NEW THEATRES

Taranaki Daily News, 14 April 1932, Page 4

NEW THEATRES

REASON FOR REGULATIONS. MINISTER EXPLAINS. Wellington, April 13. "The regulations are the outcome of undesirable tactics which are ‘being adopted by certain theatre combines to the detriment of independent theatres,” the Minister of Industries and Commerce, Hon. R. Masters, said yesterday, when referring to the regulations recently issued under the Board of Trade Act, limiting the issue of licenses for theatres where the erection of additional theatres would be likely to result in an unreasonable economic waste. The Minister said that certain*theatre combines were extending their . operations by unfair methods, and if they were allowed to continue there would be few, if any, independent theatres left. One of their methods was to approach an independent theatre, and under threat of increasing competition by the erection of another theatre, demand 50 per cent, of the profits, without putting one penny into the business. If the independent theatre did not fall into line they also threatened to withhold films which this theatre would rent in the ordinary course of events.' ■Should both these tactics fail, the combines would then build a new theatre, in spite of the fact the the locality is already adequately served. “No one with a spark of fair play would sanction methods such as these,” said Mr. Masters, “and the Government is determined that they shall be stamped out. Healthy competition has always been encouraged, but there is a case in which we must step in to protect legitimate enterprise against undesirable depredations.”