Showmen's Trade Review (Oct-Dec 1949)

12 SHOWMEN'S TRADE REVIEW, October 22, 1949 Sth and Walnut Carries Appeal To Highest Court The Fifth and Walnut Corporation, operators of the National at Louisville,. Ky., this week asked the U. S. Supreme Court to review its $2,100,000 damage and injunction suit against eight major distributors, the Marcus Loew Booking Agency and United Artists Theatre circuit. Grounds for appeal were that the New York federal court, in which a jury returned a verdict against Fifth and Walnut, and the Second U. S. Court of Appeals, which upheld the jury decision, had both erred. The error. Fifth and Walnut Attorney Monroe Stein said, lay in the refusal by Federal Judge Vincent Leibell to instruct the jury that moveovers were illegal and his further refusal to permit introduction of the findings of fact and conclusions at law issued by the U. S. Supreme Court in the Government anti-trust suit. Left to Jury Judge Leibell had told the jurors they might decide for themselves whether the move-over situation at the Brown Theatre, in which two of the circuit defendants were said to have an interest, was illegal. The plaintiffs contended it held up product. The judge refused to allow introduction of the Supreme Court rules as evidence on the ground that the Government antitrust suit was still in litigation and hence the findings of fact and conclusions at law were not final. On the latter point Stein contends that the Court's view on the illegality of the defendants' acts and the like were final and even if the Government anti-trust suit again goes to the high court, this portion of the record will not be changed. The judge, however, held to his stand, and in a 60-page charge, instructed the jury what was acceptable as evidence. Fifth and Walnut had originally sued Marcus Loew's Booking Agency, United Artists Theatres, Paramount, Warner Bros., 20th CenturyFox, RKO, Loew's (MGM), Columbia, United Artists, Universal, charging that the National, though properly entitled as to location and seating capacity to first-runs in Louisville, could not get them because of an agreement among the defendants. The agreement, it was charged, favored other theatres and discriminated against the National. Objection Expected All defendants were expected to fight the appeal, with Columbia Attorney Lou Frohlich stating that he had already sent his brief opposing the appeal to the printers. Drive-In Run Suit Ends With Clearance Changes Suit of the South Bend Auto Driveway against the major eight distributors over clearance was settled out of federal court in iChicago last Friday with an agreement whereby the South Bend plays day-and-date with Manta Rose-Niles Michigan Drive-In. This brings both 14 days after South Bend, Ind., first-run. The suit had been directed against a Balaban and Katz subsidiary operating the first-run in South Bend, Manta-Rose, Paramount, 20th CenturyFox, Warner Bros., RKQ, Loew's (MGM), Columbia, Universal and United Artists. More Time The federal statutory court in New York last week granted the distributor defendants in the Government anti-trust suit another 30 days in which to file oral arguments on the proposed decree which the court will issue. The arguments, which were to have been heard on Oct. 17, are now scheduled for Nov. 17. Defendants are the Big 3 — Warner Bros., 20th Century-Fox, which is reported seeking a consent decree to escape the suit, and Loew's (MGM) — and the Little 3 — Universal, United Artists and Columbia. SIMPP To Expand Anti-Trust Activities The Society of Independent Motion Picture Producers will expand its anti-trust activities to cover the entire nation and all forms of monopoly which restrict the marketing of motion pictures. Board Chairman Gunther Lessing told Showmen's Trade Review Tuesday in Hollywood. Lessing made it clear the move would include buying combines where complaint is justified. Elaborating on the original statement from the Society that the tempo of its anti-trust activities was to be stepped up, Lessing said the SIMPP action would be primarily toward informing the Justice Department of possible violations of the anti-trust laws. To Furnish Evidence The program will have as "its purpose," he said, "first, the furnishing of evidence concerning local monopoly to the Department of Justice for presentation to the federal courts. "This will include," he continued, "all actions in concert which are in violation of the antitrust law including buying combinations which restrict the marketing of motion pictures. "After the final splitting up, we shall also be active and vigilant to see that no new illegal combinations develop locally or otherwise." The Society now has an anti-trust suit of its own against United Detroit Theatres and a booking combine in the same area. Elmer Clifton Passes; Was Pioneer Director Elmer Clifton, 59, screen writer and director of silent and sound films, who was credited with discovering Clara Bow, died in California Hospital Sunday. Starting in show business as an actor, he became associated with D. W. Griffith ; in later days he directed Buck Jones westerns "The Old Chisholm Days" and "Wreck of the H esperus." Surviving are his widow, Helen, two daughters Dorinda, an actress, and Mrs. Kenneth Hanson, and a son, Michael. Robert E. Vining, Johnston Aide, Dead ^ Robert E. Vining, 48, former assistant to Motion Picture Association of America president Eric Johnston, died at his home in Palo Alto, Calif., last Thursday. A former Boston newspaperman, he switched to public relations and was later public relations advisor to Mrs. Franklin D. Roosevelt, to Secretary of the Navy Frank Knox and the Duke of Kent. During the war he organized and served as commander of the psychological warfare unit in the south Pacific. Wright To Handle Dipson Appeal Robert L. Wright, who as a member of the Justice Department successfully prosecuted the Government anti-trust suit against the eight major distributors, this week was retained as private counsel to handle appeals on two unsuccessful exhibitor anti-trust suits. They are the Dipson case in Buffalo where the federal court found for the seven distributor and two circuit defendants, and the Meiselman suit in Charlotte, N. C, where the court upheld the eight major distributors and the one circuit defendant. Defendants in the Dipson case were Paramount, RKO, 20th Century-Fox, Loew's (MGM), Warner Bros., Universal, United Artists and the Buffalo and Bison Theatres, part of the so-called Shea circuit. Those in the Meiselman case were Paramount, RKO, 20th Century-Fox, Loew's (MGM), Warner Bros., Universal, United Artists, Columbia and the Wilby-Kincey circuit. Waiits$l,800,000 Over Run 'Favor' Suit for triple damages amounting to $1,800,000 over alleged favoritism on run was filed Monday against seven major distributors under the anti-trust laws in federal court at P'hiladelphia. The suit, entered by Louis and Sadie Sablosky, Marion Fox and Myrtle Singer charges that the defendant distributors over a period of six years "conspired to favor" Paramount's Roosevelt and Warner's Circle and Liberty over the plaintiff's Mayfair by letting the allegedly favored houses have their product from one to two weeks ahead of the Mayfair. Defendants named are Warner Bros., Paramount, RKO, Loew's (MGM), Columbia, United Artists and Universal. Actual damages claimed are $600,000 which may be trebled under the anti-trust laws. Sue Schine for Million; Charge Forced Theatre Sale Charging that a conspiracy which cornered product had forced the Charles E. Dickinson estate to dispose of the 1,800-seat Palace at Lockport to the Schine circuit in 1936, the estate Tuesday filed suit in federal court at Utica, N. Y., against Schine for triple damages amounting to $1,050,000. The suit, filed under the anti-trust laws by Washington Attorney Harold Schliz and John Clagett, alleges that Schine gained control of all first and second-run product in Lockport for his two houses, the Rialto and the Hi-Art, between 1933 and 1943. Loss of business as a result forced the Dickinson Estate to sell the Palace to Schine. The Hi-Art has since burned down and under the terms of the consent decree it reached with the Justice Department, Schine must dispose of either the Palace or the Rialto. Kerr Named Cinecolor Chief John D. Kerr, chairman of Cinecolor's board of directors during the past eight months, president of the American Fruit Growers, Inc., and a bank and railroad director, this week was elected president of Cinecolor.