Variety (Jun 1938)

^ednes^dajr, June 1038 PICTURES V.iRIETY Sales Execs Converge on Fargo, N. D., To Fight Divorcement Statute FEW APRIL DEALS Show Very Little Am'ui. Tradinc Allhouah It is promfsei the North Pafeola'chain-divorcement .case wiil be cartied to the U, Si Supreme Court, it lost by Paramount, repre- .sentativ£5 ol all major producer-dis- triijulois, except RKO and Univer- sali aie in Fargo to lend weight to the battle. There is no explanation why IlKQ, which Has s chain of roaiid 150 theatres; isn't on the ground to aid, if nefcessary, nor hy U is absent. paramount's own distribution boss, Neil AgneW, and its theatre operating chieftai , Y.-Frank freeman, are in Fargo. Other majors are represeiit-, ed by distribution heads, with Bill Rodgers (Metrb), Graid. Sears (WB), Andy Smith (UA) and Bill Gehring (20th-Fox. division manager) all in Fargo and likely to testify as to what paissage of the divorcement bill iwbuld mean tO;distributors. The defense was still putting in Its ease yesterday (Tues.), but may ind lip today, ith rebuttal then to follow. It is ;estimated at Par headquarters in -lew York that the ca.se -ili.require about another we^k of argument. ^ Meantime no one'knows • the out- come.> althoUfih opposition to the di- vorcenvent bill which would aflfcct ■only Paramount in North Dakota ex- resses confldehce it can be declared Uconslitutional; First Blooid tor, Fargo, N. p., June 7. Centering their at ck bri the con- -ttltutibnallty of the North Dakota divorcement law .arouqd the cbnten- tiori -that no justfftcaticin exists for i ts ehactmeht, b«!cause they enjoy no jnonopbly iiii the exhibition of mp- ii pictures in ..the state, and, fiirtlier, that it, destroys property ights without due process of law. Paramount, et al., plaintiffs in the siiit now being tried in Federal couit here, drew ist blood when the three: judges hearing the case Seiiled the motion of the defense, the State of North Dakota.for dismissal. Such dismissal, unless overruled by the U. S. supreme court, would have validated the measure which prohibits ownership or operation of ■theatres by producers and distdbii- toM and would have resulted in vacation of a, temporary restraining order preventing its enforcement, thus compelling the Innesota .?nd American Amus. Cos. (Paramount) to rell Ish their North Dakota theatres, A foTmidable array of legal lent 'has Its big guns trained against the Jaw's validity,, deterrrtlned to end once and for all the national Allied States', threat of similar legislation In other states. U found itself conir bated not onl.v by the North Dakota slate attorney general, Alvin Strut?., but also by a battery of other promi- nent lawyers employed by North- i<'est Allied to assist him in uphold- ing the law. HighlighU of the trial thus far have been the appearances on the witness stand of Johii J. Frledl, gen- ei- manaKer of the Minnesota Anuis. Co.. and. W, A, StefTes, presi- dent oC Northwest Allied, which was instrumental in having the law pa.ssed,' The former,denied tlial his com pany , has ari.v monopoly in the North. Dakota exhiblilon field or un- fair trade advantages over indlc- pendeiit cjchlbltors and he pointed out his companies have not been ex- pan ing. Slcftcs testified the, pi-o- ducef-owncd theatres do have an advanlafic ovcr independently owned. iihoW'hptijes in obtaining pictures and that such advantage partakes .bf inonopol.v, increasing theatre, admi.-i- sion prices and drlvlh indcpendcnls out of business,- No, . h. Indies Called ontnuy lb .expectations, the inti .