Motion Picture News (Mar-Apr 1923)

1256 Motion Picture N e zv s Famous Files Reply to Vitagraph Denies First -Run Monopoly; Admits Kent Letter; Cites "Little Minister" Offers I FAMOUS PLAYERS-LASKY CORPOi RATION has filed an answer to Vitagraph's suit alleging damages to the extent of six million dollars and violation of the Sherman Anti-Trust Act. The answer was liled in the District Court on Friday of last week, March 2nd. In the matter of alleged first-run monopoly, Famous Players-Lasky declares that it became interested in the acquisition of theatre properties only in such cities as it found necessary to insure for itself adequate representation of the Paramount product before the public. The history of its acquisition of the Criterion theatre in New York is cited specifically in illustration of the point, alleging that Vitagraph in 1916 controlled the theatre and claiming that Vitagraph committed the same act that it now charges against the Famous 1 'In yers-Lasky organ ization. • One of the strong points of Vitagraph's bill of complaint against Famous Players-Lasky was involved in the allegation that Sidney R. Kent, in a letter to M. S. Wilson, the Denver Sales Manager for Paramount, instructed the latter to " kick out every Vitagraph account you can find, irrespective of the terms you may have to make, just so you cancel the contract and get them out of the way. As. long as they insist on a fight, let's give it to them." Vitagraph further charged that this same letter was partly responsible for its reduction in weekly business to a twenty-two thousand dollarloss which persisted, it is alleged, for a space of about forty weeks. In its answer Famous Players-Lasky admits the writing of the letter quoted by Sidney R. Kent and advances as a reason for the forwarding of the letter to the Denver manager an alleged campaign upon the part of Vitagraph to discredit Famous Players-Lasky and practice unfair competition against Paramount. The earnings of Vitagraph also come in for considerable discussion in the Famous Players-Lasky brief. The answer declares that in 1916 Vitagraph's earnings were only one-sixth of its earnings for 1913. Moreover, it is declared. Famous Players-Lasky could Hays Completes First Year as M. P. P. D. of A. Head MONDAY of this week, March 5th, marked the completion of Will Hays' first year as president of the Motion Picture Producers and Distributors of America. Inc. In a resume of the year's accomplishments by the M. P. P. D. of A. under the Will Hays' leadership observers emphasize the victorious outcome of the Massachusetts referendum on censorship whereby the people of one of the greatest states in the Union officially placed themselves on record as opposed to the practice and principle of screen censorship. The adoption by the three major departments of the industry of the uniform contract and its actual inauguration is also advanced as a highlight. Another accomplishment of importance cited is the carrying out of its " better pictures " program with official relations established with representatives of some of the most powerful religious, civic, welfare, and educational organizations in the United States. not possibly be responsible for this alleged loss of business for the reason that Famous Players-Lasky was not formed until 1916. The answer accredits Vitagraph's alleged loss of business at this time to the breaking up of the General Film Company, of which Vitagraph was a part. The Famous Players-Lasky brief further affirms that if Vitagraph's earnings did experience a drop it was because of poor-selling product and not because of any monopoly on the part of Famous Players, as charged by Vitagraph. The adaptation of Sir James Barrie's " The Little Minister " also comes in for some attention in Famous Players-Lasky's reply to the Vitagraph charges. One of the important points brought out in this connection was that, according to Famous Players, no copyright on " The Little Minister " existed in this country. Vitagraph, it is asserted in the answer filed by Famous Players, offered to sell to the latter company for $60,000 an old version of the Barrie story produced about 1912. When Famous Players-Lasky refused the offer, Vitagraph, according to the answer, reduced the price to $20,000 and later to $10,000. It is next stated that when Vitagraph discovered that Famous Players would not purchase the older version (claimed to have cost about $8,000), Vitagraph hastened production on a modernized version of the subject and rushed its release to the trade for the purpose of competing with Famous Players-Lasky's version, which had been put in production. The Famous Players-Lasky brief further affirms that while no copyright exists on " The Little Minister " in the United States, it has paid Sir James Barrie a certain royalty on the photoplay, a course not pursued by Vitagraph, it is stated. Acker man -Harris Buy Share in Grauman Theatre An important theatrical deal of the week was the purchase of a fifty per cent share in the ownership of Grauman's Million Dollar theatre, Los Angeles, by Ackerman and Harris. It is expected that one result of the deal just closed will be the introduction of a combination vaudeville and picture policy instead of straight film programs. The transfer of interest in the Million Dollar theatre is not taken as indicating any split in the relations between Grauman and Famous Players-Lasky, as it is understood that the Ackerman and Harris negotiations were carried on and terminated with the full consent of the Paramount interests. The Metropolitan and the Rialto, downtown houses of Los Angeles, will continue to present the Paramount product in liberal measure. New York Theatre Damaged by Fire; $100,000 Loss The Crystal theatre, located at 48 East Fourteenth street, New York City, was damaged by fire on last Sunday. The total loss sustained by the theatre and the adjoining property was estimated at one hundred thousand dollars. Crank Bills in Discard as Congress Adjourns WITH the adjournment of Congress various forms of crank legislation, some affecting the motion-picture industry, passed into the discard. A moderate tariff on film raw stock is now in force. The George H. Eastman Company, which opposed the tariff, has effected a reducti on in the price of their raw stock to two cents per foot, as announced in the March 3rd issue. Representative MacGregor's measure to reduce or eliminate admission tax on theatres died without any action being taken, but plans are being formulated to re-introduce the bill again at the next session. Hostile Bills Die as Indiana Legislature Closes The session of the Indiana State Legislature closed March 5 without any action inimical to theatrical interests having been taken. The only threat throughout the session was in Senator Steele's movie censorship commission bill, which was killed the first time the Senate had a chance to vote on it, 40 to 4. This was significant in that for several years there has been serious danger of either censorship or more strict blue-la'" measures going through. This time the Sunday question was not even discussed, and sentiment against censorship was as outspoken as it was overwhelming. Restrictive legislation was flayed for its tyrannical effects and increased taxation burdens, by Brigadier General Dwight Aultman. commanding the Fifth Army A.rea, with headquarters at Fort Benjamin Harrison, who spoke as a guest of the Senate. The General said in part : " I do not believe the danger in America is that of Bolshevism, but one where a tyrannous majority is forcing restrictive measures on a minority which may m cases be more thoughtful but not as powerful. The simpler the code of law, the easier it is to carry out the code. " Remember that whenever a restrictive law is passed that a personnel must be created to enforce that law. These laws mean the imposition of a greater burden on the taxpayer. An economic study shows that a very large percentage of people must work with their hands in any nation which is to survive. Now every time you pass a restrictive law you must necessarily create a group of men who are non-productive to administer that law. Hence you decrease the productivity of the nation just so much." St. Louis Business Men to Finance Wm. Cahanne St. Louis business men in a $250,000 trust estate are reported to have been interested by William Christy Cabamie in a production enterprise. The first picture to be made under the auspices of the company, which will be known as the William Christy Cabanne Motion Picture Trust, Ltd., will be produced in New York, it is stated. Eighty-eight thousand dollars of the stock has already been subscribed, it is declared, and it is expected that negotiations will be completed in time to permit the start of production by May 1st. The trustees are William Christy Cabanne, Col. George W. Goode and former U. S. District Judge Henrv S. Priest.