Boxoffice-June.19.1948

. . Headline
TiJ^t^j^Mt^to^
-pHE IDEAS OF THE GOVERNMENT in
connection with the motion picture industry
antitrust suit were developed fui-ther recently
by the U.S. suprenae court.
In okaying U.S. Steel Co.'s addition of another
west coast unit, the court said in an
opinion written by Justice Stanley F. Reed:
"In United States vs. Paramount Pictures,
we were presented with a situation in which
the government charged that vertical integration
was illegal under the Sherman act.
We held that control by the major producerdistributors
of over nearly three-quarters of
the first run theatres in cities with population
over 100,000 was not of itself illegal, and
we remanded the case to the district court
for further findings.
"In outlining the factors which we considered
to be significant in determing the legality
of vertical integration, we emphasized
the importance of characterizing the natiu-e
of the market to be served, and the leverage
on the market which the particular vertical
integration creates or makes possible.
"A second test which we considered important
in the Paramount case was the purpose
or intent with which the combination
was conceived. When a combination thi-ough
its actual operation results in an unreasonable
restraint, intent or purpose may be inferred;
even though no imreasonable restraint
may be achieved, nevertheless, a finding
of specific intent to accomplish such an
unreasonable restraint may render the actor
liable under the Sherman act.
"It seems clear to us that vertical integration,
as such without more, cannot be
held violative of the Sherman act. It is an
indefinite term without explicit meaning.
Even in the iron industry where could
a line be drawn—at the end of mining the
ore, the production of the pig-iron or steel
ingots, when the rolling mill operation is
completed, fabrication on order or at some
stage of manufacture into standard merchandise?
"No answer would be possible and therefore
the extent of permissible integration
must be governed, as other factors in Sherman
act violations, by the other circumstances
or individual cases. Technological
advances may easily require a basic industry
plant to expand its processes into semi-finished
or finished good so as to produce desired
articles in greater volume and with less
expense.
"It is not for courts to determine the course
of the nation's economic development. Economists
may recommend, the legislative and
executive branches may chart legal courses
by which the competitive forces of business
can seek to reduce costs and increase production
so that a higher standard of living
may be available to all. The evils and dangers
of monopoly and attempts to monopolize
that grow out of size and efforts to eliminate
others from markets, large or small, have
caused Congress and the executive to regulate
commerce and trade in many respects.
But no direction has appeared of a public
poUcy that forbids, per se, an expansion of
facilities of an existing company to meet
the needs of new markets of a community.
^efiont
By LEE 6ARLING
whether that community is nationwide or
countywide.
"On the other hand, the courts have been
given by Congress wide powers in monopoly
regulation. The very broadness of terms such
as restraint of trade, substantial competition
and purpose to monopolize have placed upon
courts the responsibility to apply the Sherman
act so as to avoid the evils at which
Congress aimed. The basic industries, with
few exceptions, do not approach in America
a cartelized form. If businesses are to be forbidden
from entering into different stages of
production that order must come from Congress,
not the courts.
"Applying the standards laid down In the
Paramount case, we conclude that the socalled
vertical integration resulting from the
acquisition of Consolidated does not unreasonably
restrict the opportunities of the competitor
producers of rolled steel to market
their
product."
Observers saw in the opinion that the high
tribunal regards the Paramount case as one
of its basic decisions. They also gleaned a
few other views of court thinking. In the
Paramount case, the majority opinion was
written by Justice William Douglas. Here
we get the views of another member of the
court.
* * *
AT THIS WRITING, the chances appear
bright for a one-year extension of the Reciprocal
trade agreements act by the senate,
instead of the three-year extension as passed
by the house. That might be good as far
as the film industry is concerned.
The industry is supporting the act, and
wants it continued unchanged. The house
modified and weakened the program as regards
the power to reduce U.S. tariffs. The
senate is trying to stiffen it up.
In the subsequent conference with the
house, the senators may be able to stiffen
the measure. And if they don't stiffen it
much, the thought goes, a one-year extension,
instead of a three-year one, would give Congress
a chance within another year to try
for the strong program which has been in
effect
for the past few years.
* * *
A BILL REMOVING the admission tax
on theatre tickets given free to veterans is
now before the President for his signature.
It may seem minor, but until the bill was
passed, it was virtually impossible to give
hospital servicemen and veterans free tickets.
The house passed the bill some months ago
and sent it to the senate which passed it in
an amended form; the house agreed to the
amendments last week and sent the measure
to the White House.
* * *
Who died
REP. THOMAS O'WENS (R., 111.),
June 7 of a heart attack, removes from Congress
one of the men who knew most about
Hollywood labor troubles. He also was somewhat
critical of the industry itself, and during
the hearings last February and March
suggested that perhaps the chief trouble lay
with the failure of the producers to use the
facilities of the National Labor Relations
board.
Convention io Be Aired
By 18 Tele Stations
Philadelphia—Eighteen television stations
from Richmond, Va., north to Boston
will broadcast the Republican and
Democratic nominating conventions. The
Republican convention will start Monday,
June 21. It will be the largest television
network hookup.
Four networks—ABC, CBS, Du Mont,
NBC—and six television stations will cooperate
in pooling coverage of the conventions.
The individual stations are:
WATV, WPIX, WMAR-TV, WFIL-TV,"
WCAU-TV and WPTZ. The last three
are Philadelphia stations.
Vog Helping to Finance
Picture Made in France
NEW YORK—Vog Film Co., which is distributing
the French film "Jenny Lamour"
in the U.S., is helping to finance "Manon,"
a new picture now before the cameras in
Paris, in exchange for American distribution.
This is the first American-Franco financing
deal, according to Noel Meadow, Vog executive.
The film is being directed by Henri-Georges
Clouzot, who also directed "Jenny Lamour"
and "The Raven," and stars Cecil Aubry.
Vog Film is now working out financial backing
for a second French production, Meadow
said.
FROM THE FILES OF
^O j/feard ^^Ar^o
JESSE L. LASKY, Paramount first vicepresident,
predicts that other nations will
some day send diplomatic representatives to
Hollywood to advise motion picture producers
on pictiu-es having foreign locales. As a step
in that direction, George Kates has been appointed
as "counselor on foreign affairs."
With an office in the Paramount studio,
Kates will advise scenario writers and directors
during the preparation and filming of all
pictures and portions of pictures containing
foreign elements.
Tiffany-Stahl Productions has engaged six
expert dressmakers for creation of gowns for
their various stars. This department is presided
over by Madame Alphreda, w^-known
designer who was connected with the Bon
Marche of Paris for many years. John M.
Stahl, vice-president, supervising production,
believes clothes play an important part in a
production.
* * •
Razzing the News Department: The mortgage
holders of an Illinois theatre removed
the seats of the house while the show was
in progress. That's what we call playing to
standing room only ... A news story says
that as an exploitation stimt a wedding
gown was placed in a window to draw in-
.
terest. A wedding ring in a hock shop will
do the same thing says: "Tax
on Seats Proposed." Wrong place for tacks,
Mr. Exhibitor!
28
BOXOFFICE
: : June 19, 1948