Motion Picture Daily (July–Sept 1938)

MOTION PICTURE DAILY Friday, July 22, 193 See U. S. Bid For Agreeing UponaDecree (Continued from page 1) over the sweeping remedies asked by the Department of Justice, but uppermost in the minds of the industry, at large, was guessing over the next step. Many read into the Government's formal statement of explanation an invitation to the defendant companies to discuss new trade practices. There was talk of negotiations directed toward a consent decree. The emphasis with which the announcement issued by the Department of Justice pointed out that the Courts and not the Department of Justice must interpret the legality of alleged monopolistic practices, coupled with the statement that a "lawsuit should be considered as the beginning of cooperation between the courts, the legislature, the Department of Justice and the industry to achieve a common end" indicated to some observers that the Department of Justice expects to discuss a compromise between existing practices and the reforms which it seeks to enforce. Defence Still Unorganized Whether there will be discussions or not, nobody knows because there has been no opportunity to formulate plans for all defendant companies. However, observers wondered whether the defendant companies could possibly undertake negotiations on the basis of the sweeping demands for reformation of trade practices outlined in the Government's brief, wondered if the trade practices which have evolved through the industry's experience could be sufficiently altered, without chaos, to reach an approximation of what the Government wants. Observers, too, saw in the Government's unusual announcement, beyond its conciliatory tone, a threat of criminal prosecution, and an intimation of legislation to effectuate its purposes if negotiation and civil action fail. Some of the 167 company and individual defendants named in the proceeding were served with subpoenas yesterday. Each defendant has 20 days from the date of his service in which to file an answer. Delays Inevitable After the filing of answers, legal procedure permits the defendants to move in the U. S. District Court for bills of particulars from the Government. If any large number of the defendants had such motions granted, a considerable amount of time would be involved the preparation of the particulars. Additional time would be occupied in the probable efforts of attorneys for both sides to agree on stipulations of fact. In view of these and other conceivable delays, most attorneys are agreed that there is little possibility of a trial date being set before next spring, at the earliest. The trial undoubtedly would be long drawn out because of the large number of defendants and would be appealed to the U. S. Supreme Court regardless of the outcome. Final determination, according to legal opinion, could not be hoped for in less than 18 months to two years. Suit Clears Atmosphere, Says Allied (Continued from page 1) dustry to clean house and should be welcomed. ''Self-regulation is a fine principle and should be practiced by all industries capable of doing so. There is no dodging the fact that in the matter of monopolistic organization and practices, the motion picture producers and distributors, linked together through the Hays Association, have failed utterly to curb their own predatory tendencies. "Now that this suit has been filed, the Big Eight have a golden opportunity to clean house and to straighten out their relations with the government, the independent exhibitors and the public. They can now bring forward their proposals for bringing themselves into conformity with the law. If such proposals are acceptable to the Government, they can be embodied in a decree which cannot be disregarded whenever the temptation arises so to do. Sees Trade at "Crossroads" "The motion picture industry is at the crossroads and its future will be determined by the course it now adopts. The Big Eight must bring about an abrupt change in their public relations policies. They must realize that they cannot get by with flagrant violations of the law and unfair and oppressive practices by purely political methods. The 'fixing' days are gone forever. They must make up their minds hereafter to deal frankly, fairly and directly with all who have a legitimate concern with the operations of the industry. It is a job for men of experience, integrity and tact ; definitely it can not be accomplished by conniving political methods. "Allied hopes that out of this maelstrom will come dignity, peace and security for a great industry. Moreover, she stands ready and willing to cooperate with like minded executives among the motion picture producers and distributors." Ellis Continues Monday Hollywood, July 21. — Emil K. Ellis, here by order of the N. Y. Supreme Court to take the testimony of Loew's, Inc., executives in the stockholder suit charging illegal disbursement of company funds, on Monday will hear new depositions by Harry Rapf concerning documentary evidence which the defendant's counsel has agreed to furnish. Mrs. Firnkoess Passes Mrs. John