The Film Daily (1939)

m&% DAILY Thursday, July 6, 1939 BLOCKS SETTING DATE FOR EQUITY TRIAL (Continued from Page 1) return from Washington in about two weeks to take the question up again with Knox, at which time, in all likelihood, the former will ask for a preferred position for the suit which would enable it to be reached in October. If Williams cannot obtain trial at that time due to overcrowded calendar conditions in Federal Court, it is learned that a probable alternative will be the requesting of a trial hearing before a statutory court of three judges. If this move is initiated, the Court would appoint a referee to take testimony and report to the Court. Objection raised to the statutory angle is that trial would not receive the publicity which a public hearing brings. The D of J, it is cited by observers, wants the public hearing. The 20-day rule which Judge Knox invoked is known as Rule 8 for the Southern District of New York, and provides that this span of time must elapse after the answers of both plaintiff and defendant are in, and the Clerk has notified the Calendar Commissioner. Since no response has been made by the Government to the requests of Columbia and UA for a further bill of particulars, William's efforts to have trial set were unproductive. Giveaways and Trade Code Before New York Allied (Continued from Page 1) on the Minneapolis national convention, and there has been keen speculation in trade quarters as to whether it will formally endorse the rejection of the Trade Practice Code. There have been ample indications that the New York unit — or a respectable percentage of its members — are critical of national Allied's policy. Max A. Cohen, prexy, will preside. Cohen, Harry Kosch, attorney, and a large delegation of members from the Metropolitan area left New York last night for Syra WEDDING BELLS Pittsburgh — Mort S. England, who with his brother Art handles the distribution of Bank Night and special film subjects in this territory, has announced his recent marriage to Miriam Kean of Philadelphia. Ynez Drubin, daughter of Mabel Drew of the 20th-Fox publicity department, will be married Sunday to Julian D. Shear. Ceremony will be held at the Hotel Franklin Towers, N. Y. City. FILM CODE ANALYZED By LOUIS NIZER EDITOR'S NOTE: THE FILM DAILY today presents the twelfth installment of a comprehensive analysis of the proposed Trade Practice Code (Revision of June 10) by Louis Nizer, member of the law firm of Phillips & Nizer, and authority on the law of screen, stage and radio The analysis is designed to clarify the provisions of the Code in non-legalistic language so as to make them readily understandable to all people in the film industry. In view of the fact that the Distributors Negotiating Committee proposes to make the Code effective for the 1939-40 season, THE FILM DAILY deems Mr. Nizer's interpretive presentation an outstanding, timely service of inestimable value to the trade. Preservation of the daily installments is recommended. Installment No. 12 Findings of Arbitrators: If the arbitrators find overbuying exists, they shall specifically decide the number of pictures which the exhibitor has overbought. Remedy: The exhibitor who is found to be so overbought, shall be given a fourteen day period from the date of the arbitrators' decision, to obtain a release from his contracts of the excess number of pictures. If the exhibitor does not obtain such release, the arbitrators shall make an award apportioning among the distributors whose contracts he has, the number of features to be released by them to the complaining exhibitor. Condition of Award: No award directing the distributors to release pictures to another exhibitor shall be made unless an assurance is given to each distributor that it will receive from the complaining exhibitor for the the pictures released, no lesser price and no less favorable terms than existed in the contract of the overbought exhibitor. Cancellation Modified: Cancellation rights of an exhibitor who has been found to be overbought, shall be computed on the basis of the modified contract. (4) Price, Other Terms and Conditions: Neither price nor other terms and conditions of a proposed contract shall be the subject of arbitration. They are to be determined only by mutual agreement between distributor and exhibitor. XV. AGREEMENT TO ARBITRATE Every one who signs the Code, agrees to arbitrate with anyone else who signs the Code, any dispute which is subject to arbitration under this Code or the Rules of Arbitration which are annexed. Rules of Arbitration: The rules of arbitration annexed to the Code shall be followed in such arbitration procedure. (Thirteenth installment will appear tomorrow). Aaron Jones, J L & S Prexy, on Stand in Contempt Case (Continued from