Boxoffice (Jan-Mar 1941)

Ken Case to Travel Full Arbitration Route The Docket Chicago CASE NO. 1 — Filed February 13. Demand and submission involving some run dispute. E. F. Van Derveer, owner, State Theatre, Morris, 111. With: Loew's, Inc. Named as interested parties: Morris, Times theatres both of Morris, 111. Van Derveer claims Loew's has refused to license second run product for the State. The Morris and Times are operated by the Anderson circuit. CASE NO. 2 — See "Hearings." Hearings CASE NO. 2 — Filed February 18. Demand and submission involving some run (Section VI). Ken Theatre Corp. With: Paramount, 20th-Fox, RKO, B. F. Keith Orpheum Corp., RKO Proctor Corp., RKO Midwest Corp. Theatres involved: Shakespeare, Pix. Named as interested parties: Arthur Schoenstadt, H. Schoenstadt and Sons. Complainant charges the Ken presently is forced to wait 13 weeks after "Loop" showings. He seeks to run the three distributors' product day and date with the Shakespeare and ahead of the Pix, both operated by the Schoenstadts. Arbitrator Charles P. Megan dismissed the complaint, upholding the Schoenstadt contention that the complaint involved run under Section X and not clearance under Section VII. An appeal was filed, the issue now going before the three-member appeal board in New York, composed of Van Vechten Veeder, George W. Alger and Albert W. Putnam. Milwaukee CASE NO. 1 — Filed February 26. Demand and submission involving clearance. Evansville Theatre, Inc., operator of Rex, Evansville, Wis. With: Paramount Film Dist. Corp. Named as interested party: Jeffris, Janesville, Wis. Complaint charges unreasonable protection to the Jeffris and improperly refusing to deliver prints contracted by the Rex until played at the Jeffris. Arbitrator is Thomas P. Whelan. Hearing April 1. CASE NO. 2 — Filed March 12. Demand and submission involving clearance. Lee Macklin, operator of the Grand, New London, Wis. With: Loew's, Inc., Paramount Film Dist. Corp., 20th Century-Fox Film Corp., RKO Radio Pictures, Inc., and Warner Bros. Pictures, Inc. Named as interested parties: Rio and Appleton, Appleton, Wis., Grand and Times, Clintonville, and Waupaca and Palace in Waupaca. Complainant, contending the Grand is 21 miles from Appleton, states he is unable to date pictures until after Appleton, while claiming other theatres in the vicinity are able to date product from the distributors named 30 to 50 days sooner than New London. Macklin seeks same availability as Clintonville and Waupaca. St. Louis CASE NO. 1 — See "Disposals." CASE NO. 2 — Filed March 24. Demand and submission involving clearance. Shirley Theatre Corp., operating the Rialto, Cape Girardeau, Mo. With: RKO. Interested party: Fox Midwest circuit. Complainant charges unreasonable clearance is granted the circuit's Broadway and Orpheum over the Rialto. Disposals CASE NO. 1 — Filed March 11. Demand and submission involving some run. Louis M. Sosna, operator of the Sosna, Mexico, Mo. With: Columbia, 20thFox, Loew's, Inc., Paramount, Republic, RKO, Universal, UA, Vitagraph. Named as interested party: Frisina, Liberty and Rex. Complainant charges distributors named have refused to license 1940-41 product. The complaint has been withdrawn because of its nature which will not bring it a hearing until September. Evansville Case Up For Hearing Apr. 1 Milwaukee — April 1 has been tentatively set for the hearing of Milwaukee’s first arbitration case, according to John L. Loell, head of the local tribunal. The hearing involves a dispute between the Evansville Theatre, Inc., operator of the Rex at Evansville, and Paramount. The Evansville firm charges Paramount with giving unreasonable clearance to the Jeffris in Janesville, and requests that the Jeffris be given no clearance over the Rex. Prof. Thomas P. Whelan of Marquette University has been agreed upon as the arbitrator. Chicago — The first test of the full industry arbitration setup began here Wednesday with formal notice of appeal from the Chicago tribunal decision filed by Alvin Landis, attorney for the Ken Theatre in the action against Paramount, RKO, 20thFox and the Schoenstadt circuit. Arbitrator Charles P. Megan dismissed the Ken complaint on the ground it concerned run and not clearance, the latter problem not subject to arbitration until September 1. The case now goes before the threemember appeal board in New York, composed of Van Vechten Veeder, chairman, and George W. Alger and Albert W. Putnam. These three were appointed by Federal Judge Henry Warren Goddard following the signing