Motion Picture Daily (Apr-Jun 1940)

4 Motion Picture Daily Monday, June 3, 1940 Government's 125 Will Attend Columbia Paul Williams Trust Trial Opens Today (Continued from papc 1) head of defense counsel for Paramount, and former Solicitor General of the U. S., will make the opening address to the court for the defense. He will be followed by John W. Davis, onetime Democratic nominee for the Presidency, who is chief counsel for Loew's ; then Ralph S. Harris of Dwight, Harris, Koegle & Caskey, counsel for 20th Century-Fox ; Col. William J. Donovan of Donovan, Newton, Leisure & Lumbard, chief counsel for RKO; Louis D. Frohlich and Herman Finkelstein of Schwartz & Frohlich, counsel for Columbia; Edward C. Raftery of O'Brien, Driscoll & Raftery, counsel for United Artists and Universal, and Judge Joseph Proskauer of Proskauer, Rose & Paskus, counsel for Warners, who will make the closing address. The Government thereafter will open the prosecution by taking up the exhibition and distribution situation in the Philadelphia territory, probably on Thursday. Its first witnesses will be placed on the stand at that time. The Government's chief aims in the suit, as set forth in its bill of complaint, are the divorcement of production and distribution from exhibition and the invalidation of virtually all existing trade practices and policies. The litigation, in effect, is a test of the legality of current industry methods of operation. Readjustment Sought Specifically, the Government seeks to compel Loew's and RKO to divest themselves of production and distribution operations, contending that they were theatre companies originally and should remain so, and the divestiture bv Paramount, 20th Century-Fox and Warners of their theatre operations, on the ground that these companies were and should have remained picture companies. Trade practices which it seeks to invalidate are talent loans and other agreements not available to independent producers ; block booking, arbitrarily designated play dates, forcing of short subjects and newsreels, score charges, clearance, overbuying, designation of minimum admissions, and double featuring. The suit alleges the existence of "monopolistic control" of production and exhibition through practices and policies now prevailing. The court is asked by the Government to appoint a trustee to administer affiliated theatres if and when divorcement is realized, and to dispose of them in a manner to be determined by the court. The court, also, is asked to pronounce invalid all contracts which give "unfair trade advantages" to one theatre or theatres not enjoyed by all. The Government has asserted its primary aim is "the restoration of free Sales Meeting in Chicago The first of Columbia's two regional sales meetings will open at the Blackstone Hotel, Chicago, tomorrow with approximately 125 sales representatives from 16 Western branches and home office executives attending the four-day session. The second meeting will be held in Atlantic City, June 11-14, for the Eastern sales forces. Speakers at the Chicago meeting will be : Jack Cohn, Columbia vicepresident, who will open the session ; Abe Montague, general sales manager, who will preside ; Rube Jackter, assistant sales manager ; Abe Schneider, treasurer ; Maurice Bergman, advertising and publicity director ; Joseph McConville, foreign department head; Lou Weinberg and Lou Astor, in charge of circuit sales ; Max Weisfeldt, short subjects supervisor; Al Seligman, accessories, and Maurice Grad, sales promotion. Other home office officials who will be present include H. C. Kaufman, G. Josephs, B. E. Zeeman, S. Raisler, V. Borrelli, I. Sherman, J. Freiberg, W. Brennan and Al Sherman. Field Staffs to Attend The following field men will attend : Phil Dunas, Midwestern division manager; C. W. Phillips. T. Greenwood, F. Flaherty, I. Joseph, M. Delano