Hollywood, waiting tensely for the trip to the operating room, heard the clink of the amputation tools. When the Supreme Court held Hollywood's major studios guilty of violating the antitrust laws (TIME, May 17), it sent the case back to the lower court for a tougher ruling on how the studios should divorce themselves from their theater chains.

Last week the Justice Department proposed that Hollywood's Big Five—Paramount, Loew's Inc. (M-G-M), RKO, Warner Bros., and 20th Century-Fox —be ordered to 1) sell their interest in theater chains they partially control (about 1,400 movie houses) within a year, and 2) submit...

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