Variety (May 1940)

Complete Text of Commerce DepL's Proposal for a Consent Dmee • drrel* • at* ath*t* «.( C Mja w gpi "-ho ere leyulatinc e»4 yadn wry alter I j an tit* psrtare •ill* «Mc* mr ' (tH(i rypaleltoa* on rerfaia Iadaatry /aar lt««i *r* bath Ik* Nona* end tht Sr — ir f art beat *d*i*ni id aa KM it th* M**ty —ti-M*cfc Making* MM My M ImH by th* N May. *j*M th* Camt thai th* meetarr *yll rrarh pat* before ed Seeraasral. Fadtarr I* emery* /ram committee al Iku araeie* arill recall to MM mil being r*KW Oa May IS MM Senate Committee aa fairretole Cons merer l*a is ui^r I u. s. sua I rente* 1 theatre* I Ceuataoed tram pay* * ' _ M favor af the '• tr aw* M th* wa* • component al a nbaatre ebcaatt then th* * ibM raMi* ahall mm* aa award treat Maatog par tor a* la aw i *r* a* M th* indr p endent ' u* rtrcuM theatre MM Mai eeaatoo. aaparaM t an t ra l! M* each pactur* ar group af ptotures The award shall ba «a gi MaM i laiailllll I *nrtm»r p**nyhto that MM atMMMaj MMIrMMMr nhaM m4 m.paa* upon a* and Mm rat* ajlxu ad-' aecaf* I raja ih* off end lag rircwM Maaatre. aa a eaMitwo of leeetog par- \ acsepMa af Sisslir* ar* in* aali isf 4f pi 0*1(4*1 |f ***?t fOf (**Mi ftM)".!*!*/ J M Pad* MM Jrhtns . Crtf/uh aad Cwr»l theatre circuits. Tar aay* MM raarUMtory t Mf j M MJ af MM V. S. Deport mewl af C • a buy or i af MM matter M that MM Allied eryeei J aajM ary*a° thai th* sail-trust sash*. yjMch de- af Mark beehway and kmrmnl af MMatra* feem M trail , i ar* wuWny M make. 1/ af MM •my u th* Depart -|[JJI af jffi Ma U charged until Mm (4) M which he m i af ar place* wktrt th* Max will ha trad* shewn • The Ui m t*a*a MamxMs MM mafc tog typa af agreoatent wh*rahjr a Ma* ' iti A f*atura melton yhrtura Mm • • mora thaa MM bxtoar Mat la length, hara i aafiin**' ar • I* A trad* ahowing it d*Mt*d aa an nr.■bit km of a mat tan picture Aim M a Mbyatra ar prtgyrtlia ream far th* b o n e at of •sbahMar* generally prtor M MM Maay ar a*>ar U Maa* af a Mm t»r puMir aabiMtton >i< Urn ' »t shall MM • maa MMa/hbJ Mm MrriMcy cover** by Changaa M Mat Ml I Mai J iikia i i< within * at Mmm rhaagai mvafva iMHag to tit* m dutrart ha maMa mmlj afMr i at Caaaaaaraa aaM J i Trad* aaMMatMa aaaaM a daily ar u di iQM d mMmiiIj to n*wy aaaran . t Lmdm af liatary aaMMa yartarca ia « ji kaaa* MtKrarta All M faatmt motion yartui** aha 11 b* roMducMd M In* Mat th*atr* or theatres ara Meat ad Ma M any esxhartg* district shall incluate theatres tug* atatrart. Bar ahall th* traaing of ptrtures m i md llirnl taaaa Mm Maatagj af a ptctui* ar grauy at rsrhaaayr dsatrict 1 Limitaiiaa aa ik* Maa* af atctarat whsrk bar* b**m t i a | yjy g.au-sbutof shall oltet lor lease mar* than gva Matur* parturvs M a ibtglr gtasjyj thi Th* Maay M aaa grouy af yorturrs ahall aat ha condHlaaa l uyoa the lea>« of another picture or group uf pn-tuie* id It ahall M th* policy of *\ery distributor aat M raajuir* aa eshib Mar M teas* abort asjbyrrU. newsreats trailers, ate. a* a condition (a MM Maaaiag af any feature picture or g'oup of pictures Any ha waa larcad to laaaa ab ort aubiecta. n*w»r**ls, i af protest to th* distributor M Ma arahihrttog the ottoaahni. dis- _ etocajM Mtaatr* *arayt under M ykrharas Tha award ahall aat Mu th* aMaadlag rtreaM thaatr*. aa a aaaaMMa af lures ia othfr rirrwH theatres, th* Maa* M partajraa In that circuit Such awards ahall be ayyulaklt to th* appeal board 1. Llama!too oa lea** af yartaraa to newly arwsired theatres ia ■ Oa and fraaa th* date hereof ahouM any individual, arm Duration operating a theatre ar grouy) af theatres Maa*. build ether wise ecoulre aa interest M aa additional theatre in any MM* and in that event, with rieaart M MM addMtonal thaatr*. a distributor may lease its pictures for exbibitiaa M MM addr tlana l theatre only und»r a j Maa* atreement wharh rwMto* aatoty to MM MM add at tonal theatre aa M ' aasd theatre wee* an md*p e ndent theatre and aat part M a circuit • kl Ne distributor ahall Maa* parturet M MM addition.I theatres re- T" '* ferred