and W. J. Kahl of Chicago. H. J. Chapman, branch manager, and M. E. Mazur, I. Marks, D. H. Conley, M. W. Sgutt, A. L. Aved and W. Evidon of Minneapolis. J. H. Jacobs, branch manager, and E. Dunas, J. Zide, F. Horn, and R. Adler, of Omaha. O. J. Ruby, branch manager; T. J. MacEvoy, S. R. Chapman and D. V. Chapman, of Milwaukee. M. H. Evidon, branch manager; A. B. Leake. M. Goodman, O. Miller and B. H. Thomas of Des Moines. Carl Shalit, Central division manager; H. R. Schilds, R. F. Cloud. G. L. McCoy, C. H. Townsend and C. Baker of Detroit. W. G. Craig, branch manager; H. Kaufman, C. Butler, A. J. Gelman and L. Shubnell of Indianapolis. C. D. Hill, branch manager; L. A. LaPlante, J. Bradford, C. Ferris and R. Mortenson of St. Louis. B. C. Marcus, branch manager; T. Baldwin, W. Bradfield, C. E. Reynolds. H. S. Stulz. Z. Beiser and M. Shackelford of Kansas City. Jerome Safron. Western division manager; W. C. Ball, branch manager; H. Wineberg, S. Fisher. H. M. Lentz, N. Newman and Mike Newman of Los Angeles.. L. E. Tillman, branch manager; C. Scott. P. Weinstein. E. Roberts and M. Klein of San Francisco. R. C. Hill, branch manager; B. M. Shooker, S. Dare, S. Cramer and T. J. Robinson of Denver. W. G. Seib, branch manager; K. Lloyd, L. E. Kennedy. H. Green and W. Sterzer of Salt Lake City. Neal Walton, branch manager; R. A. Ackles. W. K. Beckwith and W. Kostenbader of Seattle. J. R. Beale, branch manager; C. E. Tillman. W. T. Withers and L. S. Metzelaar of Portland, and from Canada: L. Rosen feld. general manager; D. H. Coplan, sales manager; W. Elman, A. Cohen of Montreal; H. Harnick of Calgary; H. Levant of Vancouver; I. Levitt, J. C. Cohen of Winnipeg; A. B. Cass, J. Allen of Toronto. enterprise and open competition among all branches of the industry." The industry has responded that "it welcomes a test to determine where it stands legally." Arnold has stated that if the Government is unable to prove in court that integrated operation and prevailing trade practices are not unlawful, he will seek to invalidate them by sponsoring legislation which will outlaw them. He recently appeared before a Senate committee to speak favorably of the new Neely bill to require divorcement of affiliated theatres. Defendants Total 167 Defendants named by the Government include the eight major companies and their principal subsidiaries and affiliates ancL 134 individual defendants— present and former officers and directors of the companies. In all, there are 167 corporate and individual defendants. Despite charges frequently made in Washington during the past year and a half that defendants have deliberately maneuvered to delay trial of the suit, the record reveals that every routine preliminary step of the defendants to advance their preparation for trial was opposed by the Government, requiring numerous addditional court hearings and delays to await court decisions on the validity of the Government's opposition. In all major respects, the Government was overruled by the court in these interludes, the most important of which had to do with the necessity of the Government filing bills of particulars and complying with defense applications for more definite information with respect to charges. A major effort to settle the action out of court by consent decree was made by the Department of Commerce, which instituted discussions on the subject a year ago, in June, 1939. The discussions bore fruit last February in the form of a proposed consent decree, which was favorably received ■by -four major c6mpany defendants and was rejected by the other four and subsequently by Arnold. Consent Decree Possible One major defendant which rejected the proposed decree said that it did not believe it could live under the terms projected. The other three said they were convinced that they could do as well