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B-178205 1 (1974-06-21)

handle is hein.gao/gaobabkoa0001 and id is 1 raw text is: RE57PCTED - Ne to be reeared OrdjtWie th G~eneral .. ~ ~ MIUG - fsim ~& Gi-1AL. -AC 9 4TA4 -OFF1 GENERAL GOVERNMENT R5 DIVISIONRELEASED B-178205 JUN 2 11974 The Honorable William HI. H-udnut, III House of Representatives Dear Mr. Hudnut: On March 11, 1974, you transmitted to us a letter from Mr. Trueman T. Rembusch, Chairman, Trade Practice Conmmittee, Theatre O-wners of Indiana. Mr. Rembusch's letter referred to our February 14, 1974, report to you. You requested comments or information we may have on Mr. Rembusch's letter. On March 28, 1974, we met with Mr. Rembusch and discussed complaints filed with the I nternal rvce._P ) concerning alleged viola- tions aL__heo June la, throuh-jug st 12, 1973, Special Price Freeze. One complaint concerned Warner Brothers Distributing Corporation, and the other concerned Twentieth Century-Fo:: Film Conporation. We also discussed a complaint- possibly filed concerning Pa unt Pictures and its pricing of the movie, The Godfather. The complaint ag,,inst Warner Brothers ,-s filed with the Indianap- olis, IRS distric office and transferred to the Cincinnc:i IRS district office. The coplaint against T,;enticih Century-Fox was filed with the Des Moines IRS district office. The possible complaint against Paramount Pictures was reportedly filed with the Los Angeles IRS district office. On February 15, 1974, IRS forwarded to the Cost of Living Council (CLC) information on its investigation of the alleged violation by Warner Prothers. IRS asked CLC to determine whether motion picture -distributors were subject to the Special Price Freeze and whether each motion picture theater was considered a separate class of purchaser. On April 5, 1974, CLC ruled affirmatively on both questions and subse- quently transmitted this ruling to IRS. On April 18, 1974, IRS issued a remedial order to Warner Brothers for an alleged violation of the Special Price Freeze regulations. An IRS official said that on April 29, 1974, Warner Brothers had requested a conference for rebutting the remedial order. ~6Qc{AS 9 I o7 j

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