Moving Picture World (Aug 1919)

660 THE MOVING PICTURE WORLD August 2, 1919 ROBERTSON-COLE AND MUTUAL IN COURT Distributing Firm Seeks Injunction to Prevent Termination of Contract with Producing Concern THE Exhibitors Mutual Distributing Corporation filed an action in the United States District Court on July 19 against the Robertson-Cole Company to compel the latter to carry out a contract executed November 18, 1918, under the terms of which the Mutual became the distributing agency for RobertsonCole releases for a period of two years. The Mutual alleges in the complaint filed by Wing & Russell that the Robertson-Cole Company notified the officials of the distributing company on July 18 of its termination of the contract and a copy of the letter is embodied in an affidavit subscribed to by William J. Clark, president of the Mutual,, filed with the bill of complaint. Desires Contract Termination. In the letter contained in the affidavit the Robertson-Cole Company assigns as the reasons for the termination of the contract the claim that the Mutual company is insolvent, that the Mutual has failed to perform certain terms of the contract and that the distributing company has discriminated in exploiting films owned by its officials. Excerpts from the letter follow: "You have wholly failed to comply with your obligations to intensively and energetically solicit and procure contracts for the exhibition of our motion pictures, and to procure the best prices therefor obtainable, and in no event to accept a price less than the minimum specified by us, and have failed to properly exploit and distribute the same. "You improperly arranged that the Chaplin re-issues should be acquired by your officers personally, instead of by your company, and are preparing to distribute and exploit same in violation of the terms and conditions of the agreements between us." Insolvency Denied. Both in the complaint and in Mr. Clark's affidavit an emphatic denial of the allegation as to the insolvency of the Mutual is set forth in no uncertain terms and Mr. Clark embodies a copy of the company's last financial statement issued last May which shows the assets of the corporation to be $1,874,263 with liabilities of only $167,663 in his affidavit to refute the allegation. "Plaintiff is not insolvent and has not been insolvent at any time since the execution of the contract of November 18, 1918," the papers recite. "Plaintiff is in all respects a solvent going concern with a large and growing business." Figures Quoted. In support of the contention that the business of the Mutual is on a sound basis and is expanding rapidly the papers set forth that the company has negotiated contracts with over three thousand motion picture exhibitors and that its income has increased from $30,000 weekly in January to $64,000 in May, but unless the enforcement of the Robertson-Cole contract is directed by the Court the business of the distributing company will be destroyed it is alleged. "The films owned and to be acquired by defendant (Robertson-Cole Company) are the productions of a number of high class artists, whose services are unique and which are exclusively controlled by the defendant or persons producing films for it and the said productions cannot be acquired except through defendant," the complaint recites. Wants Contract Upheld. If the Robertson-Cole Company is permitted to terminate the contract the Mutual company alleges its business will be seriously crippled, if not entirely destroyed, and the company will be laid open to damage suits by exhibitors with whom it has contracted to furnish films on a rental basis. The Mutual company asks that the Robertson-Cole Company be enjoined from publishing announcements in the trade of its termination of the contract or circulating statements that the Mutual is insolvent and that the defendant be enjoined from making other arrangements for the distribution of its films and compelled to carry out the contract which is the subject of the suit. The trial of the issues involved in the suit, which was expedited by the court in the interest of both parties, commenced before Judge Mack on July 23. Press Representatives Guests at Fox Luncheon ARTHUR JAMES, the newly appointed supervisor of advertising and publicity for the Fox Film Corporation, was the host at a luncheon given by the company Wednesday, July 23, to about twenty representatives of the trade publications at Rector's Cafe de Paris. The luncheon preceded the first of a series of showings which will extend over three days, covering three features, as well as snorter subjects which are now ready for the exhibitor but which will not be released for two months. Mr. James explained that it will be the policy of the Fox company to continue to have pictures ready for showing at least eight weeks in advance of release and that exploitation details are being worked out now on productions, some of which will not be distributed for six or eight months. This will be done in order to assist the picture showmen in preparing their own advertising and exploitation campaigns well in advance of exhibition. Mr. James also introduced to the guests Merritt Crawford, the new director of publicity; J. M. Lufboro, who will be in charge of special exploitation, and Tom North, in charge of the Fox short subjects. Stahl to Direct Mollie King. After running its first production, "Greater Than Love," starring Mollie King, Walter Niebuhr, president of the American Cinema Corporation, has signed John M. Stahl to direct the next five productions with Miss King. Work on her second picture will begin within two weeks. Title and author of her next picture will be announced shortly. Anita Stewart Would Evidently Have the Kingdom Supplanted by a Democracy in "Her Kingdom of Dreams." Tom Santschi beards the bearded one at the right in this scene from the Anita Stewart Production for First National.