Variety (Jun 1935)

6 VARIETY PICTURES Wednesday, June 12, 1935 GTP Vs. A.T.&T.-Erpi Trial Ends with Mills of ASCAP Refuting Otterson On Music Rights; Up Again in Oct. Wilmington, June 11. E. C. Mills, whose contracts on behalf of the American Society of Composers, Authors and Publishers with Electrical Rese^.ch Products, Inc., over music, war t lentral issue In the trial here of * j anti-trust action of General Talking Pictures (deForest) and Duovac Radio vs. Western Electric, American Tele- phone & Telegraph and ErpI took the stand for the plaintiffs to deny testimony of John E. Otterson, whose resienatloii as prez of Erpi took effect yesterday. Otterson had testified that the clauses in the contracts restricting the music to Erpi eciuipment were Included at Mills' Insistence, which Mills denied. 'I was unwilling to make any exclusive licenses,' he testified, adding that the Erpi attor- neys 'were insistent' that the clauses be written in. Otterson's testimony that Arthur Weil was' not acting as attorney for EVpl In the negotiations was 'in- correct entirely,' Mills declared on direct examination. If it is true that Weil was not the Erpi attor- ney, 'I am crazy,' he said. The point concerning the Mills agreement was raised by Samuel E. Darby, chief of GTP counsel, in the original bill of complaint. It is im- portant because if it Is shown Erpi insisted on the restrictive features, it mlght.be considered strong evi- dence of conspiracy to violate the anti-trust law. Trial was concluded Friday after M; A. Schlesslnger, GTP prez, had been recalled on rebuttal, and ad- ditional testimony was heard from David R. Hochrelch, former general sales- manager of GTP. Arguments will come some time in October or November. Tentative date for plaintiffs' briefs was set by, Judge John P. Nlelds, for Aug. 30; defense briefs, Sept. 27, and plain- tiffs' reply, Oct. 25. Case was heard before Judge Nields in U. S. District Court and six weeks were required for testimony. Mills on Erpi Ills said he decided to let the restrictive features go into the con- tracts If Erpi 'could control' the situation. Later, Mills testified, he sent a letter to Erpi declaring he did not Intend the clauses to restrict his right to negotiate contracts with others and that Weil strongly ob- jected to this stand. 'Erpi vas asking for everything they thought they could get,' he said In reply to a question whether Erpi did not feel Mills' stipulation of a Iflc-per-sc.at royalty entitled them to make the demands. George F. Hurd, chief of defense counsel, asked Mills on cross-exam- ir.c-tlon if the Music Publishers' Protective Association and 'afliliated organizations' was not under in- vestigation of the Department of Justice. In a huff. Mills replied that there are no organizations affili- ated with MPPA. Also, he said that the Department of Justice, the Fed- eral Trade Commission, the Post Office Department and the Better Business Bureau had at yarious times Investigated MPPA 'Inspired by users of music who want to use the music and do not want to pay for it.' Ho admitted a suit, pending against MPPA. 'But we are not guilty,' he added. 'I am very glad of that,' remarked Hurd. 'I know- you are,' snapped Mills. On rebuttal, Schleslnger testified, he had warnad Hochrelch by tele- gram to Hollywood not to mention the Rcls decision in the same court here when he was dealing with prospects. The Reis decision, hand- ed down by Judge Hugh M. Morris, who Is now attorney for Warner Bros., held the deForest-Reiss pat- ents valid and infringed by Kriil. Schleslnger testified In the prcsnnl action that he sent the telegram to Hochrelch so he would not run the ri.sk of commenting on a judge's dc- cisipiv. The higher court later heM. tlirt Reiss patents valid, but not in- fringed. Total of about 15 witnesses went on for both .sides li) tlie last week of the trial. Mo.stly technicians with testimony aiming to show Krpl •(julpment required Erpi replace- National First Runs FOX 'Black Sheep,' Cap, Port Jer- vis, N. Y., July 10. 