Boxoffice (Apr-Jun 1939)

Warner, Majors Face Suit in Philadelphia Philadelphia — The first of five suits which independent exhibitors are known to be readying against Stanley-Wamer and the majors reached the filing stage last week. The owners of the Landis, Vineland, N. J., filed charges of violation of the antitrust laws and anti-price-discrimination law in U. S. District Court. Unusual feature of the suit is that the Mayor of Vineland, John C. Gittone the two borough commissioners, the chairman of the Landis township committee and four committeemen are co-complainants. They explain their participation by asserting the unfair practices of the two Warner theatres in the town are harmful to the community. Similar strategy was followed by Harry Fried, Seville, who got the Bryn Mawr Businessmen’s Ass’n to back him. His suit has been postponed until September. Named as defendants are Warner Bros. Pictures, Inc.; Warner Bros. Circuit Management; Warner Bros. Theatres, Inc., of New Jersey; Warner Bros. Theatres, Inc., of Delaware; Vitagraph, Inc.; Paramount Pictures, Inc.; Paramount Pictures Distributing Co., Inc.; RKO Pictures, Inc.; 20th Century-Fox Film Corp.; Columbia Pictures, Universal Film Exchanges, Inc., and United Artists Corp. Although Eugene Mori is usually named as the owner of the house, actually he is only one of about 100 stockholders, all business men of the community. That probably explains the city officials’ participation. The suit, filed by State Senator Harry Shapiro, charges specifically the companies supplied first-runs and “star” attractions to the S-W Grand and Globe, in discrimination against the Landis. Observers said this was the first time the anti-price-discrimination (RobinsonPatman) act has been invoked in a film dispute. Appellate Holds Decision On Plagiarism Award New York — The circuit court of appeals has reserved decision in the two appeals of Edward Sheldon and Margaret Ayer Barnes against the decision of Federal Judge Vincent L. Leibell, awarding them $532,000 for the plagiarism of their play, “Dishonored Lady” in the film, “Letty Lynton” by M-G-M, as well as the defendant’s appeal from the same decision. John W. Davis, for M-G-M, declared the major question involved was whether or not the plaintiffs are entitled to all the profits of the picture or to an apportionment of those profits which would approximate the contribution of the play to the picture. Davis felt $55,000 was an adequate award for the plagiarism. Presiding Justice Learned Hand observed that “it seems to me that the full apportionment is an unreasonable amount.” A IL gl FABIAN, Sam Rosen, his partner, and Sidney Deneau were in town. Fabian is a weekly visitor, but Deneau has seldom been seen around since his transfer from the Albany booking post to New York headquarters. Rosen is not a regular tripper, either. Jack Bellman, eastern district sales manager for Republic, at the local offices for several days . . . Auditor John O’Connell was also in from New York; after a checkup, he went to Republic’s Detroit branch . . . Morris Schulman opened the Gaiety at Inlet, Adirondack Mountain resort town. He usually operates it part time during June and September, full time in July and August. Schulman closed his Clarks Mills theatre, the Club, for repairs. Leon Herman, United Artists salesman in this territory for sometime, is now peddling RKO product for Manager Bernard Kranze. He succeeded Louis Benson . . . Henry Frieder and Henry Grossmayi are operating the Star, Hudson, weekends, and the Warren and Community full time. It had been reported they would shutter the Star for the summer, if contracted product could be absorbed in the other two theatres. Walter Reade has a pool with the pair in Hudson . . . Ralph Landsnaen resigned as assistant booker at Metro. A Brooklynite, he had been in M-G-M’s Indianapolis and Cleveland exchanges before the Albany spot . . . Ben Straus, for Predicts Seiilemeni of Film Tax Trouble Washington — Income tax difficulties of a half dozen taxpayers, three of them 20th Century-Fox officers — Joseph M. Schenck, William Goetz and Darryl F. Zanuck — arising out of transactions incident to the merger of the two companies, are expected to be straightened out in the near future. Discussing the matter at a press conference June 15, Attorney General Frank Murphy said a final hearing had been held two days previously before Assistant Attorney General James W. Morris, in charge of the tax division, and was now analyzing the testimony with a view to preparing a report and recommendations in the near future. Department officials identified only three of the six persons involved in the case, explaining the other three had not been represented by counsel at the hearing and “for that and other reasons” it had been decided to withhold their identity. It was said, however, one of the three was a former treasury employe. The attorney general explained he “appeared briefly” at the hearing before Morris “to explain the government’s position and policy in matters of this kind — that if any of the facts disclose a case that justifies criminal action, of course nothing can prevent such a case going ahead, but if it is not such a case we will be frank to say so.” 16 years manager of the Palace, Saratoga Springs, until its sale by D. J. Harrington to William E. Benton, was on Filmrow. Looking for another connection . . . Al Bothner, rated a smart exploitation manager, has transferred affiliations from Abe Stone’s Eagle, Albany, to Harry Heilman’s Palace, Troy. Heilman recently took over the latter theatre from the Rosenthal estate, for whom Bothner worked before he came to Albany. Roger Marmon remains at the Troy house. Conery’s Delmar theatre closed for the summer. Sunday shows are not shown in this Albany suburb . . . Copake Theatre in Craryville, Catskill Mountain town, is playing pictures Wednesday and Saturday, according to reports. Rivoli, Troy, is operating on a four-day schedule. Sam Fein manages the theatre . . . Mrs. Van Buren’s theatre in Cairo is now running full time . . . Apparently, the report that the Bradley Opera House, Fort Edward, had closed for the summer, was erroneous. An exchangeman says that product was booked through June; theatre may shutter in July. House usually is darkened during the warm months. Fort Edward is close to Glens Falls and Hudson Falls, where chain theatres are first run. Lou Fisher is Opera House operator. The Palace, Fort Covington, and the Colonial, Waddington, reported closed, have been playing one-day independent pictures booked out of Buffalo, it is said here. Incidentally, Fort Covington Amusement Co., Inc., Fort Covington, has been dissolved. Papers filed with the secretary of state by Attorney Elihu Chase . . . George Thornton, Saugerties and Tannersville exhibitor, on Filmrow. Ditto Alan Jones, Conery circuit booker. Moe Grassgreen, 20 th-Fox branch manager, is a handball player. Totem Lodge in Averill Park is his summer spot for the game . . . Paul Richrath, Grand National’s new manager, doing plenty of traveling. Bankruptcy Releree Orders Compromise in Fox Suit Atlantic City — The suit against AllContinental Corp. to recapture alleged assets of William Fox has been ordered dropped by Allen B. Endicott jr., federal bankruptcy referee. Endicott ordered acceptance of a $600,000 compromise, recently increased from $500,000, offered by Fox’s wife and daughter, owners of the corporation. His order is in the name of the government, but is subject to approval by Federal Judge Avis in Camden, then to any appeals by dissatisfied creditors. Hiram W. Steelman of Atlantic City, trustee of the bankrupt estate, started the recapture suit more than two years ago on behalf of creditors, charging that AllContinental Corp. was the other self of Fox and was designed to defraud creditors. Grainger Quits "U" Hollywood — Producer Edmund Grainger has quit Universal after a six-year affiliation. BOXOFFICE :: June 17, 1939 30-G