Motion Picture Daily (Jan-Mar 1935)

14 MOTION PICTURE DAILY Wednesday, January 9, 1935 Bank Nights May Not Figure In NBA Code Hearings Today Monopoly Via Codes Headed Toward Probe {Continued from page 1) Monday of the Supreme Court denying the President's authority to control illegally produced oil, the most serious blow the recovery program has yet experienced. The court's decision will have no effect upon codes and is significant chiefly in the implication that the nation's highest tribunal will examine the Recovery Act microscopically as its various provisions are presented. The next Recovery Act case to come before the court is expected to be one involving the lumber code and will give that body its first opportunity to rule on code activities. Harry Arthur Star In St. Louis Probe (Continued from page 1) the country were in the long parade of witnesses called today, among whom was John S. Leahy, attorney for Allan Snyder, lessee of the Ambassador, Missouri and Grand Central, generally credited with being the person responsible for bringing about the investigation to ascertain whether the anti-trust laws have been violated in the sale of films in this territory. In addition to Abel Cary Thomas, Warner legal head, Harold S. Bareford, A. W. Smith, Joseph Hazen and Joseph Bernhard are here from New York to attend the investigation. Today's session was shrouded in secrecy the same as yesterday. Neil Agnew has joined Louis Phillips, Paramount home office attorney, and Paul Burger of the United Artists sales force in New York is now sitting in with Edward Raftery of O'Brien, Driscoll and Raftery, law firm handling United Artists matters. Cresson Smith arrived tonight and joined Jules Levy and Robert Youngman, the latter handling legal matters at Radio's home office. Others who have been called here by the investigation include Moe Silver, western division manager for Warner theatres ; Sam Dembow, Jr., former vice-president of ParamountPublix ; Louis Astor, assistant sales manager of Columbia, and W. J. Kupper, western division manager for Fox. Frels Monopoly Suit Comes Up Next May (Continued from page 1) circuit, said that the suit charges "conspiracy in violation of the antitrust laws." He added he has not been able to get product for the last two years. He has two houses in Victoria, one in El Campo and another in Yorktown. He claims that Jefferson has come into each of these towns with new theatres and has deprived him of product. He recently sold the Orphic, Columbus, Tex., to A. E. Moore. Patrick Russel, Dallas attorney, is representing him in this action. He also has a house in Belleville. The overbuying complaint, scheduled to be heard yesterday by a Campi committee, was put over until 10 A. M. today due to inability to get a board together. When the case was tried before the Dallas grievance board, Frels was awarded a 50-50 split of all 1933-34 product, he says, and has been able to get only 32 pictures. Asked for an opinion on conditions, Frels stated "they are improving, but would be much better if I could get some pictures." Radio Men Jolted In the Ascap Suit (Continued from page 1) motion to require Ascap to supply it with a complete list of the music titles to which Ascap holds the copyright. Federal Judge Julian W. Mack, in granting the motion, ruled that, while Ascap could be required to compile the list, Penn Broadcasting would have to pay for the work of compilation. Ascap estimates that it has between 1,500,000 and 2,000,000 titles and that the preparation of a complete list would require the labor of six persons for six months, 10 hours daily, and would cost about $250,000. Ascap was given 10 days in which to furnish its formal cost estimate and Penn three days thereafter in which to challenge it. The only other information sought by Penn which Judge Mack ruled that Ascap could be required to furnish is the number of Ascap's radio licensees. Ascap estimates that there are approximately 600 of these. Judge Mack's ruling, it is believed, will influence the procedure of the Department of Justice which, it is understood, was preparing to seek similar information from Ascap for the prosecution of the Federal anti-trust suit against the organization. Decision Withheld In FWC Litigation (Continued from page 1) L. Hartman of San Diego will be allowed to carry an appeal against transfer of Fox West Coast assets to National Theatres Corp. to the U. S. Circuit Court of Appeals will be handed down next Monday, it is expected. Attorneys for the two plaintiffs appeared before the court yesterday and argued their case. Briefs were ordered filed. Publisher in Omaha Agrees to End Shows (Continued from page 1) which had already been booked before exhibitors had decided to protest against the publisher's activities, will play here as scheduled some time in February. Doorly has assured the exhibitors "it would be the last attraction to be brought in by him and he would not in the future attempt further bookings of road shows." Garner Joins 1st Div. Atlanta, Jan. 8. — Ray Garner, formerly branch manager of Pathe here, has been appointed branch manager of the First Division offices. (Continued from page 1) of lottery matter through the mails and that the attitude of the whole government is against lotteries, the inference being that little sympathy would be accorded any plea for legalization of any lottery projects. Failure to discuss bank nights at the Washington hearings beginning today will prove a sharp disappointment to Kansas City interests concerned with prizes and rebates. R. W. McEwan, bank night distributors, had predicted in the midwestern city on Saturday that a move to eliminate or sharply revise code sections restricting the practice would come to a head at the meetings to be held before the National Industrial Recovery Board beginning today. Boston Code Cases Reach Total of 48 Boston, Jan. 8.