Motion Picture Daily (Oct-Dec 1941)

4 Motion Picture Daily Tuesday, November 4 C. C. Moskowitz and Costen Refute Bioff's Testimony Expect Broadw Gross Boom Tod; After Big Weekei Court Signs Escape Order On Minnesota (Continued from page 1) vene in the pending criminal informations against Paramount, 20th Century-Fox and RKO at St. Paul for alleged violations of the Minnesota anti-block-of-five law and argue its contention there. The fact that the reservation was included by the Government in the order signed by Judge Goddard yesterday would indicate that the Department of Justice may intervene in the St. Paul cases. Minn. Allied Leader Files Some Run Complaint Bennie Berger, Northwest Allied leader, has filed a some run complaint against Paramount at the Minneapolis arbitration board, charging inability to obtain . a run of the company's product under Section six of the decree for his Lyceum Theatre at Duluth, Minn., the American Arbitration Association headquarters here was advised yesterday. Northwest Allied was the sponsor of the Minnesota anti-block-of-five law, under which the consenting companies were unable to sell in Minnesota without violating the decree. The arbitration action was filed prior to Paramount's application to the Federal court here for a release from the sales provisions of the decree to permit it to sell in Minnesota. Filing of the arbitration action is regarded as having been a test move to determine whether either arbitration or Section six of the decree, which directs distributors to offer some run to exhibitors, offer any relief in the face of the state law. In the meantime, however, Paramount received its exemption from the decree and now is free to sell in Minnesota under the state law. Rockefeller, Odium See No RKO Change (Continued from page 1) RKO stockholder. In his Government post, Odium is chief of OPM contract distribution. Rockefeller's position was learned from an unimpeachable source. The Coordinator of Cultural Relations Between American Republics, he is cognizant of the persistent rumors involving Schaefer and looked into them when he visited the West Coast recently. Rockefeller Center, Inc., which Rockefeller heads, is one of the three biggest stockholders in RKO. Rockefeller forsees absolutely no change in the RKO presidency and he is reported to regret that the recurrent reports may be "hamstringing" Schaefer. Open Theatre in Rio Loew's new Cine Metro Copacabana Theatre in Rio de Janeiro will be opened today, it was announced here yesterday. Seating 1,800, the house is similar to the circuit's recently erected Metro Tijuca in Rio. (Continued from page 1) York theatres, and James E. Costen, Warner theatre zone manager in Chicago, were the first rebuttal witnesses and both told of new threats by Bioff in 1935 and closely linked Browne to the alleged activities of his co-defendant. Moskowitz told of having an appointment with Browne late in the Summer of 1935 but finding Bioff and Nick Dean in the hotel room instead. "He told me he was responsible for Browne's election," Moskowitz said. "He said he had been told that there would be a couple of million in it for him. I started to leave but he pushed me back to my chair. He told me he expected this money and was going to get it." Demands $150,000 About a week or 10 days later, Moskowitz continued, he met with Browne and Major Leslie E. Thompson, RKO theatre executive, to ask Browne's aid in avoiding a Local 306 strike. "Browne said we would have to pay him $150,000 before he would inject himself into the situation," Moskowitz related. After several meetings, a method was suggested for the payments whereby Loew's agreed to pay the money to Mort Singer, circuit operator, and the latter would pay it over to Browne. "It's a deal," said Browne, Moskowitz testified. Loew's paid $105,000 as its share, plus income taxes for Singer and $2,000 for railroad fares, making $165,000 in all, Moskowitz said. In 1937, Browne made a further demand, declaring that it would cost Loew's $100,000 to stop "sabotage" by operators, Moskowitz said. He described the "sabotage" as showing pictures without sound, sound without pictures, playing reels out of order and showing the picture upside down. Moskowitz said he agreed, and paid $25,000 in currency to Browne at Dinty Moore's restaurant in October. 1937, and $15,000 in April, 1938. Moskowitz denied asking Bioff to act as messenger, and declared that all payments were made because of threats to close the Loew theatres. Cross-examination by Martin Conboy, Browne's attorney, was brief. "Did you ask Mr. Browne for assistance?" was the question. "Yes," responded Moskowitz. Costen Meets 'Berger' Costen told of meeting Bioff for the first time in 1928 when he was introduced by Browne as "Willie Berger." The next meeting was in February, 1935, Costen said, when Bioff told Costen that money had been paid for the elimination of extra operators in Chicago and that if these men were to be reinstated Warners would be compelled to pay a good deal more money. A week later, Costen continued, Bioff called him again and declared that the Chicago Exhibitors' Association would have to pay $100,000 of which Warners would have to pay $30,000. Browne was present at both occasions, Costen testified. When Costen declared that his superiors would enter into such a deal, it was arranged for Browne and Bioff to accompany Costen to New York, Costen said. Upon their return to Chicago, Costen continued, he called on Bioff and told him