Motion Picture Herald (Mar-Apr 1945)

IT'S STILL U.S. TELLS 1940 Answers Missing at Pre-trial Session, but Wright Has New Queries The United States Government will not budge from its primary position that ownership of theatres by producer-distributors is illegal, at the trial of the New York antitrust suit against the eight major companies in October. Robert L. Wright, assistant U. S. Attorney, made that very clear Monday at a pre-trial conference with counsel for the defense, fixed by Federal Judge Henry W. Goddard in New York. Before the conference the case of the United States v. Paramount et al. nearly became the case of the misassigned court room and the disappearing interrogatories. However, the battery of defense lawyers eventually found the right room, and Mr. Wright promptly supplied them with 39 pages of new interrogatories. Could Not Locate Papers Neither the assistant U. S. attorney in charge of the Government's anti-trust suit against the majors, nor the companies' counsel, nor the court itself could locate the interrogatories concerning trade practices and corporate structure, answered by the defendants in 1940. Being basic to the suit, similar data must be given for the trial on the merits, now set for October 8 in New York's Federal District Court. a When the coats and hats of the attorneys had been spread over the chairs, and their brief cases over the counsel tables, in Room 1506, Mr. Wright began to outline his case. The matter of the 1940 papers came up almost immediately. "We have never been able to locate the interrogatories," Mr. Wright told the court. John Caskey, defense counsel, said, "We can't find the original of answers to the interrogatories— all they disclose is that the defendants own theatres." Whitney North Seymour, another defense counsel, suggested that they might be in the clerk's impounded files. Nobody seemed to know the answer. Mr. Wright, however, had 39 pages of new interrogatories for the defendants, asking for data on corporate set-up, production, distribution and exhibition activities. They were to be used at the trial when the government will seek to prove the "illegality per se of theatre ownership by producer-distributors." Facts From 39 Pages Thirty-nine pages of facts to be admitted by the defendants, covering theatre operations throughout the country, were\ also submitted by Mr. Wright for use at the trial, as was a stipulation calling for the defendants' admission of the genuineness of documents used in the Griffith and Schine cases. Mr. Wright also submitted the Government's answering brief on the elimination of "unreasonable" clearance in substantiation of the Department's motion for an injunction to eliminate many current clearance practices. Judge Goddard did not rule on the Government's application, nor upon the admissibility of arbitration Appeal Board decisions, nor DIVORCE MAJORS did he indicate when such a ruling might be expected. The issue of theatre divorcement by producer-distributors will come first, Mr. Wright said, to be followed by the trial of the dissolution issue, which will deal with "local monopolies apart from affiliation." Former New York Supreme Court Justice Joseph M. Proskauer, John W. Davis, George S. Leisure and Mr. Seymour, for the defense, pressed Mr. Wright to define the general scope of the Government's case and the issues to be eliminated. Mr. Wright made an effort to comply with their request, but not to the entire satisfaction of the attorneys. Calls Ownership Illegal Mr. Wright said that the primary issue was the "illegality, the claimed illegality of ownership of theatres by producer-distributors," and that the largest part of the case would be presented by documentary materials supplemented by oral testimony. 'A statistical description of the extent of the market control by the theatre owning defendants— economic facts — would be the backbone of the divorcement case," he said. This he indicated, would be the general scope of the case as of now, but it "may change radically between now and October," he added, without elaborating. Mr. Wright made it clear that the Government intended to include the "Little Three" in the October trial, saying that the case would be against "all the defendants named in the amended complaint." The Department's interrogatories are to be answered by each defendant in so far as they are applicable to each. They call for data on incorporation, personnel, and the general financial structure of the companies, together with the gross incomes for 1935, '36, '37 and '38, respectively. On their production activities, the companies must state the number of features produced from the 1930-31 season to and including the 1937 season, together with the number of short subjects and newsreels for the same