Independent Exhibitors Film Bulletin (Sep 1934 - Aug 1935)

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TUESDAY, JANUARY 15th, 1935 3 EXHIBS SEEK NATION-WIDE FILM PROBE ST. LOUIS INDICTMENTS OF WARNERS, PARAMOUNT, RKO, JUST BEGINS DRIVE TO BREAK IRON RULE OF BIG EIGHT Authoritative Sources in Washington Say Hollywood Is to Be Scene of Further Government Attack SOME EXHIBS FEAR POLITICS MAY BLOCK ACTION It has apparently required the strength of the United States Government, an irresistible foe when it chooses to be, to strike the first stunning blow at the outrageous monopoly of the Eight Major film producers. By indicting three of the Big Eight, their subsidiaries and six of their leading officials, the Department of Justice has flicked away the first stone from under the top-heavy mountain of control exercised by the producers. Whether the removal of that one stone from the base of the mountain will precipitate the avalanche hoped for by the independent exhibitors remains to be seen, but, for the moment, the little theatre owners are optimistic that the landslide will come and the industry will be levelled down to more equitable proportions. Warner Bros. Pictures, Inc., their film and theatre subsidiaries, Paramount Pictures Distributing Corporation and RKO Distributing Corporation, together with Harry M. Warner, Herman Starr, president of First National; Abel Cary Thomas, secretary of Warners; Gradwell Sears, Western sales manager of Warners; Ned E. Depinet, president of RKO, and George J. Schaefer, vice-president of Paramount, were all declared guilty of conspiracy to violate the Sherman Anti-Trust Law by a Federal Grand Jury in St. Louis last Friday. Suit Brought by Independent The suit was instituted upon the petition of Allen L. Snyder, the independent operator of St. Louis' three largest theatres. He had acquired these houses from the owners of the properties after Warners had dropped them upon being refused a reduction in rent. When Snyder tried to buy first-run pictures he found that his status as an independent in opposition to Warners precluded him from major film product. Over the period of a few years he collected evidence on the "freezing out" tactics of Warners and the others and then presented his case to the Federal authorities. Having had their ear to the ground and heard the rumblings of discontent and ire emanating from independent theatre owners' organizations recently, the Department of Justice sensed this as an opportune moment to smash into the film overlords. In Philadelphia, less than two months ago, Federal Judge George A. Welsh heard some amazing statements from the lips of producer executives. denying that they knew they were violating a court order by prohibiting the playing of double features with their pictures. The conduct of the Code Authority of the Motion Picture Industry raised an odor that caused independent exhibitors throughout the country to hold their noses and shout for Federal relief. Bit by bit, the theatre owners, who have been the oppressed underdogs in the film business, gained courage to fight back. Organizations of independents appeared in many sections of the country. They demanded that something be done to lift the burdens placed on their theatres by the Big Eight. And the Government could not fail to heed those demands. The St. Louis indictments are the result. "Conspiracy," "Coercion" Charged The lengthy indictment accuses the three companies and their executives of engaging "in a conspiracy in restraint of trade and commerce." It charges that they "endeavored to intimidate, coerce and compel" the owners of the three theatres to transfer them to Warner Bros. The indictment further states that the defendants "threatened" Snyder that they would buy up all the films and thereby prevent him from obtaining any first-runs. They sought to discourage the owners of the properties from leasing them to the plaintiff by speaking disparagingly of his reputation and ability. Simply, they employed every available means of forestalling his assuming the houses and, after he had them, they attempted to, and succeeded in, damaging his business. Other Suits Expected With the St. Louis case awaiting trial within two months, this correspondent has learned that the Federal Government is planning a further action in Los Angeles, the seat of practically all film production. There, the Department of Justice is expected to delve into block booking, blind selling and other vulnerable practices cmployed in the selling end of the business. At the next inquiry it is possible that the Department will remind the producers of several decisions rendered by Federal judges ordering them By BREVITY Dave Barrist, prominent exhibitor leader and premium distributor, leaves Wednesday midnight on the Rotterdam for a fifteen-day sojourn in sunny Mexico. He has been promising himself this vacation for some time. His partner, Charlie Goodwin, mutters something about not missing him, because he sees very little of Dave even when he's in town. And while we're on vacationists, Harry Waxman, who recently secured an injunction against Warners in his Atlantic City fight, hopped off to Bermuda. He had been feeling below par lately. * * * What a vicious practice is that cunning stunt by the producers of switching percentage shows. Warners sell "Sweet Adeline" at 30 per cent. After release they realize it is a lemon, so they merely notify the poor exhibitor that it is no longer a percentage picture — they are substituting another one in the percentage list. The producers play the game only one way — their way. * * * That popular rumor concerning a radical change of policy at Warner's Earle in Philadelphia seems to be spiked by Joe Feldman, who says he knows absolutely nothing about a plan to make it a second run, low admission house. * * * Pop Korson asked us to print his apologies to the ITM for failing to put in his appearance at the Dinner-Dance Sunday evening. Pop declares he was tied up in a business conference in New York. * * * Joe Golden, an extremely capable theatre manager and advertising expert, is looking for a connection. Joe was with Warners for over seven years. Here is a good man for an exhibitor who wants to build up a weak theatre. * J)e ♦ Despite our own somewhat squiffy condition at the ITM affair Sunday evening, this collyum does seem to recollect, vividly, too, the following impressions : Morris Gerson's urge to dance with Evan Burrows Fontaine. Oscar Neufeld in a most (er) jovial mood. Ray O'Rourke, Morris Perlmann, of Metropolitan, and Ken Haynes, of Quality, also feeling a bit squiffy. Joe Price blushing like a kid when that master of ceremonies kidded him. That make-shift orchestra of young managers playing like a seasoned outfit. >, The mystery of Herman Margulies' missing ■ knishe. And last, but far from least, the swellegant floor show provided by Jack Lynch. (Continued on Page Four) to cease certain practices, which they have promptly ignored. The prohibition of dual bills is one such instance. Exhibitors Fear Politics The one factor worrying independent exhibitors is the possibility that political pressure may be brought to bear on the Administration to desist. These theatre owners see in the actions by the Government their only tangible hope of breaking the iron rule of the producers' monopoly. Gradually being crushed and driven out of business, the "little fellows" regard Uncle Sam as their "white hope" in their struggle against the over whelming power wielded by the Big 8.