Variety (March 1908)

VARIETY 11 EDISON COMPANY IN COURT THE LOCAL ORGANIZATION AGAINST THE OPPOSITION TAKES DECIDED STAND Injunction Asked of the U. S. Court in Chicago, Re- straining the Kleine Optical Company From Hand- ling Films, Edison Gives Ultimatum Before Proceeding. Passes Resolutions Which Become a Pronunciamento of Decided Character. Herbert L. Miles Tenders Resignation As President Chicago, March 13. Another bomb in the moving picture war was exploded simultaneously with the arrival in this city of W. E. Gilmore, Vice-President and General Manager, and Frank L. Dyer, General Counsel for the Edison Manaufacturing Company, when suits were filed in the United States Cir- cuit Court against George Kleine and the Kleine Optical Company of Chicago, for alleged infringement on the film patent issued years ago to Thomas A. Edison. The suit demands an injunction against the selling or renting of such pictures as the combination claims rights of manu- facturing to. At a conference in the Auditorium An- nex, where Mr. Gilmore and party made their headquarters during their campaign, it was emphatically declared that every means within law will be used to press the suits. Every renting exchange and ex- hibitor not provided with an Edison ma- chine, or not an authorized licensee, it is asserted, will be dealt with in the same manner in the event of a favorable court decision. Offield, Told & Limthicum have been retained as local counsel. The one ultimatum in favor of the ex- hibitors or users of the so-called unauthor- ized Edison device to escape possible prose- cution has been rendered. It contains a provisio that if they agree to the jjolicy of the Edison company, its agents or li- censees before actual suits are com- menced the past claims will be waived. Both Mr. Gilmore and ^Ir. Dyer left , for New York toward the end of the week. It is not known when or how soon the case will be brought up in court here. The papers have been filed and the suit placed on the calendar. Those in attendance at the conference were G'eo. K. Spoor, William N. Solig. J. A. lU-rst of the Pathe company, and John TIardin, Western representative of the Edison company, besides Messrs. Gilmore and Dj'er. It was said here before the Edison Gen- eral Manager and General Counsel left for New York that upon their arrival there, a suit wouM be connnenced based upon the decision rendered by tlie V. S. Courts in the spring of '<>7 jumI calling for an ac- countinrr of all users of the certain articles tlien decided ujxui by the court as the patenteil rijiht of the Edison Com- pany. This accounting goes back as far behind the date of the <leci^ion as the use of the article nuiy be proven. It was also reported that a similar suit to the one instituted in Chicago against the Kleine Company, would be commenced against the Piograph Company in New York, in the United States Court for that district. Geo. Kleine when seen by a VARiExf representative had the following to say re- garding the developments of the week : . , "Chicago has been honored by a visit from Messrs. Gilmore, Berst and the Edi- son attorney, and they are about to return to New York. The effect upon the In- dependent film interests is not noticeable nor have there been any defections from the ranks of theatre owners. Articles have been given to the press by the Edison in- terests, and I understand that others are about to be published along the old familiar lines threatening suit because of the use of alleged infringing films and threatening dire penalties for these crimes and mis- demeanors. "I can only advise our friends to value the substance and disregard the shadow. I have not yet been advised that the Bio- graph Company has been sued for viola- tion of the Edison film patent since Mr. Edison withdrew his former suit from court, covering the first re-issue of this patent. "If this action and these warnings are serious it is not apparent what is to be gained by attacking an owner of a nickelo- deon who is between the devil and the deep sea in being liable to be haled into court by the Biograph Company on one hand for violation of their 'Latham Loop' patent, or by the Edison Mfg. Co., for alleged in- fringement of the film patent. "It is a significant fact that not one of thirty-two owners of moving picture thea- tres representing fifty theatres now work- ing in Chicago with Independent films, was