Exhibitors Herald and Moving Picture World (Oct-Dec 1928)

December 22. 1928 EXHIBITORS HERALD and MOVING PICTURE WORLD 21 Department of Justice Sues B & K and 1 6 Other Concerns Eastman h Denied Injunction Action in U. S. Court Patent Rights to In Chicago Charges Restraint Methods Called in Violation of Antitrust Laws and Discriminatory Against Independents Seventeen distributors and exhibitors in Illinois, including Balaban & Katz. are named in a petition filed last week with the Federal court in Chicago by the Department of Justice, seeking by injunction to prevent the continuation of distributing methods charged by the Government with being in violation of the antitrust laws and discriminatory against independent exhibitors. The defendants named are the Balaban and Katz Corporation, Lubliner and Trinz, Balaban & Katz Midwest, Great States, Paramount, Metro Goldwyn Mayer, Publix, Universal, United Artists. First National, Fox Film Corporation, Pathe, Yitagraph, Columbia, Educational, F B O and Gotham. Word, "Cinegraph " (Washingttn Bureau of the Herald-World) WASHINGTON, Dec. 18.— Decision of the examiner of trade marks denying the Eastman Kodak Company the privilege of registering the word "cinegraph"' as a trade mark for positive motion picture films has been upheld by M. J. Moore, assistant commissioner of patents. The ground on which registration was refused is that it is descriptive of the goods, indicating that they are films for motion pictures or cineographs, and that "cinegraph" is substantially a phonetic spelling of "cineograph" as commonly pronounced. In appealing from the decision, Eastman contended that the words are not identical, that the definition given in the dictionaries is not of a film but of projected images as visible on a screen, that the word "cineograph," although found in the dictionaries, has never been more than a suggested word, and even should the commissioner consider it as having once been a word in use it is now obsolete. "I am of the opinion that the decision of the examiner is without error," the assistant commissioner declared in his ruling, "that the word 'cinegraph' is merely a misspelling of the word 'cineograph' and that the latter word is descriptive of the applicant's merchandise." 24 Phonodlms to Be Installed by Jan. 15; Price Set at $15,000 (Special to the HeraldWorld) NEW YORK, Dec. 18— At least 24 DeForest Phonofilm equipments will have been installed in theatres by the fifteenth of January, according to officials of General Talking Pictures Corporation. Production is being speeded up with shifts working night and day to meet the demands for equipment being made by exhibitors throughout the country. Price of Phonofilm equipment has been set at 55,000, and this equipment will meet the demands of the largest theatres, it is said. Equipment is installed on a ten year leasing plan, with $1,250 as the first payment, the rest to be made in 12 equal payments over a period of two years. The first installation in a theatre here is now being made at the Forum theatre a; 138th street and Brooks avenue; and the Forum presents its first Phonofilm program this week. AMP A to Have Their Own Club Headquarters; Elect Nine New Members (Special to the Herald-World) NEW YORK, Dec. 18.— At a special meeting held at the Paramount Hotel last week, the A M P A made plans to have their own clubroom headquarters in the near future. Special plans are under consideration and a final selection of headquarters will be named very shortly. At this meeting Melville' A. Phillips, Fred Eichorn, Michael L. Simmon, Hank Linet. Charles J. Giegerich, Al Stern, Gavin C. Hawn, Hy Dabb and Morris J. Kandel were elected as members. The Government in its petition sets forth that Balaban & Katz Corporation, directly and through its wholly owned subsidiary', Lubliner & Trinz Theatres, Inc., operates many of the largest and best motion picture theatres in Chicago, and that Great States Theatres, Inc., which is dominated and controlled by B & K operates most of the largest and the best motion picture theatres in many other cities and towns in Illinois. Balaban & Katz Midwest Theatres, Inc., another subsidiary, books motion pictures for the three theatre operating corporations and also for 32 other motion picture theatres operated by other exhibitors. Monopoly Is Charged The other defendants named in the petition are engaged in distributing films through exchanges maintained in Chicago, and together these distributors distribute most of the quality product. "The petition," it was explained in a statement issued by the Department of Justice at Washington, "charges that through long term contracts and agreements and understandings the defendant exhibitors have the right to secure all of the best motion pictures distributed each year by the defendant distributors, and that the independent exhibitors are prevented from securing motion pictures which are suitable for exhibition in first-class theatres. Follows Marks Brothers Suit "The petition also charges that the defendant exhibitors, through their great purchasing power, have caused each defendant distributor to enter into contracts providing for the sequence in which motion picture theatres shall be entitled to exhibit pictures, and providing for arbitrary and unreasonable discrimination against all independent theatre operators in favor of the defendant exhibitors." The suit, filed by George E. Q. Johnson, U. S. district attorney, under instructions of Attorney General John G. Sargent at Washington, follows a similar action brought by Marks Brothers of Chicago. This case will go to trial January 15. Adolph Zukor, president of Paramount, is to appear January 7, before Garrett W. Cotter, federal court commissioner, in New York. Armentrouts Contemplate Suit Charging Restraint Clark Armentrout, owner, and Russell Armentrout, manager, of the K P. theatre in Pittsfield, 111., and the Star theatre in Barry', 111., contemplates filing a suit in the federal court at Springfield against the Great States theatres located in Quincy, 111., also Paramount, First National, Metro-Goldwyn-Mayer and Universal Film Exchange, on charges of restraint of trade. The Pittsfield theatre is located 49 miles and the Barry house 34 miles from Quincy. The Great States organization is asking 24 hours protection over the Armentrout theatres. Due to the fact that many of the pictures being shown by Great States in Quincy are three and four months behind national release date, Armentrout declares, it gives neighboring small towrs time to play these pictures several weeks ahead of Pittsfield and Barry. Clark and Russell Armentrout were in Springfield Saturday conferring with their attorneys. More Data Asked on Walsh's Inquiry Demand (Washington Bureau of the Herald-World) WASHINGTON, Dec. 18.— Additional information will be required of the Department of Justice before the Senate judiciary' committee can take action on Senator Tom Walsh's resolution for an investigation of the department's motion picture activities. 5am Katz Denies Newest Report That Publix Has Bought Control of F & R (Special to the Herald-World) NEW YORK, Dec. 18. — Sam Katz Thursday emphatically denied a new report from Minneapolis that Publix has gained control of the Finkelstein and Ruben chain. "Absolutely nothing to it," Katz declared. It was pointed out further that Publix-controlled theatres in Duluth are operating in competition with F & R theatres there. However. Publix has owned 50 per cent of all F & R theatres in the Twin Cities, five in Minneapolis and six in St. Paul, since the opening of the Minnesota theatre, according to Publix officials. Both Finkelstein and Ruben were in New York last week, but their visit had nothing to do with Publix, it is stated. They were here to attend the conferences on the First National-Warner transactions, in which Finkelstein was given no place on the new board, and Ruben was eliminated from the advisory board.