Motion Picture News (May-Jun 1923)

June 30, 1923 3137 Cohen Testifies at Federal Hearing {Continued from page 3134) The complaint of the Moon theatre. Teeuinseh. Xeb., had to do with the showing of Paramount pictures at a Chautaqua and in schools, and other school complaints came from Oxford. Miss.; Salem, Ohio, and Ada. Ohio. A discussion of the showing of pictures in schools ensued, and Mr. Cohen declared he could see no objection to the running of pedagogic, educational or Biblical films, but it was unfair for schools to show feature dramas in competition with the exhibitor. "It is destroying the little man who keeps the industry going," the witness summed up. He admitted that the practice might not be illegal, but nevertheless it was unfair. The cross-examination of Mr. Cohen, resumed Tuesday morning at 10 :45 o'clock, lasted until 1 :30 p. m. Mr. Swain took up, case by case, all the remaining complaints. Many of these were difficulties between exhibitors and F. P.-L. sales representatives over film prices, or complaints that service had been taken away and given to opposition houses. Many of the cases wTere from the South and Xew England. The Marquis Amusement Company case, Bartow. Fla., came to his attention from W. C. Patterson, of Atlanta, said the witness. He had no recollection of having been shown an admission that the • exhibitor in the case had switched films from one city to another, and did not know that F. P.-L. had paid the exhibitor $100 in adjustment. In the Carpenter case at Kichford, Vt., Mr. Swain showed that a pooling arrangement had been obtained for Carpenter with Black. Although he had tried to get a settlement for C. A. Lick, of Ft. Smith. Ark., he had been unable to do so. Cohen stated, and Mr. Swain asked him to let Famous Players have the facts so that an adjustment could be worked out. Mr. Lick was described by the witness as one of the most substantial and cleanest exhibitors in the country. In the Huntsville. Ala., matter. Mr. Swain brought out that Hackworth and his partner had asked Southern Enterprises to help finance the building of a theatre and that Southern Enterprises had afterwards sold their 50 per cent interest in the house. Mr. Cohen said he didn't remember that, but would not say Mr. Swain's version was wrong. Considerable attention was devoted to the case of H. H. Jackson, Columbia, Tenn., which Mr. Cohen described as the absolute undermining of a theatre owner. Some of the correspondence in this matter came from representatives of Metro and First National, which led Mr. Swain to ask pointedly : *' You mean to say complaints came to you from representatives of our competitors?" " A few did," the witness answered. The complaint was to the effect that a representative of Southern Enterprises wanted to take over Jackson's theatre, and when Jackson refused the F. P.-L. subsidiary got another house and refused to give him any more Paramount pictures beyond those he had already contracted for. " Don't you know that Southern Enterprises never did own a theatre in Columbia ? " asked Swain. Mr. Cohen replied he didn't know that. " The steps they took," Mr. Swain eontin Harding to Present Print of "Covered Wagon' ' ON Tuesday, July 3rd, President Harding will visit Blue Mountain, Meacham, Oregon, and there formally present to the Old Oregon Trail Association, for preservation in its official archives, a print of James Cruze's Paramount production, " The Covered Wagon." The print is being given the association by the Famous Players-Lasky Corporation through the courtesy of S. R. Kent, General Manager of Distribution, and C. M. Hill, branch manager at Portland. Arrangements to have the President make the presentation address were made by W. E. Meacham, of Baker, Ore., president of the association, who last week telegraphed to Mr. Kent his thanks and that of his organization. Mr. Kent has also received the following message from Hon. Walter M. Pierce, Governor of Oregon: "Please permit me to thank you on behalf of the State of Oregon for your kind co-operation in presenting print of 'The C overed Wagon ' to the Old Oregon Trail Association." ued, u was to give the service to a brother of a Famous Players employe." The Glenwood, Iowa, case Mr. Cohen described as " a rather mean " one. in which a small eshibitor, having had difficulties with a Paramount representative, was subject to the so-called " shock " advertising. Mr. Swain pointed out that F. P.