< ■ cpmpleted their direct reseiUalion ' without calHnS w>' independent ex ibitors as wit- nesses 10 ,tcsli/.v'in substantiali tlieir'conlcnlions. It also was In icated that tlie defense, too. wbiild refrain from caMiiig an.v N-. t). independent ex!iil)iloi-!i to voice their alleged grievances again.st the Paramount circuit. However, several indc- ixiiideiil cxliibilors find former tho- ulre o«ncr,< in Cities outside tlie ^laiiS. iiiclii \na, one each from B6,s- lon and Oiiiaha, will testify for the th;il, thcv have sun"cred or -ijocn 'forced to the ,w:iir rosult of pi-oducci'-pxcncd cliiiin,-.' liyilio.^ aiul operation.?; (\lpiisc,brouKhl out (hat Min- sonicnl in one wijUiiikO In Fargo, N, Id., had relinquished a theatre, the drpheutn, aiid taken steps to prevent, anybody else from acquiting and reopening the liouse by renewing- for a: long period a lease .on an easemetit without which it could hot be Operated. Ah Issue that has been ised -is. whether th?; state is empowered to enact such Icgislatl . Points set tip by the plaintlA's and defendants re- late ,to whether the law is unconsli- tuUohar because it. involves destruc- tion of property rights' Without due. process of law, , whether it is (3ls- cr,iminator, whether, it violates in- terstate commerce provisions,whether any monopoi,v,ls involved.in the pro- ducer-owned theatre system, whether it was enacted to curb monopoly and whether'it is the court's position to inquire into the motives-^or--^be law's ena,ctment or whether'any rear' soiiable state of facts cati be con- ceived to sustain it. The defense is insisting that/thfe practice of producers of buying and operating theatres tends to destroy independent exhi Itors and that the measure is an antl-mpnopbly law de- sighed to' curb the system... 'which gives the big producers virtual powers of life an(^ death oyer, the iiidefpendent- exhi itor." , liecal Batteries .Included among the defense coun- sel are. J. P. Devaney, fornier ' - .nesota state .siipreme court chief justice) L. B.'Schwartz,.his associate, both from Mininciapolis; Abrani F. Myers, national Allied States' chief counsel, and,-Francis Murphy, Fargp, personal attorney- of Gov. Lahger oif North, Dakota; Ainbng those ap-. pearliig for the plaintiffs are T. D. Thacher 'and C. A. - Blckford,-' New York; J. W. Flnleyj St. Paul, and George "Thorp, Fargp., "The three sitting judges are J. B, Satiborn of the Federal circiilt court ot appeals and Seth Thomas and G; F. Sullivan of the Federal district court. The last word wlU. be had by; the U; S. Supreme Court, - Inasmuch as both sides' have indicated they will ap- ,peal to the nation's highest tribunal,, it necessary, for a final ruling as,,to. whether producers' canv own and operate theatresi directly or in- directly,'iand v/hether .a.permanent injuhctipn should be isstted to re- strain enforcement Of this law.'.' In his 'opening statement for the plaintiffs, Atldrney Thacher alleged the non-existence of facts -in the leg- islative record to justify such,'dras- tic' legislation; that the prohi Itlbn involving deistructlon of properly rights carinot he jUstiiied as .an en- actment of the state's police power; that no monopoly exists or is threat- ened in the. distribution and exhibi- tion of rilm,'<; thiit the act arbitrarily destroys property rights;" that it is legislation designed to benefit a cliass, not the public generally;, that keen (competition in the production of rno- i lipn pictures a.ssurcs the public the ; best possible films, and that in only I ihice North Dakota cities is there , actual Competition between plaintiff , theatres and others. I Points emphasized by [Murphy for the defense in i.s open- ing dddrcss were that the court must |-construe wliether there exists any , concoiyiible bssis for the enactment of 3 slate statute: that it devolves pn tlie-. laintifis not only to cstabli.sh • but preclude the absence of any basis f.ir the law; lhat tlie law i.s not aimed at producers or istribiitors. but is .limited c.xclii.iivoly to Owhcr.s-hip of atios within the slate- itself; thai ■ he pioduecis' piaclice of buying and ; op'.M ,nting theatres tenets io de.