Motion Picture Herald (Nov-Dec 1948)

TRUST TRIAL (Continued from opposite page) ithe situation, as far as sales were concerned, called for no further action from the three judges — Judges Hand, Henry W. Goddard , and Alfred J. Coxe. Judge Hand interposed : "Did the other companies send out such instructions ?" Mr. Davis, with a straight face, informed the court that he really didn't know, that Loew's never conferred with its competitors on such matters." Court's Questioning Brings Laughter from Judge "I thought," replied the judge, "that you might have read about it in the newspapers." And then Judge Hand slumped back in his chair, laughing aloud, holding his hand in front of his face. Mr. Davis then offered for evidence stipulations by J. Robert Rubin, vice-president and general counsel ; Charles Moskowitz, vice-president and treasurer, and Joseph Yogel, general manager of Loew's theatres. This Loew's evidence was in defense of its joint partnerships with independents. Only in one major situation did Loew's have no major defense. That situation is Buffalo, where Loew's and Paramount hold jointly 13 houses. Loew's and Paramount are willing to split up that partnership, according to Mr. Davis, but there is a Loew's employe in Buffalo who holds a partial share in the theatres and who desires to go on being an employee and holding that share. That desire will hold up the split, said Mr. Davis, until the unnamed employee retires. Loew's, however, will sell its interest in the Criterion theatre, New York, according to Mr. Davis. Mr. Proskauer put W. Stewart McDonald on the stand. As assistant treasurer of Warner Brothers Pictures and vice-president of Stanley Corporation, Mr. McDonald knows a lot about Warner theatres. Mr. Proskauer, in a city-by-city questioning, got Mr. McDonald to tell the court the history r>f Warner holdings and Warner competition in New York, Los Angeles, Baltimore, Pittsburgh, Milwaukee, ad infinitum. In each city, Mr. Proskauer and Mr. McDonald were attempting to show that Warners had absolutely no monopoly. Warner Theatre Holdings And Competition Discussed This testimony was at length interrupted by Judge Hand, who expressed concern that Mr. Proskauer's procedure was unduly lengthening the hearing. He recommended that the Warner counsel submit all his evidence at once — in toto. Mr. Proskauer agreed. Mr. Seymour then suggested to the court the three-week adjournment. During that period, he opined, all the stipulative evidence could be gathered to be presented at one time and during that period, also, the defendants an the Department could confer on the disposition of issues over theatre partnerships so as to avoid litigation on that score. Then, Mr. Seymour thought, the defense would need only another day and a half of argument. The adjournment was granted Tuesday. It was effective Wednesday upon completion of Mr. Proskauer's arguments. This meeting of both parties on ownerships was often, during the hearing, urged by Judge Hand, who once stated : "Why don't you get together on joint ownerships and take them out of the case?" Obviously pleased by the prospects for a quick settlement of the case. Judge Hand made no bones about saying so. "Of course," he added, with a laugh, "this case may go on for years. But not in this court." The concluding session Wednesday morning, was primarily devoted to a discussion of arbitration, with Mr. Proskauer indicating the five majors were willing to join in some sort of a voluntary arbitration program. Counsel for Universal and United Artists told Judge Hand that they would give consideration to a plan for arbitration, but the cost of such a plan would be a factor. Sch laifer Qu its 20th-Fox Feb. 1; Plans Own Firm Charles Schlaifer has resigned as director of advertising, publicity, exploitation and radio for Twentieth Century-Fox, effective February 1, it was announced Wednesday by Spyros P. Skouras, 20th Fox president. Mr. Schlaifer will go into business on his own. Just what that business is will be announced "at an early date," but Mr. Skouras reports he is looking "forward to a business association with him in this new enterprise," according to the anouncement. Mr. Schlaifer started in the industry as assistant publicity manager of the Omaha Paramount theatre in 1929. In 1942 he was appointed national advertising manager for 20th-Fox. Mr. Schlaifer has been chairman of the Advertising and Publicity Director's Committee of the Motion Picture Association and is still chairman of the MPAA Advertising Advisory Council. Charles Schlaifer Court Signs RKO Decree, Ending 10-Year Struggle Monday morning it was finally official. After more than 10 years an RKO consent decree, taking the company out of the Paramount, et al, anti-trust suit, was signed Monday by the three judges of the special statutory court in U. S. District Court for the Southern District of New York. Under the terms of the decree, as approved earlier by RKO's board of directors, RKO proposes to voluntarily divorce its exhibition business from its production and distribution business. Subject to the approval of the stockholders, the RKO theatre company will be operated as an independent circuit. In a prepared statement, Ned E. Depinet, RKO president, reported himself as "very pleased that our company has taken this important step which in my judgment is clearly in its interest and in the interest of its stockholders. "I believe," he stated, "the consent decree is the only way RKO can be assured of retaining substantially all its so-called whollyowned theatres." Pointing up the favorable aspects of the decree, Mr. Depinet noted that RKO has the right to acquire without further court approval certain additional theatres and that "our interest in the theatres which we must sell is in mqst cases that of a minority stockholder and those theatres are operated by others." The separation of production-distribution from exhibition, said Mr. Depinet, "will be a relatively simple" separation since, "fortunately, RKO has since its organization operated its theatres independently of its production and distribution business." Charles Einfeld, president of the suspended Enterprise Productions, was reported at midweek ready to take over as vice-president in charge of advertising-publicity for 20thFox. He has been spending some time at the 20th-Fox studio and was reportedly to fly to New York Friday to close the deal. Decision Reserved on Bid Plea in Philadelphia Federal District Judge William M. Kirkpatrick in Philadelphia reserved decision last week on a request from both Warner Brothers and Twentieth Century-Fox, asking permission to exhibit their pictures in theatres which they operate without having to offer them competitively. Attorneys for the two companies said their clients wanted to show their own films in their own theatres and, in their opinion, such action would not conflict with the provisions of the 1946 decree. William Goldman, independent theatre operator, opposes this request, contending that the companies, under a court order granted two years ago by Judge Kirkpatrick, must put all pictures up for competitive bidding. Mr. Goldman, in December 1946, won a $375,000 damage suit against 11 companies, including Warners and 20thFox, charging conspiracy in violation of the Federal anti-trust laws. He held then that the producers deprived him of first run features for his Philadelphia Erlanger theatre. MOTION PICTURE HERALD, NOVEMBER 13, 1748 17