The Film Daily (1936)

Tuesday, Jan. 7, 1936 —&&« DAILY DELAY IS DENIED; ST. LOUIS TRIAL ON (Continued from Page 1) the issues involved had been disposed of when a jury in the criminal conspiracy case brought in a verdict of not guilty to all defendants on Nov. 11, last. Government counsel through Walter L. Rice, special assistant U. S. attorney, took the opposite view and cited numerous court decisions to support its position that in the criminal case the government had to prove guilty beyond a reasonable doubt while in the new proceedings the legal burden is only that of the preponderance of evidence. Rice denied that the issues in the cases are identical or that such issues have finally been decided. Arguments for the defense were led by former U. S. Senator James A. Reed for Warners, George S. Leisure for RKO and William R. Gentry for Paramount. The defense swung its legal position particularly on the case of Coffey vs~. the U. S., while the government is relying upon three major rulings by the U. S. Supreme Court. Judge Molyneaux indicated that he probably would hand down a ruL ing on this question sometime today, and advised counsel that in making up his mind he would take full judicial notice of the indictment, transcript and acquittal in the criminal case. When the court convened in Division No. 3 of the Federal <"<Mirt here at 10 A.M. the defense through Senator Reed asked for a continuance until Thursday or Friday because of the illness of Frederick H. Wood, who is recovering from an attack of influenza. This request was objected to by government counsel on the grounds that the alleged victims of the conspiracy are suffering great financial los« every day that the suit remains undisposed of. Judge Molvneaux decided that the case could oroceed in the absence of Wood bv taking "P some matters in which his presence in court is not so vital^ such as the arguments on the point of res adjudicata, opening statements and some preliminary testU mony. However, he said that when the case reached a point wher^ Wood's assistance might be highly important and he was not present the court would then postpone fur^ ther action until the latter part of the week. The fact Judge Molyneaux intends to decide the question of res adjudicata in the absence of Wood may be significant. In this connection, he asked Leisure what may be a very nertinent aue?tion. TTe wanted to know whether the RKO counsel to^k the position that »nv nartv who might have suffered damages through the alleged conspiracy would be barred from proceeding civillv pgainst, the defendants. Leisure said that while the doctrine of res adjudicata would apply as to the government, that noint could not be raised as to a third party. The principal complainant in the case is Fanchon Says Foreign Films Gain in South America As British and German pictures in particular make inroads on the South American tield, American productions are losing out, as they are too talky and therefore less understandable to audiences, declared Benito del Villar, managing director for Paramount in Chile, Peru and Bolivia, in an interview in New York yesterday. He said that Charles Boyer is the most popular star in that section of the world. Del Villar will spend a month in New York before returning to Valparaiso. He soon opens the fourth theater which he personally owns. The house, the Valparaiso in Valparaiso, seats 2,000. Salt Lake City Shorts Salt Lake City — George Allen, former local exhibitor, is back from the northwest and is reported planning to take over the Reelyn Cafe in Film Row. The Empress in Magna, closed for some time, is being remodeled and reopened by Manager George Allen, who also operates the Gem there. G. L. Olsen, operator of the Emery in Emery, Utah, visited film row here last week for the first time in a long period. Manager Maurice Saffle of the M-G-M branch is heading for the territory again after a holiday respite. Gordon Thornberg and 0. C. Hazen, managers of Salt Lake City Service Theater Supply Co., are back from a Pacific Coast trip. Branch Manager E. Kennedy of Sheffield-Republic has returned from Los Angeles, where he spent the holidays. J. T. Sheffield has come :>n from Seattle. Pittsburgh Patter % Marco, operators of the Ambassa1or, Missouri and New Grand Central theaters, who contend that the defendant companies have refused to furnish first run motion pictures for use in the three houses. Harry C. Arthur, Jr., vice-president and general manager for Fanchon & Marco, and Jack Partington, ^resident of that concern, who were the star witnesses for the government in the criminal case, are expected to have similar roles when the taking of testimony begins in these proceedings. That is, of course, if Judge Molyneaux rejects the defense plea that the case has already been disposed of. Arthur, Partington and also Fanchon and Marco are already here prepared to aid in the prosecution. They are among the 30 witnesses who have been subr poenaed by the government. The defense may use a dozen or more witnesses. Government counsel entering their