Boxoffice (Oct-Dec 1939)

18 Ind'pts Prepared To Combal Schines Buffalo — The government will center its chief line of attack in the anti-trust suit against the Schine circuit and majors on 18 affidavits from independent exhibitors in New York state and Ohio, Seymour Krieger, assistant to the attorney general, indicated here in the first round of the arguments before Federal Judge John Knight. Among exhibitors, past and present, and towns already mentioned as playing an important part in the government’s presentation are: Charles Dickenson, Palace, Lockport, N. Y.; John Bahas, Ashland, Ohio; M. Buchman, Star, Delaware, Ohio; M. DeToto, Seneca, Seneca Falls, N. Y.; M. Kessel, Manchester, Ohio; M. Angelas, who had been considering a theatre for Norwalk, Ohio; Fogel and Tishkoff, Murray, Rochester, N. Y., and M. Dipillo, who wanted to build in Geneva, N. Y. Considerable stress by the “Big Stick” is being laid on the buying power of the Schines. “It is the contention of the government that this buying power has been abused,” Krieger informed the court. “It has been abused in taking away pictures from independent exhibitors and it has been abused by forcing independents out of business. It has been abused by compelling distributors to grant Schine certain privileges he couldn’t have gotten if it had not been for the fact that he buys for so many theatres, and so many of those theatres are represented by closed situations where there is only one market, the Schine organization.” The government asserts the circuit has at least 40 closed towns among the 146 theatres operated in 72 situations. Holding that Schine “purchases are made solely and primarily in accord with the legitimate requirements and demands of each theatre as made by the public demand in the community in which they are operated,” Frederick H. Wood, counsel for the circuit, stated, “Whether you call it circuit buying power or whatever you call it, no man can be condemned as a violator of the law who confines his operations to getting supplies necessary for the conduct of his business, even though in doing so, he may make it more difficult for someone else to engage in the same line of business, in the same community.” Wood held Schine is not engaged in interstate commerce, but in a local business. Raiteiy. UA Counsel Is Back From Coast Visit New York — Edward C. Raftery of O’Brien, Driscoll & Raftery, counsel for UA, returned from the coast Friday after stopovers at Chicago, Kansas City, Oklahoma City and Dallas in connection with the various pending anti-trust suits against major companies. Raftery canceled a trip to Indianapolis from Dallas when the Bair action against M-G-M, et ah, was postponed. He had been gone almost three weeks. He also denied the “use of threats, coercion and unethical conduct” on the part of the Schines and contends the case is not within the purview of the Sherman Act. While the government will most likely limit its presentation to the 18 affidavits, it is revealed the defense has more than 50 affidavits signed by sales executives, Schine men and other independents to offer in opposition. "Schine Not Invader;" Says Most of Deals "Solicited" Buffalo — Myer Schine has not been an invader in the towns into which the circuit has spread the past 20 years and, in practically all situations where theatres have been purchased from exhibitors, the deals have been at the solicitation of the seller and without threats, Frederick H. Wood, trial counsel for the Schine circuit in the government suit, held for the record in the pending action. “With only two or three exceptions during the 20 years’ growth of the circuit have the Schines ever gone into a town and rented or built a theatre against exhibitors then operating there,” the lawyer added. “In practically every instance, as appears from Myer Schine’s affidavit, his entrance into another town has been brought about through the purchase of the business or theatre of an exhibitor already there who sold to him voluntarily, without threat, without the exercise of compulsion, and in most instances, or at least in a large proportion of instances, solicited Schine to buy him out because for some reason he wanted to sell. “So Schine has not been an invader. He has been a buyer of the existing business which the man who then owned it wanted to sell without threats or compulsion upon the part of Schine. The circuit expanded by buying theatres of people who wanted to sell theatres.” Film Figures Invade the Law Buffalo — " . . . and in the same two and a half Y®ctrs (Schine) has spent over one-half billion dollars in building new, modem up-to-date theatres in towns where the theatres previously in operation were old and antiquated,” Frederick H. Wood, special counsel defending the circuit in the government suit was telling the court. Other lawyers looked startled. “The government would have Your Honor stop these operations, stop the completion of these theatres in which $500,000,000 has already been spent and $300,000,000 of outstanding commitments because Schine means to open more and operate a number of theatres," Wood persisted. By this time, efforts to flag the attorney were unavailing. It was pretty obvious Wood meant thousands, not millions, but that did not influence one lawyer from observing dryly, "Fred must have been thinking of his fee.” "A-Z" Quiz Answers Face Fourth Delay New York — A fourth postponement for answering the A to Z quiz is expected to be sought by distributors following another stalemate in the discussions with Paul Williams, assistant to the attorney general, on the list of interrogatories to be detailed. • For the past few weeks, Williams and distributor counsel have been holding informal meetings in an effort to get together on what the major companies feel are pertinent questions to the issues involved in the all-industry suit. Williams, however, has his own views on what he wants and is prepared to ask the presiding judge of the motion part to order the defendants to answer. Originally set for October 7, a ten-day respite was given distributors by stipulation because of the amount of work entailed in gathering the data. Several days prior to October 17, another stipulation was agreed upon and the hearing was put over until November 1. With lawyers of the various companies still knee deep in collecting material from all parts of the country, including Hollywood, it is held further time is necessary before most of the information can be secured. From two to three weeks are expected to be asked in the latest move to delay answering the quiz. In distributor quarters it is held the meeting with Williams was very friendly and that he admits some questions asked, in view of the corporate setup of the various companies, are too broad. The session is regarded as an exploratory one. No date has been set for another get-together, but it may be next week. Folly Amusement Reiiles Complaint Against UA New York — Folly Amusement Holding Corp. has refiled its bill of complaint against UA, which was dismissed some time ago by Federal Judge Edward A. Conger. The new suit is different in wordage, but still fails to include UA specifically, beyond charging that all the defendants conspired against it. The plaintiff operates the Folly Theatre in Brooklyn, and seeks damages of $750,000 for alleged violations of the Sherman anti-trust act from all majors. Monogram, Republic, the Randforce Amusement Corp., and several individuals. The Folly also filed a bill of particulars on other defendants, repeating charges made in its complaint. Analyses of Albany Exchange Accounts Extended in Probe Albany — The government suit against the “big eight” in the producing field has led to extended analyses of accounts and preparation of reports by local exchanges. In one of the major branch offices. Paramount, this work started three months ago. At another, 20th Century-Fox, Joe Burke, Bernie Wolff and Morris Brown of the home office, have been on the job. 14 BOXOFFICE ; ; October 21, 1939