Variety (Mar 1939)

Wednesday* March 1, 1939 PICTURES VARceTr Majors Oppose Any 'GHisenf Ideas, Heartened by N. D. Divorcement K.O. Battle cry of major distributors lind producers today has become, 'No consent decree in any foriii.' No pflicial statement, naturally, has been made to that effect but it is the general sentiment in the trade.. Legal lights and industry chief- tains have become convinced appar- ently that a-consent decree is out of the question. Previously, their at- titude was understood to be slightly Wavering, one group believing some favorable consent decree stipulation would solve the entire anti-trust suit, situation. Even then, there were nearly as many others who felt that the major companies should see the Government civil action through to the finish. Now, this front has shifted to one entirely against any consent decree. Part of this more solidified front can be traced to what happened to theatre divorcement in North Da- kota as the whole law was wiped off the books and swept out of the U. S. Supreme Court Boosters for fighting the Government suit to a final decision also were heartened by the neutral attitude taken by Judge Charles Woodward in the Chicago suit involving Barney Bala- ban, Balaban & Katz, and seven major distributors.. In this case the judge upheld the defendants' de- mand for a full bill of particulars, quashed subi>oenas demanding the appearance - of Individual defend- ants, and nixed any motion to im- pound documents and books of de- fendants. They saw In this action every indication that this particular court was' going to see this suit tried according to its idea of what con- stituted good legal procedure, and not according to the Government's notions. Attitude of numerous trade lead- ers is. that too many vital matters are tied up in the big Government anti-trust suit to have it lightly handled by means of a consent de- cree, which might Incorporate the V. S. Attorney-General's ideas, but which-might be overruled subse- quently by some court action. They think that a court decision, and ■ nothing else, will do, because of im- portant factors tied up in the 'case. Another Divorcement BUI Seattle, Feb. 28. House Bill 300 has been intro- duced in the state legislature at ' Olympia by Representative Gholson (R.) of Yakima, calling for divorce- ment of producing and diistrib com- panies from operating theatres. The bill prohibits operation of motion picture theatres which are 'owned or controlled directly or in- . directly' by any film producer or distributor. Donlap-Carr East For Monogram Board Meet Scott R. Dunlap, v.p. over produc- tion, and Trem Carr, producer and member of the board of Monogram, arrived in the east Monday (27) to attend the annual meeting of Mono stockholders slated for today (Wed.). W. Ray Johnston's statement of operations to stockholders was re- leased a week ago. While east it is also expected that discussions will be held concerning the 1939-40 production plans, when an increased program will be sched- uled. George W. Weeks, general sales manager, who has been in Florida, relumed to New York Monday (27). Carrier Co.'s $2,000,000 Anti-Trust Suit vs. RCA A suit for $2,000,000 on Sherman anti-trust law allegation was brought In the N. Y. Federal Court on Thurs- day (23) against RCA by the Inter- national Carrier Call & Television Corp. The plaintiff seeks damages on two counts. Theft of patents dealing with a 'new two-way intercommu- nicating system for power circuits' is charged. International Carrier also claims that it is half owner of 1,- 600,000 shares of stock of the Amer- ican Carrier Call Corp., which had been formed to exploit and sell the above mentioned patent. It is claimed that, by restraint of trade on the part of RCA, this corporation was forced Into T7Bb Big Lumber Man . ' Sacramefnto, Feb. 2B. Charlie McCarthy entered the capitalistic class as a $75,000 cor- poration through the filing of papers by Edgar Bergen inter- ests. Object of the company is to supervise all Charlie McCarthy activities and by-products, such as toys, novelties, pictures, radio and stage exhibitions. Trailer Co/s Suit Termed Tempest In A Teapot'l)y Court Arguments In the suit of National Screen against Trailer-Made, Inc., Isador Schwartz and Pathe Film Corp., were heard last week' before Judge Coxe in N. Y. federal court Application for an injunction was made to prevent Trailer-Made from