Motion Picture Daily (Oct-Dec 1941)

4lert, (o the^ "icture ndustry tion motion viciifRi; DAILY VIOV'F 0. NO. 70 NEW YORK, U. S. A., WEDNESDAY, OCTOBER 8, 1941 TEN CENTS Exhibitors in Mexico Face Sharp Decline eel Effect of Stoppage Of Majors' Product By LUIS B. CELIS Mexico City, Oct. 7. — Condiifois for exhibitors throughout exico are reported to have heme worse with the suspension of liveries by the eight American mpanies Oct. 2 and scant hope an early settlement of their con<l with the National Cinematoaphic Workers Union. All Mexico's 1,009 theatres are operating on a strike basis with programs that are steadily diminishing their business, which, in normal times, had been as good as 1,222,000 paid admissions a week for the entire country. Exhibitors who conduct circuits in nl about Monterrey, Torreon and (Continued on page 7) Lawrence Named Aide to Selznick Laudy Lawrence, former Continual European manager for United rtists, yesterday was appointed speal representative for David O. -lznick. Lawrence will make his headquarrs here and will inaugurate his new Hies with an extensive survey of the merican market and the available "rid markets. He will arrive from Je Coast tomorrow with Selznick and a] Lewton, story editor for Selznick. Lawrence is . the first to fill the jst of special representative for the w Selznick production company. (Continued on pane 7) Ihio ITO Scores Senate Film Probe Columbus, O., Oct. 7.— The Senate lvestigation of the picture industry i as been denounced as "unfair, biased r,d un-American" in a resolution dopted by the directors of the ITO f Ohio, an Allied affiliate, in which He proceedings are characterized as a shameful attempt to smear a pariotic industry." The resolution, released by P. T. Yood, organization secretary, reads, n part: "It is obvious that this is a hameful attempt to smear a patriotic ndustry with accusations which are injust and unfounded and intended (Continued on page 6) Court Rules 3-Year Deal Made in 1939 Valid Under Decree Federal Judge Henry W. Goddard yesterday ruled that a three-year film deal entered into in September, 1939, by Mullin & Pinanski Theatres, Boston, with M-G-M, is valid under Section 15 of the consent decree and may remain in force throughout the newseason. Question of the status of the contract under the decree was raised by the Department of Justice which charged that deal sheets pertaining to it had been executed in November, 1940, and that the parties to the deal were in contempt of the decree, which exempts only those franchises entered into prior to June, 1940. After hearing testimony from T. J. Connors, M-G-M's Eastern, Southern and Canadian sales manager, Judge Goddard ruled that the 1940 deal sheets were supplementary to the fran (Continued on page 6) See Trial of Browne Taking Three Weeks Government attorneys yesterday estimated that the trial of George E. Browne, IATSE president, and William Bioff, representatives of the union, on charges of extortion from four film companies, scheduled to start today in the Federal Court here, would last about three weeks. Selection of a jury is expected to be speeded by the Federal Court rule which permits the judge to examine jurors for prejudice and forbids attorneys for either prosecution or defense from asking questions. If the jury is impanelled this morning, counsel will start their opening statements this afternoon, it was said. Elect Arthur Kelly To MPPDA Board Arthur W. Kelly, vicepresident of United Artists, was elected to the board of the MPPDA yesterday as that company's representative, succeeding Maurice Silverstone. Y. Frank Freeman, head of the Coast Producers Association, attended yesterday's board meeting, which had been adjourned from last Thursday because of lack of a quorum. Others at the meeting were: Barney Balaban, Nate J. Blumberg, J. Cheever Cowdin, Jack Cohn, George Borthwick, E. B. Hatrick, Will Hays, E. W. Hammons, W. C. Michel and Joseph Hazen. Several Under Consideration For U.A. Head Several persons are under consideration for the presidency of United Artists, it was learned last night. However, officials would not reveal the identities of any. Two of the potential presidents are known. One is an Eastern company head now on the Coast. In regard to him, the U. A. stockholders are awaiting word of his availability. Another is an Eastern company executive who the stockhold (Continued on page 6) South Eases Sunday Ban For Soldiers 9 Film Shows Many communities in the South, particularly in Louisiana and the Carolinas, have been induced to relax their Sabbath laws to permit film houses to remain open on Sundays while Army maneuvers are under way, USO offices have reported here. A spokesman for the USO pointed out that the soldiers have virtually no means of entertainment while in the isolated sections where the maneuvers are held and local communities have cooperated to the extent of (Continued on page 6) Mich. Allied Opens Annual Convention Detroit, Oct. 7. — Allied Theatres of Michigan opened its 22nd annual convention at the Hotel Book-Cadillac here today, with Ray Branch presiding. The meeting will wind up tomorrow with the annual banquet. "This industry has been good to us ; let us be good to the industry," was the burden of the address of Claude F. Lee, director of public relations for (Continued on page 6) Anti-5 Ruling Prevents Film Sales in Minn. Decree Violation Might Lead to Contempt By SAM SHAIN Since to sell otherwise than permitted under the New York Case Consent Decree would be a violation of that decree and therefore subject them to possible contempt proceedings, the five consenting companies cannot undertake to distribute their product in Minnesota other than as provided by the decree, it was authoritatively stated yesterday. Therefore, these authorities state, except to seek an appeal from the recent court decision in Minnesota upholding that State's anti-block-of-five law, which is felt to be an unsatisfactory way to proceed at this time, the remedy for the companies would be through legislative methods. Officials hope that this can be achieved eventually. The same spokesmen assert that there is no consideration being given at this time to establishment of distribution facilities for Minnesota from centers or exchanges outside that State. Warners Will Abide By Decree: Sears Indicating that Warners will not resume selling in Minnesota "until a final ruling is made by the highest court" on the constitutionality of the State's anti-block-of-five law, Gradwell L. Sears, general sales manager, stated yesterday that the company feels it "must conform to our national methods of distribution as approved and laid down by the Federal Government in the consent decree." Sears said : "We sympathize with all exhibitors in Minnesota who are confronted with the drastic situation . . . however, as a national institution doing business in 48 states and territories we cannot survive if we are to do business in 48 different methods and at the same time conform to those principles laid out by our Federal Government controlling interstate commerce. "Vitagraph, Inc., deplores its loss (Continued on page 6)