The Exhibitor (Nov 1939-May 1940)

“Victor Herbert”, “Destry” Lead Parade on Broadway Seek to Narrow Down Testimony in Film Case Judge Makes Move During Baltimore Hearing Baltimore — Highlight of the opening testimony in the anti-trust action filed by the local Westway against Durkee interests and distributors last week was the endeavor on the part of Federal Judge W. Calvin Chestnut to speed up the proceedings. Plaintiff in the case is the Westway Theatre. Inc. Suit is directed against seven major film producers, the Lyndhurst Corporation, owners of the Edgewood and against Frank H. Durkee, C. Elmer Nolte, Sr.. Walter Pacy and Harry Reddish. Other defendants named in the suit included Warner Brothers, United Artists, 2'lth Century-Fox, Paramount, Columbia, Metro, and Universal. Claiming that such contracts constitute unlawful combinations in restraint of trade under the Sherman anti-trust act, the plaintiff asked Judge Chestnut to issue an injunction declaring the contract illegal, and restraining the defendants from continuing to require a 14-day “clearance” between the time the pictures are shown at the Edgewood and at the Westway. First witness to be called was Leo H. Homand, vice-president, Westway Theatre, Inc. Homand told the court that he had refused to sign a contract with one of the major film producing firms, the contract containing a 14-day clearance clause, because such action, he said, would place his theatre the Westway, into the category of third-class theatres. Attorney Charles Page, representing the defense, told the court that contracts calling for clearance were customary between film producers and exhibitors, and do not operate in restraint of trade. Since the start of the film industry as a major enterprise, he said, it has been the usual thing for established theares to protect their interests in their own territory under such contracts. Judge Chestnut said: “It is very plain to me that your clients [the clients of the defense attorneys] have asked the distributors not to sell pictures to the witness [Leo H. Homand, Westway Theatre] until 14 days after they have been shown at the Edgewood. I understand your position is that the 14-day period is not a stringent restriction of trade. The question of law to be argued is whether the restraint was illegal.” Judge Chestnut interrupted the cross Schenck-LaGuardia Meet on Studio Plans Mayor Confers with MetroGoldwyn-Mayer Head New York City — Nicholas M. Schenck, president of Metro-Goldwyn-Mayer and Loew’s, Inc., conferred last week end with Mayor LaGuardia on the latter’s plan to increase production. It was learned that Schenck explained to the mayor that his company had a $20,000,000 studio investment in Hollywood and did not see how it could make pictures in New York at this time. The mayor’s program to induce motion picture producers to make some of their pictures here is being pushed by the city’s new Department of Commerce, which is headed by Clendenin J. Ryan, Jr. Ryan resigned as a Deputy Commissioner of Sanitation to take full charge of the department, staffed by employees drafted from other departments. The department occupies offices at Rockefeller Center. New York Allied Meets Buffalo, New York — Report on the fair trade practice formula for New York State will be discussed at a meeting of all state Allied units to be held here today (December 13) . Max A. Cohen, president, is expected to be re-elected. Other officers will also be chosen for the new year. examination of Homand, who had been on the stand for the two days of the hearing, several times in efforts to cut down the amount of testimony that the lawyers sought to present. The first day’s testimony saw Homand on the stand for three hours, under questioning of his counsel. He said, among other things, that his company had invested $47,000 in the theatre’s equipment. He added that this money, plus funds needed to pay a 20 year rental contract, would be lost unless he was afforded relief by the court. Total investment came to about $80,000, he said. He stated that because of contracts made by rival theatre owners, the theatre had to show full government films, grossing thereby as little as $15 a week. A series of letters admitted as evidence by Judge Chesnut revealed, according to plaintiff counsel, refusals to sell Homand houses, motion-pictures and part of buildant distributors. "Elizabeth,” "Alone” Also In Better Grosses New York City — “The Great Victor Herbert” and “Destry Rides Again” were two of the box office leaders on Broadway according to information available to The Exhibitor last week end. “The Private Lives of Elizabeth and Essex” and “We Are Not Alone” also turned in nice business. Following is the complete report, as garnered by The Exhibitor from sources believed to be reliable, of Broadway business of the past week end. “BARRICADE” (20th Century-Fox) — At the Roxy, opened December 8, with stage show, did $18,000 on Friday, Saturday, Sunday, below average. “DESTRY RIDES AGAIN” (Universal) — At the Rivoli, opened November 29, is expected to have done $31,000 on the second week, very good. “THE FROG” (20th Century-Fox) and “WALL STREET COWBOY” (Republic)— At the Central, opened December 11, did $1,200 on Saturday, Sunday, fair. “THE GREAT VICTOR HERBERT” (Paramount) At the Paramount, opened December 6, with Allan Jones, Mary Martin, Johnny Green & Orchestra, Arndut Brothers, Melissa Mason on the stage, did $19,500 on Saturday, Sunday, with an expected $56,000 on the week, very good. ‘THE MILL ON THE FLOSS” (Standard) At the Astor, opened November 14, is estimated to have done $7,000 on the fourth week, good. “MUTINY IN THE BIG HOUSE” (Monogram)— At the Globe, opened December 9, did $3,500 on Saturday^ Sunday, good. “THE PRIVATE LIVES OF ELIZABETH AND ESSEX” (Warners) — At the Strand, opened December 1, with A1 Donahue & His Orchestra and stage ,show, did $19,000 on Friday, Saturday, Sunday of the second week, following $42,000 on the opening stanza, good. “THE SECRET OF DR. KILDARE” (Metro) — At the Capitol, opened December 7, is expected to do $22,500 on the week, fair. “THAT’S RIGHT. YOU’RE WRONG” (RKORadio)— At the Criterion, opened November 29, is estimated to do $6,500 on the second week. fair. “WE ARE NOT ALONE” (Warners)— At Radio City Music Hall, opened November 30, with the stage revue, did $45,000 on Thursday. Friday, Saturday, Sunday of the second week, fair. Flynn Heads Philly Employees Philadelphia — After serving two terms as the organization’s only president, James A. Flynn was elected business agent of the Film Exchange Employees Union, Local No. B-7, at the annual meeting held December 8 at the Broadwood. Succeeding Columbia’s head booker as president is Monogram’s William Z. Porter. The other officers elected were Benjamin Harris, vice-president; Molly Cohen, secretary; Marie House, treasurer; A1 Holmstock, sergeant-at-arms. On the executive board are James Keating and Charles Smith, representing the shipping departments; Peg Fogerty and Victoria VanStory, representing the inspection departments; Tony Blase and William McLaughlin, representing the poster departments; and Bert Bache and Henrietta Weinberg, representing the booking departments. Installation of officers will be held at the Broadwood January 12, the time of the regular monthly meeting. Postpone Loew Luncheon New York City — Luncheon of Loew’s and Metro employees here scheduled for December 22 has been postponed, with announcement of a later date due soon. THE EXHIBITOR December 13, 1939 QUAD.