New Kodak Developments

Until last week, the millions of amateur photographers who use Eastman Kodak Co.'s Kodachrome and Kodacolor films had no choice about where to have their films developed. They always had to send them to one of nine Eastman Kodak processing plants. Many a photographer complained about the time it took. Independent photo-finishing firms also objected to being frozen out of Eastman's big color-processing business.

Last week in the face of a federal antitrust suit, Eastman's Board Chairman Thomas Hargrave agreed in a consent decree to drop Eastman's pay-in-advance system, which includes the cost of processing in the price of a roll of color film.--Eastman will now sell a 20-exposure roll of 35-mm. Kodachrome for about $1.85, v. the present price of $3.25 including processing. Eastman will charge $1.50 extra to develop the roll, will license independent processors on a royalty basis to use its patents. Eastman also agreed to drop fair-trade pricing on its color films.

The Government charged that such price-fixing was in violation of the Federal fair trade (Miller-Tydings and McGuire) acts.

Actually, Eastman's virtual monopoly of the color film and processing business was a natural outgrowth of its invention of color film. To sell the film--and make sure that the difficult job of developing it was done correctly--Eastman had to set up its own laboratories. In the early stages Eastman offered to license some independent finishing firms to develop the films, but they refused because the process was too complex. Later, when the company introduced Ektachrome color film, outside processors began to develop it.

Now that the door has opened for competitors to enter the Kodachrome and Kodacolor finishing business, some shops thought they could cut 50^ off Eastman's developing charge. With fair-trade restrictions off, cut-rate photo shops expect to cut the price of Kodak color film by 20%.

* Users of 35-mm. color film made by General Aniline & Film Corp.'s Ansco Division, Kodak's smaller rival, are not charged in advance for developing, may send their rolls back to the factory or to an independent finisher.

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