Motion Picture Daily (Apr-Jun 1934)

MOTION PICTURE DAILY Wednesday, May 16, 1934 First Ruling on Overbuying Here Up Today (Continued from page 1) Skouras, introduced into the record a denial of Motion Picture Daily's story of the attempted settlement. Skouras, it is understood, would not consider any settlement, preferring to have the case decided by the board. Weber brought Sam Rinzler of the Randforce circuit and Joseph Seider of the Prudential circuit before the hearing to give their opinions on duals. Both agreed doubles were necessary in some situations, depending on the calibre of pictures purchased and booked. Peskay stated that 75 per cent of the country's houses today are showing duals. Edward Schnitzer, branch manager for Columbia, testified that after his first negotiations with Skouras had failed, he offered the company's product to Rogowsky, but couldn't get together with him on price. He then sold Skouras and later entered into a contract with Rogowsky for a number of pictures Skouras may not play. Herbert Rogowsky introduced contracts with RKO, Columbia, Universal, Warners and Paramount for 1931-32, showing he bought 158 films for that season. Bought 160 Pictures For the season following, Rogowsky introduced contracts showing he had purchased 160 pictures, but stated that for the current 1933-34 season all companies, with the exception of Paramount, had refused to do business for first runs with him before selling Skouras. He stated he managed to get about 64 films from the various major companies, 32 of which were from Paramount. Moe Streimer, manager of the U. A. branch, testified that the Proctor Theatre was in Port Chester before Rogowsky's Embassy. In summing up his case, Nizer stated Skouras had not overbought and that if the board determined to transfer distributors' contracts by rendering an award in favor of the plaintiff, the contract "is not worth the paper it is written on." He added there was nothing illegal in playing duals in opposition to a competitor and concluded it was not the function of the board to parcel out product of distributors to an exhibitor who has not bought it. I. Levenson, attorney for Vitagraph, asked that if the board decided to grant Rogowsky relief, provision should be made for paying and playing Warner pictures. He referred to Motion Picture Daily's official text of Campi's decision in the appeal of Ashley Amusement Co. against Saxe Amusement Management, Inc., where Code Authority stated provision for payment of Warner pictures will be provided. Weber stated Rogowsky "was a wolf in sheep's clothing" and that Skouras needed the 303 pictures bought. Robert R. Rosan, attorney for Rogowsky, in summing up, stated that the board was the only one which could give him relief and every attempt to deal with major exchanges, except Paramount, for first run out Cullman Apologizes Howard S. Cullman, receiver for the Roxy, personally apologized to the New York grievance board yesterday for his letter to Division Administrator Sol A. Rosenblatt in which he stated the local body was unable "to intelligently interpret" the cut rate provisions of the code. Cullman said he did not think the board would be slighted, but since it had taken this attitude he was sorry about the letter. The Mayfair, defendant in the case, will be ordered today to stop the cut rate practice in its present form. Another Overbuying Plaint Up Locally (Continued from pane 1) deprived of first run product of the major companies which it has been playing for the past 12 years. The S. & C. house involved is the Lane, recently acquired. Also contained in the complaint is the charge that the two theatres have only 72 pictures for the season. The complaint is slated to come up next Tuesday before the grievance board. Delay FWC Hearing Sax Francisco, May 15. — A hearing on the Fox West Coast protest against a proposed 56-day first run clearance scheduled for tomorrow before the clearance and zoning board has been postponed for two weeks. What a busy pencil produced during yesterday's hearing; before the New York grievance board of the Rogowsky complaint against Skouras and local distributers. Top row, left to right: Milt Kusell of Paramount; Edward Peskay of Skouras; Robert R. Rosan, attorney for Rogowsky. Bottom: Harry H. Thomas of First Division and Louis Weber, attorney for Skouras. Louis Nizer, attorney for the eight defendant distributors, was the artist. Wr ■ "^1 G* , X -f \V/ V \\ \' " \ V'h ' j '* !/ / ' \ P ■P / ■ 'L ■ • put has failed because of the Skouras "buying power." The board took under advisement three other cases. The first was the Roxy complaint against the Mayfair on distribution cf cut rate courtesy tickets, the second that of the Roxy against the Casino for advertising four stars on "Finishing School" when the Daily News only gave it two, and the last complaint was that of the Little Picture House against the Windsor for advertising "Carolina" while the picture was playing at the plaintiff's house. No one appeared before the board to defend the last grievance. Decisions will be handed down today. John J. O'Connor of Radio was chairman. Allied Asks Cutis Quit Portland, May 15. — William Cutts, member of the clearance and zoning board, has been asked by Allied to resign. It is said Allied may reconsider the request, however, because of the absence of a number of members of the board of directors from the meeting at which the action was taken. Nizer -Thompson in Clash on Contracts A heated argument started yesterday between Louis Nizer, attorney for seven major distributors, and exSenator George F. Thompson, impartial member, when the latter insisted on the Skouras contracts with exchanges and the Fox franchise with the circuit. Nizer held that introduction of the contracts and franchise would make public Skouras confidential dealings and that exchanges would be given an opportunitv to know what prices Skouras was paying for film. Thompson contended that the board had a right to know all the dealings in the case. The windup was that if the contracts and franchise were necessary for deliberations, they would be produced for the private scrutiny of board members onlv. Portland Offices Open Portland, May 15. — Ruth Doyle, secretary of the code boards, has opened offices in the Pantages Building. Weekly meetings of both boards will be held. Omaha Indies Seek Release From the Code (Continued from page 1) Bard, chairman of the old NIRA committee, is leading the protest. The independents' telegram reads : "We request permission to retract our approval of the code and ask that we be relieved of its financial obligations, but we will remain under the blanket code of the industry and abide by all its labor provisions." • Bard says his group comprises 80 per cent of the independents in the territory. Executive Secretary John Flinn of Code Authority says there is no provision in the code allowing anyone to withdraw an assent. He had not received the Omaha wire up to late yesterday, he said. FWC, U. A. Circuits Named in Complaints Los Angeles, May 15. — Two more grievances have been filed here for hearing Thursday. Frances Wright Mellinger, operating the Maywood Egyptian, charges Fox West Coast with buying all major product from the Farwest Exchange to run at its Alcazar at Bell, forcing the complainant to play 28 days after the opposition. It is also charged the circuit house instituted a widespread advertising campaign when its scale was cut to 15 cents. Major distributors declared they would refuse the Egyptian service if it lowered prices to 10 cents for front row seats. The other complaint was filed by G. L. Smith and Lloyd Beard, operating the Cosmo, Glendale, against United West Coast, United Artists circuit, charging buying up of all major product for four runs. The complainants say the circuit cannot use all the product, while they cannot get any until 63 days' clearance has elapsed. The case of Harry Popkin against three Main Street theatres charging five cent admission was held over until Thursday for further investigation. Answer to Borrow Started by Johnson (Continued from page 1) Administration would be delayed in order that attack and reply might be made public simultaneously. As he began the writing of his defense, Johnson had before him the views of Division Administrator Sol A. Rosenblatt and other officials who participated in the negotiation of the codes attacked by the Darrow board. Faced with the first crucial test to which the NRA has been subjected, Johnson must either so justify the actions of his subordinates as to disarm criticism or be the target of a bitter attack by Congress. Board Seeks Comments Hollywood, May 15. — Comments on the work of the zoning board have been invited from any exhibitor or group of exhibitors. Suggestions also are sought.