Exhibitors Herald and Moving Picture World (Oct-Dec 1928)

October 6, 1928 EXHIBITORS HERALD and MOVING PICTURE WORLD 25 U. S. Opens Trust Suit Against West Coast and 8 Distributors Plot to Exclude Independents From Film Contracts Charged First National Net for Half Year Is $709,000; Increase Is $103,000 (Special to the Herald-World) NEW YORK, Oct. 2.— Net profit of $709,032 by First National and subsidiaries for the six months ending last June 30 are announced by President Irving D. Rossheim. For the same period last year the net was $605,892. The following figures for the half-year periods in both 1927 and 1928 were given by Rossheim : Total operating income (1928) $12,427,135; (1927) $11,786,820; net operating income after royalty expenses, film exhaustion, selling', general and administrative expenses, etc. (1928) $669,512; (1927) $497.690; other income (1928) $160,853; (1927) $185,994; profit after interest federal and state taxes, etc., $709,032; (1927) $605,892. Commenting on the report, Warren C. Boothby, said: "During the six month period we retired $760,000 of 6 per cent purchase money notes, $100,000 of first mortgage 6lA per cent Gold Bonds and also 760 shares of first preferred and 1,000 shares of Second Preferred Class A Stock. The company's surplus for the period showed an increase of $666,719, bringing the total to $7,188,155." Under the new administration of Rossheim and Boothby, both men of wide banking experience, intensive work is being done and great progress is being made in effectively and sanely reducing operating costs and increasing the profitable operation of the distributing and producing units, it was stated. Michigan Exhibitors to Pick Toronto Delegates At Kalamazoo Oct. 8-10 (Special to the Herald-World) DETROIT, Oct. 2.— The MPTO of Michigan goes into action next Monday with a three-days convention at Kalamazoo. H. M. Richey, manager of the organization, has several important matters on the agenda for the meeting. One subject before the convention will be the selecting of delegates to the M P T O A gathering at Toronto October 16 to 18. Three Fires in 2 Weeks To Bring Inspection of All Cleveland Theatres (Special to the Herald-World) CLEVELAND, Oct. 2 — The Cleveland Motion Picture Exhibitors Association has sent out a letter of warning to every exhibitor in town, following three minor fires in the past two weeks. The association is warning theatre men that a rigid inspection of houses will be held soon, and that all basements and projection booths must be especially clean. Injuries Improve (Special to the Herald-World) HILLSBORO, 111., Oct. 2— H. Weinegar of the Grand theatre, has been removed to his home, after being confined to a hospital for two weeks as the result of injuries sustained when he tripped and fell down the stairs of a motorbus in St. Louis. Barred Pictures to Exhibitors Showing Double Features and Giving Premiums, Court Told [Washington Bureau of the Herald-World] WASHINGTON". Oct. 2— Announcement of the filing of suit by the United States Government in the District Court of the Uinted States for the Southern Division of the Southern District of California, charging violation of the antitrust laws against W est Coast Theatres, Inc., and the principal distributors of pictures in that territory, was made Friday by the Department of Justice. Eight Distributors Also Involved The information filed with the court names as defendants West Coast Theatres, Inc., declared to be the operator of approximately 100 out of a total of approximately 300 motion picture theatres in the southern half of California, and also the eight principal distributors of first-class motion pictures in that territory, Paramount Famous Lasky, Metro-Goldwyn-Mayer, First National, Universal, United Artists, Fox Film Corporation, Vitagraph, and Pathe. atre in the exhibition of each such motion "The information alleges," the Department of Justice stated, "that West Coast Theatres and the distributor defendants engaged in a conspiracy from on or about Julv 27, 1927, to on or about December 31, 1927, to exclude independent exhibitors from contracting for motion picture films to exhibit first or second run or first suburban run in Los Angeles and in other cities and towns in Southern California, to exclude independent exhibitors from contracting for motion picture films to exhibit in competition with exhibitions by the West Coast Theatres, and to exclude from the interstate trade and commerce in motion picture films all independent exhibitors who exhibited two feature pictures on one program or gave gifts or premiums to their theatre patrons, or charged less than ten cents minimum admission. Clearance Schedule Cited "The information then alleges that this conspiracy was carried out by means of a clearance schedule prepared by the West Coast Theatres, which partly by classification of theatres in accordance with admission prices and partly by designations of specific theatres by name fixed the order in which each motion picture theatre in the southern half of California should exhibit any motion picture and the number of day's protection which each prior run motion picture theatre should have over each subsequent run motion picture the picture; that the Los Angeles exchange managers of the defandant distributors agreed with the West Coast Theatres that they would contract to furnish motion picture films to independent exhibitors only in accordance with the provisions of the clearance schedule, and that this agreement was carried out during the time mentioned. Restraint Is Charged "The information also alleges that as the result of this agreement and of the use of the clearance schedule, independent exhibitors were restrained in contracting, with the defendant distributors for motion pictures to exhibit in their theatres; that the defendant distributors were prevented from contracting with independent exhibitors who exhibited two feature pictures at one performance or gave gifts or premiums to their patrons or charged less than ten cents minimum admission; that certain designated motion picture theatres operated by the West Coast Theatres obtained an arbitrary protection over competing theatres operated by independents, and every motion picture theatre ODerated by the West Coast Theatres obtained an arbitrary clearance over every motion picture theatre operated by an independent permitted under the clearance agreement to contract for a subsequent run exhibition of motion pictures." Kidnaping of Union Official Results in Jury Probe of Huge "Ransom Racket" DETROIT, Oct. 2. — The kidnaping of Max Ruben, business agent of the Detroit operators' union, has caused the calling of a grand jury to investigate the entire business of kidnaping for ransom, as practiced by the racketeers of this cty. Ruben was abducted by eight men, who forced their way into his offices two weeks ago and was held prisoner for two days until the gang released him on the promise of his friends not to try to identify the kidnapers. It is believed the kidnapers hoped to obtain a $200,000 fund now in possession of the union. Detectives who investigated the Ruben kidnaping, found that the same band had obtained $14,000 through threatening to kidnap the brother of a bootlegger and that in the last two or three years nearly $500,000 has been paid in ransoms by gamblers and bootleggers here. Ruben already has been called before the grand jury to testify. Two other witnesses also have been called, but police refused to make public their identities on the ground that gangsters would seek to intimidate them if their names were known. After his release Ruben declared he was kept prisoner in a house about five miles from Detroit. He said he did not know any of his captors, who, he said, brought him back to Detroit in an automobile and let him out on a downtown street corner.