Firnkoess, mother of John E. Firnkoess of the Century Circuit, passed away Wednesday at Daytona Beach, Fla. She is survived by her husband, John Firnkoess, Sr., and another son, Earl, of Miami, Fla. RKO Executives on Coast Hollywood, July 21. — Ned E. Depinet, S. Barret McCormick and Dave Strumpf arrived today for RKO product conferences with Pandro Berman and Howard Benedict. Conciliation Efforts Go on Despite Suit (Continued from page 1) West Coast proposal, the film company lawyers became aware that the Department of Justice would proceed with the monopoly action and that it entertained little interest in the plan to clear complaints against Fox West Coast through a court appointee who would be satisfactory to the Attorney General's office. The situation then encountered reportedly convinced company lawyers that effectuating the West Coast plan would not be worth the effort. An echo of the attorneys' experience is believed to be contained in that part of the Department of Justice press release which accompanied the filing of the monopoly complaint which sets forth that ". . . it was the custom of business men to seek from the Department some vague form of approval for their plans of operation which involved anti-trust questions. That practice is now generally discredited. The truth is that without a judicial proceeding the department is not in a position to inform the industry of what arrangements it will accept." Individual Assent Insufficient The statement also asserts that "approval voiced by individual representatives of the Department in private conference cannot be binding on the department or create immunity from prosecution." In regard to the industry's own effort at developing a plan of selfregulation, it was pointed out that success in the undertaking promised immediate remedies for many trade practice complaints, whereas the mechanics of the Government's judicial proceeding, irrespective of the outcome of the case, make a final determination of the action unlikely for at least a year and, perhaps, longer. The distributors' negotiating committee, which completed its preliminary work this week, has forwarded a first draft of its program to Sidney R. Kent in Maine for approval. As soon as this has been obtained, letters requesting exhibitor representatives to meet with the negotiating committee will be sent out. Miss Lawrence Back, Italian Film Unmade Rosina Lawrence, who went to Italy to make "Rigoletto" for Era Film Co.) of which Vittorio Mussolini is president, returned yesterday on the Rex without making the picture. She was to star in the film, which was scheduled as the Italian company's major production. Miss Lawrence, who has appeared in Hal Roach and 20th Century-Fox films, is the last to return ( (The American talent which was eit Ved from Hollywood to make "Rigoletto." Jeanie Macpherson returned recently after preparing the script. The picture may be made later, according to Miss Lawrence, but reports from Rome are that it has been shelved. Monogram Board Meets The board of directors of Monogram Pictures held its quarterly meeting yesterday. Only routine business was transacted, according to company officials. Scott Dunlap, production head, and Trem Carr, who came from the coast to attend the meeting, will remain in New York over the week end, their probable departure date being set for Monday. Tax Credit to 20th-Fox Washington, July 21. — An overassessment of income tax of $140,000 today was credited by the Commissioner of Internal Revenue to 20th Century-Fox Film Corp. The overassessment represents the excess of a tax assessed against the company on the basis of a tentative return for 1930 filed by the concern, over the actual tax liability as determined after investigation. Zanuck Seeks Corrigan Among the film offers reported to have been received by Douglas Corrigan, Atlantic flyer, is one from Darryl F. Zanuck, who is said to have cabled from Paris a suggestion for a fiveyear, contract calling for three pictures a year with an incidental vaudeville tour of 10 weeks at $2,000 a week. Call Off UMPTO Meet Philadelphia, July 21. — Lacking a quorum of paidup members, the United M.P.T.O. called off its meeting scheduled for today. President Lewen Pizor said he has been named a member of the committee to meet July 27 in New York on the industrywide advertising drive. Lee Tracy Is Married Yuma, July 21. — Lee Tracy and Helen Thomas Wyse were married here yesterday. MOTION PICTURE) DAILY (Registered U. S. Patent Office) MARTIN QUIGLEY, Editor-in-Chief and Publisher; J. M. JERAULD. Managing Editor; JAMES A. CBON. Advertising Manager. EDITORIAL STAFF: Charles S. Aaronson, Jack Banner, Al Finestone. Thomas Fitzsimmons, Sherwin A. Kane, Irene Kuhn, Joseph Prlore. Published dally except Sunday and holidays Sept. to May and daily except Saturday. Sunday and holidays June, July and Aug. by Quigley Publlsning Company. Inc., Martin Quigley, president; Colvin Brown, vice-president and treasurer. Publication office: 1270 Sixth Avenue at Rockefeller Center. New York. 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