Motion Picture Herald (Nov-Dec 1944)

Schine Opens Its Defense as U. S. Rests in Case The Schine Theatres' defense against the Government's charges of violations of the Sherman Anti-Trust Act began in Federal Court, Buffalo, Monday afternoon with an opening address to the court by Edward F. McClennen, defense counsel. The Government had rested its case at 3 :27 P.M. when Federal Judge John C. Knight denied a defense motion to strike from the record letters received in evidence, both orally and in writing, over objections by the defendants. Mr. McClennan said that he would not predict the length of time required to complete the Schine defense. He said, however, that it would be considerably less than the Government's 29 days. In his address, Mr. McClennen denied that there was or would be any evidence calling for a finding that the defendants had conspired to restrain interstate commerce. He pointed out that the only conspiracy alleged is a separate one by the defendants against certain distributors and that these distributors had not been made a party to the case. The attorney's remarks, continued Tuesday morning, were a prelude to J. Myer Schine's taking the stand in his own defense, which he did when the court resumed in the afternoon. Mr. Schine gave a step by step account of his theatre acquisitions from the beginning. Among the last few Government witnesses at the weekend was Charles S. Cantwell, managing editor of the Ogdensburg Journal, who testified to a news item on September 26, 1940, relating to the operating policy of Schine's Pontiac theatre. Preciously, William C. Smalley of Cooperstown, N. Y., operator of a 14-theatre circuit, testified to his inability to get product for Norwich after Schine took over the Colonial there in 1930. Dismiss Cooper Suit Paramount's complaint against Rialto, Inc., Interstate Theatres of Colorado and J. H. Cooper Enterprises, in which Paramount had sought an adjudication of its claimed right to an interest in \hose companies, was dismissed last Friday in Fed^ral Court, New York. Federal Judge Samuel H. Rifkind, in dismissing the complaint, confirmed a report of Special Master Francis W. H. Adams, which indicated that the three theatre corporations were not within the jurisdiction of the New York Federal Court. Paramount had claimed a 50 per cent interest in the Class "B" stocks of Rialto and Cooper Enterprises, and a 25 per cent interest in the Class "A" stock of Interstate. The complaint alleged a breach of a 1933 agreement by Mr. Cooper under which he was induced to go to Colorado to reorganize certain theatre properties on a 50-50 basis. Instead, he acquired them under his own name, Paramount alleged. Files Suit in Brooklyn The Leader Theatre Corporation filed suit last Saturday in the New York Supreme Court against the Randforce Amusement Corporation and Twentieth Century-Fox, alleging a conspiracy between the defendants to deprive the Leader theatre, Brooklyn, of product in violation .of the General Business Law of New York State. The complaint alleged that the Leader was a Randforce house until July 23, and that up to that time the circuit was receiving "A" product from 20th-Fox, as well as "A" product from other distributors. The plaintiff purchased the theatre in July and allaged that $20,000 was spent in renovations, and that an attempt was made to obtain 20th-Fox product on the same terms as Randforce, and that 20th-Fox allegedly refused. Decision on an application by the Hillside Amusement Corporation for an order directing Paramount to produce books and records for use in the examination before trial of Adolph Zukor, was reserved last Thursday by Federal Judge Samuel H. Rifkind in the New York District Court. Hillside is suing the distributors, alleging violation of anti-trust laws. Reelect Taylor Ontario Theatres Unit President N. A. Taylor has been reelected president of the Motion Picture Theatres Association of Ontario. At the elections, in Toronto, Haskell Masters, Odeon Circuit general manager, was named vicepresident ; J. Garbarino, operator of the Odeon Theatre, Toronto, was reelected treasurer ; and Floyd Rnmford, mayor of Forest, Ontario, was named honorary secretary, and S. B. Taube reelected executive secretary. 20th-Fox Votes 3 Stock Dividends The board of directors of Twentieth CenturyFox October 26 declared a quarterly cash dividend of %l.l2y2 per share on the outstanding prior preferred stock of the corporation, payable December 15, 1944 to stockholders of record at the close of business November 6, 1944. A cash dividend of 37j4 cents per share for the fourth quarter of 1944 on the outstanding convertible preferred stock of the corporation was declared, payable December 15, 1944, to stockholders of record at the close of business on November 15, 1944. A quarterly cash dividend of 50 cents and an extra cash dividend of 25 cents per share on the outstanding common stock of the corporation was declared, payable December 15, 1944, to stockholders of record at the close of business on November 15 1944. As is required by its certificate of incorporation, tlie company will redeem on January 2, 1945, out of its prior preferred stock retirement fund, 1,867 shares of prior preferred stock at the required redemption price of $100.22^4 being $100 plus 22J4 cents accrued dividend from