Boxoffice-August.28.1948

: August
ITS 7V0 GO' ON SOFT DECREE,
MYERS WARNS AGAINST VEALS'
Allied's Counsel Opposed
To Any Type of a Consent
Agreement in Big Suit
By WALTER WALDMAN
NEW YORK—Allied States Ass'n and regional
units would fight any soft consent
decree in the Paramount case, Abram F.
Myers, general ccunsel, warned this week.
His statement, made to BOXOFFICE,
was inspired by the current crop of rumors
that the five majors and other industry
interests are trying to work out consent
decree settlements of the ten-year-old case
with the Department of Justice. Robert
L. Wright, assistant attorney general in
charge of the case, said he has heard of no
such offers.
BLASTS COMPROMISES
Myers was hostile to the idea of any consent
decree settlement. Consent decrees, he
said, are compromises that usually favor the
defendants. The 1940 consent decree gave
replies to a questionnaire sent out July 1.
The answers to the 17 questions in the document
were due July 15, but the government
gave the defendants an extension until September
15. RKO and Loew's will probably
have replies in by that date, but Warners,
National Theatres (20th-Pox) and Paramount,
which have many joint operations,
will probably require more time. Wright has
indicated that additional time will be given.
TWO LIST HOLDINGS
RKO and Paramount have already listed
their joint holdings. There were 19 for RKO
and more than 100 for Paramount.
The majors plan to contest six or seven of
the questions before the three-judge court.
They claim that several questions covering
interests, titles and stock holdings of partners
are not in their files and would require
outside investigation that should be handled
by the Department of Justice.
A National Trend?
Distributors Overhauling
Clearance in New York
NEW YORK—Distributors are overhauling
clearances in the New York area. This
is part of a national move sparked by the
supreme court decision last May upholding
the antitrust decree ban on clearance deals
covering theatres not in substantial competition
and making reasonable clearance the
order of the day.
The local situation has been unchanged for
years, with Loew's and RKO enjoying a seven
day advance over independent circuit houses
throughout the region.
The first significant break came as part of
the settlement of the antitrust case brought
by Max A. Cohen against Warners, 20th
the government nothing, he pointed out.
Century-Fox
The three-judge New York
and RKO. The settlement provided
for
statutory court
has its mandate from the supreme
day-and-date runs of Cohen's Newcourt
to
draw up a decree ending
Amsterdam Theatre with the RKO Palace
monopolistic situations,
he said. A decree that does less than
and 23rd Street.
that would be opposed by public forces as Within recent weeks Century Circuit's
well as by Allied and independent exhibitors,
Myers added.
Laurel, Long Branch: Joelson's Earl, the
Queens Village, Queens; Rugoff & Becker's
The New York court has plenty of precedent
for ordering complete divorcement, he eliminated. The Walker Theatre, Brooklyn,
Bronx, have had Lheir clearance after RKC
pointed out. He mentioned the ease of the operated by Randforce, is next on the list of
Reading Railroad. Reading's rail and coal
mine operations were divorced.
Some industry lawyers have said that reports
of government-industry negotiations for
Hughes Withdraws Suit
Over 'Red River' Episode
a new consent decree are based on misinformation
about current meetings. These
HOLLYWOOD—Approximately 30 seconds
was clipped from the running time of United
meetings, held from time to time between
Artists' "Red River" and a copyright infringement
action filed in a Dallas federal court
big five and U.S. attorneys, have to do
with provisions for proposed decrees to be
was withdrawn when Howard Hughes reached
submitted to the three judge court following
an out-of-court settlement with representatives
of Producer-Director
the October 13 hearings in New York.
The
Howard Hawks on
government's proposals covering theatres
held jointly by defendants and independent
operators will be based in part on
Hughes' charges that a sequence in "River"
was an infringement on an episode in "The
Gun-duel footage which Hughes contended
duplicated a sequence in "The Outlaw" was
snipped from the Hawks film after Hughes
had conferred with Gradwell Sears, UA president,
and Edward Small, who represented
Hawks. The latter currently is en route to
England for a 20th-Fox directorial assign-
In the Dallas action Hughes charged Hawks,
who had done some work on the story of
"The Outlaw," lifted some of the ideas therefrom
and incorporated them in "Red River."
Ohio's Governor Issues
'Youth Month' Appeal
NEW YORK — The TOA national
office
here this week released a copy of a letter from
Gov. Thomas J. Herbei-t of Ohio to all Ohio
exhibitors, asking their energetic support of
"Yuth Month" in September and calling attention
to the documentary film, "Report for
Action," financed to TOA.
houses that will be able to play product dayand-date
with RKO.
The Skouras chain also is seeking the elimination
or reduction of clearance after RKO
and Loew's.
The RKO circuit plays RKO, 20th-Pox,
Warner product. It shares a Universal split
with Loew's. Second feature product is provided
by Republic, Monogram and Film
Classics. Their product is often split. So
far the day-and-date policy has been put into
effect by the RKO and 20th-Fox distributors.
The next Warner film scheduled for the RKO
circuit is "Key Largo" in September. Warner
sales and legal executives are trying to
work out details for reduction or elimination
of clearance.
In the past once one of the majors changes
clearance, other distributors usually fall in
line.
Nothing has been decided for Loew's. The
circuit plays MGM. Paramount, Columbia,
United Artists and Eagle Lion product and
splits Universal.
There probably will be a change within the
next two weeks.
20th-Fox to Distribute
RKO in South Africa
NEW YORK—A 10-year deal giving 20th
Century-Fox exclusive distribution of RKO
product in the Union of South Africa has
been announced jointly by the companies,
Spyros Skouras and Murray Silverstorie represented
20th-Fox in the deal and Ned Depinet
and Philip Reisman RKO. The agreement
becomes effective September 1 and includes
all RKO Hollywood products and those from
their independent producers and from their
lineup of British films. RKO films named for
early South African distribution include "Notorious,"
"Sinbad the Sailor," "Fort Apache,"
"The Farmer's Daughter," "It's a Wonderful
Life," "Mr. Blandings Builds His Dream
House," "I Remember Mama," "The Bachelor
and the Bobby-Soxer," "Crossfire," "Berlin
Express," — "Good Sam" and three Disney
films "Make Mine Music," "Fun and Fancy
Free" and "Melody Time."
Boston Boycott Fails
NEW YORK—Attempts to use the boycott
weapon to keep the public away from the
Boston .showings of the British-made film,
"Hamlet," have fallen flat, according to W. A.
Scully, U-I vice-president and general sales
manager. Not only has the J. Arthur Rank
production done a fine business there, he
.said this week, but the newspaper reviewers
have been uniformly favorable.
14 BOXOFFICE :
28, 1948