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Henry a Wallace — Part 1
Page 199
199 / 228
30
the only party to feel the blow. The US
Government was then in the thide of
its own anti-trust suit against the in-
dustry, and regarded the Goldman case
as a testing ground for its own cam-
paign. The t of Justice hus-
tled into the fray, and a brief was filed
on behalf of the government as “amicus
curiae,” claiming that the public had a
direct interest in the number of first-
run theatres, that it was to the public's
benefit to have as many as possible, and’
that “the District Court’s approval of
the pattern of distribution disclosed...
is a threat to free competition in any
business.”
On August 2, 1945, the Circuit Court
of Appeals reversed the District Court.
After a long delay, the final judgment
was delivered and Goldman was awarded
$375,000, about a quarter of his original
request, on last December 19. Eleven
~ HOW THE FILM DISTRIBUTION. MONOPOLY WORKS =
ihe
eo. el | L@sirerausth
BEES BBEL
initial showing i city
‘restricted to ons theatre
controlled by hig firms
First-ron house plays
picture as fong as @
is profitabis
f hestal fea & admission price
Set by big distributor
|
KEY ARUN -QHCATRE !
eS
NEW REPUBLIC
days later he sued again, this time for
$8.4 million for profits lost at the Er-
langer between the time his first suit
started and the end of 1946. The de-
fendants appealed the original suit back
to the Circuit Court. But the battle was
won.
Six months before the award, how-
ever, the attention of theatre people
everpwhere-was drawn a
cision rendered in the crucial “New
_ York Case” of the government against
the industry. This judgment finally out-
lawed any kind of block booking; for-
bade chain contracts for any pictures;
barred price fixing; opened the picture
market to free competitive bidding; and
forbade the acquisition of new theatres
by any of the producer affiliates.
The basic threat to freedom in the ine
dustry—producer-owned theatre chains
—has not been scotched. But the gov-
ernment is carrying the case to the Su-
preme Court with a request for com
plete divorcement. A final decision will
probably be rendered sometime next
winter.
Anybody’s guess .
s this is being written, the Supreme
Coust is considering 2 motion to stay
the provisions of the decree until it sees
the case. But the producers already are
testing out the competitive-bidding item
and finding to their delight that it yields
more money than ever, during the pres
ent picture scarcity. As a result, inde-
pendent exhibitors all over the land
have set up a howl that the decision
meant to free them is actually going to
destroy them. ,
Goldman is one independent who is
not howling. Having forced his way to
the top of his local heap against terrific
odds, he is getting all the first-run pic
tures he wants and making big profits
on them.
The able Philadelphian has demon-
strated once for all that the big boys
can be licked and that competition is ~
possible. Under the logic of the com- -
petitive system, an open market ind ~
better, less expensive product, The
anybody's guess.
unrestricted buyers can ultimately bring .
more producers, selective buying and a se
movie business, however, is aot noted “. ge 3
for logic; and how this will all end is
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