December 15, 1944 to January 2, 1945. The 1,867 shares to be redeemed will be selected by lot from stockholders of record at the close of business November 6, 1944. Retention of WAC Urged by Depinet Amplifying statements made in a recent West Coast address, Ned E. Depinet, RKO Radio Pictures president, while in Chicago last week to attend an industry Sixth War Loan drive meeting, said that all efforts must be made to keep the War Activities Committee alive and active after the war to meet the many problems that will face the industry in tlie post war period. His first week's tour in connection with the drive convinced him that the exhibitors would face increased local and statewide tax legislation in the future, and that the WAC was in a favorable position to represent the entire industry effectively, he said. Mr. Depinet said that the men in service who would govern our country in the post-war years would come back with a more favorable viewpoint of the industry as a result of WAC's current efforts in servicing them with hundreds of prints of the latest and best releases. He asserted the WAC stood ready to undertake more Bond drives and help in numerous other wartime campaigns to come before the last shot is fired. Extend Stage Show Policy The Roxy theatre. New Britain, Conn., operated by Nick Karnaris, has extended its policy from weekend stage shows to full week operation, filling in with repeat pictures. Dissolve Trusteeship The Atlanta Federal Court has dissolved the trusteeship for State Theatres, Inc., owned by B. E. Gore. All creditors are paid fully. The circuit includes the State, Howard, Rialto, and , Northtown theatres. Television Joins Press and Radio For Election Elaborate plans are being mapped by a Ne York radio station, television studio and new.paper to present election returns next Tuesda night via television. Station WNEW, the Ne^" Yorjc Daily News and the DuMont television sta tion WABD are cooperating in this venture, th first of its kind. All three communication medi will produce the show. The program will take the air at 8 :45 P.IVll and will run indefinitely, to give the maximum possible election coverage. Three-way line and run] ner service is being set up between the DuMon studios, the radio station and the newspaper X.\ expedite airing of last minute bulletins. j Cesar Searchinger, news commentator, will bj on hand to analyze returns which will be con verted into video material by staff artists of thj Charles M. Storm Company, advertising agenc}] Background material has been assembled, includ ing pictures and recorded voices of past president Theodore Roosevelt, Wilson, Harding, Coolidg] and Hoover, animated by newsreel clips showinj them in action. Special pictorial versions of thl Gallup, Fortune and Daily News polls and specia graphs and charts to show the progress of thj election have been prepared. An effort is being made to round up some of the special song ma] terial used in the present campaign which has had as participants a number of Broadway and Holly] wood performers. Another feature of the shovJ will be a round-up of also rans — the unsuccessful candidates for the presidency. PRC Pictures First to Use Ansco Color Ansco Color, announced earlier in the year b} the Ansco Company, formerly Agfa-Ansco oi Binghamton, N. Y., will be used for 35mm production in Hollywood studios. The film was at first released only in sheet filrr and 16mm width and was widely advertised foi amateur photographers. PRC Pictures this weel< announced it would use the new process, becom1 ing the first Hollywood producer to do so. Leon Fromkess, PRC president, told the press in New York that a tentative agreement had beer reached with Ansco after negotiations and testa, had been going on for six months. The new film will be widely used by the company on its 1945-46 program. At present PRC has one film, "The Enchanted Forest," using Magnacelor. When Ansco Color was first introduced spokesmen for the manufacturing company indicated that great plant expansion at Binghamtorj would be necessary before sufficient quantity could 1 be produced for use in Hollywood. Since then! Ansco is said to have received assurance of Gov-j ernment aid for such expansion. High Court to Hear Crescent j Argument November 6 I Washington Bureau The long-delayed arguments in the Crescent Amusement Company anti-trust case is scheduled to go before the U. S. Supreme Court November 6. Court officials doubted that the presentation would be concluded that day, however. The case is the_ second scheduled to be heard after the court ends its present recess. Both the Government and the defendants filed appeals from the decision of the Tennessee court and the cross-appeals will be heard simultaneouslv The Government is asking confirmation of tlit District Court decision in its entirety, plus an in1 junction to prevent further theatre acquisition out1 side of Nashville without court approval. The Crescent Company appeal cites 26 allegec errors made by the lower court and contends that the decision is not justified bv the facts or the evidence and asks that the District court be reversed. Wendell Berge, Assistant Attorney General and chief of the anti-trust division, is expected to pre-i 1 sent the arguments for the Government. | 1 56 MOTION PICT0RE HERALD, NOVEMBER 4. 1944