Independent Exhibitors Film Bulletin (Sep 1935 - Aug 1936)

WEDNESDAY, JANUARY 29. 1936 3 Golder Investigation May Probe Every Phase of Industry and Bring Criminal Indictments By MO WAX From an unimpeachable source, FILM BULLETIN learned today (Wednesday) that Federal Judge George A. Welsh, of the U. S. District Court of Eastern Pennsylvania, will designate Attorney Benjamin M. Golder special investigator of the block booking system specifically and other phases of the motion picture industry generally. This move is preliminary to the calling of a Federal Grand Jury investigation for the purpose of finding whether there are grounds for a criminal conspiracy action against the major film companies. Judge Welsh, who heard the double feature case and whose decision charging six major film distributors with conspiracy to violate the anti-trust laws, was recently sustained by the U. S. Circuit Court of Appeals, has been delving for the past year into the various practices employed by the film companies and he has apparently come to the conclusion that there is some basis for making a thorough investigation. Before taking definite legal action, however, he has chosen to ask Golder to assemble evidence upon which he may proceed to call a Grand Jury. NO SUBPOENA POWER The attorney's position will be quasi-official and he will have no subpoena power. However, it is understood that Judge Welsh has assured Golder that if he should encounter difficulty from any source to which he goes for data his powers will be so enlarged as to enable him to command the production of any evidence he desires. There will be no remuneration and Golder will bear the expenses himself. The investigation, while principally supposed to concern the features and effects of block booking and blind selling, will probably extend to every phase and branch of the film industry. Preferred playing time, activities of the major producers in the theatre field, terms of the standard film contracts, these are a few of the matters which might be brought within the scope of the investigation. Golder, it is believed, will have the consent of the Court to cover as much territory as he deems necessary. GRAND JURY TO INDICT The Federal Grand Jury, if the Court finds it advisable to present the evidence to it, may bring in a true bill and indict the Benjamin Martin Goldlr individuals and companies alleged to be implicated in a conspiracy. Such a criminal action might touch some of the highest figures in the film industry and affect the largest producing-distributing organizations. Judge Welsh is understood to have become interested in the problems of the industry during the hearing of the double feature case. At that time he repeatedly injected the question of block booking into his questioning from the bench. He is interested not only from the economic viewpoint, as it affects theatre owners, but also from the social angle, as it affects the public. GOLDER A FIGHTER Mr. Golder, who prosecuted the Perelman dual bill case and won what is believed to be the first conspiracy case against the film companies, is known as an aggressive, able fighter. He became active in film business affairs for the first time through his connection with the Perelman case. He has gained a thorough knowledge of the industry and is regarded as the logical man to conduct an investigation of this type. Golder is leaving for a month's vacation at the end of this week and he will assume his duty immediately upon his return. GOV'T TO COOPERATE It was learned positively that the Department of Justice have knowledge of the developments and it is believed likely that Golder will be rendered every possible assistance by the Attorney General's office. In fact, it is not remote to assume that the Department has been in touch with the situation and actually prompted or suggested the action. Civic and church bodies are understood to have urged Judge Welsh to take some steps to break down the block booking system and attendant film industry evils and the jurist is said to have consulted with numerous theatremen to learn the practical problems facing the independent exhibitors in their dealings with the major film companies.