of the consent decree. Answering briefs must be filed by all parties concerned within 30 days. In its complaint filed February 18, the Ken asked that it be allowed to show Paramount, RKO and 20th Century-Fox pictures in the second week of Chicago general release co-incidental with the Schoenstadt Circuit’s Shakespeare and ahead of the same circuit’s Pix. The latter house now plays pictures the third week of general release in Chicago. Differ on Issue Involved Attorneys for the Schoenstadt circuit contended that the issue was one of run and not of clearance and as such’ should be filed under Section X of the consent decree. Hearings on Section X will not be heard until after the new selling season starts Sept. 1, 1941. The motion made by the defendants to dismiss the complaint on the grounds that the case involved run and not clearance was granted by the arbitrator. Felix A. Jenkins, secretary and general attorney for 20th Century-Fox, came here from the company’s home offices in New York to represent his company at the hearing. Eli Fink of Spitz & Adcock, Chicago, represented Paramount and RKO. Aaron L. Stein of Rosenberg, Stein & Rosenberg, represented H. Schoenstadt & Sons. Of interest to independent exhibitors is the following point which was brought out at the hearing: the fact that a circuit is involved in the proceedings— in this case the Schoenstadt circuit — has no bearing whatever in the case. Also brought out clearly at the hearing, as was the case in Chicago’s first hearing involving Loew’s, Inc., and the independent State at Morris, 111., was the point that a distributor has a right to choose its customers. In addition to the attorneys, representatives of all contending parties were present, although they had no actual part in the proceedings. Included among those present were Jim Donohue, branch manager, Paramount: Clyde W. Eckhardt, branch manager, 20th Century-Fox; Jack Osserman, branch manager, RKO Radio; Ben Banowitz and John Landis of the Ken Theatre Corp., and Henry and Ar thur Schoenstadt of H. Schoenstadt & Sons. Others who attended the hearing included Russell Winslow, with Stevenson, Jordan & Harrison, management engineers, who was recently appointed a member of the arbitration panel: Sidney Landis, Ken Theatre Corp.; E. T. (Peck) Gomersall, Universal district manager, Chicago; Harry Hamburg and Harold Wirthwein, sales manager and city salesman respectively for Paramount; A. M. Van Dyke, assistant to C. W. Eckhardt; Edward Blackman, Spitz & Adcock; Felix Mendelssohn, M-G-M branch manager, 1926-1938, now Chicago representative of Constance Bennett Cosmetics; and R. A. O’Brien, RKO office manager. Correct Complaint Text In Ken Board Case Chicago — Due to a typographical error, several important lines were omitted from the Ken Theatre Corp. clearance complaint published in the March 8 issue of Boxoffice. The omission occurred in paragraph 1 entitled “Statement of Claim and Relief Sought.” Consequently, the relevant portion is republished this week in full: “Ken Theatre, a corporation and an exhibitor within the meaning of the Consent Decree, claims that the clearance granted to the Shakespeare Theatre by Paramount Pictures, Inc., Paramount Film Distributing Corp., 20th Century-Fox Film Corp., Radio Keith Orpheum Corp., RKO Radio Pictures, Inc., Keith L. B. Orpheum Corp., RKO Proctor Corp., and RKO Midwest Corp. is unreasonable, and that the failure of Paramount Pictures, Inc., Paramount Film Distributing Corp., 20th Century-Fox Film Corp., Radio Keith Orpheum Corp., RKO Radio Pictures, Inc., Keith L. B. Orpheum Corp., RKO Proctor Corp., and RKO Midwest Corp. to grant to the Ken Theatre clearance over the Pix Theatre is unreasonable; and the Ken Theatre asks that the arbitrator shall find that the said clearance granted to the said Shakespeare Theatre by the above named distributors is unreasonable and that the failure of the above named distributors to grant to the Ken Theatre clearance over the Pix Theatre is unreasonable, and that the arbitrator enter an award fixing the clearance between the said Ken Theatre and the Shakespeare Theatre and Pix Theatre.” Weston Seeks Membership East St. Louis, III. — Clyde A. Weston, one-time business agent for Local 143, operators’ union in St. Louis, is seeking a renewal of his membership in the East St. Louis local of the same union. No. 288. At present he is working as a projectionist in the East St. Louis territory under a permit because of his membership in the stagehands union. BOXOFFICE :; March 29, 1941 c 87