Boxoffice (Oct-Dec 1939)

Schine Suit Moving Into Top Spot (Continued from page 11) violation of a 1930 consent decree. Murray Silverstone’s departure for Hollywood over the weekend is said to be in connection with the action in view of the personal contempt proceedings in which he and a number of UA and other individual defendants are involved. Raftery will stay in Los Angeles for the October 16 hearing, while Silverstone is expected back in a week or so. With October 17 as the new date for answering the department's A to Z quiz on the all-industry suit, distributor attorneys have 10 days extra time to prepare motions to limit the interrogatories to essential and necessary facts. Objections will be heard before a motion judge with briefs expected to be filed later. Wood Argues “Big Stick" Not Entitled to Stay Buffalo — Consuming more than two and one half hours in his argument as attorney for the defendant Schine circuit, Frederick H. Wood contended the department of justice is not entitled to a preliminary injunction in the anti-trust action against Schine and major distributors where the facts are in dispute and doubt exists on a question of law. The injunction sought by the department, which was represented by Seymour Krieger, was designed to enjoin the Schines from acquiring theatres or opening closed houses during pendency of the suit. The hearing was before Judge John T. Knight in federal court. A "New Interpretation" Wood argued that the government’s position in prosecuting the action was a new and revolutionary interpretation of the anti-trust laws which have not been accepted by the courts to date. It was his opinion that the “Big Stick’s” affidavits do not indicate a conspiracy exists and therefore is not entitled to relief. He pressed the point that where the theories of prosecution are new, determination of the case should rest entirely on its merits. For that reason primarily. Wood declared, the government is not entitled to injunctive relief. Krieger, opposing Wood, declared the “Big Stick” has foimd evidences of violations of the anti-trust laws and was entitled to a portion of relief, in that the department is limiting its motion for an injunction to but two items, for the protection of the public. The status quo of the case should be preserved, therefore, he contended. ’The youthful attorney made much of the allegation that, as set forth in the “Big Stick’s” affidavits, pressure of the Schines’ imusual buying power has been instrumental in acquiring theatres, a factor he declared has been abused to the detriment of the public. Following the arguments of Wood and Krieger, Judge Knight heard John Lord O’Brian, representing Paramoimt, Loew’s and Warner, who contended his clients were innocent third parties. Warner Concessions For Canadians Toronto — Warner's policy of making concessions of the code available to domestic exhibitors also is applicable to Canada, it is revealed here. Notice to this effect has gone out to theatre owners over the signature of Gradwell L. Sears, president of Vitagraph. No official statement regarding M-G-M's plans here could be obtained. A representative of Regal Films, which distributes M-G-M in the Dominions, when queried, dismissed the subject with "I don't know." Canadian Concessions Are Up to Nathanson New York — Concessions on M-G-M pictures in Canada are up to N. L. Nathanson, head of Regal Films. According to William F. Rodgers, general sales manager for M-G-M and who has offered numerous advantages of the code to domestic exhibitors, “the policies of distribution affecting M-G-M is governed by Regal Films in Canada.” Rodgers hopes to have the new distribution contract ready in a few days. It has been in the hands of lawyers since he announced the concessions. Only certain clauses will be added such as those dealing with cancellations and yoluntary arbitration. “The other advantages will be given exhibitors without being in the contract and in conformance with our announced policy,” he states. He returned from a week in Chicago after cleaning up several routine matters. Says Allied Killed "Bill of Rights" New York — By “shortsightedness and their refusal to continue negotiations” on the distributors’ proposed trade practice code. Col. H. A. Cole and Abram F. Myers “have swept aside any and all possibility of the independent exhibitor receiving a ‘bill of rights’,” Max A. Cohen, head of Allied of New York charges. Cohen enters the battle arena precipitated by an alleged effort of one of his former lieutenants to split the ranks in the Cohen organization with the assertion that the “cause of the independent exhibitor looks as dismal and black as ever it did in the history of exhibition, and we can lay the blame squarely on the doorstep of Colonel Cole and Commissioner Myers.” Cole and Myers, Cohen adds, “haye filibustered and badgered about, completely disregarding the one all-important fact: Namely, that the independent exhibitor is looking for relief now, not a decade hence.” The Allied of New York president charges national Allied, which expelled the local unit on charges of being out of step with its policies, with attempting to “raid” its membership in a factional dispute sponsored by E. Thornton Kelly, former executive secretary, who is leading a moyement to form another New York organization, from within the ranks of Cohen’s group, to affiliate with the national body. “New York Allied suddenly has become the immediate concern of National Allied,” Cohen states, “and we wonder whether the work of New York Allied has been so great and progressive that the national organization fears New York Allied overshadows it in national importance.” Smiles and Congratulations— Met^op utan P,.ot One of the important things George J. Schaefer, RKO president, on the left, did before entraining for the coast, loas to give Ned E. Depinet, vicepresident in charge of distribution, a new long-term contract. Depinet holds the signed agreement in his hand. He is a veteran of more than 30 years in the industry. 14 BOXOFnCE :: October 7. 1939