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' hat riatiift. HIT STRATOSPHERIC HEIGHTS; TWO NEW SUITS: $18 MILLION NEW YORK—The $9,000,000 triple-damage antitrust ît filed November 10 by Skouras Theatres and Metropolitan Playhouses against RKO was the latest in a series of private actions involving Paramount case defendants seeking to carry out provisions of consent decrees and other Justice department settlements. This case differs from several others now pending because It is the first time close associates of one of the major company defendants in the so-called Paramount antitrust case has sued another defendant charging monopoly practices prior to the decree. Metropolitan Playhouses, which was formerly Fox Metropolitan Playhouses when WUliam Pox headed Fox Film Corp., and Skouras Theatres Corp., which took over some nf the Metropolitan group, now contends that it was forced into the RKO partnership by illegal monopoly pressure. UNTIL DECEMBER 5 TO REPLY RKO has until December 5 to reply to the charges and is expected to cite terms of its consent decree to refute the accusations of monopoly and conspiracy. It will probably state that Justice department and court approval of a provision permitting RKO to acquire the Skouras and Metropolitan interests in three New York theatres and one Newark theatre give these situations a clean bill of health as far as the antitrust laws are concerned. Reference to a ruling of the court and a,pproval of the Justice department has been the general line of argument adopted by Warners, Paramount and 20th Century-Fox the other companies involved in private actions by partners. In some instances the majors have been the plaintiffs and in other cases they have been named defendants in antitrust crosscomplaints brought by partners resisting attempts to change the status of their holdings. The cross-complaints have usually followed with the partners asserting that they were forced to enter a particular agreement as a result of monopoly pressure. PARAMOUNT AS PLAINTIFF For example in 1947 Paramount sued the Fanchon & Marco operating subsidiary. Partmar Corp., which ran the Paramount Theatre, Los Angeles, on a lease from Paramount. Paramount not only sought a court order ending the lease, but also one ending a franchise agreement, which was banned by the three-judge decree of Dec. 31, 1946. Partmar countered with an antitrust action against Paramoimt, claiming that it wa.s forced to enter into a franchise with Paramount as the only means of getting product. Partmar also made an unsuccessful bid to block the recent Paramount consent decree which permits Paramount to continue ownership of the Paramount Theatre. The other cases are still pending. Warners is involved in three actions resulting from the 1946 decree and a subsequent agreement with the Justice department. One case now before the U.S. circuit court of appeals in Washington, D. C. was originally filed by the Kogod-Burka circuit. Distributor Personnel in Exhibition Is 'Bared' LOS ANGELES — Refusing to divulse the names of the alleged malefactors before the charges were to be aired at a meeting of the Theatre Owners of America, the board of directors of the Southern California Theatre Owners Ass'n fired a broadside at what they termed the "unfair and impossible" competition createi through the asserted ownership of sto-k in certain theatres by "persons in :ey positions in Los Angeles film distroution exchanges." A spokesman for the SCTOA—a rOA affiUate—declared that complete 'locumented evidence" of the charges, tcether with the identities of those distroution executives allegedly invohed, wfoW be presented at the TOA session b: Parry Vinnicof, local independent circuitjbperator and the SCTOA's delagate ) the TOA board. In a strongly worded telegram the i heads of the various film compadis in New York, and prior to Vinnicof: departure for the east, the SCTOA crectorate protested that such asserted*eatre ownership by distribution persinel forcing competitive bidding amongheatres in opposition to their own. I was is pointed out that such persons are "i the position of knowing the past perfornnce of any theatre in any given area, awell as of the product from his own compy," and it was asserted that secret bicare available to them before they enter-om their own theatres. The telegram charged, in part, thi 'by a strange coincidence it is sudden requested that certain situations be p on a competitive bidding basis with dr-in theatres. The above-referred to pitice particularly unfair when it is ten is into consideration that these menold positions of confidence and are able all times to have confidential informon. Our association wishes to go on ord with you in condemning this unfaiondition, and ask that we may hearom you as to your stand and your comjy's stand in this important matter." Warners partner in the MacArthur eatre Corp., a partnership WB is required end by the last week of December. In Clland, Warners is the plaintiff in a case agft the Shea circuit. Twentieth Century-Fox, the othenajor distributor, and Charles P. Skouras, lident of National Theatres, are defendaiin a $3 000 000 antitrust cross-complaint 'Ught by Southside Theatres, Inc., InglewoCalif This action resulted from the ets of Fox West Coast Theatres, a National atres subsidiary, to end a pooling agreem with Southside covering the Alto Theatrwned by Southside, and the Fifth Avenuwned by United West Coast theatres, a T and United Artists Theatres partnershi WEV. YORK—Max A. Cohen, head of Ciuem.i Circuit, Wednesday (16) filed a $9.124 000 triple-damage antitrust suit againsi, the eight majors, charging restraint of trade in the metropolitan area through preferred licensing agreements with the Locw's and RKO chains. He specifically chirged that the companies set up and maintained a fixed pattern of distribution has prevented his New Amsterdam Theatre in the Times Square area from getting pictures first run as soon as they have been available after de luxe Broadway engagements. LISTS QUALIFICATIONS The suit was filed on behalf of Anco Enterprises, Inc., owner of the New Amsterdam; Anwell Amusement Corp., which leased and operated the house between 1947 and February 1949, and Ancore Amusement Corp., present operator. Cohen asserted that the New Amsterdam is a cosmopolitan house that serves patrons from all parts of New York City and out of town. He asserted there was no substantial competition between the New Amsterdam and neighborhood theatres and that it was qualified to show films first run. Between 1937 and May 3, 1948. Cohen said, the defendants conspired to license pictures to the New Amsterdam on subsequent runs after first run RKO and Loew's engagements. But when the Supreme Court upheld certain trade practice bans of the antitrust decree May 3, 1948, certain changes took place. In June of that year RKO, 20th-Fox. Warners and U-I licensed films to the theatres day and date with about 31 RKO first run theatres, but refu.sed to permit competitive, theatre-by-theatre negotiation for these pictures immediately after Broadway. RUN IS WITHDRAWN In November 1948, the distributors on the "Loew's split"—MGM, Paramount, Columbia and U-I gave the New Am.sterdam a day-anddate run with seven top Loew's theatres. In March 1949 this run was withdrawn and the New Amsterdam had to play the films one day after two top Loew's theatres and dayand-date with 31 other circuit houses. Cohen also declared that the distributors have continued to make circuit deals withi Loew's and RKO, instead of theatre-by-the-| atre pacts, and that the chains pay rentabi circuit receipts, instead on the basis of gross of on individual theatre earnings. They also sell to RKO for a flat sum, he charged. He asked the court to stop these practices and to order the defendants to enter into competitive, theatre-by-theatre negotiation foi product as soon as it is available after th< Broadway rtm. 'All Kincr's Men' Tops Review Board's List NEW YORK—"All the King's Men" (Col received the top rating of the National Boari of Review for the week ending November 12 Three features were put into the selectei features classifications—"Challenge to LaSi sie" (MGM), "Mrs. Mike" (UA) and "Th Story of Molly X" (U-I). 10 BoxorncE November 19, 19^
22l CENTURY- FOX'S CHRISTMAS GIFT TO EXHIBITORS ALL OVER THE LAND ! ! 273,649,624 PEOPLE WILL BE rRE-SOLD THAT YOUR HOLIDAY PICTURE -BOOK IT NOW'
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