distributing certain trailers on the ground that the' musical backgrounds were an infringement of National Screen music. Injunction against Pathe Film is sought because it makes prints in its lalMratories of tlie trailers. Louis J. Vorhaus, attorney for the plaintiff, claimed that the musical backgrounds made up an Important part of the trailers. Trailer-Made contended, through its attorney, Saul Rogers, tliat the backgrounds. came from a company which Trailer-Made had bought Louis Nizer, representing Pathe, asked that no injunction be issued against Pathe because, as a labora- tory, it is a completely innocent par^ in this dispute. Nizer also moved to strike out that part of the complaint which requested a dis- covery of records of defendants. Further argument of Nizer was that National Screen had failed, to comply with the copyright law be- cause it did not file notice in Wash- ington under Section I-E of the copy- right law which referred to mechani- cal reproductions. . Since there was no notice or other designation on the negatives, Nizer contended that the failure to file this notice was fatal to the plaintiff. Judge Coxe referred to the plain- tiff's complaint as a tempest in a tea- pot, and reserved decision. N. Y. OPS WAGE TUT STILL UNADJUSTED Wage scale adjustments-for Local 306 Motion Picture Operators (N. Y.) are stalemated again. Up for settle- ment last August an arbitration board was to have ironed the matter out last week but after the Inde- pendent Theatre Owners Association had chosen its arbitration delegates, the union decided against submitting to arbitration at this time. Instead, the matter was left -to labor committees of both union and the association. At a meeting on Feb. 20, 306 agreed to cut its orig- inal demand of a 48% increase in booth costs in half and took the stand it couldn't go any lower than 24%. Theatre owners' viewpoint was that based on slumping business conditions and poor box office re- sults, there can be no consideration of increasing costs at this time. They want present booth expense, per the- atre, to continue as is, for another two-year period. The matter will have to come to arbitration . inasmuch as . some in- crease is mandatory, as provided for in the contract.- A compromise ad- justment has yet to be worked out. Saving in the Process Hollywood, Feb. 28. Further reduction in location costs is made possible by new de- velopments In process work, re- ported by the Research Council of Academy of Motion Picture Arts and Sciences. Fifty process technicians, headed by Farciot .Edouart, put in 2,000 working hours on the labor saving developments. THEATRE FIRES $15,M« Loss In Pitt—Other Razed Houses Bebnilt Pittsburgh, Feb. 28. Few months after new owner had completely refurnished house, State theatre in Liberty, near here, was swept by flames last week during coldest spell of season, and com- pletely destroyed at an estimated loss of $15,000. One fireman was seriously injured when' a section of the front brick wall collapsed. Spot was purchased less than a year ago by George Geinzer, who spent several grand remodeling the place. Cause of blaze was undeter- mined, $10,(HM Blaie Oakland, Cal., Feb. 28. A stubborn three-alarm fire swept through the Granada theatre early Saturday (25) morning. A pre- liminary estimate placed the dam- age to the interior of the theatre at more than $10,000. The fire started in the loge sec- tion of the theatre balcony, apparent- ly from a smoldering cigai^et Heavy smoke and water damage occurred. Hangings, seats and rugs were burned. The projection room with its store of inQammabie film was untouched. John Peters is the manager. The- atre is part of the Golden State chaia Bebnlldinc Bated House Atlantic C:ity, Feb. 28. Rebuilding of the Palace, gutted by a $10,000 blaze this week, has al- ready been started and will be rushed to completion so . that the theatre may reopen for the Easter holidays. Announcement to this ef- fect was made by Samuel H. Tahnen- baiun, owner, this week.