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Henry a Wallace — Part 4
Page 225
225 / 543
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the only party to feel the blow. The Ug
Government was then in the thick 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 Department 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
‘Features produced hy-big movie firms
ay Sent tothelr own organizations |
Film availsbie for nieighharhond showing on terms set by big firs
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
for distribution
"Initial showing in city
‘restricted to one theatre |
controlled by big firms
a First-run house plays
picture as long as it
is profitable
Rental fee & admission price
<\ Set by big distributer
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
everywhere was drawn away to the de-
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“ofthe producer affiliates.
The basic threat to freedom in the in-
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
Coutt is considering a 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 and
unrestricted buyers can ultimately bring
more producers, selective buying and a
better, less expensive product. The
movie business, however, is not noted
for logic; and how this will all end is
anybody’s guess.
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