Motion Picture Daily (Oct-Dec 1941)

Record Details:

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8 Motion Picture Daily Thursday, October 16, 1" Musicians Strike on CBS; Expect NBC Walkout Today U.S. Asks for Wide Relief in Crescent Case (Continued from page 1) during the seven weeks' trial which closed early in September. The Crescent company was expected to file its findings tomorrow, and all defendants will file briefs by Nov. 15. Final arguments in the Crescent trial are set to begin here Dec. 1 before Federal Judge Elmer Davies. Ask Injunction Practically the only mention of distributors in the summary of the Government brief and the prayer for relief was "that the defendant distributors be enjoined from licensing pictures for exhibition in any theatre in any town where a defendant exhibitor operates a theatre, except on a local competitive basis." Universal's 43-page document maintained that exclusivity of run and clearance are arrived at by separate negotiations with each exhibitor and "are as much a part of each particular license agreement as any of the other terms and conditions thereof." "It is clear from the testimony," the brief continued, "that Universal committed no offenses under the Sherman Anti-trust law and did not contract, combine, or conspire with defendant exhibitors for the purpose of suppressing the competition of any independent exhibitor, with the possible exception of the one isolated instance relating to the theatre of J. D. Henry in Union City, Tenn." Universal Explains Universal's filing declared its witnesses' testimony controverted Government testimony as to this instance and "accords more plausibly with the documentary evidence." A long explanation of the Henry incident followed. The court was asked to conclude by law that a defendant distributor, acting separately and independently, has the right to select its own customers, and to determine whether or not it will license the exhibition of its pictures in the various theatres which may apply, and upon what terms. United Artists' declaraiton stated that the distributor's 73 and 61-situation deals with Crescent "were in no respect different from the prior United Artists contracts except in an increased number of affiliated corporations and towns covered." Compulsion Charged An index heading in the Government brief was entitled, "The Defendant Exhibitors Compelled the Major Distributors to Discriminate Against Competing Independent Theatres by Circuit Buying Power." This section covered 74 pages. The Government submitted that on the record in the case at least the following specific relief, in addition "to such dissolution and general injunction as to all of the exhibitor and distributor defendants against further violation of the act, is necessary to make individual theatre competition possible against the theatres in the Sudekum circuit" outside of Nashville, Tenn., (Continued from page 1) in some doubt at a late hour last night because of conflicting stories from the union and the networks. Union offices stated that musicians were ordered off sustaining programs which originated either in New York or Pittsburgh on both CBS and NBC networks. NBC, however, continued with its sustaining programs, except remote pickups, although the network was preparing for a strike call this morning;. Strike Effective 4 P.M. The CBS strike became effective at 4 P. M. when the "Columbia Concerts" program had to be cancelled. The network made a brief announcement at that time and before all other scheduled sustaining shows pointing out that there was no dispute between CBS and the AFM but that a local Pittsburgh situation had caused the strike call. The network substituted quartets, vocalists accompanied by organists from out-of-town stations, and similar programs for the cancelled musicals. NBC was making similar plans. Both networks were under the impression that only sustainers originating in New York or Chicago were to Refiles Clearance Complaint in Albany The American Theatre, Albany, refiled its clearance complaint against Warners and RKO yesterday in an amended form complying with directions given by the national appeals board. On Oct. 4, the appeals board refused to consider the case on its merits and, reversing Morton J. Hall, arbitrator, who had granted the American Theatre a clearance reduction, dismissed RKO's appeal from that award on the grounds that the original complaint had not been filed in accordance with decree rules. The amended complaint filed yesterday substitutes St. Lawrence Investors, Inc., owner of the American, for A. P. Papayanakos, an officer of the company who filed the original complaint. The same substitution also is made in the submission papers. As a result, the appeals board which was excluded in the pleadings : What U. S. Asks 1. Invalidation of the existing franchises. 2. Invalidation of the existing agreements not to compete in the future. 3. An injunction which will prevent each of the exhibitor defendants from conditioning the licensing of films in any theatre situation outside of Nashville where independent competition now exists or later occurs upon the licensing of films in any other theatre situation. 