Variety (Aug 1930)

t6 VARIETY PICTilRES 'Wtednesdayt < Anignsi 27^. 3930 Standard Contract kg^^ Mitration Clause llleg;4 Denver, Aug. 26. : A decision handed dovyn by Jnd^ ^ymes of the U. S. district court here, ruled the standard exhibitor's contract is legal, -with the compul- Bory arbitration contract' out.' This section -was declared Illegal by- ^udge Thacher in -Ne-wr York last- year. ■• . . Local case grew out-of the re-: fusal of the'Si-Metiatlic Inveatmerit- Company" <Eihd''irie' AiJ?*hpfla 'Ainuse--" . iaent - Corp. to pay -'loKcpin^^^ jaims. Defendarif;^'hlhgsd tnel|v^^^^^ oh the claim tifiat the,w nof ehfprceabie t^eca^jBef It^Syai^^^ iation of the Sherih&h •AnUr-'i?j>s^ ..^ct; - ' ■•: -W" ^, Oblumbla Plctures-,had gued the Operators of the Taljpr;'Here'; iar^ • {he rental of :15 fl^jind," c«jiitra<rt«d tot , ]|iut hot'8ho\?n.- Thi 'declsfon-ii^as JLif • iavor of the distributor. - , •' . Parts of the d^'olsfonTead: 7 "Of the 49 pictures,- defendant.^ failed- and Yefused tp • a'ccejj>t,<' exhibit or pay for 16,-'; thtl(fl breaching- ' XM : contra,ct ' ,aho -; • daimaEing plaiAtife" In th6; sum.-. ■ of >i2,6B0 for wblch'Ju'dement . is prayed'.- '• '. ■ V■ ■ ; ''Cbunoel for the defendant • argues that " the contract- is • llfegalr violates the" Sheiirian Anti-Trust A.t, having b6eh ■ used in furtherance of a con- spiracy in restraint of trade, aiid that no caiisp of action can' arise for the alleged, breach.. - "It is agreed: by courtsel that the form of agifeemeht'set up in/ the complaint; lia known in the tradie as the standard ' exhibit- tlon contriictV 'adopted liy all distributors cf motion pictures, and is really. forced 'WPoh the exhibitors;- that Is to'saly, the plaintiff and. other 'distributors -using. thls:^ .contract, ""dlstfIbute ' ai>proximately 98%' of the mo Won: pie^ares Vjh' 'the'^Tt,.i*i", Soimid Screens^ Now Go . .Dallas, Aug. .26. With the heat'' ihcessaht Jjand weather Mild;' some small''town ex- ilbs In ^TexaB.ffihd /ihaf'^spjihd .can Je ^ sticci^'firily. screened' outdoors i^Sytfie~oli^;,.s]lieM^ ^ >■';. . '■ Oiitdoor-pictures ;W^ i^ite^sPuh'di^dSyB,:^ 'hlB&'ejl^her-m Voof; ^r..';nextCiao'6^^ for sunni^er^^;m(>ht^^^^ .especially; 'where' dppjtip'g, Cs^^ie^ihS'.. -were . imfio^sible; •Idea, ■•;waB,\ more; or v less . rul^d'; outr last; puihm^^ acoustic - engl- 5j^)Bi5'arj;^y6ite the outdoor, fsti^/^h^t 'whl^^^^ summer one or lulftijgrV'.lhspire*, by a box offloc: pic^iw./J;-, ■. : ■.'•'.. ■ -'.,Ho<ifs"]are the naost-'popUlar be-% caifse.{easier to staye 'Sft the Shot- hofe,crowd.; Pprtland.tJre. R-K-O Orpheum coniih'ues with 60c; top,- fall prices, raise of lOc. Started^ with. "Diklaha.", ' Orpheum is'h'ow'third house'with- 60c..top. Others are Fox, Broadway .and Parker-Fox United Artists. , Ifnited; ^{(^^es; ■tl^at;^ai:e defendaint;.or' Any, other eiuilbltor, to secute Bufflcienc''pictures for; it'B;;regu'-' Ifir business .hlitUbt, of nejjessrtljy, • deal. .\?fth*thl^'group, an* sub'- ^ scribe to thi8',f6rtit:=.dr^\5r.n. up -V and. prona]algftted;t.bjft..thf(;.t.rade after a lo^g;'series, of. Aegptia- tlons betweeh 'them".'and- th^. , representatives-of the exhlbl-. torlEr.< • , " ". ..^ ^ , ."At.thls^onfer^rtce^an agree- ^ ment -uptin" rules .-and regvitla- tlons relating,, tp\; the -/arbitra- tion clatise, the 18th'of"the coii- tract, waia ' also' - arFive> at. This fomir together with th^se rules-of arbitration,.