Motion Picture Daily (Apr-Jun 1940)

4 Motion Picture Daily Friday, June 7, 1940 Pearson and Chadwick Are First on Stand (Continued from page 1) Interstate case since the conspiracy was "continuous." Judge Goddard ordered Frohlich to file a formal application for dismissal for consideration later. Government complainants were either "egoists who are mad because the industry did not follow their wishes and left them behind" or "small men with grievances, seeking to get direct advantages for themselves," Proskauer declared. Elimination of block booking would place producers at the mrecy of theatre owners in small towns where only one theatre existed, he said. Acquired Circuit for Sound W arners entered the theatre business in 1928 to exploit sound pictures after the company had pioneered in the development of sound, Proskauer told the court. The Stanley Circuit in Philadelphia was purchased by Warners because the company was faced with the alternatives of entering exhibition or "of being relegated to an inferior position." Proskauer argued that a study of the sources of stars would definitely prove that "there could not possibly be a monopoly." Of the 66 players under contract with Warners in 1931, only three are still with the company, he said, "because all the others were hired away by competitors." In discussing distribution Proskauer challenged the Government "to produce one word of testimony that there ever has been a denial of distribution facilities to an independent picture with box-office appeal." As proof that the Government had overemphasized loans of talent between producers, Proskauer stated that Warners in the past four years had borrowed from other majors in only four instances. In the same four years Warners loaned 13 major players to independents, he added. Cites Exhibition Figures Taking up charges of monopoly in exhibition, Proskauer pointed out that the number of independent theatres in the past five years had increased 34 per cent. Of the estimated 19,000 theatres in the United States, Warners has 537, the five majors combined 2,400, unaffiliated circuits 4,000 and "utterly independent owners" 12,000, he continued. No conspiracy can be made out of th° purchase and sale of product by the five producer-exhibitors, Proskauer asserted. In 1939, he said, Loew's expended only 2.2 per cent of its total film payments for Warner product while the latter paid 21.3 per cent of its expenditures to Loew's. The theatre patron has profited greatly under the present situation in the industry, Proskauer declared. Although the average cost of a producing a film rose from $261,000 in 1933 to $445,000 in 1938, the average cost to the patron was reduced from 37 cents to 30 cents, he stated. Bertram Shipman, attorney for the Chase National Bank, spoke briefly, contending that the bank could not have participated in a conspiracy. Canadian Theatres Cut Premier Clips Toronto, June 6. — Because of criticism of Canadian Prime Minister Mackenzie King over Canada's war effort and demonstrations in theatres when his picture has been seen in newsreels, many circuits and unaffiliated theatres have deleted clips in which the Premier appears. Chairman O. J. Silverthorne of the Ontario Censor Board has been informed. Warner Urges Ban On 'Fifth Column' (Continued from page 1) he made an announcement that no member of an un-American group would work for the company and then he added: "If any person like those reprehensible foreign doctrines so well let him go back there. If he has not the money, tell him to come in to see me. I would rather use my money to send those persons back than to send 20 ambulances over there, as I did today." Warner _ urged enactment of a law that all citizens of the U. S. working for an enemy country have their citizenship revoked and be deported to the country of which they are employes. Jack L. Warner opened the session. Another speaker was Robert E. Schless, Warners' European manager. All Board Members Of Du Pont Reelected Wilmington, June 6. — Directors of the DuPont Film Manufacturing Corp. were reelected at the annual stockholders' meeting here today. They are : T. C. Davis, A. B. Echols, H. C. Haskell, J. J. Moosmann, G. A. Scanlan, N. I. Steers and Robert R. Young. The majority of the stock of DuPont Film is owned by E. I. DuPont De Nemours & Co. A substantial interest is owned by Pathe Film Corp. By virtue of the cumulative voting provision the DuPont company elected Echols, Haskell, Moosmann, Steers and Scanlan and Pathe Film elected Davis and Young. (Continued from page 1) ing the vacancy caused by the resignation of John P. Nick of St. Louis. Fleeted to the board of trustees were: William C. Scanlan, Lynn, Mass. ; R. E. Morris, Mobile, and George W. Brayfield, Denver. The convention unanimously adopted a resolution affirming the I. A.'s belief in the "honesty and integrity of William Bioff." Resolutions referred to the incoming eral excutive board included the following: that I. A. support be given sound men in their basic agreements involving wage scales, hours and working conditions ; to clarify Section Col. to Release Five Top Summer Films (Continued from page 1) sales meeting in session at the Blackstone Hotel here today. The five films are : "Arizona," produced and directed by Wesley Ruggles, starring Jean Arthur and William Holden; "Howards of