Motion Picture Herald (Sep-Oct 1941)

42 MOTION PICTURE HERALD September 2 0, 1941 FIRST SPECIFIC RUN DEMAND FILED BY EXHIBITOR UNDER DECREE RULES Detroit Independent Files Action Under Section X, Raising Problem of Effective Date; Study Application of 90-Day Rule The first arbitration action to demand specific run from the consenting distributors was filed by an independent exhibitor at Detroit Friday under the provisions of Section X of the consent decree, which became operative September 1st. In the initial complaint to the American Arbitration Association specifically aimed at the buying power of circuit combinations Erving A. Moss, operator of the Parkside theatre, Detroit, named each of the Big Five distributors. He charged that, contrary to provisions of Section X of the decree they had denied him product since July 20th on a requested run, and alleged that the run had been sold to two Cooperative Theatres of Michigan houses and one United Detroit circuit house. This was done, the complaint asserts, because of the combined buying pressure of the circuits. Specifically named are the Harmony and Aloma theatres, 1,000-seat key Cooperative houses and the 1,000-seat Rivola. Mr. Moss charges that since July 20th he had demanded in writing, second run after the downtown situations for his 900-seat Parkside on Warren Avenue. Mr. Moss asks equal run. The case is the sixth filed in the Detroit tribunal. [A federal judge in Detroit this week also scored the Michigan Cooperative buying power in a Sherman anti-trust case decision, see page 33.] Question Applicability The demand for abitration under Section X raises a question as to the date on which applications become valid. According to the decree refusal to sell product on the run asked must persist over a three month period. The Detroit arbitrator will have to decide whether the 90 day period of refusal is retroactive or commenced September 1st. If the latter is the case Section X complaints actually cannot be filed until December 1st. The executive offices of the American Arbitration Association at New York indicated that the question involved interpretation of the language of the decree and could be settled only by the arbitrator, as yet unselected, or by the Appeal Board. Section XX of the decree states, however : "The provisions of Section III, of subdivision fa) of Section IV, of Section V, and of Section X of this decree shall have application only with respect to features released in the United States after August 31, 1941." The Detroit tribunal, long inactive, this week cleared its third complaint from the docket in short order with a settlement between all parties to a clearance action inaugurated by the Drayton theatre in Drayton Plains, Mich. The complaint, reported August 23d, named all five consenting distributors and the Butterfield circuit in Pontiac, Mich. Withdrawal was by unanimous consent. Detroit received its fifth arbitration complaint, also on Friday, when Sol Winokur, operating tide Ritz theatre in Watervleit, Mich., filed on clearance against Metro and Warner Brothers. I [e named the Heart theatre in Hartford and ARBITRATION CASES FILED TO DATE The following is a summary of the arbitration cases filed to date: Filed This Week: Detroit — One on Specific Run — One on Clearance New York — One on Clearance Portland — One on Clearance Washington — One on Clearance Chicago — One on Clearance Previously Reported: Clearance . . . 84 Some Run 28 Specific Run 0 Total to September Uth . . . 118 Settled This Week: Detroit — Case No. 3 the Coloma theatre, Coloma, two and five miles, respectively, from Watervleit. The seven day margins they now hold is unreasonable, Mr. Winokur declared, asking for day and date. 2 1st in New York New York received its 21st arbitration action last week when Skouras Theatres, Inc., through Metropolitan Playhouses, its subsidiary, filed a clearance action in behalf of the Ogden theatre, Ogden Avenue and Washington Bridge, the Bronx, naming Paramount and MGM. The complaint charges that the seven day margin of the Mt. Eden theatre, operated by the JJ Theatres Corp., at Mt. Eden and Inwood avenues, is unreasonable. Portland, Ore., received its second case Monday when William Graeper, operating the Egyptian, Portland, filed a clearance complaint against Paramount, RKO, MGM, and the 20th Century-Fox. The Fox West Coast circuit Portland houses are also named. Mr. Graeper charges that the present protection of 91 days is unreasonable and asks for a reduction to 45 days. Washington, D. C, received a seventh case on Monday, a clearance demand from Sam Millets, operator of the Dentonia theatre, in Denton, Md., naming Loews', Inc. Mr. Millets charges that a seven day margin granted by Metro to the Reese theatre, Harrington, Del., is unreasonable. He asks reduction. The two towns are 17 miles apart. New Chicago Case At Chicago a clearance complaint was filed September 11th by the K. & S. Theatre Corporation, operators of the Sheridan theatre, North Chicago, 111., against Warner Brothers and RKO Radio. It is Case No. 7. Complainant states that for a number of years its pictures were booked in the second week of release hut during the past year the defendants had taken away such privilege and granted clearance to the Times theatre, Waukegan, 111., prior to release date given the complainant and granted the Times theatre protection over the Sheridan. The Sheridan asks the same release as previously enjoyed. Following five days of hearings the Portage theatre clearance case was adjourned until Sep tember 29th because of previous commitments made by counsel. In testimony so far Mort D. Goldberg, president of the Portage Theatre Corporation and I executive of the GCS Circuit, who brought the j action, accused the film companies of favoring Balaban & Katz in all selling deals. He said his company had offered the distributors 10 per j cent above any price paid by Balaban & Katz in order to get a run before their Gateway, Belpark and Will Rogers theatres, named in the action. Delay will give attorneys on both sides time to work out stipulations regarding the valuation of properties involved, namely the Portage theatre and Balaban & Katz' Gateway, Belpark and Will Rogers theatres. The Portage management claims film buying I preference based on the priority of the theatre in its territory and says their investment is comparable to any Balaban & Katz theatre named in the dispute. Detroit Hearings on Detroit's first case, complaint of the Booth theatre, Detroit, filed in March and frequently postponed, will be heard October 2d before Jerome Thomas, head of the department of business administration at Wayne University, Julius and Milton London, owners, named Paramount, the DeLuxe, Eastend, Whittier and Michigan Cooperative theatres. Buffalo Michael Catalano, Buffalo attorney, has been selected to arbitrate the clearance action of the Dipson Theatre Corporation's Bailey theatre against the Big Five. The complainant asks that the Bailey get the same clearance it had before it was purchased by the Dipson interests two years ago. Hearings will begin September 22d. Meanwhile the Shea circuit, through subsidiary Buffalo Theatres, Inc., has intervened in behalf of its houses. Shea formerly owned the Bailey. Kansas City Wendell H. Cloud, Kansas City attorney, will arbitrate the board's second case, a clearance action by the Dickinson theatre, in Mission, Kan. No date has been set for hearing. On September 5th the Kansas City Operating Company filed as intervenor in the case in behalf of the Newman, downtown first run theatre. Jerry Zigmond, managing director, asserted the Dickinson demand would affect Newman business. Decision by the Appeal Board on the Westway theatre clearance action, third Washington complaint, expected this week, has been postponed pending the return from holidays of Albert W. Putnam and George W. Alger, members of the board. Discussion of the administration and operation of the motion picture tribunals will occupy a prominent position in "Arbitration in Action," a study of the American Arbitration Association to be published next month by Harpers. Miss Frances Kellor, first vice-president of the AAA, is author of the work. Australian RKO Convention RKO Radio Pictures began its 1941 Australasian Convention in Sydney, Australia on Monday, under the direction of Ralph R. Doyle. The entire Australia and New Zealand sales forces were in attendance. Among the screenings for the delegates were the Samuel Goldwyn production, "The Little Foxes" and "Suspicion," starring Cary Grant and Joan Fontaine. ■-1