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TOM CLARK SAYS HE IS WILLING
TO TALK OVER CONSENT DECREE} ^
No Offers Have Been Made,
He Says, and He Doubts
Defendants Can Agree
BULLETIN
New York—The Department of Justice
will serve the defendants with proposed
amendments and additional findings to
the existing antitrust decree on or before
October 1. An attached memorandum will
disclose the government's position on
existing theatre holdings and operations.
This memorandum will be a form of answer
to the questionnaires sent by the
theatre owing defendants to the government,
asking for names of theatres and
corporations regarded by the Department
of Justice as monopolistic. The Department
of Justice acknowledged the receipt
of the questionnaires September 8. They
had been sent out the end of August.
By WALTER WALDMAN
NEW YORK—Hopes for a consent decree
settlement of the Paramount antitrust case
were revived during tlie past week in New
York and Washington.
From the capital came word that Att'y
Gen. Tom Clark was willing to discuss
consent decree proposals submitted by the
defendants. He said this in reply to questions
put to him by a spokesman for one
of the major theatre-owning companies.
NOTHING DEFINITE OFFERED
Clark said no definite proposals have been
made and that he doubted whether the defendants
would submit any satisfactory to
the department because he and the defendants
are miles apart in their approach to the
issues. He said he would consider any consent
decree offers.
In New York attorneys for the the big five
reacted cautiously to Clark's statement. J.
Robert Rubin, vice-president and legal chief
for Loew's, said it was entirely possible the
defendants would submit consent decree proposals,
and the results would depend largely
on the attitude of the government.
A spokesman for RKO said he had maintained
all along that the defendants and the
department of justice could work out a satisfactory
settlement. The only thing that
could block such settlement would be fanaticism
or obstinacy on the part of either side,
he said. The 20th Century-Fox reaction to
consent decree talk also was favorable.
NO WARNER, PARA COMMENT
There was no comment from Warners or
Paramount on a settlement. Louis Phillips,
general counsel for Paramount, said he was
bu.sy preparing for the hearings scheduled to
begin here before the three-judge statutory
couit October 13. The hearings may be postponed
a day or two because Yom Kippur, the
Jewish Day of Atonement, falls on October
13. Phillips plans to ask for a postponement.
Attorneys for the little three—Columbia,
Universal and United Artists—took Clark's
statement calmly. Thomas T. Cooke, U-I
counsel, pointed out that consent decree talks
Ned Depinet Is Elected
RKO's New President
NEW YORK—Ned E. Depinet, executive
vice-president of Radio Keith Orpheum Corp.,
was elected president at a meeting of the
board of directors Septembsr 8. Depinet replaces
N. Peter Rathvon, whose resignation
of July 23 was accepted at the board meeting.
Inasmuch as Depinet was the choice of
all members of the board, it follows that he
will be re-elected at the stockholders' meeting
scheduled for October 18. This meeting
will be for the purpose of electing officers by
a reconstituted RKO board.
Paul Hollister, national publicity director
and eastern studio representative, resigned
September 7 to engage in public relations
work. Neither post will be filled, according
to Depinet. PeiTy Lieber will continue as
studio publicity director in Hollywood and
Rutgers Neilson as New York publicity manager.
Depinet entered the film business more
than 40 years ago as a booker and salesman
with Imported Film & Supply Co. of New
Orleans. In 1910 that company became a part
of General Film Co. with Depinet taking on
marketing duties throughout a large part of
the south. From 1911 to 1924 he was southern
division manager of Universal. In 1926 he
moved over to First National as a top sales
executive in charge of the southern territory
and later he became general sales manager
in charge of all domestic sales. Later, when
Pathe was taken over by RKO, Depinet moved
into an executive position and, in 1932. he
was named a member of the board. In 1934
he was elected president of RKO Distributing
Corp. and moved up to vice-presidency of
RKO Radio Pictures in 1936. In 1937 he was
elected president of Pathe News. Inc. Depinet
also served a.5 vice-chairman of the board
of RKO Theatres, Inc.
Floyd Odium, who is president of Atlas
would revolve around theatres owned and
operated by the Big Five. If, however, the
discussions should affect the little three, these
companies would be interested.
The general attitude of the little three
toward the consent decree talks and the forthcoming
hearings is that of Interested spectators.
Attorneys for these defendants are resigned
to the fact that theatres and charges of
monopoly regarding acquisitions and operations
will dominate the hearings.
The legality of franchises, methods of selling
and arbitration will be subordinated to
the issues revolving around theatre ownership
and operation, they said.
The five majors are now busy answering a
Department of Justice questionnaire covering
joint holdings with independents. Some
NED E.
DEPINET
Corp., which sold its controlling interest ini
RKO to Howard Hughes last June, has been
conferring with Rathvon on plans to formi
an independent producing unit to make the
projected Frank Ross film, "The Robe." Thepicture,
which was originally to be made by:
RKO, might be released by the company, aC'
cording to Doremus & Co., Atlas Corp. rep
resentative here.
Odium will continue as chairman of the'
RKO board until the stockholders meeting.
It is expected that Howard Hughes will be:
elected to the board at that time but whethen
Odium will continue as chairman is a mat
ter of speculation.
replies already have been submitted listing
these holdings and officers of jointly-operated
corporations.
In the meantime the majors have sent
questionnaires of their own to the department
asking for lists of theatres and operations
regarded by the department lawyers as monopolistic.
While both sides are seeking information
to be used in court, numerous shifts are being
made in the Big Five theatre map. Warners
has recently dropped leases in California,
Ohio, Milwaukee. New Jersey and Massachusetts.
Some replacements are being made.
These moves are being made in accordance (
with the provisions of the antitrust decree, 1
according to company officials.
The Dof J would like to freeze all theatre
transactions pending a new decree.
BOXOFFICE :; September 11, 1948
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