Boxoffice (Apr-Jun 1939)

MAJORS' LEGAL BATTERY IS DRAWING DEFENSE LINES SHARPER IN GOVERNMENT TRUST ACTION May File Particulars Wednesday New York — Sources close to Paul Williams, special assistant attorney general in charge ol the government anti-trust suit against major companies, intimate there is a strong possibility Williams may file a bill of particulars relating to all defendants on his arrival here from Washington, April 5. Williams was to have examined before trial Edward C. Raftery and Harry Muller of UA in connection with the suit, but when Raftery telephoned from Hollywood for a delay, the examination was put over until Wednesday. Raftery has been in Hollywood working on the new contract whereby David O. Selznick continues with UA. Technical Moves Continue To Highlight the Case As Action Prelude New York — Distributor attorneys during the week started actively to prepare their defense of the government’s suit. Although there has been no definite date set for trial, counsel for major companies and additional legal assistance retained from the outside, began mapping out plans for defense action. Meetings again were held at the Hays office and the first of a series of preliminary moves started. Questionnaires sent out some time ago by major circuits and affiliated companies, including distributors, have been returned and checked over in the past few months. The indication is there will be a wide difference on most of the figures alleged in the government’s action. Technical moves continued to highlight the case during the week. Paul Williams, assistant to the attorney general, came in from Washington Monday to examine before trial Edward Raftery, secretary of UA and a member of the distributor’s legal firm, O’Brien, Driscoll & Raftery, and Harry J. Muller, an officer of UA. At the same time, Federal Judge Samuel Mandelbaum signed an order removing former executives and officers of certain defendant companies. Application was made by the government and not protested by the distributing firms. Edwin L. Weisl and George L. Bagnall are new defendants for Paramount with the withdrawal of H. A. Fortington, H. O. King, Charles A. McCulloch and Henry Herzbrun. Paramount News also has been dropped. The company no longer exists, having been merged April 26, 1937, with the parent company of Paramount. On Loew’s, Henry Rogers Winthrop has taken the place of William A. Phillips. On UA. Dr. A. H. Giannini, George J. Schaefer, Loyd Wright, Mary Pickford, Charles Chaplin, Douglas Fairbanks and Samuel Goldwyn have been dropped and in their places now are Charles Schwartz, James Roosevelt, Emanuel Silverstone and Theodore Caruso. With Judge Bondy signing an order, instituted by UA, for the government to furnish a bill of particulars, Williams may do so by Wednesday, but, in any event, he must supply the information at least 30 days before trial. Warner has not yet retained outside counsel and the impression prevails Robert W. Perkins, general counsel, may himself defend the case for the company. It has been reported from time to time, Frederick L. Wood of Cravath, DeGersdorf, Swaine & Wood may fit into the legal defense picture, but so far no action has been taken. Distributor counsel, commenting on preparedness moves under way at the Hays office, state there is no definite indication when the trial may start. It may not get under way until 1940, but at the same time it is felt at least nine months’ preparation is necessary for so important a case, if such a trial is to be held on all the issues complained of by the government. With William Donovan of Donovan, Leisure, Newton and Lumbard generally conceded as the contact man between the government and distributors in connection with the suit, it is held significant he sat in as one of the committee of three distributor representatives with Abram F. Myers, Allied general counsel, on rephrasing the industry trade pact. One attorney over the weekend said the legal committee comprising Donovan, Austin C. Keough, general counsel of Paramount, and Perkins, did not report back to general committee, meeting regularly at the Hays office. The second session with Myers, tentatively scheduled for March 24, was not held. Raftery flew to the coast unexpectedly over the weekend with the result Williams postponed the preliminary examination until April 5. Attorneys who met with Myers have made slight revisions in the trade pact on suggestion from Allied counsel and likewise refused to make other changes. (Continued on page 24) Believe It or Not They're at the One Table — Historic photographically, if for no other reason, is this camera record of Col. H. A. Cole, Allied president, on the extreme left, breaking bread at the same table with Ed Kuykendall, MPTOA president. The place was the Palmer House, Chicago, and the circumstance the recent M-G-M sales convention. In the middle and there’s nothing facetious intended, are Al Lichtman, assistant to Nicholas M. Schenck, president of Loew’s, Inc., and M-G-M, and William F. Rodgers, general sales manager of the distributing company. BOXOFFICE :: April 1, 1939 5