Boxoffice (Apr-Jun 1939)

Suit by Stockholder Faces Sal Adorno Middletown, Conn. — Charges of “fraud and deceit” are levelled against Salvatore Adorno, owner of the Palace Theatre and other property in Middletown, in a lengthy complaint of the Middlesex Theatre, Inc., which owns the Middlesex Theatre, and Franklyn Arrigoni, a stockholder, against Salvatore and Maria Adorno, returnable to the superior court for Middlesex county on June 6. Plaintiffs seek damages in the amount of $169,000; that the defendants be ordered to account and pay over to Middletown Theatres, Inc. (an affiliated corporation dissolved in 1936) or its stockholders according to their interest therein, all sums received by the defendants as a result of their connection and interest in Middletown Enterprises, Inc., from May 29, 1933 to the present; and that the defendants be permanently restrained and enjoined from erecting two currently-proposed theatres in Middletown during the term of the lease expiring June 15, 1948, or from any connection directly or indirectly with any amusement enterprise competing with the Capitol, Palace and Middlesex Theatres. Adorno had announced his intention to build an open-air theatre for operation this summer, and a 1,000seat all-year house for September opening, one on property at Main and College Streets, former Adorno theatre site, and the other on land south of the Middlesex Theatre. Traced From 1932 to 1939 The complaint recites the history of the three Middletown houses from 1932 until the sale in March, 1939, to Morris Pouzzner of Boston of the capital stock of Middletown Enterprises, Inc., lessee, the latter corporation being at the time in the hands of an equity receiver who had been ordered to sell the assets. The receivership action was withdrawn after the private sale of the capital stock. It is stated that until September 1, 1932, the three houses operated individually and in competition with each other. On August 8, 1932 the properties were leased to Middletown Theatres, Inc., of which Adorno become treasurer and general manager. The lease contained the restrictive clause that “none of the principal stockholders or individual owners of the three theatres shall have any connection with any competing amusement enterprise in Middletown for the term of this lease.” It is then alleged that from September, 1932 to May, 1933, Adorno operated at a loss “with intent to defraud the other stockholders,” . . . and “with the ultimate purpose of forcing the other stockholders to give up their interest in the operation of the theatres.” The writ then alleges that Adorno urged the stockholders to lease to Arthur Lockwood, because of his experience in theatre management, although other higher offers were received. The stockholders did not know of these other offers, it is alleged, until April 27, 1937, nor did Lockwood know that Adorno withheld from these stockholders the information that he, BOXOFFICE : : May 27, 1939 NE Adorno, was to be half-owner of the lease. On May 29, 1933, the new lease was entered into and signed by Salvatore Adorno for the lessor and by Arthur H. Lockwood, as secretary and treasurer of Middletown Enterprises, Inc., a new corporation. The new lease did not actually contain the restrictive clause of the former lease against participation in other amusements, but the writ states that “it was the understanding and agreement of the plaintiffs that this restrictive clause should be included” and further alleges that the fact it was left out was, “fradulently concealed by Adorno.” From this time on until July 22, 1938, it is alleged that Adorno “continuously hounded, argued with, insulted and upon at least one occasion assaulted Lockwood, with the object of making the association intolerable for said Lockwood.” As a result, it is claimed, Lockwood applied for appointment of receiver of Middletown Enterprises, Inc., and a receiver was appointed on July 22, 1938. It is further alleged that before and after the transfer of the stock of Middletown Enterprises, Inc., to the present operator, Adorno had plans for the construction of new theatres and “openly declared that he was going to put Middletown Enterprises out of business by competing with it and would then take over the management of all Middletown houses himself.” On April 3, 1939, Adorno applied for and received permits to build theatres from the department of public works. On June 25, 1936, the corporation, Middletown Theatres, Inc., was legislated out of existence for failure to file annual reports. M&R Case Resumes In Boston May 31 Boston — Suspension of hearings following a week devoted to study of Columbia documents by George S. Ryan, plaintiff attorney, gave participants in the Morse & Rothenberg anti-trust suit against major interests a respite to May 31. No hearings were held this week. Tim O’Toole, in town several days, returned to his duties as Columbia branch manager in New Haven. O’Toole, who formerly held a similar position in Boston, is expected to be called again as perhaps the concluding witness from major distributor ranks. Ryan was forced to bed briefly with a recurrence of the grippe. Double Bike New Dual Boston — Frank Lydon, one of the theatre owners who has gone for the new bicycle promotion being offered by James Kennedy, Joseph Schmuck, and Ernest Warren, had a suggestion to make. It is for a tandem bike to tie in with present double-feature and double-giveaway trend. Bingo Has Approval; Denied to Theatres Hartford — The Coles Bingo bill. S. B. 277, incorporating the revisions that exclude commercial and theatre operation of the game, leaving it a church and fraternal monopoly, was passed by the house and returned in its amended form for a new senate vote. Further plaguing the industry, which had hoped to bolster alarmingly declining grosses with Bingo, is a new theatre tax proposal that was expected to appear in the legislature at press time. Last week the Republican majority in the house tabled the measure until now when the revisions could be and were included. The first bills introduced in this session limited the Bingo operation to “charitable” organizations. Later, the “Coles bill,” unfavorably reported by the judiciary committee, was sent back with revisions which would permit all types of operators, but imposed local option and annual renewal of the local option and license with local authorities, and limited prizes to $250 in merchandise at any Bingo session. This substitute bill emerged from the judiciary committee with a favorable report. The senate further inserted the clause, “the governing board of each muncipality shall have the power to make such reasonable rules and regulations concerning the conduct of the game of Bingo as it may deem necessary,” before passing the bill. Division Among Churches Meantime the Catholic clergy in the state offered evidence of its organized support of Bingo legalization by sending over 100 letters to the governor. Uniform text of the letters stated “ . . . much gambling of a truly sordid and injurious nature is prevented by allowing the churches to continue as they have for many years to conduct games of chance . . . The theatre interests oppose us as they want everything derived from entertainment for themselves . . .” Before the house had considered the bill, Bishop Frederick G. Budlong, head of the Protestant Episcopal Church in Connecticut took a strong stand against the game before the annual diocesan convention in Hartford, speaking against licensed gambling in any form and expressing “chagrin that churches are specifically included among those to whom permission may be granted.” The following day, Baptist churches of the state in convention in the Capitol City, asked the legislature to defeat the legalization of Bingo. New Welansky Company For Bowdoin Square Boston — Ben Welansky has formed the Bowdoin Amusement Co., Inc., to operate the Bowdoin Square which he recently took over to lift his Boston Theatre holdings to a quintet ranking. Fellow incorporators are Benjamin M. Stein, circuit manager, and Katherine F. Welch. The concern is capitalized for $10,000. 95