Boxoffice (Oct-Dec 1939)

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INTENSITY GOVT SCHINE SUIT BOMBARDMENT INDICATES IT NDMBER ONE TRADE ACTION Four in East Ask New Trust Suits New York-Four independent exhibitors in this territory have approached Paul Williams, assistant to the attorney general, asking him to start criminal action against the majors, according to department of justice sources. Williams is stalling all of them until the Schine case upstate is disposed of in the near future. Berkley W. Henderson, formerly in charge of the anti-trust department here and transferred to Washington about two weeks ago, has been assigned the prosecution of the Schine case. No Endeavors to Settle Goldwyn Release Move New York — No effort is being made to settle the action by Samuel Goldwyn against UA for a termination of his contract, Charles Schwartz of Schwartz & Frohlich, law firm representing a number of UA owners, states. He adds, “We want to determine the issue once and for all.” Questioned about Goldwyn releasing ‘‘Raffles” through UA, Schwartz commented the producer still has a contract with the company and the picture naturally goes through UA. Murray SUverstone, UA head, prior to his departure for the coast, stated his trip had nothing to do with the Goldwyn action. Says Wartime Conditions Wont Relax Trust Reins Gearhart, Ore, — Reiterating his previously announced stand that the government does not intend to relax on antitrust prosecutions, Thurman W. Arnold, in charge of the anti-trust division under Attorney General Frank Murphy, told members of the Oregon Bar Ass’n, at a meeting here, that “wartime trade conditions are no excuse for ignoring the antitrust laws, but present a challenge intensifying need for their enforcement.” May See Better Chance To Prove Investment Of Public Interest By BILL ORNSTEIN New York — Shifting its line of attack, the department of justice is directing all its guns and fire on the Schine case in Buffalo, having reportedly moved this antitrust suit up to the number one bracket, insofar as the industry is concerned. Because of the wealth of material gathered by Seymour Krieger, FBI investigator, who spent many weeks in the upstate territory interviewing independent and Allied exhibitors, the general feeling in department of justice headquarters is that the Schine case looms as the best in which to test the department’s theories concerning public interest. It is believed in distributor quarters the department is basing its various film cases on the Munn vs. Illinois (the state) case decided in 1860 by the supreme court, which held granaries we?3 affected by public interest. There are some attorneys who hold the government is comparing the industry with railroads which have allied interests in the colliery region. In this instance, and despite their ownership of coal mines, railroads must buy fuel from lowest bidders. In refuting the department, film counsel turns back to the Tyson case decided about three years ago by the supreme court. The ruling stated the theatre business is not affected by public interests and therefore not subject to regulation by the state, according to attorneys. That the “Big Stick” is seeking to have film companies sell their products to highest competitive bidders in each community is not denied by film counsel. In the event the department wins this point in the Schine case, theatre divorcement will automatically follow, it is believed in department offices here. If this objective is not achieved in the upstate New York suit, the government will next concentrate on the Griffith case in Oklahoma City, according to reports. Meanwhile, Frederick H. Wood of Cra "Minority" Lawyer May Join Gov't Forces New York — Latest reports from informed sources indicate that a certain attorney, who has been active of late in filing minority stockholders actions against at least three major companies and now working on another, may join the department of justice for the prosecution of the all-industry suit. The lawyer is NOT Emil K. Ellis, but one of the men who worked with him during the Loew minority stockholders’ suit. The counselor is understood to have made a number of trips to Washington in an effort to clinch the job. So far it is no dice. Part of Griffith Counsel Retires From Trust Suit Oklahoma City — Keaton, Wills and Johnston have withdrawn as counsel for the Griffith circuit in the “Big Stick” anti-trust suit pending in federal court. Henry Griffing, formerly of the legal firm mentioned, now is handling the case for the circuit defendants. However, Keaton, Wills and Johnston continue to represent other interests identified as defendants. vath, de Gersdorff, Swaine & Wood, is representing the Schines. About four years ago, he was chief counsel for Warner in the St. Louis anti-trust suit. He also represented the plaintiff in the famous Schechter poultry case challenging the constitutionality of NRA, which subsequently resulted in its demise. He likewise represented the oU industry in a famous law case some years ago. Although he had a cold. Wood spoke for two and a half hours opposing Krieger’s motion for a temporary injunction earlier in the week. Krieger had the floor for about an hour. The array of counsel at the hearing included Robert W. Perkins, general counsel, and his assistant, Howard I. Levinson, of Warner; John Caskey and Willis Newcomb of Dwight, Harris, Caskey & Koegel, for 20th-Fox; Louis Phillips, Paramount home office counsel; Willard S. McKay, New York counsel for Schine; Irving Moross, Columbia home office attorney; Edward C. Raftery of O’Brien, Driscoll & Raftery for UA; John Lord O’Brian, representing five major distributors; John Howley of Donovan, Leisure, Newton & Lumbard for RKO. Christian Borgland came on from Washington to assist Krieger. After the Buffalo arguments, Raftery left for Chicago and from there headed for the coast for preliminary hearings on the government charges against FWC for alleged (Continued on page 14) After the Hearing Was Over Buffalo — The relief distributor attorneys felt after the preliminary Schine hearings was very much apparent in their answers to inquiring reporters. One newsman asked what happens now? A lawyer answered: “The government has a week in which to file briefs and we have a week after that in which to answer." Then what? the lawyer was asked. “Then the government prays." And to another reporter inquiring about the affidavits filed, a lawyer said: “The affidavits give the distributors a legal opportunity to swear." BOXOFFICE ; : October 7, 1939 11