-has been . modified from i tlmei to.. time. Sec.. 18,. ■' ifeilluirer. compulsory arbitratton of ..all'"dlgRUt.ep be-• tween the . parties axi'sllhg. out of . the aj^eement. ..7he tHstrlbu- tbrs enforce this collectively by refusing to. license .films to ex- hlbitol-s who vlolaie any of its terms. The Thachfer Deci'sion "Counsel in . support pf' the iflemurrer, rely uppn United States vs. Paramount Famo-js liasky Corp., 2^4 Fed.' t2nd) 984. In that .case Judge'Thacher held thalt Sec. 18. providing as it dpieig,' tor compulsory-arbitration, and Postered- by - an- understanding betweeii the. distributors that any exhibitor, whether or not a party to the agreement, adopt- ing the form of contract, who should not abide by the terms as the same,, would. WX^r^c^i^,?: films from other' distributors, was evidence-of, a conspira'cy in restraint of trade- In viola- tion of the Sherman Act. The action was in equity, brought by the United States against the Paramount Famous L'asky Corp. and others to enjoin a conspiracy in restraint of trade. The court; for the reasons stated, held, for the government. "Put trudge Th'acher's discus- sion and the law of that case are not in-point "here. This Is a suit at law on contract be- tween private parttea Eliminat- ing Sec. l8,. the "contract is clearly, one th'a€- the parties might lawfully; eiPter into. This action, reduced to its simplest terms, is to reco'ver the Agreed price forV goods-sold'and-deliv- ered. The arbitratjon, clause is not InyoVed .nor referred to in the complaint) • "There Is no Illegality in such ^n agreement.. It is not im- peached'' except byr- the charge of the p]ain.tl^, ^ith o.thers, not parties' to the contract or this r. suit, ehfered' into art unlawful combination - in '■ restraint • of - -ii^de. . "While there may be something ..in the.charge that , the seller was thereby enabled to control and arjtitrarily. fix prices for its pictures, counsel do not charge any actual duress, MELS* NOT IN .'Chicago, Aug. 2.6. .f'Mr, -Hughes -will / pay for It." .This ->Vas' the''"refrain 12"'men', sent on from ""N. -T. " C) by ' Hdward Hugiies, tried on'Publix here jyhen, they . wanted... to; tear . do'.wn. the United Artists theatre . to. re^dy .H and the town for "Hell's Angels." First "six ;of. the cre-w wanted- six pp^ts; that' hold, . up, the bullping, •cbopped. out.. "When it-wias pointed^; out the ^roof w5uid follow .their re-^ mpval this sextet .'.chbruised: "Q^et Scet^yiene tbifphe.s and cut,'em awdy. Mr. Hughes jjrill; pay for It." •',-. - Nejft therboys-wanted.20 rows of pews but • to give a 40-fobt depth 'JVhen '^ It; flhaliy ca^nae to j pulling off the marqiiee the P'ubllx gang' gptr'sbre-v "^-.v .,-'';;'' ^' r ,;\yhen it w^s .ruled the house must Cbapge its policy and] charge $2 the deal, blpoeyed, with "£^es of the iWofid'f replacing. . . ., '. , irftoks tike now ChL. will ■ wait a couple of months before it gets a squint at "Hell's Angels." No other Chicago stand for the Hughes picture has been settled upon for. the present. False Ahunn Over Labs Territorial Proteetion Upheld in House Strike Dallas, Aug, 26. W. T. Clay, Indlp.exhib, must pay $2,300 damage's to John Richardson for tdleged.violatlpn of contract. Clay 'sold a " theatre' at ' Olney (Tex.) to iRlcha'rdsbh" on agreement to stay , out of ihe burg for five years. '.When .he opened another house, - Richardson sued for $4,200, 'won, but ^ Clay gave a supersedeas bond for |2,pbo to continue his show and managed to chisel it down to $2;300. Both indies had since sold their houises, but contirtued, the squabble. Fox W-C Ducb bidie Civil Suit$ h C(Misent1)e(Tee; UJ. Zoniiffi OJ^ Fall Scale of iSOc 'Tinks" Hdki^ Downtoyvn : R. O Bot Readioii^^P^^ By l^iblix After Chicago, Aug. 26. - Publix In' Chicago Is .rtak'lhg\ "a' stiff effort tp keep away from plnk- tlcket pictures, despite