- The fire, which threatened the downtown area until firemen finally got it under control, was caused by a defect in the wiring. Few Houses For Sale; New Theatre Bldg. Continues Theatres-, available for pur&hase or leasing through brokers or direct with owners, if of any value at all, are difficult to find anywhere in the United States. Those that are closed, according to theatre realty men, are out of operation for good reasons and thus are not even being offered, ex- cept rarely. During the past two weeks, one of the largest of the chains, which Is usually offered theatres regularly, has received not one single bid from a broker or owner with a house to unload. The brokers are in the habit of first soliciting partners of chains, depending on the territories, when getting a theatre for sale or lease. Real estate men in the picture in- dustry declare there are lots of thea- tres available, most of them closed, some for as long as 10 years, but in most such cases the houses are run down and owners are seeking an operator who would spend upwards of $10,000 to put the property into shape. Also, most of these theatres are located in situations where film supply' would be dubious and the competition dangerous. During the past 10 years, since de- pression, the majority of worthwhile theatres in existence have t>een gobbled up by local indies as well as large chains. What's left now repre- sents the dross. Those .who would venture forth as exhibitors in large situations or In small communities are tho^e mostly who are building new houses, very often in communi- ties which have been built up of late years, or to which population has shifted. New 1,000-Seater Palnesville, O. Feb. 28. Construction of Palnesville's new 1,000-seat picture theatre has been started. . Built for A. G. Schwartz and J. H. Shulman, of Cleveland, who operate the Park and Utopia theatres here and the Lyric at near- by Falrport Post-Mortems on N. D. Divorcement Discloses Indies, More Than Par, Favored Repeal; U. S. Atty s Angles Lone State Major distrib trying to count up the number of anti-trust suits filed in the Industry claimed he knew of one state in U. S. with- out a single anti-truster—Nevada. But, of course, Reno has al- ways had its divorcement N. C. Exhib Banned On Both 'Baby' Fihn And Tobacco' Road' Play Charlotte, N. C, Feb. 28. Plans for showing the picture, "Birth of ■ a Baby,' and the play, 'Tobacco Road,' in Greensboro, N. C, struck an official snag. City otficlals took a hand in stopping the cinema production, meeting Sunday after- noon and informing J. B. Webster, operator of Criterion, that he would be subject to arrest and revocation of his license it he showed the sched- uled and advertised film. A week previous, an audience of between 50 and 75, representing medical, church, business and school groups, attended a preview of the legit show, and, ac- cording to- Webster, gave a favorable reaction. Raleigh booking, agents announced that "Tobacco' Road' would play Greensboro's Senior High School auditorium March 8-9. M. D. Teague, business manager of the school, sub- sequently stated that the tentative rental was canceled and the deposit posted had been returned to the agent C. E. Newsom. He said the date was cancelled due to a later de- veloped conflict with school pro- grams, however, admitting that the 'reputation of the play had bearing' on its. cancellation. Tobacco Road' is scheduled for Raleigh's Memorial . auditorium March 10-11, despite the fact the mayor of that city had issued a ban against it City Manager C. W. Smedberg said the theatre owner was requested to abandon plans foi- showing 'Birth of a Baby' in view of an . jreement made by local theatre operators sev- eral years ago on request of school groups. The agreement is under- stood to prohibit showing of films of a medical character. Question of obscenity or vulgarity did not enter into the request to halt the show, Smedberg said. house for five years. Purchase price put at $25,000. New owners plan to spend several thousand dollars re- modeling the theatre. Installing air conditioning system and enlarging marquee. More in L. A. Los Angeles, Feb. 28. Ben Bronstein, currently operat- ing the Carmen, Lux and Arlin the- atres here, building another. William Swanson, operating the Ojal theatre at Ojai, reopens the Beaux Arts in L. A. next month. M. G. Sinift owner of the Doty, has started a new house, the Del Mar. Okia, Expanding Oklahoma City, Feb. 28.