to to paragraph ia l hereof as a part M a Maa* involving th* Maa* f *" af pictures to other theatres ajar ahall th* dsatrihuta* tnay as se ar accept a ciaastlia M Itaung partaeaa M ather tkaatrtt Ms* letting of pictures MhMtol thaatr* Ic I Where any indivhhaal. Mat ar corporation a ai m anently ceatea to ' a thaatr* ar Ih aMraa M a alknattoa aad n ata i aa ar aubetitules th* inued thaatr* ar thaatrti with a newly ecyawed t hsa tir in th* same sMuatsun. th* suboututod Mtaatr* ahall aat ha aaaadrttad aa an additional Mtoatr* within the nsoatsiaa] af MM* yrevistoa af MM aaattog tayarlty M Mm aantott t utad thaatr* I* MM g r aa Mi thaa th* total Mating capacity M 1 Mm dinr ant toned thaatr* ar thaatr n Maa n aar. M MM aaaMng rapacity af the aukatatohad Maaahr* at t%% greabrr than tha total tiatbig capacity M otrea th* substituted thaatr* ahall M re- wtthto tha as a a n tog af thaa previeton Idl Mheidd any dispute an** as M ah* th ai ar aat any theatre leased bought ar aa MMraat MtarvM aMiar a im a ry,airad M an additmnal any part Malar sitaatton. aa put KM to para g r a p h <a» hereof ar adMthdt th* addttiawa l theatre at renervutg tiiaalaaaiin trwatnvrni M Mj m am b e rsh.p to a iMaaM. Mm abate shall ha eMhjwt to arhi- Tha award af the arbitrator ahaO a* ayasMMM* to th* appeal iaton. M la pewvided that Tha* aarms to be untrue **\ m dm* M sources etoae to the tiial Ju«t*e Henry Warren UuahMcd ishu Pe- tal MM >uda* had been not.. M nothing in th* way of a set- M a settlement war* totagdatod Farmer Judy* Thomas D Th achat an d William J Ounovan, defenae purynaai M th* aha* * any r* araebitaa. at I individual Arm To further th* fraaa th* dale hereof part urea far additional theatre*, with respect to aurh addatasnal MaMrw. a diaUtbutoc far ashsMttoa M aaah af th* additional theatres only which relate* eeaely to *arh *f th* addin-mal that tf twa ar mac* af Mto aasd addMtonal a ioawrann «aa*iahM. aa ar before th* data the distribute may include th* said theatre* M a Mngto Mas* agreement M Ih* theatres era located to th* exchange dtalrtct Hi Ma dtoUibutor shall Maaa ptotaara* to M leaahaj pail maa aa athar Thaalr** th* leasing of pictures at at any Thurman Arnold alaa de- clared that ha MM aat be lie to a MtMaawat BaaaMht*. and th* talka *"*. hTg actasma Monday <»■ *aw Conrga J. Scha*f*c. prnMrnt af RKU *a- a mi nod before tiial by special aa* M Mat at to rn e y general, la uhviesjsly •■.hibitor. MM matter ahall be ball be no ■■parate acnr* af part urea Maaad "MMaa ar shall be hp Is locally offensive aa moral, ret ax total ar rectal pi ii tided written notice of his election to cancel ahall he mailed of th* distributor aat later than erven days after the H o */* ear. aay distributor may arketrato MM M whet -ctur. I* ■ A fa) Seterttew af oeoiral arhatratoea A . neusral arbitrator! Mr each ea r haagp dtatrirt ahall be M at a na lad by American AfMtrattoo Sactety Neutral arbitrators ahall not have any I ar pceeent ronnactsan with th* pradwttiaa. diatributton ar eahtbiti o n mat ion pictureanor aay In t el aat to any theatre, a* either Madhard. ar egherwise The neutral arbitrators ahall be paid aa a par diem a cam. the amotml paid to be attractive en a ugh M iwapaaaMM* peraaaw lb) AMtorn to MM nealral arbUralor Bach M Mto aartam M In ter nal ■hall navy the right to designate aa arbitrator to hear th* inntrataray with the neutral arhMrator. to ad viae with him. but to have aa ea t *. <c» ArMrrygtoa appeal baaed. Thar* ■ aard i tad itlag M Mara* atimk an aapaia ahall be a aarean M known impartiality shall be designated by th* court aa chairman af MM heard The kartodto- Uan of Ih* board shall M M bear aad MMtmlna appeals Id l /tr astral to a proredare An eahlbtlor who ha* Ma* right to arbitrate under any of tha priyM n M this decree may repuire th* aaatrsbular to arbitral* th* controversy g.wrvg notice l* Mto Wretary eg Mto Arbitration Mtard Mealed wMMa Ma dutrart The parts** to Mm controversy ahall imatoally agra* upon a neutral arbitrator