Boxoffice (Apr-Jun 1939)

New Film Rein Bill Planned in House Washington — Covering everything from divorce to advertising, legislation dealing with the motion picture industry in a most comprehensive measure is being whipped into' shape for introduction in Congress by Representative Lyle H. Boren <Dem„ Okla.). Declaring himself disgusted with the guerilla warfare which he said has characterized the consideration of motion picture legislation in the past. Congressman Boren explained that his legislation was developed without the aid of any organized interest, either in or outside the industry; is based on economic rather than “cultural” or moral considerations, and constitutes what he believes is necessary to eliminate monopoly and unfair practices and broaden the field for independent operations. Outstanding features of the bill, it was learned, will be: Divorce of exhibition from production. Outlawing of block booking and blind selling. Limitations on prices of pictures sold singly and in blocks. Expansion of cancellation privileges. Elimination of the special privileges now enjoyed by chains. Refusing to reveal the mechanics which he would establish to bring these reforms about. Representative Boren said that it is his desire not only to divorce exhibition but to impose some restriction upon the size of chains so as to give local exhibitors a better competitive position. Eyeing Block Booking With respect to block booking, he said he is considering making block buying also illegal so as to remove any advantages which exhibitors might acquire unfairly through use of the bargaining position which they would secure if the restrictions were upon the distributors only. The blind buying section will provide for a synopsis as part of the contract, much in the manner of the corresponding provisions of the Neely bill, but with the added requirement that where scenes of vice, crime, sex, etc., are involved it must be noted that such scenes appear in the film. In this connection, it was explained, consideration is being given to a provision that the synopsis need not be made a part of the contract in the case of pictures screened for an exhibitor before purchase. Thought also is being given to a possible provision making trailers exploiting coming attractions subject to the laws against unfair and deceptive advertising. In dealing with cancellations, it is Congressman Boren’s belief that rejection privileges should not be contingent upon the number of pictures taken by an exhibitor, but that in handling this matter precautions should be taken to prevent the circumvention of the cancellation privilege or its use as a device to conceal overbuying with the intention of depriving a competitor of product. “A cancellation privilege properly administered will cure many of the evils now existing within the industry,” he said. Cupid Over Miami Miami — This city appears to be a mating ground for Max Fleischer's personnel since he moved his production facilities from New York. Since production of “Gulliver's Travels" got under way there have been at least six marriages and a number of others have filed intentions to wed. One marriage which gained considerable publicity was that of Jack Mercer (Popeye) and Margie Hines (Olive Oyl). Paramount Directorate's Re-election Seems Sure New York — Not a change is expected when Paramount stockholders meet here June 20 to elect directors, who in turn will elect the entire incumbent slate of officers, company spokesmen declare. Stockholders have been asked to re-elect the present roster of 16 directors. In a supplemental proxy statement sent to stockholders, which contains more detailed information than the initial statement as required by SEC rules, the record holdings in Paramount of Hemphill, Noyes & Co., of which Stanton Griffis, executive board chairman, is a special partner, are 4,060 shares of first preferred stock, 7,636 shares of second preferred stock and 66,377 shares of common stock. Holdings of other directors include those of Lehman Bros., of which John Hertz is a partner, are set forth as 100 shares of common held beneficially, 3,300 shares of first preferred, 3,500 shares of second preferred and 8,625 shares of common. The record holdings of Hallgarten & Co., of which Maurice Newton is a partner, are, according to the proxy statement, 279 shares of first preferred, 6,900 shares of second preferred and 25,010 of common. The statement declares the omission in the original proxy statement of holdings for Neil F. Agnew, John W. Hicks jr„ and Adolph Zukor indicates they held no stock in the corporation. Sextet of Distributors And Interstate Sued Montpelier, Vt. — Six distributors, Interstate Theatre Corp., operators of the Star here and its affiliated exhibitors are named defendants in a $125,000 anti-trust suit brought in U. S. district court by Tegu’s Palace in this city. Damages of $100,000 are sought by the Palace and $25,000 by the Gem in Lyndonville. The complaint avers defendants violated the anti-trust laws, alleges restrain of trade and monopoly in exhibition of films in 29 of the 32 New England cities and towns where Interstate controls theatres to the detriment of independent exhibitors. The Palace management also charges that Interstate and defendant distributors entered into a “combination and conspiracy” in an attempt by “threats and coercion” to compel the Palace to close or be turned over to the Rockingham Operating Co., Vergenes and Bellows Falls. Columbia Is Charged With Conspiracy New York — A 21 -page complaint filed in Kings county supreme court by Samuel Shapse, a Columbia stockholder, charges Columbia’s directors and others with negligence, mismanagement, fraudulent conspiracy and waste of corporation funds. Shapse, “on behalf of himself and for the benefit of all other stockholders of Columbia Pictures similarly situated,” names Harry Cohn, Jack Cohn, A. H. Giannini, Leo M. Blancke, Saul Bornstein, Mary Brandt, as executrix of the estate of Joe Brandt, deceased, Abraham Schneider, Dave Fogelson, Charles Schwartz and Marienne Burkan. Plaintiff charges that Harry and Jack Cohn and Giannini fraudulently conspired with other directors to unlawfully extend their stock options for an additional period of three years and four months from March 4, 1934, at which time their options to purchase expired. The complaint declares the voting trust agreement contained no provision giving such voting trustees power or authority to extend the option date of registered nontransferrable stock purchase warrants and that signing of such alleged extension certificates was contrary to the powers vested in the voting trustees. Shapse attacks the weekly salaries of Harry and Jack Cohn and Schneider, listed at $3,500, $2,000 and $1,250, respectively. He alleges individual defendants failed to perform their duties as directors, and on the contrary, “each was so negligent and careless that funds and property of said defendant corporation were mismanaged and wasted and said corporation thereby suffered great loss and the value of stock of the plaintiff was greatly reduced.” Shapse wants the court to set a “fair and reasonable” salary for the Cohns and Schneider, asks that the stock options be cancelled and that the profits received by the Cohns by their exercise of the options be turned over to the corporation. See Orange County Case Delay by Federal Court New York — Unless the federal court trial calendar is considerably reduced within the next week, trial in the Orange County anti-trust action against major distributors will be put off to the fall term. The action is listed as the 42nd case on the trial calendar. Since the federal court recesses late in June for the summer preceding cases will have to be cleared within a week before the Orange action is reached. Major attorneys say this is improbable. Infringement Suit New York — The Optical Development Co. has filed a supreme court action here against Burleigh Brooks, Inc., claiming infringement of a patent developed by them in 1938 as an aid in judging the lighting of scenes to be taken on panchromatic negative film. 26 BOXOFFICE :: June 17, 1939