attacked in the courts during this visita- tion from the East, and not one of them has been in any way infiuenced by the 'Campaign of I'rinler's Ink' now on. "So far as we may anticipate the decision of the highest court which will take cog- nizance of this proceeding, it must follow their own decision covering films in the previous case which not only stated flatly that Edison 'was not the inventor of the liluKS,' but also by implication censured the attempt to obtain a monopoly to which lie was not justly entitled. "There is no 'Sacred Star' to guide the 'Elect or the Unsanctified' to any conclu- sion not based upon previous court action, and probabilities following upon it." At the final meeting of the Edison forces in the Auditorium Annex it was con- cluded not to con)in«'nce restraining pro- ceedings against exhibitors or ojjcrators hero at present. BOOSTING EDUCATIONAL FEATURE. . Springfield, Mass., March 12. Wide interest has been arou-^ed among the school children here by the manage- ment of Nelson Theatre, recent Iv turned over to a picture show. ''Paul Kevere's Hide" is the feature of the >liow and the house manager has olfcied a pii/e for the Itcst coniposiiion on that historic event written by a scholar in any of the public schools. The public scho(tl olTlcials welcome fhe opportunity to arnu«»e inteie-t among the youngsters, and the plan is wi<lely ap- proved. The last meeting of the Greater New York Exhibitors' Association, held at the Murray Hill Lyceum on March G, gave distinct prominence to the discussion of ideas and (Opinions by moving picture ex- hibitors wlien in conference and organi- zation. It was stormy weather without the doors of the Lyceum, an<l it narrowly escaped the weather conditions in the meeting hall. The inclemency prevented a great many from attending, but the intelligence of the Association was represented by the members present. At the previous meeting a special com- mittee had been appointed, having for its chairman, J. Austin Fynes, and including Nathan Hirsch, Henry Oehl, Wm. Mark- graf, Frank Seiden, Robert MacNabb and Milton Gossdorfer. This committee was empowered to confer with the executive committee of the Association. Upon the meeting coming to order with Herbert L. Miles, president, in the chair, Mr. Fynes was called upon for a report. He stated that a conference of the two committees had taken place, several of the special committee acting by proxy for those of the executive, and Mr. Fynes of- fered as a result of the joint deliberations the following set of resolutions: Resolutions adopted by the Greater New York Exhibitors' Association at a regular meeting held at the Murray Hill Lyieum, New York, on March 6th. 1908. "Voiir Coniiiilttoo Imvc oarcfully cnnHldertMl all tlio present coiulilldiis, nn<l diHciisscd th«Mii fully mill frt'dy, <|i>('1*I(m1 to j)r«'s('nt to tlils Associ- atloii tlio followlii;; s«'ri»'«< of n'Sdhitloin: "UCSOLVKD:—Tliat tin- (jucstlon nf nxln« prices nf adnilsslon-wliftlicr to estaltlish thi-in at 10 (M'lits or Tj cents— iniist 1m» left entirely to tlio Jiidguieiit ami (liscretlun of all our nieuiliers In their own l;»ralilies. Tlii.s AHsoelation as n Ixxly rnnnot nitenipt to dietate to its Inillvliinal nieiiiberH what they sJimII eliiirfje for admission. If. however, various nienihers who may l»e euin- pcfKors In tlielr Iniiiiedlate nelnhlK)rliO(M| shall ileclde amonj; themselves to a;,'ree u|kiii a eer- taln price, and shall sI^mi n proper Htipiilation to that elTeet, then this Ass(Kiat|«in, thrfMi^h Its Kxeeutive Committer, will ratify such an ajiree- mciit and endeavor to keep It In force. In other words, your Committee |s Ktron>;Iy of th«' opin- Ihii that 'local option' should prevail In this iiialfcr. "UKSoLVri):- That the matter of the niimhor of ri'els to l)e used, the Icnutli of show. eti.. Is also to l>o considered n matter of mutual a^n-e- ment lietween such nicmhers ns may he throwtj into ne|j:lilK>rh(MMl competition, rondltlnns of !