'Chan in Egypt' Roxy, N. T., June 21; Par, Poughkcepsie, June 23; Cap, Newburg, July 4. UNITED ARTISTS 'Escape Me Never,' Parkway, Madison, Wis., June 12; War- ner, Pitts, 13; Uptown, To- ronto, 13; Hipp, Buff., 15; Cap, Springfield, Ma:ss., 20; Warner, Worcester, Mass., 20; Stanley, Balto, 22. 'Let 'Em Have It,' MaJ, Co- lumbus, O., June 12; Melba, Dallas, 14; Cap, Sioux City, 14; Orph, Spokane, 15; Waco, Waco, 18; Martini, Galveston, 18; Worth, Ft. -Worth, 19. 'Nell Gwyn,' Aladdin, Denv. June 13; Riv. N. Y., 19. COLUMBIA 'Champagne for Breakfast/ Shea, Fltchburg, June 20; Garden, Flint, July 11. 'After the Dance,' Orph, Des M., June 25; Shea, Fitchburg, 27. WARNER BROS. 'Alibi Ike,' Orph, N. O., June 13; Keith's, Clncy, 14; Mary Anderson, L'ville, 14; Com- munity, Miami Beach, 15; Vic- tory, IDayton, 16. 'Broadway Gondolier,'Knick- erbocker, Nashville, July 19. 'Stranded,' Orph, N. O., June 20. METRO 'Public Hero No. 1,' Valen- tine, Toledo, June 14; State, Cleve, 14; Century, Balto, 14; Penn, Pitts, 14; State, N. O., 14; State, Boston, 14; State, Memphis, 16; Great Lakes, Buff. 16. RADIO 'Break of Hearts' Beacham, Orlando, Fla., June 15; Pitt, Greenville, NC, 19; Coral Gables, Miami, 29; Carolina, Greensboro, NC, July 1. 'Becky Sharp,' Music Hall, N. Y.. June 13; Pal, Chi, 14; Keith's, Bost,' 21; Keith's, Wash, 21. Loew's May fair Takeover Attended by Big Bally Take-over of Walter Reade's Mayfalr by Loew and establishment of the former Loew's New 'York policy In the 7th avenue house on Monday (10) was marked by plenty of bally, including miniature parade and band up to the theatre. SRO sign was up by 8:30, with extra cops on hand. VERY LIBERAL PA. SEEMS CERTAIN EDGAR S. BLOOM PREZ OF ERPI; ALSO OF Wl Edgar S. Bloom succeeds John E. Otterson as president of Erpi, ef- fective as of Juno 17, when. Otter- son's resignation from Erpi be- comes official. Bloom was elected yesterday (Tues.). This also is the date when Otterson officially takes up the presidency of Paramount. Bloom also is president of West- ern Electric, and will hold both posts. W. E. is 100% owner of Erpi. Both Wall Street and the traie figure that the Bloom berth at Erpi Is only temporary. As president of W. E., parent company of ,Erpl, loom is also a director of Erpi, which board membership he retains. Easton, Pa., June 11. The Pennsylvania blue laws are taking a terrific beating in the leg- islature these days and all Indica- tions are that before the law- makers go home In a few weeks, some real liberal legislation will be passed. ^ Sunday films appears to be a sure thing. The House on Friday (7) passed the bill permitting cities and towns in state to decide whether they want Sunday pix and the Senate is sure to pass same bill next week, while Governor Earle said he would sign it. Confident of their power, pro- ponents of liberal laws started to push bills for legalized horse-racing and parl-mutuel betting In the state, with prospects of the bills being passed within 10 days. A state lottery Is also planned to get money to pay pensions to blind and aged. Plan Is to.raise $100,000,0000 through sale of tick- ets. Horse racing bill provides for creation of commission to control racing a^d betting, with state to get 10% of gross admissions. Sun- day flshing bill passed House and Is now In Senate. ROGERS, GOLDSTEIN JOIN REPUBUC PIX Katzman Doing 6 Kynes HoUywod, June 11. Sam Katzman will produce a series of six Peter B. Kyn'e stories for Fox. First Is 'Danger Ahead' with Monte B.lue topping. Loading Up Smith Hollywood, June 11. Metro is increasing Pete Smith shorts to be millde for the new sea- son's schedule. Among them are 12 one-reelers for the 'Sport Parade' series, as well as a umber of miniature subjects. ments and tubes, or that it did not. Fred W. Tappan, chief GTP engi- neer, testified there Is no funda- mental difference between Erpi and GTP enulpmont. Darby h.nd on a few engineers who worked for WI3 and Duova:c at the same time, perfecting tubes. They denied thoy u.sed WE princi- ples on the Duovac tubes, as as- .serted In