Virginia," produced and directed by Frank Lloyd, with Cary Grant ; "He Stayed for Breakfast," directed by Alexander Hall, starring Loretta Young and Melvyn Douglas ; "It Happened in Paris," directed by Charles Vidor, with Brian Aherne and Rita Hayworth, and "Before I Die," to be produced and directed by Ben Hecht, starring Douglas Fairbanks, Jr. Montague left for New York tonight to prepare for the company's second sales meeting, starting Tuesday at Atlantic City. Other home office executives will leave tomorrow. Award Winners Announced Rube Jackter, assistant sales manager, made known the awards winners in the Montague 15th anniversary sales drive, for the Central, Midwest and Western divisions. Awards to branch managers for contract liquidations during the 12week drive went to : C. D. Hill, St. Louis, Central division ; Phil Dunas, Chicago, Midwest division, and W. C. Ball, Los Angeles, Western division. Awards to managers, salesmen, office managers and bookers for sales and liquidations during July 1, 1939, to May 10, 1940: Omaha, J. H. Jacobs, manager, and E. Dunas, F. Horn, J. Zide, R. Adler; Los Angeles, W. C. Ball, manager, and H. Wineberg, S. Fisher, H. M. Lentz, N. Newman, J. DeCosta, L. Beckner ; Des Moines, M. H. Evidon, manager, and M. Goodman, A. B. Leak, O. Miller ; Chicago, Phil Dunas, manager, and F. J. Flaherty, T. Greenwood, I. S. Joseph, C. Phillips, M. Delano, H. Couston ; Minneapolis, H. J. Chapman, manager, and A. L. Aved, D. H. Conley, I. Marks, M. E. Mazur, M. W. Sgutt, W. Evidon, B. Landy ; St. Louis, C. D. Hill, manager, and J. Bradford, C. S. Ferris, L. A. LaPlante, Russell Mortenson, H. J. Buschmann. Awards on shorts and serials liquidations and personal awards to bookers: St. Louis, Russell Mortenson and Herbert Buschmann ; Omaha, Robert Adler: Des Moines, Orville Miller. 10, Paragraph B of the by-laws because of the present "confusion" in Southern California ; for local unions to insist that I. A. emblems be displayed on all equipment and film within their jurisdiction, props, miniatures, etc. ; to amend the constitution to clarify the jurisdictional classifications for sound technicians ; a constitutional provision to charter locals of motion picture cameramen, to issue full charters to costumers, grips, affiliated craftsmen, studio set technicians, laborers, makeup artists, hair .stylists and body makeup women ; to put full I. A. strength behind the Canadian membership to combat further inroads being made by dual organizations. Key City Price Boost Urged By Skouras (Continued from page 1 J are vitally necessary in the present critical situation, Skouras said. The inability of Hollywood to supply quality pictures in sufficient member to insure profitable theati/ en'o>eration has forced exhibitors vL ise duals, giveaways, games and other means of box-office stimulus, Skouras said. Expressing his own opinion, he said, "I abhor duals." He described the use of giveaways as "disgraceful," but defended their use. Citing the value of the 1938 campaign stressing the slogan, "Motion pictures are your best entertainment," Skouras suggested the establishment of a committee of advertising department heads to devise some method of driving the present "lethargy" out of the business. He warned that the companies face a critical situation which may "put them into the red." Paying tribute to the constructive effort of the trade papers in the development of the industry, Skouras urged that they assist now in avoiding distrust and discontent among industry branches. Noting that public interest is the industry's "greatest asset," the executive declared that the efforts of the advertising and publicity men were i largely responsible for it, and, through their ingenuity, for the growth of the industry to the status and respect it has attained. He declared the practice of local pre-release showings to be of excellent value in stimulating public interest in a picture, but he cautioned against the indiscriminate use of the practice on pictures that do not merit such attention. Stage shows were forced out of the country's film houses by prohibitive labor costs, he said. Skouras was introduced by Charles E. McCarthy, advertising and publicity director of 20th Century-Fox. He was preceded by Charles Coburn, actor, who stressed the need of Summer theatres as a training ground for stage and screen talent. 'Heaven' at Advanced Prices at RKO Houses All RKO circuit houses which play Warners' "All This and Heaven, Too" will show the film at advanced prices. The scale will be 55 cents and 75 cents for unreserved seats during the day, and 75 cents and $1.10 for reserved seats at night. Warners' field exploitation representatives met at the home office yesterday with RKO Theatres men to discuss plans for the roadshow engagements. Charles Einfeld, director of Warner advertising and publicity, and Mort Blumenstock, advertising and publicity head in the East, conducted the session. RKO men present were : Harry Mandel, advertising director for New York theatres; Mort Singer, Singer Circuit, Chicago; Tom Gorman, division manager, Chicago ; and Victor Meyer, Southern division manager, New Orleans. Showing Free Films Pickerington, O., June 6. — Free outdoor pictures are being shown on the high school campus each Saturday night, sponsored by merchants. LA. Will Demand Only Its Members Project Pictures