- Oklahoma is set for some healthy expansion during the current year as a number of new houses are be- ing put on the planning boards and remodeling bids are being asked from almost every section of the state. . It is expected that some new cap- ital may also Cotiie Into state theatre business as a result of the way in- dustry has weathered bad times in the area. Akron Nabe Sold Akron, O., Feb. 28. Five Points, Akron nabe, 650 seats, sold by R. C. Wahl and David Col- lins, to Lorenzo Buzzelli whose son, Arthur, will manage the house, Wahl and Collins have operated the Philly's New 1,200-Seater Philadelphia, Feb. 28. A new theatre will be built in the I Mount Airy section at Sprague street and Vernon road by a syndicate, in- cluding Abe Sablosky, J. J. Cohen and E.. Margolin. Seating capacity 1,200. O'Neill, Neb's, New One O'Neill, Neb., Feb. 28. Plans for a new theatre here an- nounced by Mrs. Georgia O. Rasley, who operates the Royal. Minneapolis, Feb. 28. With the North Dakota legislature scheduled to adjourn this week, all hopes have been-abandoned for the passage of a new theatre divorce- ment law or a licensing bill designed to prohibit further theatre construc- tion in the state. At the same time, plans were be- ing pushed by Northwest Allied for the introduction of a . theatre di- vorcement measure in the Minne- sota legislature and Gov. John Moses of North Dakota Issued a statement explaining and defending his action in signing the repeal bill that took the 1935 divorcement law off tha statute books, permitting the Para- mount Northwest circuit to continue to own and operate its 15 theatres. The Minnesota state legislature has been in session for nearly two. months, and no divorcement bill has been introduced yet although Northwest Allied Is committed to efforts to obtain its enactment. Moreover, Gov. H. B. Stassen has Ignored the organization's request to urge its passage. Gov. Moses says that one of.tho important factors influencing him to sign the bill was the receipt of nu- merous requests from North Dakota independent exhibitors, urging such action.. Incidentally, legislators who voted for repeal declare that independent theatre owner constituents had asked them to do so. These independent exhibitors insisted that conditions at no time justified the law's passage. They asserted that the Paramount Northwest circuit's competition has been fair .and decent at all times, and that they would have more to fear if the Paramount theatres fell' into the hands of some of the inde- pendent chain operators said to hav* had designs on them. In explaining why he delayed signing the repeal bill until five min- utes before It would have become a law anyway, by reason of failure to act Oh it within the prescribed three- day limit following its receipt from the legislature. Gov. Moses said he wished to give federal operatives as much time as possible to determine if any illegal -tactics were involved in Its passage, or if there was any evidence that film producers had conspired illegally to wipe the law . off the statute books.* A Gov. Admits D. C. Quli ^ Gov. Moses revealec that Thur- man Arnold of the U. S. attorney general's office had told him that the government was interested in cir- cumstances surrounding - the law's repeal and was investigating. Whea h-! heard nothing further from Washington, however. Gov. Moses said he signed the bill and notified the U. S. Attorney General to that effect U. S. Attorney General Frank Murphy had asked the gover- nor to give full consideration to the effect repeal would have on pending federal litigation.. U. S. asst district attorney Arnold admitted to Gov. - Moses over the- telephone from Washington, he says, that the signing of the repeal bill would be an 'inconvenience' rather than an- injury to the feder 1 gov- ernment's anti-trust suit against a group of major distributor-pro- ducers, aiming, among other things, at separation of Aim production and theatre ownership. That he had carefully studied the many ramifications of the repeal ac- tion before signing the bill, was Gov. Moses' assertion. 'I particular- ly weighed the effect the bill would have in North Dakota and the ques- tion of whether it would be a good thing for this state rather than for another state, or upon litigation pending in the U. S. supreme court,' the governor said. The governor pointed out that the failure in the legislature's lower House of a resolution asking him to return the bill unsigned 'places ad- ditional weight on the natural as- sumption that the legislators wer* cognizant of the measure's effect' The speedy passage in both branches, he felt, 'would indicate a clear-cut decision and a determination that the repeal bill, was highly desir- (Contlnued on page 22)