earlier tistimony. ■Ohder Its new setup, with M. H. Hoffman (Liberty) to produce eight pictures for its program this year. Republic is taking in Budd Rogers and E. H. (Mannle) Goldstein In executive posts as yet undesignated. W. Ray Johnson Is president of the Republic organization (nee Mono- gram), nationally organized through exchange franchise holders. The eight to be produced by Hoff- man o the Coast under Trem Carr, Republic V. p., will be included in the Repub progi-am of 42 announced at last week's convention In Cincin- nati. There will be 16 oats operas In the 42, leaving regular feature plans at 26. Hoffman will make no saddle dramas. Buster Collier Quits Hollywood, June 11. William Buster Collier, Jr., Is quitting greasepaint. He has signed at Warners as an assistant director. Asks Contract Voiding In Light Patent Suit Los Angeles, June 11. Cinema Studio Supply Corpora- tion and its active manager and chief .stockholder, J, E. O'Rourke, are charged wjth deceit by Frank P. Arrqusez in sujierlor court action demanding recision of contract in- volving rights to motion picture lighting equipment patent, valued at $20,000. Plaintiff asserts he was Induced to assign his rights to the defend- ants through misrepresentation of their financial status and through promises of marketing the equip- ment, -v.-hich were not fulfilled. Also alleges he has not received any of the $20,000 promised him In four an- nual notes. JOSEF'S RUSS CLASSIC Hollywood, June 11. Josef von Sternberg will make Do.stoyevsky's 'Crime and Punish- ment' on his one picture deal with Columbia. Peter Lorre gets star- ring role. B. P. Schulberg produce.^. Wall St. Sentiment Strong; Annual ;l Film Conventions Reacting WeO Yesterday's Prices Snies. Hlgh.I,ow.I,iut.chge. 1,000 Col. PIct..«041i 03i4 63% — 200 Con. Film. 3% 314 V/, — V4 1.000 East. K., .IKViUi^ U5 + K 6,000 Fox A.... IfiK 14% 15 — H 6,700 Gen. El... a% 2,",% + ^ SJiOO Loew 41% 41 41% +1 12,000 Par. ctfa.. S\ Shi 394+% 200 Pathe A,. 0% ff)6 0% — % 6,."i00 RCA BVi SVi— % 7,000 Rnfllo B.. B0V4 40% 40% -1% 2,700 lUCO . 2Vi 2 2 — 0,200 W. B 4'A i% 4% - cunB 6,500 Toch 20% 25'/i 2.'i'4-114. 100 Tnin8-L. . 29i 2% 2% — BOND& $12,000 Qen. Th..l2 11% ll^i — 14 7,000 Keith •82 81 82 -|-1 S.OOO Loew 101 !4 104% 10414 — 17,000 Par-F-L. .'90% 80% 00V4 -I- % 14,000 Do ctfB. 00% 00 00%-!-% 4,000 Por-Pub. .•02 02 02 +1 10,000 Do ctfe.'Oa 01% 92 + X 42,000 W, B 00% 00 00 — • Now 1035 high. Megaphones in Cars For Drive-In as Court Clamps Lid on Noise Los Angeles, June It, Drive-In theatre biz hereabouts is on the canvas and will probably take the count as a result of the conviction of Guy Douthwalte by Jury on two counts of having vio- lated the city's antl-nolse ordi- nance. Douthwalte Is keeping going by Installing miniature loud speakers In tonneau of cars, giving each In- dtvdual reception from sound film, Expenditure Is running Into money, but Douthwalte Is determined to .beat the ordinance. Douthwalte, who had championed the driv'e-lns by attacking the ordanance as discriminatory, was sentenced to pay a $250 fine, with 90-day Jail alternative; but femme Judge Oza Faulconcr suspended sentence on condition that the own- er of the West Pico spot Is not con- victed of similar offense within a year. Ordinance prohibits theatre sounds audible beyond BO feet from the originating premlse.s. Com- plaints In the . Douthwalte case testified they had heard the am- plifiers almost a mile away. Douthwalte, whose theatre was closed with his arrest oij complaint by residents, may attempt to re- open by installing new. sound ap- paratus which can be muted to the required degree and at the same time be audible to parked auto patrons. His plans are still In the air. 'Heaven' for Barker Hollywood, June 11. 