Variety (Oct 1937)

VARIETY P|CTyRS9 Wednesday, October 6, 1937 Cal. Anti-Trust Law Invoked Filing of 20 Damage Suits Against Paramount by 25 Indie Exhibitors Los Angeles, Oct. 5. Paramount Pictures and Para- mount Pictures Distributing Co., Inc., are charged with fraud and monopolistic practices in 20 . in- dividual damage suits filed in U. S. district court here by attorneys for 25 Independept exhibitors in Los Angeles and vicinity, with addi- tional actions to foUow. Court suits are outgrowth of play- date strike that has been waged by local independents against Para- mount for past two months, in pro- test to company's alleged failure to deliver 11 features sold on its 1936- 37 contract, but instead, assert^dly carried over to the current season,. For first time in history of the industry, the Cartwright Act (Cali- fornia State anti-trust law) has been invoked as one of two causes of action-cited. Cartwright Act ex- pressly prohibits any trust or com- bination of capital from restraining oi--limiting the production of any commodity, which constitutes a re- straint in trade for commerce, or in any activity designed to unlaw- fully increase the price of . any com- modity. Paramount is linked with eight other major picture companies in the several complaints; in the charge that defendants, through their af- filiation with the Motion Picture Producers and Distributors of Amer- icia, operate ' to the end that coni- petition in all fields of the industry may be reduced and eliminated. Lay Into MPPDA Each complaint further alleges that as 4» part o£ said policy 'the de- fendants and other members of the MPPDA conspire and cooperate with one another for the pturpose of harassing, embarrassing and dam- aging independent theatre owners,' such as plaintiff, to the end that competition by independent exhlbi- toirs with, theatres owned and con- trolled by members of MPPDA shall be reduced and eliminated. No speciAc ddmages are listed, but court is asked io double any a:ward, as provided t^t under the Cart- wright Act; Under thfe Cartwright Act clause of .the complaint indies charge the defendant companies with unlawfully and fraudulently conspiring 'to withhold delivery and distribution' and limit and reduce the production of said motion pic- tures for the purpose of injuring and damaging the plaintiff, for the purpose of increasing the price of the same motion pictures and. for the purpose of preventing com- petition by plaintiff in the sale to and purchase by plaintiff of said pictures.' Indies further charge that 'thd defendant did arbitrarily and with- out jiist cause- and for the purpose of restricting trade and commerce refuse to produce, distribute and deliver the said productions during the season covered by contract. That immediately Upon the termina- tion of said season or contract pe- riod, the defendants in furtherance of the said corrupt and unlawful conepiracy, did therefore offer some or all of the said motion picture productions for exhibition at higher rental prices than those provided in the said, contracts.' Part of' National' Campaign Federal court suits are answer of Los Angeles area independents ' to the nationwide controversy that has been waged over the disputed Par product, and which brought injunc- tion suit5 by the company in Phila- dielphia and Minneapolis to enjoin exhibs from prosecuting the fight on the grounds of conspiracy. Individual complainants whose suits have already been filed, and the theatres they represent, follow: Largo Theatre Corp., Largo the- atre; Eastland Theatres, Meralta, Wabash and Brooklyn; Hershon and Goldberg, Garden; Emanuel Hoff- man, Avalon; C. & S. Enterprises Corp., Alvarado, Empire, Oriental; Galston & Sutton,' Inc., Marcal; Bronstein and Harter, Arlin; Ivan C- Hanson, Cairo; C. W. Blake, Sun- set; Albert Nadow, Hub, Florence Mills; Olander and Cohen, Bonita; L. R. Myers, Astor; J, C. Mingus, Gfeen Meadows, Florencita; Bourke and Baylis, Tivoli, Nuart; F. B. Steck, Adams; Oxnard Theatres, Inc., Oxnard, Oxnard; Plaza Theatre Co., Plaza, Hawthorne; Calvl and O'Keefe, . Maywood, Maywood; the Glasswell and Riviera theatres. FTC Sleuth in Philly Philadelphia, Oct. 5. Winfteld Wagner, represent- ing Federal Trade Commission, reported in Philly recently to question local exhibs. Although