the fact they can pack a loop house for at leiast seven daya. Check-ujp shows that when the film passes out to the sub- urbs It flops, with-'most/of : the! steady patrons and.' hopie folks keeping the'young ones and them- selves at honie. ;. On this basis plhk ticket..buiich' of reels doesn't .represent any money at all to the corpbra]Uon. Fe^ thM ha-ve been run lately ha-ire been 'musts," -with the possibility, that within the next few m'onfhs all pink'ones will be p&s^ed'cpld. . talto. Mnsicians^^vK^^^ Ask Raise—Contract Dtff l>ps Angeles, Aug. 26, Current report that studib ' lab- oratory workers - are preparlrfg \valk-put was held .groundless at union headquarters here. Dab work- ers and studio 'repre'sehtaflves are due to meet shortly on a new work- ing agreeinent. Lab.'^Snen are allied with the rATiSE," b'ul'bperMe uh'dier thefr charter. They claim to be 100% organized, .although' the studios don't fix the percentage that'high. Although but ip d&ys'remained of the. contract under 'which v/the Re- liiible Co.; Inc:,J.bwne» of "the City Hall tfaeatrer'capacity ab'ttut 46Q, at 31 Paric .row,' 'agr jed In 1928 to eitaplpy^ only niembera,.pf Dbcal ^306 of. thef P'lcture MacHlh^; Qperatprs* Union of the Ihteraaitlonal Advance of Theatrical S.tage Employees,'.ah injunction suit was filed In the Su- preme Court last Wednesday to fe- stirain the" tfceatre' from', eipaploylng any "other operators, thah members Of the union and trom violating the 'cbhtraict made Sept 1,192ff, expiring j\.ug> 31,-'next. ' ■'■ - v^:--.; - The "suit,-tiled by Sam Kaplan, as -president' of the '-local, alleged that under ttie conti'act wlUi, the union °a iiew wage scale"'and iE^eement for additipnal employees .was 'drawn iip. when the theatre put ' in 'a spund equipment Aug.' 21, 1929. It in- creased ■ the personnel ,tb four. rejg- ;uliar operators 'and two relief men; and: fixed' the salary roll at '$307 a week. The plaintiff alleges that June 21,^ last, I^enjaniin Shapiro, manager of the theatre, demanded- a reduction to the prigrinal scale for sllpnt pic- tures.- He was told,tp return and put the question before the execu tlve committee. ^ - The union, alleges that-instead of doing: so the ^eatre locked out the union ra.embers June 23 for the rea son they belonged to the union, and the union then began picketing the theatre. Plaintiff explains the delay . in bringing the suit was due to the fact that its ofllcers were away, at- tending a convention in Los Angeles, FOX CUT-PRiCING SHEA'S Ills IN BUFFALO Buffalo, Aug. 26. Elmwood, west side neighborhood house, iias been leased by Shea, making the 11th theatre in the lo- cal Shea-Publlx string. House, to be knowft as Shea's Elinwqod,. reopens about' October 1 after changes in decoration, sound and. projection 'facilities. . or - anything that makes the payments provided for involun- tary or compulsory.. The mere fact that the defendant, as a practical matter, was compelled to make purchases from the Illegal combination, becauee Qf .its control, pf .the sppply Of .pic- tures, does not operate to make ' payments aiteady ma:de, .or to be made,-involuntary. The,de- fendants, with all the circum- stances.in mind, signed th.e con- tract and . his rights must be . meas.ured thereby, and not by the motives actuating the par- ties.'' Bronx, N. Y., Affected By Loew and R-K-O Oppoaish Fox is considering a bigger cut in ■nrlces on grlndsr according -to the .dope among, the execs who now have a plan to ■ practically chop present cut-rate prices in half for certain theatres. Particular section is in . the Bronx where a three-way circuit exchange