Boxoffice-July.17.1948

: July
To Challenge Arbitration
In U. S. Supreme Court
ST. LOUIS.—The Fanchon & Marco Corp.
is to carry its fight against the arbitration
system as utilized by the film industry to the
U.S. supreme court.
Harry C. Arthur, head of the circuit, said
his company will appeal the decision handed
down last week by the circuit court of appeals,
which dismissed its $285,000 antitrust suit
against the distributors, the AAA and several
local theatres which had been seekin,;
better clearance provisions.
The basis of the appeal, Arthur- said, will
be that the lower court and the court of appeals
improperly decided in favor of compulsory
arbitration. He declared further that
the supreme court in its recent antitrust decision
held that while voluntary arbitration
may be a good thing, compulsory arbitration
is illegal.
The main point to be raised by Fanchon &
Marco is that the AAA tribunal machinery
was forcing them into arbitration against its
wishes.
The case has been in the courts for four
years. The Arthur interests in St. Louis were
involved in clearance controversies with the
Apollo and Princess theatres. The Apollo was
awarded shorter clearance in its competition
with F&M Theatres, and when the Pi-incess
went to the AAA for similiar relief, the circuit
challenged the right of the arbitration
tribunal to act in the matter.
Both the Apollo and' Princess are preparing
antitrust suits with the distributors and F&M
and St. Louis Amusement Co. as defendants.
Both Sides to Seek
Antitrust
Facts
NEW YORK—The Department of Justice
and the antitrust case defendants will .spend
the rest of the summer gathering information
to be used during the hearings set to begin
October 13 before the three-judge statutory
court.
The government has already .sent out one
questionnaire to the five majors covering joint
theatre holdings. Assistant Attorney General
Robert L. Wright has admitted that he may
submit .several others. These may cover pricefixing,
franchises and clearance.
Thomas Turner Cooke, Universal-International
coun.sel, has indicated that he will submit
a questionnaire to the justice department.
He wants explicit definitions of contract discrimination
and illegal franchises, and will
axk Wright which U-I contracts and former
franchi.ses he regards as discriminatory. U-f
along with the other defendants, canceled
existing franchises after the Dec. 31, 1946,
decree.
Meanwhile, the five theatre-owning companies
have begun formulating replies to the
department questions on their holdings. The.se
were due July 15, but Wright has given them
an extension of lime.
The companies plan to submit answers to
one or two questions at a time rather than
file a complete report. Questions that they
think cannot or should not be answered will
be dlscu.sscd before the three-Judge court.
Youth Month Stamp
Design Goes to TOA
NEW YORK—The Theatre Ovmeis of
America, which is sponsoring Youth Month
during September at the request of Att'y Gen.
Tom C. Clark and the Department of Justice,
has received copies of the design for
the new commemorative three-cent stamp,
"Salute to Youth" from the post office.
The stamp will be dedicated August 11 by
President Truman at White House ceremonies
which will be attended by Charles
P. Skouras, national chau-maii of Youth
Month; Gael Sullivan, executive director of
TOA, and representatives of national regional
welfare groups and organizations as
well as prominent exhibitors.
The stamp is .84 by 1.44 inches arranged
horizontally. An initiiU printing order of 75,-
000,000 stamps has been authorized.
Decision on Brandt Case
Reserved by N. Y. Court
NEW YORK—Justice James B. McNally of
the New York supreme court has reserved decision
on Paramount's motions to drop eight
of the defendants in the percentage fraud
suit against Brandt Theatres and 160 other
exhibitors.
Paramount also asked the court to add
eight new corporations and individuals as defendants.
Paramount is suing for $563,265 in
damages. There was no oral arguments on
the motions, which were submitted in writing
la.st weekend.
Johnston Asks Clubwomen
To See 'Letter to Rebel'
NEW YORK Eric Johnston, president of
the MPAA, has sent a letter to over 6,000
leaders of women's club and organizations
calling attention to "Letter to a Rebel," the
short subject .sponsored by the association.
The two-reeler, which was produced by RKO-
Pathe as part of Its This Is America series,
is being made available to all exhibitors.
" 'Letter to a Rebel' packs a wallop about
America, about oin- freedoms and Ideals and
aspirations, about our democracy in action,"
Johnston .said in urging the women to be sure
that the film comes to the theatres In thel.'
communities.
FCC Dials Itself In
On Antitrust Drama
WASHINGTON—The efforts of Tri-States
Theatres, Inc., of Des Moines, a Paramount
partner, to acquire an important radio station
has been halted at least temporarily because
of the recent supreme court decision in the
antitrust case.
The Federal Communications commission,
in an open letter to the Tri-States Meredith
Broadcasting Co., asked for details on the
financial setup between Paramount, the Tri-
States circuit and the broadcasting company
in light of the high tribunal's rtiling.
The FCC said that since the application for
acquisition was submitted "certain substantial
considerations have arisen."
The contract between Tri-States Meredith
and the Murphy Broadcasting Co. for transfer
of stations KSO and KSO-FM provided
for termination by July 15 if the FCC has
not acted by then. The letter to the companies
said the FCC presumed the contract
could be extended.
This is believed to be the first time the
communications committee has taken official
notice, at least in such a public maimer,
of the supreme court's decision in the ca.se.
Legit Theatre Patrons
Show Drop for 1947-48
NEW YORK—Proof of the general downward
trend in theatre attendance is contained
in the annual tabulation by Playbill
of the number of legitimate theatre program
booklets distributed during the 1947-48 season.
The figures show that approximately
$9,975,000 patrons attended legitimate theatres
during the season. This is a drop of
275,000 from the previous season, when the
total was 10.250.000.
Buckner to Produce Film
On Israel War for U-I
HOLLYWOOD—Current conflict in Israel
will be brought to the screen for Univereal-
International by Robert Buckner, who will 1
use his unpublished novel. "The Night I
Watch." as the basis for the film subject.
The volume is scheduled for publication this
fall and Buckner will handle the producing
and writing chores on the screen version.
Kroger Babb to Hollywood
WILMINGTON. OHIO — Kroger Babb,
president of Hygienic F»roductions, Inc., departed
for Hollywood this week in the company's
private airplane, accompanied by
personal pilot. Wayne Black. Babb will assume
active supervision in the production
of Hygienic's new film, "One Too Many." an
educational drama on alcoholism. Babb's
new child find, six-year-old Ginger Prince,
win play an Important part In the picture.
!
McPherson Burial in Chicago
LONDON John R MiPhorson. 45. joint
managing director of National Screen Service,
Ltd., of Oiral Britain, who died :iere
last week, was to be burled this week in Chicago,
his home city. He was branch manager
for NSS in Chicago for years, later*
promoted to western dIvl.Mon manager and
nn execullvo at the hitme office In New Yorfcl
His mother and two sisters survive.
14 BOXOFFICE
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17, 194
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