4. An injunction which will prevent each of the exhibitor defendants from acquiring a financial interest in additional theatres outside of Nashville, except after an affirmative showing by them that the effect of such acquisition will not be to restrain competition unreasonably. be affected and that they would be free to make arrangements for pickups from other cities but this issue was also clouded by doubt. A strike was called against NBCRed about four weeks ago because of station difficulties in New Orleans. After this strike was settled, the network declined to restore the remote pickups and continued with studio presentations. Most of these studio programs, however, were based primarily around the studio bands. 'Good Neighbor' Affected One of the major programs on NBC which will be affected is the last of the "Good Neighbor" series which was scheduled on the Red at 10 :30 tonight. The orchestra left for Washington yesterday to give the concert which will be attended by a large number of ranking Pan-American and U. S. officials. NBC plans to go ahead with the concert even if it is prevented from broadcasting it. Nine programs were affected by the CBS order yesterday and there will be a total of 65 for the week. On the Red, if the strike is called, 19 programs will be halted, and 37 will be halted on the Blue. now will consider the case on its merits. Maryland House Files Complaint on Clearance Washington, Oct. 15. — The Charles Theatre, LaPlata, Md., filed a clearance complaint at the local arbitration board here today against Loew's, seeking the elimination of the clearance granted the Marlboro Theatre, Marlboro, Md., over the Charles. The complaint also seeks a clarification of past and present sales policies on which Loew's sold the Waldorf Theatre, Waldorf, Md., although the decree does not provide for arbitration of such a demand. Meanwhile, a hearing was concluded in three hours at the local board today on the clearance complaint of Sam Mellitts, owner of the Dentonia, Denton, Md., in a case involving Loew's and the Reese Theatre, Harrington, Del. None of the parties involved in the complaint was represented by counsel in accordance with a prior agreement. Mellitts called Phil Babys, an M-G-M salesman, as his only witness ; while John S. Allen, Loew's Washington exchange manager, testified for that company, and Reese B. Harrington for the Reese Theatre. Joseph Cantrel, arbitrator, is expected to make his decision in a few days. Majors Are Sued By N. /. Exhibitor (Continued from page 1) press Theatre from getting product. It is contended that Ventnor Realty, which formerly operated the Empress for Blatt, dropped that operation and opened the Embassy nearby and that the new theatre is receiving the run which the plaintiffs claim belongs to the Empress. It is also charged that where the Empress previously played third run in Atlantic City, it now is offered ninth run. 'Yank' Frisco High Grossei With $20,50 San Francisco, Oct. 15. — "A Ya in the R. A. F." zoomed to $20,500 the Fox. "Lydia" at the United A ists drew $8,400. The weather a" tinued good. L Estimated receipts for the wi ending Oct. 7-9 : "Parachute Battalion" (RKO) GOLDEN GATE— (2,850) (39c-44c-55c days. Stage: vaudeville. Gross: $ll (Average, $15,000) "Lydia" (U. A.) UNITED ARTISTS— (1,200) (35c-40c-; 7 days. Gross: $8,400. (Average, $8,00 "Bad Lands of Dakota" (Univ.) "Mob Town" (Univ.) ORPHEUM — (2,440) (15c-35c-40c-50c; days. Gross: $7,500. (Average, $8,000) "Hold Back the Dawn" (Para.) "Buy Me That Town" (Para.) PARAMOUNT — (2,740) (15c-35c-40c-50c days, 2nd week. Gross: $9,000. (Aver; $11,500) "A Yank in the RA.F." (ZOth-Fox) "Henry Aldrich for President" (Para.) FOX— (5,000) (15c-35c-40c-50c) 7 d; Gross: $20,500. (Average, $16,000) "Navy Blues" (W. B.) "Highway West" (W. B.) ST. FRANCIS— (1,400) (15c-35c-40c-50< days, 2nd week. Moved over from j Gross: $5,300. (Average, $5,500) "Kukan" (State Rights) CLAY— (400) (15c-35c-45c) 7 days, week. Gross: $900. (Average, $l,0CO) "Honky Tonk" (M-G-M) WARFI ELD— (2.680) (15c-35c-40c-50c days, 2nd week. Gross: $12,000. (Aver $12,000) Independent Radio Stations Organi Chicago, Oct. 15. — Representati of 68 independent stations, meet at the Drake Hotel here yesterc adopted the name, Independent Bro casters, Inc., for an organization ap from the National Association Broadcasters and National Indepe ent Broadcasters. Committees were named on org£ zation, membership, super-power : copyright. The last-named is ne tiating with Ascap officials on a f program license basis. An election the new organization will be held i early next month, with officers ; 12 directors to be elected. RKO Will No t Sell Minn. Under Deer (Continued from page 1) If appeals are to be taken they ir be filed in Minnesota within the i? week. Gradwell L. Sears, Warners' g! eral sales manager, has revealed 1 his company would not sell in Min sota while it was bound by the cree selling method and until highest court has ruled on the con tutionality of the Minnesota 1 United Artists has announced its tention of withdrawing from the S' on Oct. 25. Mayor Addresses Ampa Lunch Tod< (Continued from page 1) Nizer, film attorney, who will act master of ceremonies during the lur eon. Among those who have indie; their intention of attending are: G. Van Schmus, Stanton Griffis, A tin Keough, Jack Cohn, John Gok Francis Harmon and Louis de Roc mont.