is existent. Others ore Loew and R-K-O. Prices now ranging 20 and 3B cents will go to 16 and 10 within a week. The theatres affected include the United State theatre, Blenheim artd Ihfe Parkway. Parkway's competition comes from an indie,' the Behnehaon. The U. S. theatre; is ppposed by an R-K-O house as well as the Loew's Grand. Latter-''lA' nPw chsu'ging 25 and 36 cents. All the theatres are in the. Fordham section of the Bronx, Other Fox changes Include the in stltution of the five-show policy in other Bronx houses where rates are now 16 and 26 cents, having been cut from 26 and 40. These theatres arcthe I^elmont, Idosholu, Kings bridge. Tuxedo, "Valentlhe and Park Plaza. -■Tlie theatres are now playing fpur-a-day policy. To effect the new flve-a-day the theatres are /{scheduled ' to open a half hour earlier and close a half-hour later, Baltimore, Aug. 26. The musicians formerly at Lpew's Century here deny they .demanded an Increase. V >. According to Oscar Apple, Local 40, the deadlo<!k was caused by the musicians' demand for a renewal of the contract as was. The old agreement expired July 81.; Apple-, says . .that he conferred In New Tork with Ed. Schiller, and. Joe "Vogel of the' Loew, bfllc'e"re- garding a new contract, and de- clares 'they >greed. to a hew con- tract at tl)e old rates," but with a tworweek cancellation cla.use. Apple refused to .agree to the' cla'use. - This conference followed a pre- vious proposition of the Loew bfllce to have the men. accept tlie mini- mum, rate ^of $6<' per week Instead of the |8^'whlcir they received oh the 'expired 'contract. Apple t says that the board of directors' of the local ' uhioh: rejected this "almost unanimously." After the rejection Apple states Loew's offered as 'a'compromise a. 1 :hree-month contrelct and* still later 20-week one with a six-week candeila.tlon clause.' Bbtb were re- :ected by the musicians.' ■ "While'these negotiations were on the old contract ^expired, iand^ the Century used the musicians* "two weeks .without cpntrtcct,;:.'paying them:.the traditional premium.'. It- is .a similar premluiQ that the union is fighting for, provided the nien go back to work with any contract of less than 12 months. ., Los Angeles,'Aug. 26. Dismissal ,last -weW' of the Feds erai suit' agalnst',^R,' B, Franklin^ Fox yf^t <io(i6^ and .th'e'major diss tributors for ; alleged restraint ct trade .will <^jrse^^ ^its by iht dependents -wh.b under the Sherman lavr cbuid . have' sued for treble' thet da'mages they believed migiit' bei done their business If the govern^ ment had proved its liolnts in court* Had the case beeh trledi^ any evli dence given in open court could have been used as prima facie e-vis dence in civil, actions; which .-werei expected to fpUbw; -!WiUi the' case dlsihi'sisedralthouigh the ."defendahta. virtually ac£hbwledged the charges! in the consent to ft: restraining'de-t cress,' such evidence, was shut 'out for use in civil actions; '—-w. f ., Any independent now who' might seek redress : in the dvilV c'ourta would' be compelled;'to submit^ his own; evidence .and. stand tbe.'expehse which • litlgatipn would, liivblve. \ , '; . I^bst sighiflcaht feature',^ of thel suit dismissal was the virtual oka;y; by; the gpyernmeht .of thej'zoning ';9y8tem. ' Restirfiinfng] decree./sl^ejdj by .'Judge •• Cosgra-ve .specifloally. states that nothing In the ordex! shall be construed to declare A clasisificatlpn of theatres as firsti second or third run houses br rea« sonable zoning of such theatres oi< clearance schedules Illegal- under; the Sherman Anti-Trust act. - Restraining Clauses - Arbitrary features of the decre<j are that -the defendants .are , ren strained and enjoined from enters ing into any conspiracy for the purs pope of: ^ .'