The Moving picture world (May 1923-June 1923)

May 26, 1923 MOVING PICTURE WORLD 297 Famous Players Accuses Exhibitor of Violations of His Agreements STATEMENTS made by Joseph C. Boss, at previous hearings before the Federal Trade Commission, regarding Famous Players' alleged attempts to monopolize the moving picture industry, were partly discounted Wednesday when Prather McDonald, representing Famous Players, produced letters purporting to show that the corporation had offered to aid Boss out of financial distress. Boss is an exhibitor of McAllister, Okla. McDonald stated that Boss violated his contract with Famous Players frequently and this brought about disagreement between the exhibitor and the film company. These contract violations, McDonald said, were entirely Boss' fault. He stated that Boss frequently rented pictures for four days' runs, but at the end of three days returned them. Famous Players' alleged price boosting tactics were testified to by James S. Burnham, an exhibitor of Cortland, N. Y. He said that the prices were raised so high that he had to give up the service and that his patronage dwindled because the Famous Players stars were favorites with his clientile. Exhibitors complained of the "unfair competition" of Famous Players as far back as 1920, according to testimony given Tuesday. This testimony was in the form of a letter which Sydney Cohen, president of the Motion Picture Theatre Owners of America, wrote to Adolph Zukor three years ago. Famous Players, the letter stated, was considered by the exhibitors as their most dangerous enemy, because it was destroying their property by building theatres which would compete with theirs to the extent of forcing them out of business. Wall Street Influence Wall Street had influenced Famous Players and Zukor, Mr. Cohen complained, and had urged monopolistic policies by Famous Players. He said that as a last resort the independents would take their case to the public and show how under independent conditions better pictures would be shown and lower admissions to theatres charged, and hoped that the fair-mindedness of the public as well as its self-interest would dictate a policy helpful to the independents. Thomas A. Edison was placed on the stand as a government witness. The government attempted to bring out through Mr. Edison's testimony that control of the moving picture industry would give enormous power to those who had it in control. Mr. Edison stated: "There is nothing so powerful as motion pictures in influencing people. They are the most powerful means of influencing people at the present time and will increase in power from year to year. Whoever controls the motion picture industry controls the most powerful medium of influence over the people. "I think motion pictures have just started," he said in answer to a question about the future of the industry. "It is my opinion that in twenty years children will be taught through pictures and not through books." Mr. Edison said that he regarded moving pictures as 100 per cent perfect for teaching. They could influence people mightily for Sopd or bad in the moral sense. They were ie b^st means for the dissemination of knowledge, especially among children. He said he believed that children were more susceptible to education through the screen than persons over twenty years of age — ■ more susceptible to good and bad influences alike. Dr. J. J. Tigert, United States Commissioner of Education, sustained Mr. Edison's contention that motion pictures are the world's greatest educational instruments. He said that in years to come the value of motion pictures for educational purposes will be much more appreciated, and that they will also be of vast aid in Americanizing foreigners by giving them an insight into our history, institutions, traditions and geography, which knowledge they would be unable to absorb so expeditiously in any other way. "The commercial and entertainment phases of the industry are destined to be far outdistanced by the educational and instructional developments of the business," Mr. Tigert said. Mr. Cohen was called to the stand to present minutes of conventions of 1920-21 which contained correspondence bearing on the matters in dispute between the M. P. T. O. A. and Famous Players. Mr. Cohen could not produce these minutes as he said they were needed for an executive meeting which is scheduled just prior to the Chicago convention, but promised to have them on hand soon after. Strong Words Exchanged Attorney Swayne, for Famous Players, questioned J. C. Boss, the exhibitor of McAlester, Okla., who was also on the stand last week, in an effort to have him testify that Famous Players had treated him fairly and even considerately. A telegram, alleged to have been sent by Frank Freeman, and which had a bearing on the case, was shown to Mr. Boss. It brought forth the hot retort from Boss that "if Freeman had sent such a telegram he lied." "Would you be willing to repeat that if Mr. Freeman were in the room," Mr. Swayne asked. "I certainly would," Boss replied, "and for emphasis I restate that if Freeman sent such a telegram he lied." When Swayne said, "you will have the opportunity of telling Freeman that to his face," Boss replied, "I will welcome it." There was no hearing of the case Monday out of tribute to the memory of Edward C. Leffingwell, prominent attorney, who died Friday. Mr. Leffingwell was a member of the firm of Cravath, Henderson, Leffingwell & De Gersdorff, which has been aiding Elek J. Ludvigh in the defense of Famous Players. In his testimony Thursday Boss told how he had difficulty with Famous Players after he had agreed to use 100 per cent of the organization's pictures. That was in 1920, he stated. Instead of living up to the contract, Boss said, Famous Players put up a theatre across the street from his under the management of Willis Adams, and "froze" him out of business. He said one of the ways which Famous Players used to overcome him was by putting up the price of pictures, and that by the summer of 1920 he was paying ten times as much for his pictures as he had paid the year before. "Not only did they raise the price beyond reason but they tried to foist second-run pictures on me — such sorts that would have injured my house's reputation," he said. "I went out on the market to buy pictures of as great drawing power as the Paramount, but I found the Palace had already booked United Artists and Universal Pictures, including Metro and Realart. The opposition had enough pictures to run three houses. They had gone out and got the pictures Paramount did not control in order to block me. "It amounted to this," he added, explaining his contracts with Paramount a few minutes later. "If I wanted to stay in McAlester and use Paramount pictures I had to submit to Paramount dictation." Letters sent by Boss to Zukor and Zukor's agents were then introduced. In one letter Boss said that Famous Players ought to have bought him out or given him an opportunity to buy the opposition theatre. In another letter to Zukor, Boss said that when he built the theatre in McAlester he had an understanding with Freeman and Lynch that Famous Players were to establish no Paramount theatre in that city. "But you decided to drive me out instead," he added. "In five years you have changed from a harmless pup into a ravenous wolf. You want to hog it all." Boss admitted that he announced he would take up the matter with the Department of Justice and made three visits to see Mr. Burns, who was in Florida. In November, 1921, Willis Adams, the new manager of the Palace Theatre, began negotiations with him for the purchase of the theatre. "First he offered $6,500 cash as a first payment, then he cut the price to $5,000, then to $3,000, I accepting each time, and finally he said he could only raise $2,000 in cash and I agreed to that," said Boss. "With the Paramount and its millions across the street, I did not see any other way out of it." Nat Rothstein Back Nat G. Rothstein, general publicity and advertising director of the Film Booking Offices, has returned from California whence he went in company with H. M. Berman, F. B. O. sales manager, to attend a conference on the forthcoming production made by Mrs. Wallace Reid, "Human Wreckage." Enroute back to the east Rothstein and Berman stopped off at San Francisco where final arrangements were made with the Ackerman-Harris forces for the premiere showing of the anti-narcotic film in that city. Berman has remained in the west where he will visit several F. B. O. exchanges. Moves to Larger Quarters Robert W. Priest, an independent distributor, announces the establishmeat of spacious new quarters in the Strauss Building, 565 Fifth avenue, New York. The announcement states that owing to the extension of his activities, including the distribution of projectors in the non-theatrical field, Mr. Priest has found it necessary to move to larger quarters. Opens Larger Offices In Moving Picture World of May 19 it was made to appear that National Screen Service had moved its New York offices to Chicago, whereas the facts in the case are that the organization retains its New York offices and has opened larger quarters in Chicago, having outgrown its former quarters in the latter city. The company's new address is 845 South Wabash Avenu«.