Motion Picture Daily (Oct-Dec 1946)

Motion Picture Daily Monday, November 11, 1946 '■ Percent Suits (Continued from page 1) paring several years ago for the industry anti-trust decision by eliminating all mention of contracts from actions for recovery on percentage suits. The efficacy of this move is attested by Abram F. Myers, who holds that the pending decree of the Federal Court here has no bearing on the distributors' continued right to examine exhibitors' books. Some exhibitor attorneys contend that the phases of the license agreements found to be in violation of the anti-trust laws have ' the effect of bringing the distributors into court with "unclean hands," thereby invalidating their position as plaintiffs for recovery in the percentage actions. Legal Avenues Open Distribution attorneys, on the other hand, claim that even if that were so, other legal avenues would be open to distributors for recovery in these cases. They specified actions for fraud and actions to establish a fair return on their property which has been licensed and used commercially by exhibitors. Distributor counsel explain that the present percentage suits are tort actions (actions claiming civil wrongs independent of contract), based solely on exhibitors' alleged fraudulent returns as to collections at their theatres. Whether or not the original terms may have been induced by the existence of a monopoly does not enter into the matter, they hold, pointing to a Supreme Court ruling of several years ago, which held that municipalities had to pay in full for the purchase of sewer pipe although a monopoly in the fixing of its price had been proven. However, if an individual purchaser can establish that he has been damaged by price fixing, he may later resort to the remedy of a suit "for relief under conspiracy," it was indicated. . Bulwark As a bulwark to the position they are taking, the distributors point out that it is an established procedure for courts to "enforce the good features of bad contracts." The judges in the New York case ruled that their holding that> "the defendants have all engaged in unlawful price-fixing does not prevent the distributors from continuing their present methods for determining? film rentals ; they may measure their compensation by stated sums, by a given percentage of a particular theatre's receipts, by a combination of these two, or by any other appropriate means." Moreover, according to distributor counsel, a primary element in the percentage suits is to prevent the "false representation of prior grosses from influencing future contracts." This, they point out, is forbidden by law. A study of past cases strongly indicates that an attempt to get lower New PREVUE TRAILER SERVICE Don'l forget, FILMACK'S special trailers for all purposes are available with our usual high quality and service. >< J will soon ha ve another gw il. dependable 1 r.] ilers. H you ll all the <t< ■ 1... b, drop us a $300,000 Increase (Continued from page 1) weeks ago with PRC stipulates that contract negotiations would be initiated 10 days after conclusion of a pact, with larger companies, he said. Provisions of the new agreements grant increases of $6 for apprentice publicists formerly earning between $30 and $49.99 a week; $10 for associate publicists who earned between $50 and $69.99 a week ; $12.50 for publicists earning between $70 and $99.99 a week, and $15 for senior publicists earning $100 or more a week. In addition, base ..starting salaries for these classifications were boosted 15 per cent. Other features of the contract provide for a modified union shop in which three out of every four employes must be members of the SPG ; a "lay-off clause" declaring that companies may cut down their staffs only if there is a genuine economic necessity and if the retrenchments will not create "speed-up" conditions for other employes, and the creation of a unionmanagement panel, representing employes and management of each company, if the union contests lay-off procedures. Grant Forms Company Hollywood, Nov. 10. — Marshall Grant, former Universal producer, plans an independent producing company bearing his name. terms in the future has been the chief motive of many exhibitors who have made fraudulent returns, the counsel claim, explaining that in numerous instances the difference between the amount actually owed and the amount paid was less than the bribe allegedly given to checkers to obtain their assistance in the deception. Exhibitors, it is said, fear that showing high returns on percentage pictures will result in demands for a higher rate for their "flats." Since the opinion in the New York anti-trust case was handed down on June 11, percentage suits have been brought against the operators of "the Delmar and Dorset theatres in New York ; the Ezella and Madison, Cleveland ; State, Gallon, Ohio ; Berea, Berea, Ohio; Willoby, Willoughby, Ohio ; Parma, Parma, Ohio ; Beach Cliff, Rocky River, Ohio ; Highland and Liberty, Akron; Regent and Victor, New Castle, Pa. ; Forum, Barstow, Cal., and Apollo, Momart and Lyric, Brooklyn and Frisina Theatres in upstate New York; Van Nomikos, Chicago, and against William and Betsy Rosenthal, operating the Irving, Indianapolis ; Royal, Danville, Ind., and Vogue, St. Mathews, Ky., in Federal court, Indianapolis. Auditing is going oh, suits are going forward, and payments of the amounts found to be due are being made, counsel state. Brahdt Settlement (^Continued from page 1) sel to begin shortly. Each of the four distributors will take up the matter with Brandt separately, with Paramount scheduled to be first. Last summer Brandt settled a 20th Century-Fox claim in an arbitration proceeding presided over by Spyros Skouras, president of that company at Brandt's request. The outcome