-itro.v iiVdcpc'nd.nnt cxhibiloVs: IhJt block I booking reqtiircs the theair'c owner ■to lake virtually a'prodooer',s-p.nlii'c output an .sets a - practical limit on pi.cUircs. available'for the exhibitor: ' lha.l the Icijlslature conceived it v.as '- within its povyers to inquire into the naiuie of lilm shown and to scl liiii- italion,<: sui loundin;; their prMCivla- ' lion in North Dakota, and that the i Ic^i.slalive. act ni'a,v be construed a,s 'provcnlalivo nicdirine' designed to prevent entrance of' an "evil" into iNorln' D.TUota rallicr than dircf-lcd at 311 e. ^sllng evil ol nopbly. Washington, June 7. . tock dealings by film company insiders were , rare again, in' April, according to latest Securities and Exchange Commission report, which, showed no slzable^ansactlons." Only irhportant change w*as glve.-upi o't 500 Warner ' Bros, common- by Herman Starr, who M^as left with-' put any hpldings. Another Santa Claus was Robert R. Young, who handed over 100; .shares of Fathe common, keeping 19)897, Sole ,pur- ch was another Increase In I,oe\v's,,Inc., holdings of Loew's Bos- ton Theatres, parent ,acquiring 504' shares of ,subsidiary's common and sweliihg 'Stake to .77,l6b.-,' CENTERlAY GO VAUDE, NTTERY OR OPERA illv Indies' DIXIE DUNBAR IN A DICKER WITH U PICS Kurt Robitschek has no deal set to take over this Center theate in Radio City, for Vaitdeville presentation.. States he has dlcke,red ith the; Rockefeller interests for' soine ■. time, but .idea has;, been , a longrwindcd palaver for board approval rputlne, and r>o- immediate answer as yet forthcoming. Says he has ..a; group' reiady ith .cash for duplication- of, his former variety shows at the Vic- toria Palace.-'London,-and AUianibra, Paris,- if deal clicks. • Rockefelliers are flooded ,-with offers for its' white elephant house and taking time befofe deciding oh any. Want a 10-year lease and other tough agreements, accprdlhg to Ro- bitschek, biit won't commit them- selves in.; any w^y.. Last communica- tion states -landlords; want: two more weeks t6 ;decide. One of the' other 'deals Is for Clif- ford C. Fischer to instal a theatre- cabaret idea, in the fall. He's dtie back firom Paris in September. , .Fortune Gallo,' whose, recent 10- day grand o ra at ^pPp scale clicked, also has been ogling the Center as a permanent spot. NpYAIlBO'S COMEBACK Hollywood, June 7. Republic's 'As. Ypu , ,' st'arrih.g Ramon- Noyarrb.. went befpre the ! cameras yesterday ( pnday), John Auer directing and producing.^ It Marks Npvarro's first lens, ap- pearance, since 1 t June. also declared that no issue of facts.i-s contended in the complaint and that it is the court's function 'tp deter ine the correctness of the legislature's reasons for enacting the law.. He contended the case, before the court re,s6lve,<: itself around the qucstion.s of whether any reasonable state of facts can be conceived to justify the law and whether .there is a rational relation to the law.In that aim. Un- less the plaintilTs can show facts which preclude any rational justili- calion for. the legislative .enactment it; should be upheld, he declared. Fried! in his te.stlmony named Minol a,s the only town jn which his compan.v has no competition. He .said none oJt the officers of his com- pany has iin,v connection with the disliibiition or production of- ri(ms .nild that Parahiount's, only interest is in the two. theatre operating com- paiiic,s and through stock ownership. While,l)C!n,;{ cross-examined. Friedl flared 11 scvoial lirhc when. defence iawvois .soiisht to bi-ing out that hi.s theatros enjoy r<'tj ain a'dv htages not had by inclepcndonl cxh'ibitoj-x. He niainlainc'd that the better pictures [(.