appearance yesterday included Russell Hardy, special assistant attorney general, who will direct the prosecution; Rice, John Claggett, Harold Schilz, William R. Benham and John Herberg. U. S. district attorney Blanton may drop in later. Warner counsel present include Reed, Sam B. Jeffries, Robert W. Perkins and Ralston R. Irvine. Paramount was represented by Gentry and Louis Phillips, chief counsel from New York, and RKO by Leisure, and Jacob M. Lashly. Other defense attorneys will appear later Pittsburgh — The Pitt Theater, which closed Saturday, will reopen in three weeks. Manager Joe Stowell is staying in town to supervise the remodeling work. The future policy of the house will be determined upon the arrival of Louis Rothenberg of the Morse & Rothenberg circuit. Sid Jacobs, former McKeesport City manager for Warners, has been named acting district manager in the West Virginia territory, replacing the ailing Marshall Taylor, who left for the West Coast on a threemonth leave of absence. Louis Fordan came in from Tarentum to take charge of Jacobs' post. Due to the tremendous business last week, the Stanley was forced to stage a special midnight show on Sunday for the first time since it abandoned that policy. The bill, headed by Warnerls "Dangerous" and a Major Bowes unit on the stage, broke a three-year week-end record. Sol Pearlman, local Film Row representative for a lobby display firm, has been named assistant manager of Dave Leff's Bloomfield Theater. in the week, but those named, with Wood, will carry the burden of the defense. A minor amendment made to the original return of RKO in the case was the revelation that instead of selling the General Theatrical Enterprises, Warner subsidiary, RKO pictures for the entire 1935-36 season for use in the Orpheum and Shubert-Rialto theaters here, such pictures are now being leased on a month to month basis. This may be an indication that RKO is considering again taking over a local firstrun theater of its own. At one time that company operated the St. Louis Theater. Reed in his opening statement revealed that Warners will again make the plea that its actions in St. Louis were taken to protect itself against an alleged monopoly of five of the six available first-run houses Perfected by Fanchon & Marco and Harry Koplar. This defense move figured prominently in the criminal proceedings. In reply to this, Rice said that while the government counsel had no desire to limit the proof of any defense that may be legitimately offered by the defendants, they will object to any pleadings that may inject fictitious issues into the case, such as the alleged counter conspiracy by certain parties to control the first run situation in St. Louis, since it is not a material issue. He said that Hardy would present arguments on that point later. EUGENE LEAKE QUITS AS A PARA. TRUSTEE (Continued from Page 1) officers and directors of Paramount, must largely be guided by counsel. In accepting his resignation, Federal Judge Alfred C. Coxe granted Leake's plea that his final accounting as trustee be deferred until it can be included with the accountings of the other trustees. Business Up 10 Per Cent In Indianapolis Territory Business at the box-office in the territory around Indianapolis is approximately 10 per cent better than a year ago, according to the experience of Charles Olsen, who operates a number of houses in that locality. He is now in New York buying film, and plans to remain East several days. Winners Are Announced In RKO Exchange Drive The Parade of Progress, sales and billings contest voluntarily undertaken for the past eleven weeks by the RKO Distributing Corp. sales staff as a tribute to the leadership of their executives, was concluded yesterday, with the announcement by Jules Levy, vice-president and general sales manager, of the winning offices. In the billings contest, the Dallas exchange, managed by Sol Sachs, delivered the highest average. Second was New York, R. S. Wolff, manager; third, Indianapolis, Roy Churchill, manager. The Vancouver office, managed by W. S. Jones, headed the Canadian district offices. The Philadelphia exchange, managed by F. L. McNamee, turned in the highest average for sales possibilities during special sales drive, The Boston office, R. C. Cropper manager, turned in the second highest average; with the New Yorl exchange, managed by R. S. Wolff third. The Winnipeg exchange managed by Mark Plottel, turned in th( third highest sales average for th' Canadian offices. Agreement is Reported On Natl Theater Sal( West Coast Bureau of THE FILM DAIL1 Hollywood — An agreement is reported to have been reached in the deal under which the Chase banking interests are selling their holding: in National Theaters, which control: Fox West Coast circuit, to 20th Cen tury-Fox. No formal announcemen is anticipated until the directorate o: the producer-distributor companj ratifies the deal in New York som< weeks off. Republic-Rosenblatt Circuit Deal Republic's New York exchangi has sold the company's lineup b the Rosenblatt circuit on Statei Island.