Page 1) contempt case hearing against B & K and the majors before Master in Chancery Eldredge, including J L & 5 efforts to obtain first-run films from Fox, Loew, Warner and other film companies. He said they could not make money, on either McVicker's, State Lake or Wood's Theaters until they made deal with B & K to operate McVicker's on a 50-50 basis. They gave up their lease on the State Lake, when B & K bought the building and sold their Wood's Theater lease to the Essaness Circuit. Attorney Robert Goulding for B 6 K, brought out in his examination of Jones, that he estimated about 200 films annually were available for first-run exhibition. John Jones followed his father on the stand and corroborated most of Aaron Jones' testimony. Robert O'Farrell, secretary-treasurer and counsel for 23 West Randolph Corp., Oriental Theater building owners, told about B & K 50-year lease of the house, when it was opened; how the lease was assigned to the Balaban Investment Corp. with $1,000,000 capital, then it was turned over to Oriental Theater Corp., which defaulted on the lease when a rent reduction was refused; the matter being finally settled by the Oriental Theater Corp. paying $10,000 and assigning all B & K equipment in the theater to the building company. B & K originally leased the Oriental for $324,000 annual rental, Autumn Trials for Both Griffith, Momand Suits? (Continued from Page 1) bill of complaint will be filed within the next two weeks, slightly in advance of the time extension. It is understood that U. S. District Attorney Charles E. Dierker has been meeting independent theater men who have alleged grievances against the Griffith companies. Dierker has stated that his office will do everything within its power to secure speedy action in the case. The Government hopes to be able to start the trial by Fall when the Momand $4,500,000 suits are set to be heard in the other U. S. District court here. Griffith companies, distributors and producers are defendants in the Momand action. which was reduced to $200,000 in 1935. Sam Myers, independent theater owner, estimated about 100 first-run films were available each year and based his estimate of their standing by box office returns. Emil Stern, Essaness prexy, backed up the testimony of Edwin Silverman, his partner, and also told about talks with George Schaefer and others to acquire films for their Loop theater. Robert Goulding and David Levinson, defense attorneys, cross-examined him, trying to ascertain how first-run films were picked. Defense attorneys will cross-examine O'Farrell tomorrow. SEE DOUBLE THREAT TO CIRCUITS IN WIS, (Continued from Page 1) to circuits operating four or more theaters, with the taxation /'"Vale ranging from $4 to $100; acify.iulated tax on gross income would run from $4 to $6.80 per $1,000, with the maximum applicable to a circuit of 800 theaters. Originally, the Omnibus Bill provided for an occupational tax; theater interests eliminated the menace through an amendment, 1-A. Lansing, Mich. — In all probability, there will be no special session of the TVIichigan Legislature to consider finance measures, it was reported yesterday. Don Lee Officials Warn on Questionable Tele Stock West Coast Bureau of THE FILM DAILY Hollywood — Thomas S. Lee and Lewis Allen Weiss, prexy and viceprexy of the Mutual Don Lee Broadcasting System in stating the firm has no stock for sale issued warning to the public against the purchase of "questionable" tele stock. The Don Lee firm, it was stated, is not financially interested in the manufacture, sale or installation of tele receivers. Don Lee tele cameras are being altered into 441-line for use at the new transmitter to be built atop Mt. Lee. Exhibs. From 34 States Visit RKO Radio Lounge Showmen from 34 States have been guests at RKO Radio's lounge, with New York State having the largest representation, 32. Other States with a considerable representation are: Michigan, 16; Texas, 7; Maryland, 7; Illinois, 5; Kansas, 4; Ohio, 4. Twelve foreign countries are represented on the register. Judell's PCC Moves West Coast Bureau of THE FILM DAILY Hollywood — Executive and producing staff of Producers Pictures Corp., recently organized by Ben N. Judell, has moved to 1436 North Beachwood Drive. Negotiations for stories and stars for the 1939-40 program are being concluded. 1,347 Tires as 'Tofee' Orange, N. J. — Moe Kridel, manager of the Colonial, is wondering just how he is going to list one afternoon's "take" in his box office report for the year. There were 1,347 admissions via as many old tires, but they were not turned in through the box-office. The idea served a two-fold purpose. It got a lot of unsafe tires off the highways, and it will finance two weeks' vacation at camp for several boys from the nearby YMCA.