Showmen's Trade Review (Jul-Sep 1940)

Page 4 SHOWMEN'S TRADE REVIEW Gov't May Force Divorcement Against 20tli-Fox, Paramount Latter Still Objects to Escape Clause in Decree; Trial Will Start October 7 With Five Defendants Several possibilities loomed this week in the Government's suit against the major companies. With 20th Century-Fox refusing to sign a consent decree, because the Government rejected a number of proposals it sub-f mitted and refused to re-draft the escape clause, the Government then prepared to pursue the trial against Universal, United Artists and Columbia along with the 20th-Fox, the first three because they refused to sign any consent decree. Meanwhile, Government spokesmen were puttmg Paramount in the same classification as 20th-Fox, because Paramount objects to the escape clause as drafted. A spokesman for the Department of Justice said that the Government will not weaken the decree, particularly the escape clause, and that if Paramount would not accept the decree in the form signed by RKO, Warner Bros, and MGM that it must stand trial with the other four. Another development that loomed was the probability that although only Paramount and 20th-Fox, of the defendants who will stand trial in October, own theatres, the Government will pursue its original effort to compel them to divest themselves of all theatre holdings. This would have no ei¥ect on the three theatre-owning companies which did sign, it was pointed out, as they would continue operating as they are until the trial was finished. I hen, if the Government won, they would have to divorce their theatres but if the defendants won, they would be in their original position. The trial is expected to be considerably shorter than originally projected, it was said this week, because none of the evidence bearing solely on RKO, MGM or Warner Bros, would be introduced. This would eliminate several lengthy aspects of the trial, including such accumulations of evidence as were prepared against Warner Bros, in the Philadelphia situation. Meanwhile, the so-called Big Five, who had agreed to a consent decree m principle, were holding conferences this week, with MGM, RKO and Warner Bros, attempting to find the basis for a settlement. Little hope was seen for success at these conferences, however, with S R. Kent, president of 20th CenturyFox stating that his company's attitude toward the consent decree was unchanged and Government spokesmen stating that they would not deviate substantially from the form of the consent decree draft as recently formulated. Huge Celebration For "KiUarson" Premiere May Be One of Greatest Ever Held In West PIDGEON O.K.'s COPY An inquisitive and publicity-minded pigeon lighted on the desk of Si Seadler, advertising manager for Metro-Goldwyn-Mayer and refused to budge from the spot. Mr. Seadler's office is located on the third floor of the Loew Building, Broadway and 45th Street, New York. Preparations for the world premiere of "Kit Carson" in Denver next Monday, are reaching such huge proportions that it may rank as one of the greatest ever held in the West. The city of Denver has regimented social clubs, industrial com panies, utihties, hotels and mer chants associations to make the world premiere an event of na tional importance. The Chamber of Commerce has issued invitations to the Governors of Colorado, New Mexico, Utah, and Wyoming to be present at a luncheon which will be given for the Hollywood stars who will appear in person at the world premiere. A monstrous parade of over 100 cars, cowboys on horses, and Indians will be held upon the arrival of the stars in Denver. The florists of the city are working on unusual floral decorations for the stars and for the several luncheons and dinners which are to be held in the city. All the main thoroughfares of the city will be decorated with flags, banners and plaques. Immediately following the premiere will be a Motion Picture Ball open to the pubHc and plans have been made to accommodate 10.000. Bourgeois Quits; Takes Astor Franchise O. K. Bourgeois has resigned as general sales manager of Astor Pictures in New York and has acquired the Astor franchise in Texas, Arkansas and Oklahoma, with headquarters in Dallas at 302'H S. Harwood Street. W. J. Figueroa succeeds him at Astor. Buyers' Strike Threatened Independents Protest Triples And Increased Protection A buyers' strike was threatened this week by theatre owners in the city and county of St. Louis. The move was a protest against the use of triple features by certain theatres of the St. Louis Amusement Co. and what the exhibitors termed "an embargo" against the free flow of product by