-iturally go to the most rn ihcalros with the i>cst.mpncy-rha!;in^' rc(-o)d,s, rcKaidlCoS ot ' rrari.?em(^nts,' ■yfliliatiOns;' etc- ,Ho said the hou,ses of hi,-; companies fit into such, cla.s.si- licalioii. and th(<i-(;b.v' automatically have picfci'ciice, for biLsincsi; reasons onl.v. ';June 7, ixie Dunbar winds iip' personal appearancie, tbiir in Indianapolis Thursday night (9) and then dancer- heads back-for Coast to discuss ,With Uhiversai .execs possibility of ; play- Ihgvlead in forthcohfilng 'Cblleglah' series at that studio^ Sh^ washed .up 2pih-Fox contract before 'comine! east. . If U deal falls through, Miss Dunbar wiU'return to BrPadway this fall in either, Shuberts' new 'Zieg- f id Follies' or the; Vinton Freedley show, 'Greek to You.' Her hoofing' partner in any case will likely be Duke .McHale. Miss Dunbar's p;a. partner, Tommy Wonder, pulls out for New York following Indianapolis 'date for sing- ing and dramatic instruction " pre- paratory to his; entering rehearsals for George Abbott-Rodgers ahd Hart', musical version of Shakespeare's 'Corhedy of Errors.' D.eal. for hls_ appearance in this-show was-' closed' during youngster's engagement last ■week at Stanley; here.. Johnny Walker Will Appeal Adverse lOG Suit Ys; Ex-Angel Johnny 'Waiker, former ■picture and legit comedian, will appeal the; decl.sion handed :dpwn last week by N; Y. supreme court Justice Samuel S; Rosenman who'tossed out.Walker's suit to recover $10,000 from Julian Reynolds of the tobacco clan, for having run. out. as ngel to the plaintl 's non-produced play; '.This Pretty World.' Justice Rosenman dis-- missed the action on the ground that Walker's evideiice was insufficient. ■ The eomedian and embryo pro- ducer complained that' Reynolds' had agreed to provide piart of the funds, at least to the extent of $10,000, to- ward the expense of the production, prpvlded his wif:e, 'Helen Fprtesqup Reynplds, was given the lead. Walk- er testified he consented although Ihis had selected Dorothy BUrgess'for.the part. Reynolds advanced ■him $3,000, he testified, and Mrs, .Rieynplds began' rehearsal but^ few . days later, failed to . show up.- Instead, . he averred, Reynolds informed im the' whole deal was off, as his wife had- left him. However, a few days later, Reynolds again, agreed tp.go ^through with the deal W,hen, according to Walker, he 'said. ,'M.v wife has returned - to, ine.'' Rehearsals continued, on the ba.sis that Mrs. Reynolds and Miss Biirgess were to alternate weekly in the lead part. Walker contended. Also that George Abbott was to be the judge of Mrs. Reynolds' histrionic ability. After a few more tryouts, YTalker testified, Reynolds'again jumped the tracc,s and .what was to be 'another Broadway hit' went by the boards for lack of capital. Walker- de- rided he wa.s entitled to a fiat $10,000, i bbijidcs the SII.OOO Reynolds had al- I ready contributed, .lusticc Ro.sen- i man lhou,!;ht otherwise, afler hcar- i ing the dorendant'.s slor Philadelphi Fxplo>ipn that may blo.w the Phi,lly indie cxhib drguniza'lion here to bits was "set 6ft last Wednesday (l) 'wi.ln filing of a- $50,000 libel suit against Lewciv Pizbr. ils pre-i, Ijy a member pt the organization.