Boxoffice (Apr-Jun 1939)

Suit of Independent Circuit Impends New York — One anti-trust suit against major distributors was filed in federal court during the week and a second suit is slated to be recorded in the supreme court any day, this one to name a prominent independent circuit in addition to film companies. Both suits, according to distributors, are without reasonable cause. The triple damage action to make the federal court calendar has been instituted by S. Robert Putterman and Benjamin Green, president and secretary of Lenrose Amusement Co., which operated the Plaza, formerly the City, Newark, N. J., approximately four months in 1937. Although the papers do not mention the theatre, Boxoffice learns from the Film Board of Trade that when Putterman and Green took over the City on June 1, 1937, there were no outstanding film contracts, which means the house had been dark for a number of years. Further, the two partners remodeled the City and reopened it about Labor Day, 1937, as the Plaza. The theatre seats 1,100 and during the Lenrose operation charged 10 and 20 cents admission. Operational Changes On January 26, 1938, William C. Hermann, former exchange manager in this territory, took the Plaza and operated under the name of Howard Amusement Co. In less than six months, he gave it up and it was then taken by Harry Kridel in September, 1938, under Frances Amusement Co. Kridel still operates. While Kridel is not involved in the suit, it will be remembered his brother, Moe, a few years back sued Warners on anti-trust charges under the name of the Ledirk Amusement Co., which has the Palace, Orange, N. J. Moe Kridel also operates the Colonial, same city. It is stated by authoritative sources that this action was settled with the pooling of the Palace and Warner’s Embassy, same city. Exchangemen believe that the two brothers do not see eye to eye on business operations and are not linked together in any of their enterprises. Named in the Lenrose action is the Hays organization, Columbia, M-G-M, Loew’s, Paramount, UA, Universal, Big U, Warners, Vitagraph, RKO, and 20th Century-Fox. Damages of $150,000 are sought for “unlawful restraint of trade, and discrimination against himself and other independents, resulting from price fixing and stifling of trade.” Specific Charges Specifically, it is alleged shorts were forced by denying features, if the exhibitor failed to take the shorts, and charging exorbitant prices for shorts. Block booking is another allegation gone into with the statement many unwanted films were forced on the plaintiff, and where pictures were offered individually, it was done at so high a price to make them prohibitive. Among other charges are blind buying, fixing of run and clearance by defendants and granting of first, second and third Would Send Pact To All Theatres New York — Recommendation has been made to distributors by certain exhibitor leaders to send out copies of the completed trade practice draft to every theatre owner. Final revisions of the draft were made Wednesday after a two-day session at the Astor Hotel among sales managers and attorneys for various distributors. FBI Agent Calling On Upstate Trade Albany — Accompanied by E. Thornton Kelly, executive secretary of Allied of New York, Seymour Kreiger, special FBI agent working under Paul Williams, who will prosecute the government’s suit against major distributors, has been visiting numerous exhibitors in the upstate New York territory during the past week. The exhibitors contacted are understood to have registered complaints against major circuits and distributors with Kreiger and Kelly studying the complaints which may be used by the government in its bill of particulars to be furnished to defendants in compliance with Federal Judge William O. Bondy’s recent order. From here, Kreiger and Kelly went to Buffalo and looked into other situations. Kreiger then went on to Boston where Arthur Howard, Allied secretary in New England, is scheduled to escort him on a similar tour. Kelly is due back in New York at his headquarters Monday. Malone, N. Y. — Ralph Pielow, M-G-M Albany branch manager, has been here in an effort to settle differences between Michael Boumansour of the Plaza and the Schine circuit which operates the Malone. Pielow made the visit as one of his first important pieces of business following the annual sales convention in Chicago. All indications point to an anti-trust suit unless clearance and admissions at the Malone are straightened out satisfactorily to Boumansour, an Allied of New York member. It is reported here counsel for Allied has been advised to take immediate action. run privileges to affiliated theatres, together with allegedly unfair clearances. Attorneys for the plaintiffs cite “tribute” paid in score charges, and finally allege the Hays office is controlled and dominated by producers so that the organization fixes contracts and controls Film Boards of Trade in key cities. Although the exhibitor no longer runs the theatre, the complaint ends with a statement the plaintiff has been, and is, unable to obtain pictures of the defendants and that any acts on the part of the latter showing a willingness to negotiate are sham and combined with restrictions and conditions making it impossible to obtain pictures. Ask Allied Leaders To Gotham Meet New York — Col. H. A. Cole, president, and Abram F. Myers, general counsel of national Allied, have been invited to attend the three-day Allied of New York convention at the Astor, May 23-25. The three-day session will take the shape of a motion picture exposition with one day to be set aside for sightseeing at the World’s Fair. The local projectionist situation and a bill pending in Albany for two men in a booth occupied considerable attention at a meeting of Allied of New York at Max A. Cohen’s office. Due to exhibitors being occupied at exchanges and theatres picking up new shows, the attendance was slim. The Albany bill is slated to be voted on Monday with Allied men spending the last few days contacting assemblymen and congressmen in an effort to kill it. Cohen discussed a previous meeting held in Syracuse. At the upstate meeting, it was disclosed the four-feature situation had been eliminated and admissions increased at certain theatres. Several new members joined the upstate unit. About 70 attended the session, including H. M. Richey, exhibitor contact for RKO, who stressed the need for more round table conferences on industry matters and in this way “things will straighten themselves out.” Robert Goldblatt was named Westchester committeeman on the convention. Increases in dues also were discussed with a committee of three named to study the advisability of the move and report back to the convention. MPPDA Committee Maps A Security Program New York — Formation of a committee drawn from the board of the MPPDA to develop a relief and security program for the industry is under way, Will Hays stated after an adjourned board meeting. The group consists of George J. Schaefer, Barney Balaban, and Joseph H. Hazen of Warner. The trio will work with officers of the Motion Picture Relief Fund in Hollywood, made up of Jean Hersholt, Ralph Morgan, and Ralph Block. It is Hays’ belief that, to meet the demands of relief in so wide and varied a field, an exhaustive study of the entire subject must be made. The Motion Picture Relief Fund in 1938 raised $268,266, according to Hays. Raltery-Muller Quiz Is Expected by Wright New York — George Wright, an assistant to Paul Williams, assistant to the attorney general, may conduct the examination of Edward C. Raftery and Harry Muller, UA officers, in the federal court building starting Wednesday morning. The examination is before trial in the government anti-trust suit against major distributors. BOXOFFICE : : April 1, 1939 31