purpose of his visit wasn't ascertained, it is under-. stood that FTC taking a pre- liminary gander into complaints against Paramount' filed by exhibs. TWO BEFTE DAVIS FIX BANNED AT THE HAGUE The Hague, Sept. 24. It is probably pure coincidence, but the last two pictures in which Bette Davis appears have been for- bidden for public exhibition in Hol- land. They are 'Marked Woman' and 'Kid Galahad;'. Dutch Board of Censors is funda- mentally opposed to all sorts of gangster-pictures. On the other hand Fritz Lang's "You Only Live Once' <UA) was admitted for adults after having been banned for all audiences.. Metroers Welcome Mayer Home—At Wrong Airport Hollywood, Oct. 5. Imposing array of publicity and cameramen from Metro rose before daylight last Saturday' <2) to meet the incoming plane bearing Louis B. Mayer and Howard Strickling back home after their jaunt abroad. Everyone was on hand at the air- port except Bob Vogel, in charge of foreign publicity, who woke up late. He called Glendale airport and learned that the plane would arrive in 35 minutes. Vogel hurried over and when the ship dropped out of the sky he was the only Metroite there. Rest of the gang had gone to the Union Air Terminal at Burbank. Sound Out Coasters Hollywood, Oct. 8. Ed L. Kuykendali, bead of Mo- tion Picture TRieatre Owners of America, Is expected on the Coast Oct. 11 to sound out exhibitor senti- ment on MPTOA's lO-point practice plan. He will huddle here for five days with 'exhibs and then visit Seattle and San Francisco, Burnet Hershey Promoting Pic On Caruso life Byrn^t Hershey who, with Lyon Mearson, wrote an autobiographical 'Caruso' film, with the official OK of the estate, is en route to Hollywood to further the film venture. Idea is to produce it independently, east or west, and for which purpose Her- shey's backers assertedly ' have a $750,000 bankroll. Hershey visited Italy for semi-official ..cooperation in preparation of this picture. Former Warner Bros, shorts writer (at the Brooklyn studio) plans to talk to Gladys Swarthout and pos- sibly interest her on a loanout deal from Paramount for the femmc lead. Bing End-on-Endinfi Hollywood,. Oct; 5. Bing Crosby will step into produc- tion on his next Paramount starrer, 'Paris Honeymoon,' immediately after completion of ^ his current ve- hicle. The Badge' of Policeman O'Roon,' for Major. Don Hartman and Frank Butler are scripting, COLUUBU'S 2 LEaiTEBS Craig Clark and Reed Herring, from legit, plane 'westward .this week to the Columbia lot, having been signatured to contracts by this .firm through the Z e p p o Marx agency, in New York. Ed KiiykendaO, in Urging Quick Accord on die Par Litigations, Hopes for Simpler Pic Contract ALPERSON ON COAST TO SET CAGNEY'S NEXT Hollywood, Oct. 5. Edward L. Aiperson, Grand Naa tional prez. Will arrive at th6 studio this week following huddles with James Cagney and is expected to make an announcement regarding the next Cagney starrer for GN. Cagney flew over from his farm at Martha's Vineyard, Mass., to con- fab with his boss, who has been lining Up product deals with Edward peskay, GN's v.p. in charge of sales. Danielle Darrieux Sets Another Home Pic Paris, Sept. 26. One last thing Danielle Darrieux did before catching the boat en route to Hollywood was^ to signature for the next film she will make in France. Signed with Alex Berchoiz, one of the producers of her last French pix 'd'Abus, de Confiance,' ('Abuse of Confidence'). Contract calls for her making 'Retour a. I'Rube' ('Return to the Dawn') adapted from a Vicki Baum story. Pierre .Wolff is writing the dialog for the new film, while Miss Darrieux' husband, Henri Decoin, is expected to direct. Hollywood, Oct, 5. Producer-director team of Joe Pasternak and Henry Koster prob- ably will be- split Svith Koster draw- ing the megging assignment on Danielle Darrieux's debut starrer for Universal, 'The Rage of Paris.' Mile. Darrieux is heading west with Charles R. Rogers, piloted by p.a. Marc Lachmann. • . *Snow Covered Wagon' Wjai Have *Epic Sweep' Hollywood,-Oct. 5, Grand National will go to town in a big way on its production of 'The Snow-Covered Wagon,' a dra- matic epic of the Donner party which perished en route to Cali- fornia in. the gold rush days,, ' Bud Barsky has been assigned to produce and \yill