Boxoffice (Apr-Jun 1939)

Goldwgn Suit Gets Thorough Airing New York — With the shift of the Samuel Goldwyn action against UA to Wilmington federal court, the pros and cons of the controversy are now being aired in the trade press by respective counsel. With the re-filing, Max D. Steuer, his attorney, issued a three-page statement in which the UA producerpartner was pictured as intending the suit to keep the company on a relatively high plane, although desiring the courts to adjudicate his claim that his contract with UA had been breached. Twenty-four hours later, Charles Schwartz, attorney who will defend the action for UA, replied to Steuer. Schwartz revealed the new suit “departs radically” from that originally filed in the supreme court here. Schwartz said Goldwyn has now changed his cause of action, confining the issue solely to seeking cancellation of his current contract. No Old Pact Mention While this was also the main point in the original suit, there was also sought permission for reinstatement of Goldwyn’s old contract with UA. This latter point is not mentioned in the Wilmington action. In fact, the nature of the action caused Schwartz to remark that in his long legal experience he had never seen such a legal paper. “Goldwyn,” he observed, “is asking the courts to tell him if UA has breached its contract. He says the company has. Such being the contention, I would assume he would go to the directors, state his position, and withdraw.” But since Goldwyn has chosen to fight the issue in the courts, UA will fight back “most vigorously and intensely,” Schwartz said. It is Steuer’s opinion Goldwyn’s suit is not designed “to injure or destroy” the company, but “on the contrary, the desire is to keep UA on the high plane on which it was organized.” It is Steuer’s contention UA’s internal management has completely changed its policy from the time it was first organized to distribute pictures made by companies of the first magnitude or by artists of the first rank, “to the detriment of UA and the Goldwyn corporation.” Denied by Schwartz This was denied by Schwartz, who said “the substance of the complaint does not even remotely jibe with this statement,” because “not a word of objection to any change in management policy is contained therein.” The other UA partners apparently have set their course with Goldwyn. Schwartz, speaking for them, said: “Regardless of the outcome of the lawsuit, the other stockholders are determined that at no time will they permit him to have any voice in the management and operation of the company other than that to which he is entitled as a one-fifth owner — no more, no less. The sooner Goldwyn gets that through his head and stops fuming and fussing, the sooner will he have peace of mind.” RKO Associates Tender McCausland a Party New York — About 65 associates and friends turned out at the Hotel Astor Thursday evening to honor A. H. McCausland, trustee’s representative in RKO for the past six years who joins Famous Productions at Universal. Ned E. Depinet presented McCausland with a complete set of golf clubs and initialed bag. Among those who attended were George J. Schaefer, Merlin H. Aylesworth, Nate J. Blumberg, William Mallard, W. H. Clark, S. Barret McCormick, Ed McEvoy, Cresson Smith, H. M. Richey, G. E. Youngman, Malcolm Kingsberg, Fred Meyers, Max Fellerman, Major Leslie E. Thompson, Senator J. H. Walters, Leon Goldberg, O. C. Doering jr., W. J. Merrill, Fred Ullman, Hal Horne, A1 Sindlinger, Frank Donovan, A. A. Shubart and Mike Poller. Wires were received from Phil Reisman, John J. O’Connor, Jules Levy and Andrew Christiansen, Irving Trust Co. official who comes on from the coast next week to take over McCausland’s work pending consummation of RKO’s reorganization. Heads Ad Sales New York — Ed Hollander succeeds Lee Balsly as ad sales manager of 20th-Fox, the latter having resigned to enter exhibition with the R. R. Allison Circuit of Cresson, Pa. — Photo by Cosmo-Sileo Even the Rockefellers — Now that the 6th Avenue “L” is down, anyone interested may learn what the front of the Music Hall looks like. It’s never been seen before, not even by the Rockefellers who built Radio City. That is, unless architects’ sketches are included. A New Clearance Draft in Buffalo Buffalo — A committee report proposing a city-wide clearance revision was submitted to 44 members of the local Allied unit, meeting at the Hotel Statler here. The draft, described as being in “very rough” form, contains the organization’s version of the manner in which pictures could “clear” the local area in 60 days, contrasted to the purported three and a half months’ schedule that obtains at present. After some suggested changes by members, the draft will undergo further revision. It is then planned to hold another session with all independents here seeking full approval before sending the final draft to Allied’s New York headquarters, where Harry G. Kosch, general counsel, will consult with distributors. The committee engaged in the clearance revision proposals consists of Jake Rappaport, J. K. Schuchert and Frank Minor. Clearance conditions existing in Albany and Rochester were described to members by E. Thornton Kelly, executive secretary. Kelly also reported progress in subduing state legislation aimed at theatres. He was given assurance a large delegation would attend the Allied sponsored World’s Fair Convention and Motion Picture Exposition at the Hotel Astor, May 23-24-25, coincidentally with Allied’s convention. Pathe to Rename Seven Directors at Meeting New York — Seven Pathe Film directors are slated to be re-elected at the annual stockholders’ meeting, April 25, here. They are Henry J. Guild, Allan P. Kirby, Robert M. McKinney, Louis Phillips, Charles A. Stone, Kenneth M. Young and Robert R. Young. Election of officers will follow shortly thereafter. O. Henry Briggs is president. In its annual report for 1938, Pathe Him had a net profit of $77,158.36, which includes dividends totaling $245,000 from Du Pont. Operations of Pathe Film itself resulted in a loss of $149,288.29. Nine Demolished , Eight Darkened in Gotham New York — Nine theatres in the local area were demolished since the first of the year and removed from the film map and eight others were darkened during the same period by independent operators. Houses no longer existing are the Circle, Fifth Ave., in Manhattan: Alhambra, New Plaza, Nostrand, Skillman, Sun Ray and Washington, in Brooklyn; Strand, Hasbrouck Heights, N. J. Closed houses include the Bridge, Chaloner, Cinema, Penn Newsreel and Squire, in Manhattan; Lido, Long Beach, L. I.; Cameo, Yonkers; Highlands Auditorium, Highlands, N. J. Erickson in East New York — Clarence Erickson, general manager for Walter Wanger, is here setting up the sales policy on the new season product with United Artists officials. 54 BOXOFFICE :: April 15, 1939