«)- calilles must >:ovcrn. Unslness Is ))usliiess and no <'ommlttee can fix n hard fast rule upon which others nuiy he forced t<) net. We lielleve that eacli mail in the Imsiness must make ami will make his own way, according; to his own prin cipli's jiiid hcliefs. "UKSOLVKD: That this Comndltce Is Hrmly of the iH'llcf that the iir»'sent comMiiatioUH of IWm man\ifncturcis. on the one hand, and of tllm renters on the other, lias resiilteil In n serious : injury to the lnter< st** of the Iar;:e hody of ex- hlldtors who m.ike up this A^sor-iatlon. and that we ur^e nil meinhers tt> uive the situation serious thought and endeavor to devise a way out f)f the dilllculty. We rejraid the new siliedule of pi"Ices and the new contract ns un- fjiir and lne<iultaMe. We are of the further l>ellef that It Is inconsistent with th<' piirpo-^e fur whl<'li*we organized to allow olli<t s to he held by any p«'rson or persona who are In the renters' husine'^s. We adv(»cale iiiiii'- Independ- ence of action MS to where we sli:il! i)rocure our reels, and. feclinj; as we ilo. that we, the hun- <Ireds of exhihitors here and el-cwhere. are the real hacklione. the true tluaniial fmindnllon of the mnvinu picture htisliie-s. tliis ("ommittee do«'s U't hesitate to advise the e.itire Association to jiv;i.rt Its strength. If one crunldnat ioji of mnn- ufactuters and "f r< titers shall act nrhltrarlly. so a^ to endanL"'r our prowp< rlty. then we must h.ok to lnd( iM-nd' nt -ouri is fur relief. '•I{i:SOLVi:i>: That tlils <'omndtt«>«» reroin- no-nds t.i the A"^-ocintlou tlie sut'tfestlon that with careful thoiitrht and uidted action It nin.? yet he po-^'^lhle for tlw Association as n corpo- rate iM.dy to tr;in>-act Its own rental huKlness prolilahly and harmoniously. "UESOLVKD:—That your Committee further suggests the continuation of its inrestlgating power for several purixKHCs. The matter of coun- sel fecH, the expenditure of our funds, the pre- paring of a set of by-law.s under wliich we can intelligently operate, and the Immediate reorgan- ization of the AsiwKdatlou, are matters that can properly come before your Committef^ with the as8i8tancc of the Ex-Committee." A member suggested that the resolu- tions be voted upon separately, which was done, and they were passed singly and as a whole, unanimously. Mr. Miles en- tered into a lengthy speech in defense of the renter and manufacturer before the third paragraph was voted upon. During his argument Mr. Miles tendered his resignation as president of the Associa- tion, but just before the meeting ad- journed sine die to again assemble at the call of the chair, the resignation was moved to be placed upon the table until the next meeting by Secretary D. M. Donegan. It was duly seconded and car- ried, although Mr. Miles said he should insist that it be accepted. In the course of his talk Mr. Miles dwelt upon the present evils of the mov- ing picture business as brought out by the competition of exhibitors, and asserted- that since last September the rental busi- ness had been in such a precarious con- dition no exchange had been enabled to show a profit. He also said that the de- mand for "first runs" by the exhibitor was so insistent that the renter could find no profitable outlet for future deliveries. This reacted both upon the renter and the manufacturer. The Buflfalo convention, Mr. Miles con- tinued, had been called for the purpose of correcting this condition. lie said he be- lieved it would prove of the greatest bene- fit to the business, if followed, and Mr. Miles advocated the unity of the renter and exhibitor, again repeating that the exhibitor was alone to blame for present conditions through his anxiety to outdo his competitor. Miles Bros, had not at that date (March fi) signed a contract with either side, said Mr. Miles, although he considered that the Kdison held the better position in any fi;jlit to come. On Monday, March 9, Mih.s r.rothers signed an jigreement with the Fdison people which had been await- iiii: their .signatuie for s<une time. At the conclusion of Mr. Miles' address the paragraph causing his speech was passed, and the following one as well. Mr. Miles then called upon Mr. Fynes to state why the contract was considered "unfair." Mr. Fynes replied by saying the contract restricted the purchase of films to the Edi- tion concerns, and it also demanded a-real estate gtiaranty. Thi:^, Mr. Fynes said, was outside the seojie of a cf)ntract; it became the business dutv of a renter or manufacturer to satisfy themselves of the financial responsibility of a customer. Mr. Miles in rebuttal said that this pro- vision had always been contained in the contracts issued bv Miles Brothers. The firiti was too busy, he added, to investi- gate e.'teh customer's standing, and in- sisted upon the real estate guaranty to