or better by going to trial. Arnold intimated that the decree did not meet with his approval because of its failure to require divorcement of exhibition from production and distribution. Attorneys identified with the case still believe there is a possibility of a settlement by consent decree before the trial is concluded if one is proposed which they feel the companies can "live under." Allied States was active in bringing about the filing of the suit by the Government, providing the Department of Justice with numerous independent complaints and, later, with prospective witnesses. The independent exhibitor organization, however, was the first to advocate a consent degree, doing so in a statement issued the day following the filing of the suit in New York Federal court. Opens Resort Theatre Avalon, N. J., June 2. — Frank D. Windell has reopened the Pier Theatre in Municipal Pier here for the Summer season, operating on a straight picture policy. 'Russell' Hits $30,100 in 2 L.A. Theatres Los Angeles, June 2. — "Lillian Russell" and "Charlie Chan in Panama" drew a total of $30,100, with $13,300 at the Chinese and $16,800 at Loew's State. "Rebecca" accounted for $4,800 in the ninth weekjfe, the 4 Star. mm Estimated takings for the wecT ending May 29 : "Gon* With the Wind" (M-G-M) CARTHAY CIRCLE-0,518) (75c-$1.50) 7 days, 22nd week. Gross: $10,700. (Average, $17,000) "Lilian Russell" (20th-Fox) "Charlie Chan in Panama" (20th Fox) CHINESE— (2,500) (30c-75c) 7 days. Gross: $13,300. (Average. $12,500) "Rebecca" (U. A.) 4 STAR— (900) (40c-55c) 7 days, 9th week. Gross: $4,800. (Average, $3,250) "Primrose Path" (RKO) "Half A Sinner" (Univ.) HILLSTREET— (2,700) (30c-55c) 7 days, 2nd week. Gross: $5,200. (Average, $6,500) "Lillian Russell" (Z6th-Fox) "Cbarvie Chan in Panama" (20th Fox) LOEW'S STATE— (2,500) (30c-65c) 7 days. Gross: $16,800. (Average. $14,000) "Primrose Path" (RKO) 'La Conga Nights" (Univ.) PANTAGES— (3,000) (30c-65c) 7 days, 2nd week. Gross: $5,000. (Average, $7,000) "The Biscuit Eater" (Para.) PARAMOUNT— (3,595) (30c-65c) 7 clays. Stage: Marx Bros in person. Gross: $17,000. (Average. $18,000) "Torrid Zone" (W. B.) WARNER BROS. (Hollvwood)-(3.000) (30c-65c) 7 days. Gross: $10,500. (Average, $14,000) "Torrid Zone" (W. B.) WARNER BROS. (Downtown)— (3.400) (30c-65c) 7 days. Gross: $11,100. (Average, $• 2,000) Tucker Band, 'Island' $16,600, Milwaukee Milwaukee, June 2. — Orrin Tucker and Bonnie Baker at the Riverside with the film, "Island of Doomed Men," drew $16,600. "Lillian Russell" and "Viva Cisco Kid" took $8,000 at the Fox Wisconsin. Estimated takings for the week ending May 29-30 : "Waterloo Bridge" (M-G-M) "Remember the Night" (Para) STRAND — (1,400) (25c-35c-50c) Gross: $1,200. (Average, $1,500) "My Son, My Son" (U. A.) "Over the Moon" (U. A.) WARNER— (2,400) (2Sc-35c-50c) Gross: $6,000. (Average, $4,500) "Lillian Russell" (20th-Fox) "Viva Cisco Kid" (20th-Fox) WISCONSIN— (3,200) (25c-35c-50c) 7 Gross: $8,000. (Average, $5,500) "Typhoon" (Para.) "Seventeen" (Para.) PALACE — (2,400) (25c-35c-50c) 7 days. Gross: $5,600. (Average. S4.000) "Island of Doomed Men" (Col.) RIVERSIDE— (2,700) (30c-40c-55c) Stage: Orrin Tucker. Bonnie Baker $16,600. (Average. $6,500) days. 7 days. days. 7 days. Gross : U. S. Music Clubs To Make Film Award Special annual awards for musical pictures and musicians and artists con-, tributing to the productions will be made by the National Federation of| Music Clubs with the collaboration of1 the Hollywood studios, according to a Federation announcement. State previewing committees will be set up to judge the outstanding musical works and the initial awards will be made at the Federation's biennial convention in Los Angeles in June, 1941. The awards are designed to complement rather than supplant awards to musical pictures by the M. P. Academy, it was said.