..'-" Excluding or attempting to exs clUde Independent exhibltbrs . from! contracting in the course of : inters state trade and <!ommerce" 'for mos tlon^. picture films. Excluding or attemptlng.tp exclude ihdependents from exhibiting li| comp'etltion with alBliated exs hil^itors CWest Coast). -,'. ? Excluding or attempting to exs elude any exhibitor from e'xhih^tln^ :yo or more features on' ohe/^rp's -grani or.dohatlng gifts as premiumfl! UNION DEMAND FOR 17% INCREASE IN Et PASO Dallasi Aug. 26. Demand for 17 per ceht increase in salaries and additional employees greets Publix's plans for opening of its new (1,000,000 Plaza at El Paso. Unions demand . more dough and more men both backstage, .pjp.era- -tors,-and-music1ans "for all theatres. Salary increases average from $7.60 to $10 weekly. Union officials, with El Paso's big census gain now classed as one of five over the 100,000 pop mark in. Texas, want same scale as Dallas locals. Publix's El Paso contract expires Sept. Operating three houses be- sides new Plaza. Eviction Damage Suit Over Middletown House . ^iddletown, .Conn., Aug. 26. Middlesex Theatre, Inc., Frank Arrlgoni, president, has been sued for damages of $76,000 by J. Vannle and Orlando Pellecda of New Ha- ven. Plaintiffs allege, breaking of agreement and unlawful eviction. The New Haven men under the agreement were to operate the house with the owner, depositing $6,000 for operating expenses. No fixed compensation for the operat ors, but after the operating was re paid and the cost deducted the bal once was to be divided, with the operators taking one-third. Two years later the men claim they were evicted. to the patrons. ,—- ,Frpm.'en'fbrcing or attempting tcj enforce "clearance, schedu.ies ^ jprovlds ing for unreasonable and discrimlns atbry. prbtectlon. ...t"^. i'i ".' " Coercih'i^ or. compelling the diss tributo'rS to exclude' ihd'ej^nd'en'ts fro'm contracting for picture's/wher^i the independents would not obey; the "West Coast' reerolatlph^ia^'/ln' res . gard to two features on a bill oi! the dbnatlhg of "gifts'^ r.-;-^''^'? '■ '■ ..Co'erdhg/distributors tp give Fo< West. Cbast preference In^'bopklngl pictures' before negotlatiphs are' ens tered Into' by IhdependehtsV . i Coercing distributors to'enter Into contracts .whereby Fox 'West, coast is given the right to select fllmq frpm the annual product of the 'pros dticers 'for the purpose of "prevents Ing Independents competlhg -wltid Pox "West Coast from cohtr'actln£( before the circuit has made its se* lection. The latter, however, the decrea made plain, does not hinder Fox West Coast from booking ahead oiD Independents but is. construed to mean, that violation would follo-w; if "coercive- tactics were employed^ In plain language; a "first .comei first served" policy must be nialh- talned. . ' '. hdianapoEs Notices on Stage Siiows4ioiiig Out SepL 6; Union Demands Indianapolis, Aug. 26. Because of the failure of th0 stage hands and ..managers getting; together, Indiana, Publix combina,- tlon stage and screen house,' and Lyric, vaude-fllms, -owned by the Fourth Avenue Amusement ' Co.| have posted notices effective Bept> 0 the two theatres will dispense with stage shows and go intd, straight sound. If this action is not stopped by a' compromise agreement it, will mean the remo-val of the orchestra at both the Lyric and the Indiana! as well as the stage crews. Apollo, Ohio and Loew's Palac6 theatres will be affected by nci agreement, but these bouses do wA play stage shows.