— A total of 48 cases had been filed with code boards here up to the beginning of this week. Of these, 32 have been with the clearance and zoning board, while 16 have been grievances. Of the former, 11 remain not set for hearings, two are as yet undecided, one has been settled by the establishment of a schedule, and one has been withdrawn. Of the latter, two have been withdrawn and the disposition of one is still doubtful. One interesting detail here is that although no actual complaint of competition from non-theatrical sources has been actually filed, theatremen have twice called for forms. These blanks have never been filled in and returned, however. New Haven's Board Keeps at Clearance (Continued from page 1) this territory, John C. Flinn, on his visit here last Saturday, told members of the board to get disputants together in an effort to settle problems between themselves. Several territories have been zoned and there is only one dispute of any consequence. This matter, in all probability, will be straightened out between the litigants. Flinn left for New Haven after the conferences. Zoning Cases Discussed Clearance and zoning and grievance cases pending before Campi were discussed yesterday by a joint committee at a session held at the M. P. Club. Attending were R. H. Cochrane, Charles L. O'Reilly, I. Levinson, John C. Flinn and Tyree Dillard, Jr. Franklin Assigned Hollywood, Jan. 8. — Samuel Goldwyn has assigned direction of the new version of "The Dark Angel" to Sydney Franklin, borrowed from M-G-M. Cast top spots have not been named as yet. Puts Up New Marquee Laurence Bolognino, president of Trio-Consolidated, is putting up a new marquee at the Kingsbridge, Bronx. Court Again Urges Merger Of Fox Units (Continued from page 1) Springfield, Mass., under lease to Harry Arthur. In addition, the report lists as assets a claim of $5,500,000 against Fox Met ; claims against William Fox aggregating more than $1,000,000 and claims against Erpi and A. T. & T. for alleged violations of the Sherman Act in collecting allegedly excessive payments for servicing of Fox theatres. Claims against Fox Theatres, now in process of hearing before Special Master Courtland Palmer, are being rapidly disposed of, Weisman reported. About $5,000,000 of the claims have been reduced to $100,000, it was stated, and of the $6,000,000 of claims against the company remaining to be heard, satisfactory adjustments are expected in most instances. Fox Met Plan to Court The Fox Metropolitan Playhouses plan of reorganization developed by the bondholders' committee will be presented to Federal Judge Julian W. Mack at a hearing in U. S. District Court here today. The plan continues operation of the circuit's houses by Skouras and Randforce, but their operating contracts are cancellable by the bondholders after May 1, 1936. Complete details of the plan were published in Motion Picture Daily of Dec. 20, 1934. G. T. E. Nears Revamping Reorganization of General Theatres Equipment is approaching, declared Winthrop W. Aldrich, chairman of the board of Chase National Bank, in his report to stockholders at the annual meeting held yesterday. That portion of his report which dealt with Chase's interests in the film industry follows : "During the past year further progress has been made in the reorganization and liquidation of the bank's investment position in the motion picture industry. This investment in Fox Film Corp. has been reduced by the sale of 200,000 shares of Class A stock at $15 a share and additional shares have been placed under option at higher figures for limited periods. The corporation itself has continued to operate practically. "Additional progress has been made in reorganizing the affairs of the Fox Film affiliated theatre chain and, while the several bankruptcies involved have not been terminated as of this date, it is hoped that a complete reorganization of these properties will be accomplished within the next few months. "General Theatres Equipment, Inc., is still in receivership. Its underlying companies have, however, made headway during the past year and progress has been made in developing a plan of reorganization which it is hoped will be promulgated in the near future. "The Loew's, Inc., stock acquired by the bank as a result of the foreclosure of the two-year secured gold notes of the Film Securities Corp. in the principal amount of approximately $5,000,000 held by the ^bank has been liquidated without loss."