'Forbidden Heaven,' Republic pic- ture co-starring Charles Farrell and Charlotte Henry, will bo di- rected by Reginald Barker. Tune synklng assigned to Abe Meyer. L. A. to N. Y. Earl Leslie. Mike Lewis, Leo Morrison. Carroll Peacock. Tom Tyler. C. Aubrey Smith. Gordon Levoy. Leland Hayward. Mrs. Rlcardo Cortez. Mr. and Mrs. Harry Rapf, Mrs. Eddie Mannix, Ralph Murphy. Loretta Young. Oscar Levant. Paul Bonner. Constance Carpenter. Countess di Frasso. Al LIchtman. Hal Home. Dudley Nichols. J. Carlo Bavetta. Lew Seller. J. J. Murdock. N. Y. to L. A. Gene Raymond. Lawrence Tibbett. J. Leroy Johnson. Gabc Yorke. Bill Gehring. Roger Ferrl. Lyle Talbot. Mildred Fenton. By Mike Wear Report that \he Government soon would resume Its silver purchasing policy started many stock prices up. wards again yesterday (Tuesday), Ralls were quickest to Join pro- cession with amusements generally lagging. Exceptions to this falter- ing tendency were Columbia Pic- tures certificates, which edged to a new high at 64%, and Loew com- mon, which hit former top at 41% up a point. Others were firm to i fractionally lower. Radio B, how- ever, dipped moje than 1 point. Bonds In amusement list were higher with four new 1935 marks.. Keith, Paramount - Famous - Lasky and Paramount-Publlx Hens all mo'naged to get Into fresh ground.. Decided Improvement In volume was taken as favorable omen In the street. Sentiment In Wall Street Im- proved during the last seven days as expected, price-slashing and other upheavals anticipated as a result of killing the NRA did hot materialize. Convening of annual conventions of major picture com- panies served to bolster the amuse- ment section of the list. Sharp iip- turn In blue chip Industrials In last hour of trading Monday (10) also aided several outstanding amuse- ments. Net result was that the Amuse- ment Group closed at the highest point In months though the aver- ages had dipped to neir the lows of the pi-evlous week. Close for group was at 31%, up nearly 1% points, as measured by the aver- ages for 12 representative Issues, High mark was fractionally above 32, making it slightly below the peak for 1935. Better tone of whole market en- abled two common and tw<J pre- ferred stocks of the amusement sec- tor and one bond to hang up new' 1935 highs. Columbia Pictures cer- tificates reached a new peak at 64 (net gain of 7% points on the week); Technicolor edged to a new top at 27; Warner Bros, preferred, wliich soared points net, made a new record at 28 Vi; and Westing- house preferred climbed 3^4 points to fresh ground at 105 Keith 6s, up 2 points at 81, was the bond Issue to hang up a new mark. Numerous amusements either held their own or sported advances of from a fraction, to nearly 8 polnta at the finish Monday. Radio Pre- ferred B showed the biggest gain, aside from Columbia Plx, going up 4% points. Close was at 50% while top price was 50%, only a fraction from the year's high. Loew's com- mon also finished near the year's top at 40%, a gain of 2% points. Eastman Kodak common went to 144% for an advance of 4V* points. Westinghouse common climbed to 49%, up 3% points. Pathc A and Consolidated Film Industries pre- ferred each showed gains of nearly a point. Radio Preferred A ad- vanced a point to 55. Warner Bros, preferred, men- tioned last week as being in a strategic spot as a result of a healthy shakeout, soared to 28'/4. Even at the closing quotation of 2G, it was up more than 4 points on the week. As has been men- tioned on previous occasions, this is regarded by traders in the street as offerino' possibilities as a highly speculative Issue. Fact that Warner Bros, convention is being hcld'thig week probably contributed to the favor In which both the preferred and common were held. Warner Bros, common was most active . amusement issue on the big board, the va.ot volume with which this stock w.as churned sending It Into the 12 most active stock classlflca- (Contlriued on page'32) Cap as Is, 2nd Week Capitol theatre. New York, holds over its current film and stage show, Including Sophie Tucker, Riti! Brothers and Donald Novis, for a second week. Pic Is 'Public Hero No. 1.' G-B Equipment Hollywod, June 11. For the first time Gaumont-Brit- Ish is buying processing equipment here. Britl.sher.s are ii.irliculnrly Intrr- estcd In Neumann photographic material.