Boxoffice (Apr-Jun 1939)

MAJORS OPPOSING EFFORTS TO TILT HOARDS UNDER ARBITRATION; PARITY WILL BE RULE Anti-Trust Market Is Bullish; 10 Actions Filed Since Jan. 1 Plan for Personnel Setup Advanced at Meeting Of Sales Heads New York — Any attempts to alter the balance of power on local arbitration boards in favor of a particular group will not be countenanced by distributors and, according to a spokesman for the negotiating committee working on the draft, there will be an even distribution of personnel, as stated in Boxoffice for May 6. The confirmation of the first story followed on the heels of a meeting held Monday at the Astor by sales managers and attorneys at which time arbitration and rules for clearance and zoning were discussed. At the all-day session, an attorney for a major company with extensive theatre affiliations proposed a plan whereby major circuits be given the right to designate five of the exhibitors’ panel of 10 in territories where such circuits have a dominant influence. While National Theatres is not necessarily the company which brought up the idea, the proposed plan, for example, would take in areas like Milwaukee, Los Angeles, Kansas City, Denver, Seattle and give the circuit’s divisional operating heads the power to select five theatre men to the exhibitor panel. In territories, such as New York and New England where Loew’s and RKO are dominant, these circuits would have the same prerogative. In Philadelphia, Warners would have the choice of selection. Voted It Down But distributors voted the proposal down and it is now history, the general consensus of opinion being such a plan would defeat the purpose of equal economic division of personnel. Tentative arbitration rules proposed by the distributors’ negotiating committee provide for a general panel of 20 with distributors selecting 10 men and the exhibitor association functioning in the territory the other 10. With only one plan submitted, that of Allied in the middle of February when Abram F. Myers, general counsel, asked for evenly balanced boards drawn from the economic divisions of the industry, no other suggestions have been offered distributors. The committee has been working on its own plan and attempting to combine recommendations made by Allied before finally adopting a workable arbitration system. Rules and regulations for clearance and zoning occupied the main discussions this week. No word has been heard from Milton C. Weisman, attorney for the ITOA, and regarded in some circles as an authority on arbitration, having formulated a plan now in force in the dress industry. However, he will be given ample opportunity (Continued from page 8) tuted an anti-trust action against the major distributors, B&K and the Sam Meyers circuit, asking treble damages without mentioning specific amounts. The plaintiff contends his receipts dropped $1,000 a week when he was forced back a week on the Chicago release schedule. Seeks jury trial. Operates the Stadium, Evanston. Lenrose Amusement Co. of New Jersey, of which S. Robert Putterman and Benjamin Green are president and secretary, respectively, has filed a triple damage suit, asking $150,000 and naming the Hays organization, Columbia, M-G-M, Loew’s, Paramount, UA, Universal, Big U, Warners, Vitagraph, RKO and 20th-Fox. Company formerly operated Plaza, Newark, N. J. Paul Gusdanovic of East Shore Theatre Co., Cleveland, operating the La Salle, petitioned Common Pleas Judge Lee Skeel to enjoin 20th-Fox, M-G-M, Paramount, UA and Universal from violating his clearance rights despite opening of Shore, competitive house. This has been settled amicably. From Dallas comes word of another clearance suit, that of B. R. McLendon, with two houses in Atlanta, Tex., which follow two Paramount-Richards houses in Texarkana by 30 days. With Pat S. Rus to examine the plan for suggestions as soon as the lawyers again put on paper the decisions of the negotiating committee. While delays become necessary because of the intensive work involved, distributors feel that, before another draft is sent out, all phases of it, including arbitration, should be “fool proof” and readily acceptable to exhibitors. Some exhibitors have their own interpretations of the meaning “fool proof” and are willing to work along with distributors, making suggestions for changes as the occasion may arise. Other independent operators are of the opinion that no matter what the concessions they will reflect in ulterior motives on part of the companies granting them. All during the behind-closed-door sessions among distributors, the concessions have been seriously weighed with M-G-M, Warners, Paramount, 20th-Fox and RKO taking one side of the debate and Universal and Columbia the other side. While it has been felt the 20 per cent cancellations would seriously affect the revenue of the two smaller majors, these companies are priming for greater pic ( Continued on page 16) sell, Dallas, as his attoi’ney, McLendon seeks an injunction against majors and at the same time requests the privilege of dating films without regard to outside influence. The government during the last of April filed an anti-trust suit in Oklahoma City listing as defendants the major companies and Griffith Amusement and Consolidated Theatres, claiming restraint of trade. Los Angeles Conspiracy Suit Dismissed by Court Los Angeles — Conspiracy to withhold first run product from the Mission, charged in a suit brought in federal court here by D. Scheinman and Kinema-Mission Corp., against FWC and Lola Gentry, partners in the Gentry, has been dismissed. The plaintiffs charged FWC and its partner with violation of the clearance and zoning regulations. Reports here have it Milton B. Arthur, head of Cabart, and partner with FWC in one or two situations, is planning to file a clearance action against the Skourasoperated circuit here, the allegations involving Cabart houses not affiliated, but in competition to FWC. New Haven Columbia Manager Testifies in Boston Suit Boston — Tim O’Toole, former local Columbia branch manager and now with the company in New Haven in a similar capacity, testified Thursday, along with other major distributor representatives, before Philip Hendrick, U. S. district court master, in the Morse & Rothenberg antitrust suit. George S. Ryan acted as attorney for the plaintiffs and Leonard Picker of the Columbia home office came on for the hearings. The hearings are a consolidation of seven anti-trust suits covering Newburgh and Peekskill, N. Y.; Elizabeth, N. J.; Providence, R. I.; Portsmouth and Nashua, N. H. A special report on each of the situations is being made by the master. Majors Lose Three Motions In Maine Anti-Trust Action Boston — Federal Judge John Peters has denied major distributors and the Graphic circuit the three motions seeking to dismiss the $100,000 anti-trust action, that certain parts of the bill of complaint be stricken out and that George S. Ryan, attorney for the plaintiff, be ordered to file a bill of particulars. Two Maine towns, Bridgton and Millinocket, are involved in the complaint. 10 BOXOFFICE :: May 20, 1939