The Film Daily (1936)

DAILY Wednesday, Jan. 22, 1936 WEHRENBERGONSTAND IN ST. LOUIS HEARING m Page 1) thur, vice-president and general manager for Fanchon & Marco, at the Fox Theater on Dec. 8, 1934, and that Arthur made him two propositions to become interested in the Now Grand Central. Either that Fanchon & Marco would give him a half interest in the house if he could obtain the necessary pictures, or he could have the house for his own by simply paying the $350 a week rental required under the lease with the St. Louis Ambassador Theater Co., owner of the property. He told of conversations with Maurice Schweitzer, local manager for Paramount, and Lou Elman, RKO manager, and Tommy Tobin, RKO salesman, relative to securing subsequent run rights for their pictures at the New Grand Central. In response to a question put by Frederick H. Wood of Warner counsel, he admitted that he had not entered into a verbal or written contract with Arhur to accept either of the two propositions for the New Grand Central, but simply endeavored to ascertain whether RKO and Paramount pictures would be available. He said that Schweitzer, after taking the matter up with New York, informed him several days later that Paramount believed it inadvisable to book its pictures for the New Grand Central for fear it might injure its first-run receipts from the Shubert-Rialto Theater, two blocks away, where some Paramount pictures were being shown on a percentage of the gross receipts. Schweitzer also informed Wehrenberg that St. Louis Amusement Co. had previously obtained the secondrun rights for Paramount Pictures in St. Louis. The same was true as to RKO pictures, and in response to a question by Judge Joseph W. Molyneaux, Wehrenberg said that he did not expect to get second-run rights for either Paramount or RKO. The question of price was not discussed with Schweitzer, but Tobin named a price which Wehrenberg said he regarded as too high, considering the overhead he would be operating under at the New Grand Central. He said that when he approached Elman the latter said he thought Ben Brinkmeyer, now manager of Harry Koplar's Montgomery Theater, had leased the New Grand Central, and when told that Brinkmeyer had not gone through with his deal he promised to look up a proposition for RKO pictures he had quoted to Brinkmeyer. Wehrenberg said that he didnt do anything further with RKO until he met Elman in the old Federal Building during the Grand Jury investigation into the alleged conspiracy on the part of Warners, Paramount and RKO to withhold pictures from the Ambassador, Missouri and New Grand Central. "I asked Elman again what about NEWS of the DAY (.'le\ eland — Dan Stearns of the Willoby Theater, Willoughby, and Jules Schwartz of the Utopia Theater, this city, were arrested on orders of Harold U. Daniels, Lake County Prosecutor and held under $500 bond, charged with operating a game of chance, "bank night." Both pleaded not guilty to the charge, when arraigned before Judge Charles P. Baker, Jr. Hearing is set for tomorrow. Newark, N. J. — Robert Ungerfeld this week took over management of the Skouras-Terminal Theater. He is also manager of the local RKO Proctor's. Washington — John J. Payette, Warner circuit zone manager, and his family are in Miami until the end of the month. It is Payette's first vacation in four years. Leipsic, O. — Floyd E. Hiegel who operates the Mystic here, has opened the Ottawa Theater at Ottawa, 0. Logan, O. — Nat L. Rayster of Springfield has been made manager of the Chakeres Logan Theater, succeeding Milo De Haven. New Philadelphia, O.— E. C. Vale of this city, former theater operator in Uhrichsville and Dennison, has leased his Pictorium Theater in the latter city to H. C. Glick of Cleveland, who will remodel the house and reopen it in about a month. the RKO pictures for the New Grand Central," Wehrenberg continued, "and he replied, get a lease first, Fred, and then we will talk about it." Wehrenberg said that the eight major producers make 97 per cent of the high grade feature pictures and in his opinion a first-run house could not be successfully operated without some of their product. Cross-examination by Wood revealed that Wehrenberg had not sought Universal, Fox or Columbia pictures for the New Grand Central. These pictures are shown firstrun by the Fanchon & Marco houses, including the Fox, which is near the New Grand Central, but in response to a further question by Walter L. Rice, special assistant attorney general, he said he had no understanding with Arthur that he would not contract for pictures shown at the Fox. Cross examination by Wood went into the question of the so-called price-war that followed the reopening of the St. Louis theater under Fanchon & Marco management in November, 1933, with a stage show and double feature pictures