was that Brandt paid .20th Century-Fox a reported total of $134,000 over a period of time. Goldwyn Gets Astor (Continued from page 1) Productions, which announced here on Friday that "The Best Years of Our Lives," RKO-Radio, will open at the house on Nov. 21. The booking has been the subject of controversy between Goldwyn and United Artists which had sought the house for David O. Selznick's film, "Duel in the Sun." The Selznick office here reported that it does not have a print of the picture^ here ; however this was not meant to imply that a print could not be available for a holiday opening. In Unique Position Meanwhile the theatre finds itself in a unique position since a possibility still exists that its present attraction, UA's "Caesar and Cleopatra," might be ordered out of the house early this week. New York Supreme Court Justice Aaron J. Levy on Friday reserved decision after arguments on an order obatined by United , Artists directing New York'county sheriff John J. McCloskey to "show cause" why the print of "Caesar" has not been recovered. This was in consequence of a writ of replevin served against the the Astor, and which the latter repudiated. Purpose of the U A -obtained writ was to make the theatre available for a run of its "The Strange Woman," which, it was intended, would play until a "Duel" print became ready. Maurice Maurer, who operates the theatre for City Investing Co., states that "The Strange Woman" has not been booked. Additionally, he confirmed the booking of the Goldwyn film. Judge Levy's decision on confiscation of the "Caesar" print is expected tomorrow. A spokesman for the Goldwyn office asserts that a five-month run of "The Best Years of Our Lives" is expected. Funeral Services for Newcomb Thompson Funeral services were held yesterday, at the Church , of the Mediator, here, for Newcomb F. Thompson, 46, syndicate and special contact representative in S. Barret McCormick's RKO Radio advertising-publicity department under Rutgers Neilson, publicity manager. Thompson had been with the company for two and one-half years. Previously he served in the Maritime Service after a long association on newspapers in New York and Boston. He is survived by his widow, Ruth E. Thompson, and his father, J. Bain Thompson of Norfolk, Conn. Thompson was a member of the Associated Motion Picture Advertisers. Henry Lehrman, 60, Dies Hollywood, Nov. 10. — Henry Lehrman, prominent in early silent pictures, died Thursday night at his home here, due to a stroke. Lehrman, who was 60 years old, started with Griffith and Sennett, and also produced Fox Sunshine Comedies. No relatives survived. Rites for Mrs. Leon Errol Hollywood, Nov. 10. — Funeral services will be held Tuesday afternoon at the Church of the Recessional, Forest Lawn, tor Mrs. Stella Errol, wife of Leon Errol, who died Thursday night following a stroke. Quota Laws (Continued from page 1) ceeded by a six-week period during which briefs embracing the advice and judgment of any and all American business organizations concerned (including film trade organizations md firms) can be submitted to the U. S. Tariff Commission's Committee for Reciprocity Information, in Washington and by approximately 18 weeks of public hearings of views and opinions — are as follows : Australia, Belgium, Brazil, Canada, Chile, China, Cuba, Czechoslovakia, France, India, Lebanon, Luxemburg, Netherlands, New Zealand, Norway, Union of South Africa, Soviet Union, United Kingdom, and, of course, the U. S. Russia is the only nation which has not yet formally accepted the invitation to enter into the negotiations which will aim at establishing a charter for an International Trade Organization, Brown said. He added, however, that informally Russian officials have indicated a willingness to participate. With the exception of Russia, no other nation can enter into the negotiations, the panel having been closed, according to Brown. Tariff Concessions In a list of products on which possible tariff concessions by the U. S. Government will be considered in reciprocal trade agreement negotiations with foreign countries, the U. S. InterDepartmental Trade Agreements Organization (consisting of the Departments of State, Commence, Agriculture, Treasury, War and Navy, and the U. S. Tariff Commission) includes reference to motion pictures. A small tariff, amounting to approximately one cent per foot, is carried by the U. S. on the importation of motion picture prints, according to Carl E. Milliken, secretary of the Motion Picture Association. However, the tariff may be avoided altogether, Milliken added, by bringing negatives into this country and making prints here. In the case of "important" pictures, it is the practice to import negatives and do the printing here. Milliken Favors The MPA Milliken added, views the trade agreement negotiations program with much favor. The MPA, he said, is committed to support the elimination of all film trade barriers. The Tariff Commission's Committee for Reciprocity Information has set DeC. 21,. 1946, as the closing date for the submission of briefs. That date likewise is the closing date for the hearing of oral applications. Public hearings will open in Washington next Jan. 13. All concerned with or likely to be affected by the negotiations may submit briefs, render oral advice and participate in the hearings, Brown said. He emphasized that the Government specifically encourages the filing of information, since, he said, business organizations are regarded as having pertinent details which the Government would not otherwise obtain. "Progress Made' (Continued from page 1) tinued as anticipated, with CSU resuming mass picketing at the Columbia Ranch," and at the Universal and Warner studios. The police arrested 11 pickets at Warners.