that the money would be sent to Chaplin & Cutler, Warner Chicago attorneys, and a $30,000 check was subsequently sent to the firm. Costen then told of a subsequent demand in May, 1936, for $11,000, and of giving Bioff $8,500. In September, 1936, Bioff was paid approximately $14,000, Costen said, and after Bioff left for California, Costen paid Nick Dean $9,600 in the Fall of 1938 and another payment was made in December, 1940. "Too Big" When Bioff was recalled to Chicago on the 1922 pander charges, Costen continued, the defendant boasted that he was "too big a figure" to go to jail and added that "Joe Schenck will be right next to me" if he, Bioff were jailed. Later, Costen added, Bioff said that other big men had gone to jail, including Josef Stalin and Adolf Hitler. Several days after this meeting, Bioff telephoned and became abusive in demanding further payments, Costen said, and $9,600 was paid over in cash at the Bismarck Hotel. Crossexamination of Costen will be begun tomorrow when the trial will be resumed. Bioff's attorneys said that some short testimony may be introduced tomorrow, although they have rested their case formally. Charles T. Russell, income tax consultant, who was the first witness yesterday, said he had received $31,180 from the IATSE special assessment fund, although most of his activities had been on behalf of Browne, Bioff and Harry Holmden, an IATSE vice-president. Transfers Stock Jack Rabin, a stock broker connected with Mervin Ash & Co., testified that in October, 1937, his firm had transferred $202,837 worth of stock from the account of Joseph M. Schenck to Murray W. Garrson, a Congressional committee investigator, and J. M. Moskowitz. Rabin said that the transfer was made because of an error by the California office of the firm. Rabin did not have the California records with him and will be recalled tomorrow. Rabin was followed by a series of Bioff's friends and relatives who testified that Bioff was known in his youth as Morris. The defense introduced a check by Schenck to a travel agency in the sum of $1,405 which paid for Bioff's trip to Rio de Janeiro in February, 1938. By stipulation, the testimony of Joseph H. Rosenberg, a vice-president of the Bank of America, was introduced by a deposition. Rosenberg stated that Schenck had borrowed $100,000 on an unsecured note on June 18, 1937 and that five days later, Schenck came to the bank with $100,000 in cash and had repaid it. The testimony of John B. Codd, 20th Century-Fox controller, was similarly introduced. Codd said the $100,000 borrowed on June 17 or 18, had been transferred to New York, and that on June 21, 1937, Nicholas M. Shenck. president of Loew's, under a power of attorney from Joseph M. Schenck, paid $135,956 to the United Artists Theatre Circuit, Inc., for rights in life insurance policies on Joseph M. Schenck's life. Codd also told of drawing papers for the loan by Joseph M. Schenck through Arthur W. Stebbins to Bioff. (Continued from page 1) on "How Green Was My Valley :j the Rivoli, where the film is doin | unusually good business, grossing! proximately $28,000 in five days. | film opened on Tuesday night an< j entire proceeds were turned o^ia the Naval Relief Society, that* I ning. "Nothing But the Truth" is I too. With the Andrews Sisters 1 Jimmy Long's Orchestra on the s I this film at the Paramount The I over Saturday and Sunday, grosse I estimated $28,000. It is now ill second week, and it is expected J it will gross about $58,000 fori seven days. "Dumbo," the new Walt Di;l RKO picture, is also doing ni 1 grossing about $10,000 over Satul and Sunday. The night busine 1 reported comparatively weaker I the matinee trade, but altogether, .1 good. At the Radio City Music '. I "You'll Never Get Rich" in its se'l week, grossed about $55,000 J Thursday through Sunday, whic-l not far behind the first week's .1 lar period. It is to be followe< i Thursday by Universal's "App t ment for Love." 'Sgt. York' Good "Sergeant York" and Phil Spita ji orchestra had a good FridaySu i; weekend estimated at $20,000. 1 show is now in its third week * starts a fourth Friday. "Belle S'ir' at the Roxy with a stage .4« grossed an estimated $26,000 Tl I day through Sunday and bows ji Thursday night to make way fl "Weekend in Havana." "Target for Tonight" brought it Globe an estimated $2,200 Satu i> and Sunday. The picture is it ■ third week. "Honky Tonk" enl five-week run at the Capitol to :r row night and will be replacec )> "Ladies in Retirement." The iemiere of Edward Small's "Intel tional Lady," originally schedulec I today, has been postponed to \' Alonday at the Criterion. In following the usual procei 1 some first runs will have electior e turns announced from the stage at a ular intervals. These will be hi Paramount, which also will flasr e turns on the screen between picl 4i when "something substantial" cc I in ; the Roxy, which also will ha [ ; bulletin board in the lobby ; the St k and the Capitol. The Music Hall il have a radio in the lounge for ti who would care to listen in. $8,000,000 Para. Bonds Exchang ( Approximately $8,000,000 of P I mount's 3% per cent convertible den tures, or about three-fourths of I entire issue outstanding, have Is offered to date in exchange for I company's new four per cent bi ji of 1956, Stanton Griffis, chairman the executive committee, annou {« yesterday. The company expects that subs I tially all of the old bonds will be {■ changed for the new prioj; to t Monday evening, the expiration 1 of the offer.