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Eddie Joseph Files<br />
$600,000 Lawsuit<br />
AUSTIN— Drive-In owiu-r Eddie Joaepli<br />
ehiirtted November 28 In ii federal court suit<br />
filed here that six motion picture dlstrlbutoni<br />
are violutliiK antitrust laws on a nationwide<br />
basis. He charged that the six—Warner Bras.,<br />
RKO. Paramount. Loew's. 20th-Fox and Universal—have<br />
made special agreements with<br />
Interstate Theatres and other chains and have<br />
refused to deal with him on a fair basis.<br />
As a result, he Is seeking $600,000 dciniagcs:<br />
"Triple the amount of damage to his business,<br />
to his reputation, to his competitive<br />
pasitlon." The suit was filed In the form of a<br />
cross-complaint. Last October 4. Universal<br />
filed suit against Jo.seph charging that he<br />
had filed false statements on his gross receipts<br />
with them. That suit noted that their<br />
fees depended on the gross receipts amounts<br />
and asked for an accounting.<br />
ST.\RTED IN 1940<br />
Joseph's suit asked that the five other<br />
studios named be made third-party defendants<br />
for his cro.ss-complaint against Univer-<br />
Federal Judge Ben H. Rice approved this<br />
sal.<br />
In Waco and the suit went on the books in<br />
Austin.<br />
Joseph charged that the alleged conspiracy<br />
to violate antitrust regulations involves Interstate,<br />
United Artists and other distributors<br />
and theatre chains over the country. He said<br />
his troubles with the distributors started in<br />
September 1940. when the North Austin Drivein<br />
was completed as the first of his chain.<br />
All of the defendants refused to make pictures<br />
available to him, he charged, and he<br />
had to go to court in New York to get pictures,<br />
even though "said pictures were furnished<br />
as subsequent run pictures, for runs<br />
and clearances wholly inadequate for crossplaintiff's<br />
operation."<br />
As a result, Joseph asserted, he has been<br />
forced to operate over the years with inferior<br />
and old pictures which have been received<br />
after long and unreasonable clearances. He<br />
said the result has been that his reputation<br />
and his theatres' goodwill has been damaged.<br />
ASKS EQUAL TERMS<br />
Joseph said he has requested the right to<br />
buy pictures for his theatres under terms<br />
which would make as much profit for the distributors<br />
as their arrangements with Inter-<br />
State. He added that he failed, just as he also<br />
[ailed when he tried to get feature pictures to<br />
be shown from seven to 28 days after the<br />
completion of their first runs.<br />
The suit noted that all downtown theatres<br />
in Austin were either built or remodeled into<br />
motion picture theatres more than 20 years<br />
ago. before the advent of talkies. It asserts<br />
that they are .short on acoustics, comfort,<br />
safety and convenience.<br />
Specifically, the suit charged that the alleged<br />
conspiracy includes greater latitude in<br />
selection of film as far as theatres such as<br />
Interstate are concerned, granting of extended<br />
playing times, preview privileges, "bushel<br />
basket" deals in w^hich the distributor sells<br />
pictures to all Interstate theatres for one<br />
flat rental price, block booking on the condition<br />
that one or more films is licensed for<br />
showing on the acceptance of other films, and<br />
deduction privileges on film rentals, which<br />
aren't available to Joseph and other independent<br />
theatre operators.<br />
SAN ANTONIO<br />
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