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MOTION-PICTURE JURISDICTIONAL DISPUTES 2245
He said :
For one reason or another —
I am giving you this in substance —
For one reason or another it may very weU be that each member of this Board if we follow the canons of judicial ethics strictly, might be disqualifled from sitting in this case. Now, we didn't do that, or take action on our own, because the case is an important case, and if we disqualified ourselves there would be no decision in a controversy that is a serious controversy, and that is why I have taken the libei'ty of calling you in so that we can frankly discuss the situation with all of you.
He said :
I am going to start with a statement of my own position, then we will go to the other members of the Board alphabetically, and they will state their own situations.
He said :
So far as I am concerned, I am a trustee of an estate. Among the holdings of that estate are stock in certain independent motion picture theaters in the east.
And he said :
If I were sitting as a judge, even though these theaters have no interest whatever in the producers, or are not associated with the producers in a sense except that they buy the products of the producers in Hollywood, I would feel so sensitive even about that connection that I would disqualify myself. But I want to put the facts frankly on the table and let you gentlemen decide whether you want me to disqualify myself or not.
Then he turned to Mr. Huston. Mr. Huston said :
Well, my situation is a little bit similar, and again a little bit different from Mr. Herzog's. A number of years ago I owned a fair amount of stock in some Midwest theater chains.
I think he said in Kansas :
The holdhigs of that chain expanded until I think it grew to 39 theaters. Then about 6 months ago I sold most of my holdings. I still have a very small interest. They are also independent exhibition companies, not related or associated with the producers.
That is what I recall he said. In addition to that he said :
However, some years ago the lA local in Washington gave me an honorary gold card.
He said :
I have never attended any of their meetings, and I have never attended any of their conventions, but I have that card.
Incidentally, Chairman Herzog had indicated the procedure he wanted to follow was to let each member of the Board speak and then have counsel go out separately and come back separately and make their own decisions or recommendations as to what should be done.
Then he turned to Mr. Reilly, Mr. Reilly said this, in substance :
This Board has received representations from Its regional ofhce in Los Angeles to the following effect ; that a Mr. Pestano and a Mr. Margolis —
Mr. Margolis, I believe, has been identified as the same Margolis, of Katz, Gallagher & Margolis in the course of the testimony in this Record. Mr. Reilly went on to say :
That Mr. Pestano and Mr. Margolis had gone in to see someone in the regional board in Los Angeles, as had been reported to the National Board and to him, and they had told this person in the regional board that they had picked iip some