Boxoffice (Apr-Jun 1939)

Cross-Examinations Nearing End in M&R Suit Hearing Boston — The Morse and Rothenberg anti-trust suit moved into warm weather when federal building sessions before Philip Hendrick, federal court master, were resumed following a two-week hiatus. Tim O’Toole, former Boston branch manager for Columbia and now in New Haven, was to have been summoned for witness, as George S. Ryan prepared to close crossexaminations. Depositions, in the meantime, continue to hold interest. In one, Neil F. Agnew, Paramount sales manager, estimated that approximately 300 Paramount theatres were located in New England. Ryan asked him “if there were any particular business reasons” for the concentration. “No,” stated Agnew. “Do you know whether or not it was done to concentrate in New England for the purpose of getting control of that territory?” “No,” Agnew replied, “I don’t know, I am sure.” Shortly afterwards Ryan asked Agnew if he thought “any of the national distributors could exist and make profit if it were unable to sell to a substantially large number of the theatres controlled by Paramount.” “I don’t think they could make a profit anyway today with those theatres.” “Well, would you say, if they were unable to sell these theatre interests in which Paramount has an interest, that their losses would be greater?” “I think it would be colossal.” Ryan brought up the subject of the Morse & Rothenberg house in Elizabeth, N. J., which is involved in the present suit. “Assuming that the contracts for Elizabeth showed no such restrictions, no exclusive run, and assuming also that Morse & Rothenberg as exhibitors were unable to buy any major pictures, subsequent run, although being willing to take them a year or more late, and operating a theatre for 25-cent admission price, and gave up the theatre; and that a new exhibitor came in, working on substantially the same policy, and is able to buy pictures of practically all the major distributors, including your own company, what is the answer?” The defense objected to the question on the grounds that there was no basis in the evidence for the assumption contained in the query. “Assuming these things are all true,” Agnew stated, “there must be some reason with which I am not familiar for refusing revenue that we would have received from this theatre under these gentlemen’s operation.” Question Joseph Unger Joseph J. Unger, Paramount executive, was queried on the situation in Poughkeepsie, where two of his brothers own and operate the Liberty and Playhouse theatres. Ryan asked Unger if he has ever said that “his reasons for not selling the Rialto (Morse & Rothenberg house) were that it was charging a 15 cent admission against 20 cents in the Playhouse, and that it was a filthy and rundown house, and that they gave away dishes and hardware.” “That’s right,” replied Unger. “And that is what you gave as your reason for refusing to sell that house. That is correct?” “I said yes,” Unger replied shortly. “And your conclusion that the house was filthy and rundown was based upon two inspections which you made in the last year and a half, was it not?” “Oh, no,” stated Unger. “Reports that I got from some of my men.” “Were any of the reports in writing?” asked Ryan. “None that I can recall in writing.” “Was there any reason for these reports to be secret in this case?” “No, no.” “Was there any reason why Paramount should not be willing to put it on record why they refused to sell to these exhibitors?” “I will be very glad to look into the records and I may find some records in writing.” “When you visited the Rialto Theatre,” Ryan continued, “did you find it filthy and rundown?” “I did.” “And did you make a report of that in writing?” “Report to whom?” Unger asked. “To anybody?” “No, I did not.” “You had superiors in your company, did you not?” Ryan demanded. “Yes, but I made no reports to them. It wasn’t an observation I made to determine for the records the type of house it was. It was just a personal observation.” “Now, where was the Rialto Theatre located; on what street?” “I believe it is on the main street. I think it is Main Street.” “How many seats did it have?” Ryan wanted to know. “Well, I didn’t count the number of seats.” “Do you know approximately how many?” inquired Ryan. “I believe from what I have heard, and what I could observe ... I believe the house had 1,200 seats at least.” “And what kind of a front did it have?” “Well, as I remember it, it has a very long lobby. That is all I can say about the front.” “Is there a marquee there?” “Yes, I believe there is.” “Is it in a building by itself,” Ryan asked. “I don’t know,” replied Unger. “Do you know whether or not there are any stores in the same building?” “I have no idea.” “Is it made of brick or of wood?” “I don’t know,” said Unger. “And when you went inside will you de Columbians , En Route and Arrived Metropolitan Photos New Haven and Boston members of the Columbia sales staff give a photographic account of themselves during the cemvention at Atlantic City. Above, New Haven gets ready to embark. T. F. O’Toole, manager, B. J. Lourie and S. Swirsky, salesmen, do the boarding. Below, Boston smiles from the RitzCarlton convention site. The smilers: E. Cohen, S. Simons, A. Barry, T. A. Donahue, J. Wolf (manager) , I. H. Rogovin and H. Olshan. BOXOFFICE :: May 20, 1939 NE 63