do the preliminary treatment as well, with a writer being called in later, for the script- ing chore. Footage will be shot on the exact spot where the Donner party met its tragic end. Hogan May Draw 'Herds' Hollywood, Oct. 5. As the result of his directorial job in 'Ebb Tide,' James Hogan looms as the likeliest candidate for the megging chore on Paramiount's $2, 000,000 new, western epic, 'Marching Herds.' Original yarn is being written by Paul iSloane under the eye of Lucien Hubbard, who will produce. *GoWcn West* Tees Off Hollywood, Oct. 5. Metro's 'Girl of the Golden West' entered productioa last week with Bin McGuire at the helm, Robert Z. Leonard directing. Musical score is by Sigmund Rom- berg, Gus Kahn on the lyrics. Film co-sters Jeanette MacDonald and Nelson Eddy, PliiDy Indies Not So Optimistic Over Par Appeal Argument Today BOUGH ON RE-TAKES Hojlywood, Oct. 5. Frank Scully (not the writer) suf- fered a slashed hand while playing a brawl scene last week in Para- mount's 'Daughter of Shanghai' and was hospitalized. Player's right fist crashed through a glass pane in a rough-and-tumble involving Larry Crabbe, J. Carrol Naish and Philip Ahn. . Philadelphia, Oct. .5. Ed Kuykendali was in' Philly last Friday, presumably only to play in exhibitor golf tourney; - but was re-"^ ported to have had Borae quiet con--' fabs over the tees in regard to the Par strike here< Kuykendali said in New York ■ last week that the MPTOA, of Which he is the heiad, contemplates no national action against Par. Uilited Motion Picture Theatre Owners, local .exhib org, is not an MPTOA unit. Exhibs are of one mind that it won't become one either. They are determined to co- operate with other groups through- out the country fighting Paramount, but to avoid entangling alliances and go on battling independently. Group held' MPTOA membership several years ago for one year, but dropped out. Soifie members fa- vored Kuykendali group, while others wanted Allied, - so problem was settled by calling the whole thing off. It is unlikely that the Old breach will be busted open by any move now to ally nationally. Past week has been quietest all around since Par date and buying layoff began more than two months ago. Ranks held fast, with no more indies flopping over to the seven in Philly territory which are now using Par product. U. S. Circuit Court here yester- day postponed hearing on Par's appeal for an injunction against the strike. Overcrowded calendar forced hearing off until tomorrow (Wednesday). Appeal is from re- fusal of District Judge Oliver. B. Dickinson several weeks ago to grant a restraining order against the exhibs. Although Ben Golder, UMPTO at- torneyj has a batting average in court of 100^ against Par in this and the double-feature suit, Indies aren't overly-enthusiastic about their chances of winning in Circuit Court tomorrow. Report on street Is that court al- ready has shown . itself unfriendly, as a result of actions by Par coun- sel, William A. Schnader, who made his original plea before it for Tight to enter appeal. But no matter what happens le- gally, it will have little effect on strike. Injunction, if granted, will only prevent exhibs froin picketing or using other means of publicizing the action against Par. Inasmuch as they aren't picketing now, and have no "intention of starting, whole battle is merely a technical one. Court can in no way force them to date P r product or sign contracts. (jJeorge Aarons, counsel for UMPTO, went to Pittsburgh last week and spieled for an hour and a half on the exhib strike here to about 45 indies, representing 100 theatres. As a result, they raised a defense fund said to amount to several thousand dollars, and adopt- ed a group-buying plan similar to the one being projected here. Dave Barrist, chairman of the local war board, said complaints of exhibs about absence of Par product have practically ceased. He said that at the beginning of the strike he was constantly besieged with indies cry- ing they had open dates they couldn't fill without their Par product. Now, he declared, exhibs have apparently accustomed themselves to doing without the company's output and have made other arrangements to fill, dates. Powers of attorney, giving an UMPTO committee right to do group-buying for members, coming in