period. Likewise, the lending of talent and;' production assets must be recorded, and the terms of such deals since January 1, 1933 must be stated. Must List Rentals On their distribution activities, the features distributed by the defendants or their subsidiaries for the 1936-37 season must be listed with the total number of exhibitions in the United States, and the total film rental from theatres in the United States for that season. The interrogatories further require that the companies give the total film rental for each of five selected pictures received from all theatres affiliated with producer-distributor defendants or subsidiaries, for first run exhibition in New York, Philadelphia, Kansas City and Atlanta for the same season. According to a Justice Department official, this data will furnish the Government with a representative picture of affiliated operations to be used at the trial. After pointting out that much could be accomplished in pre-trial conference toward narrowing down issues and saving time, if the parties act in "good faith," Judge Goddard closed the court meeting and brought the defense attorneys and representatives of the Jus tice Department to his chambers on the 2 floor for further consultation. Another o ference may be held in May. Among those present at the pre-trial conf| ence were: John W. Davis, Joseph M. Prj kauer, John Caskey, Richard Dwight, Whin J North Seymour and George S. Leisure, fense counsel. From the home offices were: Robert Rubin, Loew's; Robert W. PerkjL^ Warner Bros.; Gordon E. Youngman, Willi Zimmerman, RKO; Austin C. Keough, Lo Phillips, Paramount, and Edward C. Rafte United Artists. Harold Lasser, of the anti-trust divisi* assisted Mr. Wright. Morris Ernst and Je: L. Stern, attorneys for the Society of Ino pendent Motion Picture Producers and ■ Conference of Independent Exhibitors, respi tively, who have filed briefs in the case amici curiae, also attended. Lesser New York 7th Loan Head The industry's machinery for the Seventh w Loan was moving into gear this week, preparatc to the drive May 14 to June 30. In New York, Irving Lesser, associate gene manager of the Roxy theatre, accepted the invi tion of Samuel Pinanski, industry national cha man, to serve as Metropolitan New York chairmi His appointment was made in consultation w Samuel Rinzler and Fred Schwartz, co-chairm of the New York area War Activities Committ and was unanimously endorsed at a meeting of t WAC members. Mr. Lesser said Monday tl organization meetings were to get underw Wednesday when chairmen were to be appoint for the various committees. A member of t executive committee of the New York area W/ since its inception, Mr. Lesser has been chairm of the Broadway-Times Square theatres in t Fourth, Fifth and Sixth War Loans. He b been active in all Red Cross, March of Dimi National War Fund and other drives. Coordinators for the west coast and midwe respectively, Charles M. Phall, San Francisco, a David Wallerstein, Chicago, arrived at New Yo WAC headquarters Wednesday to begin work the Seventh War Loan. With the arrival in N( York of E. W. Street, Knoxville, southern coordi ator, plans for the drive were to be discussed a meeting with Joseph Kinsky, eastern coordinat and chairman of the coordinator's committee, ai Samuel Pinanski, national drive chairman. In a letter to the 16mm industry, Ted ! Gamble, national director of the War Finance E vision, setting forth the essential facts of the driv said in part : "Because of the large Bond quo the use of films in 16mm will be intensified f; beyond that of the Sixth War Loan. Again repeat, the successful mobilization of each ai every projector and the widespread showing of ot films will be possible only because of your effor in our behalf." He disclosed that in the Fifth there were 2S,0( showings to 10,000,000 people ; in the Sixth, 87,0( showings to 23,500,000 people. In Washington last weekend, Treasury officia reported that the Associated Press photograph < the Marines raising the flag on Mt. Suribachi w; chosen as the official symbol of the drive. It was announced this weeek that shooting o the Twentieth Century-Fox short, "All Star Bon Rally," had been completed and would be delivere to Canada shortly to help sell Canada's Eight1 Victory Loan. The film is the third loan pictur to be made in Hollywood at the request of th Canadian Motion Picture War Services Committe and it will have a cast including Bob Hope, Bin. Crosby, Frank Sinatra, Betty Grable and other; Buys Connecticut House The New Colony, Sound View, Conn., summe: theatre, has been purchased by Thomas Grasso o East Hartford. The house will be remodeled i time for opening in July and will be serviced b the Amalgamated Theatres booking and buyin; service. 20 MOTION PICTURE HERALD, MARCH 31, 194