-L. never owned a theatre in Glenwood. and that the case was merely one where a rival theatre opened and got the Paramount service. This brought a statement from Cohen that the " shock " advertising was used by Paramount representatives in the field for their own purposes, but a moment later he admitted to Mr. Swain that the ads were used only in towns where Paramount pictures were not being shown. • On one occasion when a Kansas City representative wrote a threatening letter to an exhibitor, the representative was discharged by Mr. Kent, it was revealed. As to the whole Xew Englaud situation at the time of the complaints. Mr. Cohen said : " Zukor and Kent tried to stop Black because Black was making so many blunders." " As a matter of fact, every time an exhibitor got in a quarrel over service, didn't he imagine Famous Players was going to come in and build a theatre?" Mr. Swain wanted to know. This Mr. Cohen denied, but he added : " We did find that First National pictured Lynch as an overpowering monster, and Lynch was smart enough to let the exhibitors believe it." Mr. Lynch was not what he was " built up " to be by propaganda, but just like most people, the witness went on. and in addition a man of great ability. Because of the fear of reprisals, only a small percentage of the eases came to M. P. T. 0. A. headquarters. Mr. Cohen thought. The Madison, Xeb.. case turned out. when Mr. Cohen's file was examined, to be a complaint against Fox and Universal and had nothing to do with Famous Players. The Andrew J. Cobe matter was dismissed as a controversv which culminated in a dis pute over salary which Cobe claimed was due him from F. P.-L. The problem of length of protection came up in connection with the Poujal case in New Orleans, " where the distributor gives long protection, he puts his own pictures out of business for the time being, doesn't he " asked Mr. Swain. Mr. Cohen said that might be true, but called attention to the advertising of " The Sheik " in Detroit by John H. Kunsky, wherein Mr. Kunsky stated that the picture wouldn't show in Detroit the rest of the vear. The advertisement was dated September 1. 1922. The M. P. T. 0. of Michigan declared for not more than thirty days as the right length for protection, and the advertisement was changed and the matter adjusted. Mr. Swain declared that Mr. Kunsky had no authority for the statement in the advertisement. The George W. Allen matter in Xew Bedford turned out to be a service complaint which was satisfactorily adjusted. Newman, Cal., furnished another example of " shock " advertising. Mr. Cohen knew nothing of the merits of the case. The complaint of C. C. Griffin, Oakland, Cal., was personally settled by Mr. Kent. " Shock " advertising was also used in Beloit, Wis., but Mr. Swain brought out the fact that Paramount Pictures had not played the town for two years and a half previously. In connection with the case of Wesley White. Bristol, Tenn., the relations of Mr. Lynch with F. P.-L. came up again. " In talking with Mr. Zukor," said the wtness, " we found that Lynch had an option for eleven other states for distribution of Paramount pictures, but Mr. Zukor told our committee that Mr. Lynch would not get the other eleven, and he did not. We're glad he didn't" " Have you had any exhibitor complaints from the South since Famous Players took over the Lynch interests ? " the witness was asked. His answer was " No." A. C. Hayman. of Buffalo, had sent in a complaint concerning an exhibitor, who asserted that on the promise of Paramount service he had gone ahead and bought a theatre, extensively advertising the fact that it would show Paramount Pictures. Mr. Swain pointed out that another exhibitor already had the service in the town, and asked the witness if he would think it fair to take the service away from the man who had it and give it to the other exhibitor. " I would have felt that to be unfair," responded Mr. Cohen, whereupon Mr. Swain remarked : " That was a case where we would have been damned if we did, and damned if we didn't." The ultimate result of the C. Stern case, Bangor, Me., Mr. Cohen did not know. Stern, he said, was ready to buy one of Black's theatres in Bangor, and the matter was taken up with E. J. Ludvigh. but nothing happened. Afterwards, the witness declared, Mr. Stern met Harold B. Franklin, who wanted Stern to pool, but this the latter declined to do. The C. H. Burkey, Kansas City, case turned out to be a service complaint and the Angus & Brads-haw affair a dispute over deposits. The Mattoon matter Mr. Cohen described as a typical " shock " advertising case. It was brought out that B. Uran, the complainant, got into a controversy with F. P.-L. over (Continued on page 3138)