now only at a dribble. Illness of Lewen Pizor, UMPTO prez, who was to head a crew that intended inter- viewing upstate exhibs, responsible for the slow-up. Heavy percentage of local indies have granted the powers. , Coincident with the filing of dam- age suits by 18 Southern California independents arising out of-the fail- ure of Paramount to deliver certain pictures last season (1936-37), and on the eve of hearings on the strike case in Philadelphia, siet for today Wed,), the. Motion Picture Theatre Owners of America has officially taken cognizance of the situation and is urging an amicable settlement o_* the difficulties, Ed. L. Kuyken- dali, president, asks a termination of the trouble from Memphis, Tenn., where he is attending a local exhib-. itors' convention. He discussed th^ matter with Lewen Piwr, president of the United Theatre Owners of Eastern Pennsyl- vania, who is also a member of the executive committee of the MPTOA, and in an official appeal says he is 'convinced that the quarrel they are having with Paramount should be brought to an amicable termination/ Speaking specifically of the situation . in the Philadelphia zone, Kuyken- dali adds that the strike is costing . both Paramount and the exhibitors who play Paramount pictures un- necessary losses. 'There are twd sides to all con-: troversles,' the MPtOA president holds, 'and this one should be dis- cussed frankly across the teble by those concerned, It is inconceivable that any distributor will not sit down and discuss problems of mutual in- terest with the retell dealers who buy and market their products.' Meantim'-, the outbreak in the Los Angeles zone, where 20 independents operating a totel of 27 theatres have filed a complaint against Par as a direct. result of alleged holdout of 11 pictures on the. 1936-37 season, is characterized in New York circles as a 'chop-suey' litigation. Pending ^ perusal'of the complaint itself which it was declared Monday (4) had not yet been served on Par, attorneys for the company cannot discuss it except to infer that from trade re- ports the L. A. move looks like an atteck on everything but the real issue involved.' -. The southern California exhibs ar« behind two causes of ciction,. one al- leging fraud in connection with agreeing to deliver pictures under the sales contract that weren't de- livered, the other under the Cart- wright Act of California. Latter is a stete anti-trust stetute which forbids restriction or limitetlon of any com- modity through trustification or com- bination of capitel. Three Keys Now With the filing of complaint in L. Ji., three keys now become legally involved under' the Par failure on-, deliveries on pictures in each case' of which Par is declared having rea* - sons for failure to deliver, including fiu epidemic - last winter in Holly*- wood, increased costs of production, 'labor troubles, etc. Appeal from the lower court on the strike in Phila- delphia comes up today (Wed.), while in Minneapolis Par is await' ing the court's decision on a prelim- inary injunction against picketing activities. At this time the Kuykendali state- ment from Memphis is considered to be of particular import since the position teken by the MPTOA. par- ent organization of the UTO.of Phllar delphia, headed by Plzor, sounds a strong note in the direction of medi- ation. The MPTOA itself never sup- ported or decried the boycott move in Philadelphia, Minneapolis or else- where, preferring to remain silent imtil now when it characterizes the whole campaign, . and protracted strained relations between indies and Par as 'lamentable.' Noting that exhibitors may feel aggrieved at the failure or refusal of Par to deliver certain pictures on last season's contracts, Kuykendali at the same time suggests that perr haps exhibitors hayc. been somewhat hasty in the action. He says: 'Maybe they failed to read the technical, legalistic. clauses in fine print in the Paramount contract, or to fully realize that the pictures they think they buy from every dis- tributor, are seldom if ever actually identified in the written contract they sign, which contracts are care- fully written by counsel for the dis- tributor, not by attorneys for the exhibitor. 'Clearly it proves the need for a simpler, fairer and more ea.s.lly (Continued on page 51)