing the statutory court's plan of competitive bidding, it showed a unanimous front of dissatisfaction by all parties in the suit to the decree. The Little 3 — Columbia, Universal, United Artists — had all filed appeals attacking aspects of selling under the decree. Decision of the Big 5 to fight the decree by appeal to the Supreme Court apparently came at the last moment and after some strong dis(Continued on Page 10) The American Theatres Association and the Confederacy of Southern Associations were moving shoulder to shoulder this week in an effort to knock out competitive bidding by appeal to the United States Supreme Court on the statutory court's denial of their right to intervene in the case. Both appeals are based on the allegation that the decree affects the rights of their clients and hence the statutory court erred in not permitting them to intervene. Both attack competitive bidding upon practically the same grounds with the main difference being that ATA Attorney Thurman Arnold in addition to pointing to the losses his clients will suffer under bidding emphasizes the legal philosophy involved in a court order which he says will legalize acts which hitherto were illegal under the Sherman Act and will deprive his clients of the right to recover damages for losses suffered thereby. The ATA ap Competitive bidding was feeling its way slowly around certain sections of the country this week — like a man testing the temperature of his bath water with his foot. While all sources acknowledge it is yet too early to make any authoritative survey of results, the exhibitors who have bid to date almost unanimously agree that the bidding process is more costly to them, picture by picture. But they also acknowledge that it gets them pictures that they never could get before. The Charlotte territory reports that Greensville, S. C, has gone in for bidding with the second-run house, the Ritz, outbidding the firstrun Wilby-Kincey circuit theatres for 20th Century-Fox's "Margie" and "My Darling Clemntine." In Hartsville, S. C, the Center Theatre outbid the rival Berry Theatre which has had the first-run of all Paramount's product since it opened a year ago on "Two Years Before the Mast" and "Blue Skies." "The only real effect that has been observed so far on this particular type of bidding," a Charlotte observer remark, "is that it tends to make an exhibitor give just a little more than he is accustomed to giving or just a bit more than the picture is really worth to him at peal attacks competitive bidding only. The CSA brief concentrates on the loss that its clients will suffer under the decree and attacks the entire sales clauses of the decree — competitive bidding, single selling, the old-customer and some-run clauses. ATA filed its appeal Wednesday afternoon. CSA was expected to file late this week or early next week. The ATA brief argues that the court erred on five points. Two are concerned with ATA's right to intervene, the third claims the court erred in restricting ATA to appearing as amicus curiae, the fourth that the court erred in failing to grant the relief ATA asked and the fifth that the court erred in decreeing Section ii. Paragraph 8c on competitive bidding. ATA further argues that it was not properly represented in the original trial the court to (Continued on Page 23) his box-office in order to get the picture. This gives the film companies a higher maximum rental scale which it will take longer for the exhibitor to work down, if he is ever able to work sa lie down." In Chicago MGM, RKO and 20th CenturyFox have tried out competive bidding using the Cicero district in the experiment. There the James Booth Theatre was successful in its bids for RKO's "Nocturne," and "Notorious Gentleman." The Bartelstein circuit was high bidder for 20th-Fox's "Smoky," "Three Little Girls in Blue" and others. The Anetta Theatre has reportedly won on several MGM films including "No Leave, No Love." Paying More Most of the exhibitors who bought films by competitive bid seemed to think they were paying more under this system than they would have paid under the older system and there was no noticeable satisfaction with the results. The Cleveland area reports that the MGM has tried it out and the Moreland and Regent Theatres, which formerly shared product on a subsequent neighborhood run, no longer do so. Under the bids, the Moreland reported acquiring all product. The deal here was reported favorable to the exhibitor in that the accepted bid was less than the revenue paid under the old split-product plan. Several local exhibitors have stated that they will not enter in any bidding if they can avoid it. They are willing to forego product to their opposition rather than boost film prices via the bidding method. Cleveland area exhibitors in general are waiting until they have to bid on product before indulging in it. To date competitive bidding has not been noticed in all exchanges. Boston does not have (Continued on Page 23) Probe C SO Movies Free showings of motion pictures on C & O trains is being probed by the Interstate Commerce Commission for possible violation of the anti-rebate rules of the Commission, it was learned in Washington this week. ICC action was taken on complaint of Abram F. Myers, Allied States general counsel. Myers has stated that the C & O free shows were a form of "giveaways" and violated the anti-rebate rules. ICC has not set a hearing in the case. ATA, CSA Shoulder To Shoulder In Bid Attack