Motion Picture Daily (Oct-Dec 1941)

Mday. October 10, 1941 Motion Picture Daily 7 t M. Schenck Fells About Bioff Deal (Continued from page 1) iscd that Loew's Theatres tlirougli intermediarv, Mort Singer of Chife>. paid Browne $100,000 in the A.' of 1935 to prevent a threatened •fflce against Loew's New York L-atres by operators' Local 306. ihenck related that C. C. Mosko<tz had reported that Browne had nanded the sum as the price for his lercession in a dispute between #ew's and the union. RKO theatres •re also involved in the dispute, he itinued, and the payment of $100,'0 was Loew's share alone. This payj'Sit was allegedly made before any icussion had occurred in reference the $550,000 allegedly paid by the ir film companies. Traces Background Schenck related with detail the ckground and negotiations which suited in the alleged payment. He id that in November, 1936, Browne lied a strike of theatres in Chicago compel the restoration of the iTSE as a party to the basic labor ■ reement. Schenck contended that persuaded AFL heads to agree to store the IATSE as a party when ese leaders confessed that they had ; way of supplying projectionists if fowne called a new strike. A few days before April 16, 1936, ■e date of a scheduled meeting on the sic pact, Schenck related, Browne ;lephoned him and then appeared at s office with Bioff, whom he introiced to Schenck. The testimony ntinued that Bioff then said : "I am ne boss. I elected Browne for one :trpose, and that is to get $2,000,000 it of the motion picture industry." Schenck said he was amazed at the I quest and told Bioff, "that he was azy and didn't know what he was Iking about." ■ Bioff then stated, the story contin•d, that he would cost the film industry many times more if his deand was not met. He told Schenck at the latter should think it over and t him know. Schenck testified. Schenck Advised Kent On April 16, at the labor meeting, ■ihenck said, he advised Sidney R. ' ent, president of 20th Century-Fox, | to the Bioff demand. At that same eeting, he said, Bioff and Browne "ivately discussed the matter with ent and the witness, and offered to •duce the demand from $2,000,000 to .,000,000 because "maybe that much m't be taken out of the industry." oth Schenck and Kent protested and "gued that it was impossible to meet le demand. Bioff again advised them ■ think it over, but insisted on an irly answer, Schenck said. On April 18 Kent and Schenck met with Browne and Bioff at which time the latter two agreed to accept $50,000 a year from the four big companies and $25,000 annually from the smaller companies, Schenck stated. Arguments proved of no avail, he said. Bioff insistently demanded the money, warning them that a refusal would bring dire results. A few days subsequently, Schenck said, he brought $50,000 in the form of a "bundle" to Browne and Bioff in their hotel room. He was accompanied then by Kent, who brought along a similar sum. The money was counted by the defendants, the testimony continued, "and when they finished, we got out of the room as fast as we could." The witness said that he had told only David Bernstein, J. Robert Rubin and Kent of what occurred. He obtained the money from Bernstein, treasurer of Loew's. 'Very Distasteful' The matter was "very distasteful" to him, Schenck said. He subsequently arranged for a designee, appointed by Bioff, to pay as a subagent for DuPont Film Co. in California, certain "commissions" received by him to Bioff in lieu of cash. Counsel for the defendants objected to the question of what Schenck believed Browne and Bioff would do if the money was not paid. Schenck answered, "I thought that our business would be destroyed, since they showed us what they could do by closing theatres in Chicago." Schenck faced cross-examination for three hours without being shaken. He said that he had not gone to the District Attorney or the U. S. Attorney, and expressed regret that he had not done so. Settle Clearance Complaint in Phila. Philadelphia, Oct. 9. — The clearance complaint of Columbus Stamper, operator of the Great Northern here, against Loew's, Paramount, 20th Century-Fox and Warner Theatres was terminated by a settlement reached in advance of today's scheduled hearing. The settlement provides that the seven-day clearance of Warners' Keystone over the Great Northern is reasonable and the defendants to limit the availability of product for the latter house to a maximum of 21 days after Warners' Strand. A similar agreement was entered by 20th Century-Fox. New Haven, Oct. 9. — Joseph L. Shulman of the Plaza, Windsor, Conn., has filed a clearance complaint here naming the consenting companies and the Windsor Theatre, Wind Col. Opens Regional Meeting Here Today (Continued from page 1) president ; Abe Schneider, Nate Spingold, Rube Jackter, Louis Astor, Louis Weinberg, Max Weisfeldt, Leo Jaffe, Hank Kaufman, Alaurice Grad, Mort Wormser, George Josephs, William Brennan, Bernie Zeeman, David Lipton, Hortense Schorr, Vincent Borelli, Joseph Freiberg, Seth Raisler, Irving Sherman, Lou Melamed, Al Seligman, Jack Segal and Arnold Picker. Grainger Leaves For Coast Meeting James R. Grainger, Republic president, left by plane yesterday for the Coast, planning to stop en route at Detroit, Chicago and Dallas. He will preside at the first of four regional meetings at the studio next Wednesday and Thursday. On the return trip Grainger plans to stop in San Francisco, St. Louis and Pittsburgh, reaching the home office Oct. 27. zaznm. William LUNDIG AN * SluAley ROSS CHICK CHANDLER • RUTH DONNELLY • MAE CLARKE CLIFF NAZARRO • TOM KENNEDY • MARY AINSLEE BILL SHIRLEY* JANE KEAN • directed by ALBERT S. ROGELL Screen play by ART ARTHUR and MALCOLM STUART BOYLAN • Original story by HERBERT OALMAS Sny U. $. defense Bonds