Fanchon and Marco. Furthermore, the independents proposing the strike oppose the plea of the second run theatres for an increase in their clearance from 14 days to 21. Efforts to compromise the situation a meeting last Saturday ended in failure. Fred Wehrenberg, president of the MPTO of St. Louis, Eastern Missouri and Southern Illinois, represented the independents at this conference, while Harry Arthur, Fanchon and Marco executive took the circuit's stand. The latter demanded that merchandise giveaways and triple features be completely abolished, while Wehrenberg offered to drop giveaways at the Apollo Theatre if Arthur would agree to stop triple bills at the Pageant. Both of these theatres are in the same West End neighborhood. Arthur's combination has been enhanced recently by the addition of a pool for buying with the theatres controlled by Ansell Brothers, Bess Schulter and Sam Schuchart with the Fanchon and Marco houses. He is thus able to dictate to the major companies where and when pictures shall be played as the only other theatre is Loew's. The independents say that not only will they refuse to buy new product if the situation is not remedied, but that they will also slash their prices to a straight ten cents and play triple bills every night. August 24, 1940 69 Theatres Ban Dual Bills Milwaukee Houses In Deal; ITPA Convention Oct. 21-25 Single features will return to Milwaukee and vicinity September 3 in 69 out of 72 theatres, it was announced this week by Harry Perlewitz, business manager of the ITPA of Wis consin. Perlewitz arranged the switch after long conferences with both the circuits and the independents in the city and county. Double features have prevailed for some time in Milwaukee. Perlewitz holds little hope for a permanent agreement but hopes that singles wll remain at least for several months. The ITPA will hold its annual convention at the Hotel Schroeder in Milwaukee on October 2 and 3, Perlewitz also announced. A regional meeting has been called for September 6 at Merrill, Wis., with Miss Lucile Forbes as chairman. Members from a 60 mile radius are expected to attend. Van Schmus Recovering W. G. Van Schmus, managing director of the Radio City Music Hall in Rockefeller Center, is recovering rapidly at his summer home in St. James, Long Island, from a recent operation. Gov't Won't Drop Crescent Charges Judge Denies Motion To Eliminate Allegation The Government will not drop charges that certain exhibitor and distributor defendants in its action against the Crescent Amusement Co. used their control of feature filrns to eliminate or restrain competition, it was decided this week, by Federal Judge Elmer D. Davies! Judge Davies denied a motion by the defendants to eliminate a complaint that the defendants had been able to take over and keep closed numerous theatres. The defendants are the Crescent Amusement Co., Lyric Amusement Co., Nu-Strand Corporation, Cumberland Amusement Co., Strand Enterprises, Rockwood Amusements, Cherokee Amusements and Kentucky Amusement Co. WALTER WANGER (The Man on the Cover) "Foreign Correspondent" his fifteenth, and said to be his best, picture for United Artists will open in New York at the Rivoli Theatre next Tuesday, hie is soon to leave on a swing around the country. On this trip he will talk to Variety Clubs, exhibitors, business men's groups, women's clubs, etc. The purpose of this journey is to get out in the field and see what kind of pictures the public wants. SHOWMEN'S Trade ^Hi^ Review Vol. 33, No. 5 Aug. 24, 1940 Title and Trade Mark Reg. U. S. Pat. Off. Published every Friday by Showmen's Trade Review, Inc., 1501 Broadway, New York City. Telephone BRyant 9-5606. Charles E. "Chick" Lewis, Editor and Publisher; Tom Kennedy, Associate Editor; Robert Wile, Managing Editor; Joseph H. Gallagher, Film Advertising Manager; Harold Rendall, Equipment Advertising Manager; West Coast Office, Guaranty Bldg., 6331 Hollywood Blvd., Hollywood, Calif., Telephone Hollywood 1390, Ann Lewis, manager; Chicago Representative, Marshall Reinig, 612 North Michigan Ave., Telephone Superior 7646; London Representative, Milton Deane, 185 Fleet St., London, E.C. 4; Australian Represen^tive, Gordon V. Curie, 1 Elliott St., Homebush, Sydney, Australia. Subscription rates per year: $2.00 in the United States and Canada; Foreign, $5.00. Single copies, ten cents. Subscribers should remit with order. Entered as second class matter February 20, 1940, at the Post Office at New York, N. Y., under the Act of March 3, 1879. Contents copyrighted 1940 by Showmen's Trade Review, Inc. Printed in U.S.A. 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