Motion Picture Daily (Jan-Mar 1935)

The Leading MOTION PICTURE DAILY Alert, Intelligent the In in All Branches VOL. 37. NO. 25 NEW YORK, WEDNESDAY, JANUARY 30, 1935 TEN CENTS Hot Words Fly As Selectives Come Up Again Board Pierces Verbal Fog; Drops Case Selective contracts again stirred the equanimity of the New York grievance board yesterday when the overbuying complaint of G. Piccione, Plaza, Freeport, L. I., against Century's Grove and Freeport developed into a heated debate. The debate, arguments and counter-arguments became erratic and at times resembled a free-for-all between lawyers and members of the board. Although Myron Sattler of Paramount was chairman of the session, George Thompson, impartial member, had to call for order several times. There were accusations by Mitchell Klupt, representing Century, of tricky questioning on the part of Melvin Albert, representing Piccione, followed by an open denunciation by Louis Nizer of the theory of selective pacts. (Continued on page 10) Rule Complainants Must Observe Code Oklahoma City, Jan. 29. — Exhibitors filing a grievance action against a competitor on reduced admissions must be free of such practices themselves before the local boards can be expected to enforce cease and desist orders against respondents. This, in effect, is the ruling of Campi in a case appealed from the de. termination of the Oklahoma City grievance board. The pronouncement (Continued on page 10) K. C. Independents Hit 20c. Clearance Kansas City, Jan. 29. — While independent exhibitors protest extension of protection over houses charging 20 cents or less, the position of distributors is that the higher priced situations must be adequately protected. Trouble over the situation is freely predicted among independents, but a (Continued on page 10) Coast Board Seeks Federal Legal Aid Los Angeles, Jan. 29. — Acting upon instructions from New York, the local grievance board yesterday presented (Continued on page 10) SU Louis Indictment Copies Reach Company Offices Here Copies of the corporate indictments of Warners, Paramount and RKO returned by a Federal grand jury following the St. Louis film buying and selling investigation there were received here yesterday, directing the companies to appear in Federal court at St. Louis and enter pleas "forthwith." St. Louis counsel representing the companies will enter pleas of not guilty today or tomorrow, it was stated here. Individual indictments of Harry M. Warner, Gradwell Sears, Herman Starr, Abel Cary Thomas, Ned E. Depinet and George Schaefer, requiring the posting of $2,500 bonds by each with a U. S. marshal here have not been forwarded from St. Louis yet. New FWC Unit To Get Going In Few Days Kansas City, Jan. 29. — Final reorganization plans for various Fox Theatre subsidiaries will be settled at Los Angeles meetings this week, said Spyros Skouras here yesterday before entraining for the coast. The West Coast group will be out of bankruptcy this week, the Kansas City and Denver divisions following with final reorganization of the circuits anticipated by April 1, Skouras continued. It was also revealed that each division will be self sustaining, with the division heads in full charge, reporting only to New York. Heretofore (Continued on page 11) Continue Move to End RKO-M. & 5. Row Discussions of a settlement of the breach of lease charges filed against RKO by Meyer & Schneider involving film playing policies at the Hollywood and Apollo were resumed yesterday by counsel for the litigants, resulting in postponement till toxnorrow of the board of arbitrators' hearing of the charges scheduled for yesterday. If no basis for a settlement is agreed upon by tomorrow, numerous sales and circuit executives will be called upon to testify and produce records at the resumed hearings. Pittsburgh Fears Theatre Price War Pittsburgh, Jan. 29. — A general price war is looked for here with the Penn Theatre's announcement that it (Continued on page 10) Theatre Heads Marshal Fight On Fee Boosts With increases of from 400 to 900 per cent in common show license fees facing local theatre operators as the industry's proposed contribution toward the $6,448,969 city deficit, independent and circuit men will marshal forces today in opposition at a meeting before Commissioner Paul E. Moss. Boosts in license levies were suggested last year. After a hearing before the commissioner the plan was dropped. Theatres with seating capacities up to 599 are now paying $50 a year. Under the proposed increases they would pay $250. Theatres seating (Continued on page 11) Coast ITO Fails to Get Federal Letter Hollywood, Jan. 29.— The I.T.O. of Southern California met here yesterday prepared to discuss the letter answering its appeal for help from the Department of Justice against alleged anti-trust violations, but when the letter did not arrive the subject was deferred to a later date. It was decided at the meeting, however, that a final drive for membership would be made, with March 1 as the deadline for admission without initiation fees. Thereafter, the initiation fee will be $25. The organization now has 100 members. Tulsa Houses Given Stay on Bank Nights Oklahoma City, Jan. 29. — Federal Judge Vaught has issued a restraining order preventing enforcement of code (Continued on page 10) Trustees for Para. Urged Third Time Court Again Requested To Name a Board Appointment by the court of a group of voting trustees to head Paramount in place of a board of directors after the reorganization of the company was urged upon Federal Judge Alfred C. Coxe yesterday for the third time in two days of hearings of opposition to the Paramount reorganization plan. Archibald C. Palmer, who says he represents several thousand shares of Paramount stock, made the appeal to the court yesterday following identical appeals made on Monday by Robert Szold, counsel for the Munger debenture committee, and Louis Boehm, attorney for stockholders. Reading from Motion Picture Daily's exclusive list of the 16 men agreed upon for the new Paramount board by the principal creditors' groups, Palmer attacked the fitness of each. "Throw them all out," Palmer cried, on ending his individual and collective (Continued on page 10) Tacit Pact Retains Cleveland's Zoning Exhibitors in Cleveland are continuing the clearance agreement, which expired Jan. 1, 1935, under a tacit arrangement, Paul Gusdanovic, operator of the Regent, Cameo, Corlet, LaSalle and Norwood, stated yesterday. The agreement was originally entered into between Loew's and first and subsequent run exhibitors in that territory (Continued on page 10) New Jersey Tax May Not Reach Theatres Trenton, Jan. 29— Elimination of theatres and other amusements from the proposed New Jersey sales tax was indicated by Gov. Harold G. Hoffman today. In addition to amusements, the Governor suggested certain intangible (Continued on page 11) Yamins Again Made N. E. Allied Leader Boston, Jan. 29. — Nathan Yamias of Fall River, Mass., was reelected president today at the annual meeting of Independent Exhibitors of New England, Allied unit. All other offi (Continued on page 11)