for 25 and 40 cents compared with the 65 cents top formerly charged in that house by Harry Koplar's famous amusement company and the 55 cents tops at Ambassador, Loew's State and Fox. Wehrenberg testified that the price-war between the St. Louis and Fox hurt the subsequent run houses and he was asked about meetings held by his organization in November, 1933, to protest to Columbia, Fox and RKO against the reduction of the first run admission prices, and of another meeting held by his organization the following year when similar protests were made to producing companies and Fanchon & Marco about the extension of the matinee time at the Missouri and Ambassador theaters from 6 P.M. to 7:30 P.M. Wehrenberg revealed that on December 8, 1934, he knew that Fanchon & Marco had lodged a complaint with the Department of Jus tice concerning the St. Louis picture situation, saying he obtained that information from Harry Koplar. He also told of receiving a telephone call from Koplar several days later to ascertain whether he had obtained Paramount or RKO pictures for the New Grand Central. He said he considered making two changes weekly at the New Grand Central and would have required from 4 to 6 feature pictures weekly for that house. Harry Warner, Warner president, appeared in court for the first time in this proceedings at 3:05 P. M. today. Rice endeavored to have him excluded from the court room, but Judge Molyneaux declined to do so, saying that was within the discretion of the court and he felt that Mr. Warner as head of his company, a defendant, should be permitted to aid the defense. Judge Molyneaux at the opening of today's session tentatively admitted the testimony of J. M. Ulmer and B. D. Gordon, Cleveland, O., attorneys concerning a conversation with Herman Starr, Warner vice president on August 14, 1933. However, the court had not finally decided whether it shall go in. It was tentatively excluded several days ago. Russell Hardy, special assistant attorney general, spent much time this morning in the introduction of various leases on the Shubert-Rialto and Orpheum theaters and contracts for feature and short motion pictures for use in those houses and correspondence that passed between various Warner companies and Paramount and RKO concerning the pictures. He made an unsuccessful attempt to get into the record the indictment in the criminal case on the grounds that certain options in the leases of the local theaters were exercised by Warner and subsidiaries after this indictment had been voted on January 11, 1935, but Judge Molyneaux promptly sustained a defense objection. Cresson E. Smith, Southern and Western sales manager for RKO re WILL ASK REHEARING ON DUAL BILL RULING (Continued from Page 1) Hays office when the Circuit Court jf Appeals opinion was studied. It is expected that the re-hearing application will be determined in about one week. This failing, the majors will seek to have the case heard by the U. S. Supreme Court at Washington. Warners Protest Suit By City Over Music A protest against the suit filed by WNYC, city-owned radio station, against Harms, Inc., Warner-owned music publishing company, was made yesterday in a letter sent to Mayor F. H. LaGuardia by Herman Starr, Warner vice-president. Three more suits charging copyrighted infringement were filed yesterday by Warner firms against local stations in Federal Court. Starr's letter made public by A. M. Wattenberg, Warner counsel, informed Mayor LaGuardia that the Warner firms would have given a license to WNYC without charge had they been requested to do so because of the Warner practice not to charge fees to stations which do not sell time. But, Starr added, the Warner firms wish protection aganist the free use of their music for purpose of illegitimate profit to an individual or organization apart from the station itself. Starr states that this can be satisfactorily cleared up by WNYC through an application for a Warner license, and asks LaGuardia's aid in maintaining friendly relations between WNYC and the Warner firms. The Warner suits were brought by Remick and Witmark against WNEW and by Remick against WMCA. Damages of $5,000 and an injunction against further use of the songs is asked. Leon D'Usseau With Weiss West Coast Bureau of THE FILM DAILY Hollywood — Leon D'Usseau, formerly with RKO Radio, has joined the writing staff of Weiss Productions, Inc. His first assignment is "The Clutching Hand," Arthur B. Reeve's Craig Kennedy novel, which he will adapt in collaboration with G. M. Merrick, Eddie Granneman, Dallas Fitzgerald, Fenton Foster and William Nolte. peated his criminal case testimony relative to the preparation and signing of the contract to furnish RKO p.ctures to Warner Bros, for use at the Shubert-Rialto late in September, 1934. Nothing new has developed in this respect.