from th* panel aataMtohad Mr Ih* *schange district to which the theatre af tha it located If the parttoa cannot agra* on th* cheer* t I tit with rtlm Carp, to his y tin it! Little MM executive repeated M Ma* that ne taffwthar amid Than he described received bp a pritdatar and vie* vara* a* M MM three batfe's tha M I C. F erg ton*, for Mto past aperetor M Mm Forum. M. J aa Mto aacmad af G*** fitme n t w itne sura aa Mr examination by Fargione wa* !Mi to Mto N V Tha M th* I peltry of ep a ratioo Distributors shall make their II aaah* their ptc- thal th* exhibitor l» a* M M raturutg. t eVlare* aaaUaM* aa aetne ma m any aiti standards M •xhibttor m i ipuliblt aad responsible In carrying out the provisions M Mu tertian, no MMraMMr ahall request license fees ar ather terms and at tone that ara danigasad ar intended for the purpose of defeating this Th* iliipataa wharh may arise hereunder ahall b* aubyect to arbt- | • That daaa taet mean a particular run. but a run M tome time I M <*MltMMg aay ctoam Mai th* license fee* ar other lerma and rondi- ttoaa rwapaanad by a AtattiMMir art designed or intended far th* purpose af atfaaltog MM yaatton. the arbitrator shall consider, among other things, whether Mm dMkrMkMr abtiintd similar licence fees, terms and conditions M athar ahtoattosas similar to th* one being arbitrated and th* effect which Mm IMaaahag wiM have upon the distributors total revenue ut thai particu- lar cxsmpetiuve area. on Cle»rince, OversdlinK and Unfair Pi tttatat af Ma stay aoreemenlt Fvery lease agr that the daatnkutnr will arbitrate the futlow m« la I DMstoMa a* M akslhii or nut the existing rlearanc*. under the con- to a partacular instance. i< unreaaaaahM All award* between theatres shall be reviewed by Ftaaa thaa trass a reaaonable time th* Chairman af ahall artert a neutral arbitrator from the pan*! Casts af arbiliafMa. Th* arbitrator ahall award mats against or apportion them among the parttoa as h* may dara i proper lf> aa actio a t The arbitrator may provide a penally liquidated damages lor failure M abidt by Ih* aarard In order to dtacwurag* unwarranted resort to arhetrattaa. the arbstraiar ! ebb** at ahall M i mp*nara il to award a aum of m oney at IMuMated damaget M part af favor of a respondent distributor when he an da that Mto eshibstor a raaar t I the for the M He I tr*"* Warier MM tttS-M aaaeaa. Mead*** Mrmarty rust by Para- Ma far am De- refuse f* t» <e» part) <fi mark i aery arbitral am wa* frrepMtst ar veialiaa. Igl Adasintolrafton af arbatration functioning of Ih* arbitration a ff a tas and person ttrtct ahall M undti th* luriMarttoa af a board masntiag af bars. Oat* ntmabec la be a raprwaantativ* af MM Department af Cam me fi e on* mtmbn to M a representative of th* *Kbtbilor group and aaa I i m«mk«r to be a representative ef Mm distributors This rammtttee shall ' i t aapla y an executive maaaaprmenl af Ih* arbitration machinery Awing Mto rt y■■ nkiltties M the committee, it ahall have the duty af budgeting th* cast af operating the arbitration machinery renting off ices, maintaining uffaras. »n gaging of the deer** the aa agalnat aa- I d ato> lake to run the major'a product, but y *Mh*r take all ar rhirvery It cast so fixed b) Justice. Any increa matority by aa to be adequate by m the a mo u n t* aa have approved af a fund made 'up of <a > a una distributor. 'In a n o minal -um such a* I ar Itc per partuie be paid by the exhibitor, and 'c I a reananable Ming fee Mr Uon proceeduig t i be paid by the party tiling the rnmplt aal Oa Weaharvday tMi Mth-Fix. M- riding M pa the full way. add*! th* entir* Mat M atari af Ma afMart to its petition fur a t ants. by aaa* exhibitor that another exhibitor ha. wr numb e r of feature pictures than the Ml kiMttoa M ars theatre The leasing by aa No Time Like Now 'No Tim* for tcrday (Meat week- ahead af Mto. William I" . a C. Michel William Coetx. Felix Toe/ell. Hera c H. Talley. Soyr as P Gambee. H C Cat. to th* list Moth have been postp nyel t s betrj »»y