^ David -E. Mil- gram, head ol Arilllated Theatres, Inc.;-Indie chain of 14 houses, charged in. eommbn Pleas Court that the-tbp 'exec of United Moti ri Pictured The- atres- Owners of Eastern Pcnnsyl- vanl Southern, New Jersey and Del'aw;a.re;'damagcd his busiiiess repv utatL .' llgr.ain'«;complain.l arose but pt an open letter sent by Plzbr to local trade sheet,; In which he chitrged that Milgraiti was. not a-. member in good standing of UMPTO: and therefore -Pizor was under no obligation to show him- the courte- sies regularly extisndedniernbcrs; Plzor'-s letter follower',.publicati of an editorial in Ihe 'trade rag taking hirh to ta.sk for building' a house In direct compctish to another' member. Trade papcr ls not a party to the suit. Mii.^rani expelled frpm UMPTO. for nonrpa,v'ment pf dues',. Pizpl- alleged IVi hi.s liitler. This was. , refuted In the suit by Milgram^ who claims that he was a pald-upi merh- ber and has ca itcel led checks fpr $220 in dues;.paid to George P. Aarons, se'cretary. ' ilgram also Claims that-Pizor and .Aarons have repeatedly i'gnbred his request fpr a treasurer's statement shpwihg the financial' stalu.s^. of' UMPTO. As a member pt the Board - of Managers', he maintains he has a right to see such ;a ..statement. He charged that there has been ho finan- cial report on the orgahizalibn; since it was formed by combining- two other groiipS'almost two years ago. Last week's libel suit was the final, blow in a feud, that has.been at fever!. pitch here fbr rhonths and In, which, virtually ever.y exhib has taken sides. It. resulis f rohi purchase bf a site for a hPii.se. by Pizor and Charles Segal!,; .chairman of,UMPTO's board. Theatre, npw under con.struc- tloh, .wilI be in cbmpetish with, two owned; by Milgram's group, th«i Wal-. ton atid; Allen. ilgram avei:s that ever since Pizor .and Segall'; pur- chased the lotthey have been tryi to-force him into buying U from them at an exorbitant figure.. il- gram,) in retaliation,, has. ali;eady -started, erection ;6f ainother house near the Apollo, owned by Segall. Manner in which UMPTO mem- bers have aligrid themselves -with one Side or the. pther in ,th,e: battle cPiistitutes threat to the .entire or- gahizatipn; Several other exhlbs,. it was'learned, are preparing a revolt against what' they ;lerm, 'dictatorial policies' of Pizor and Segall. THEATRE MEN THWART OMAHA'S CENSORSHIP Tardy fix Away Hollywood, June 7. I Delayed a- week, 'The Sistcr.s' ah I ,"i;bn Return, of X'/itarled rolling lye.sterday 'iVIondayj at Warncis, . I Production .start oii 'Angels ith i Dirty Faces.' co-.star.ri ' .lames (.'ag- I ncy and Pat Q'Bricn, originally ,sch.cd- I ulcd for June (i, h:i,s been set back ; to Jlilic 22. Btixbaum's Politics Omaha, June 7, Theatre men thwarted stage and screen censorship today when Mayor Dan Butler's long-pending plan to grant wide regulatory poweis to fiye-mcmbcr city welfare board was smacked hard in city council and proposed ordinance sent back-for re- ' vision;. I, J. Duim, attorney for thea-. Ires, presented petition sisned by .280 owners, managers and em- ployes; charged ordinance wpu'd set up 'absolute and unregulated cen.sbr- I Shi .,' Mace Br'own; president Omaha I Central Labor union, also rapped ' pliii). Faced by unexpected oppoifilion •within council, mayor suygested cbmpromi.se be worked put by Dutiii and city legal department. Dun ' agreed. Go Get 'Em, Red if'jll.vwobd, .. line ", 'I'.orl arry,' a scniil bijsod on tha .ifrliiun (itri w;f;iil l)Cfi)ic ihe eriine- »f al' Univf'i-,sat yoMci-riiiv (.\foiKlay ) ith Ford Bccbc and .M.m James co- ■liM';, ,'(-bc. •:|"-' 'James Bros.' Roles Set