Variety (Jul 1939)

VAJimTY PICTUBES Wcdnesdtfj, July 5, W39 ALMOST A YEAR UTER, 9 DEFENDANTS CATEGORICAIIY DENY U. S. CHARGES 7 Majors, National Theatres and Chase Bank Finally | J^jq YtSKS (U| Pay, Ddly Haas Finally to W«ri[ File Answers—Replies Differ Whether Choice Film Product Is Necessary for Operation Nine corporate defendants in Ihe Government anti-trust section against the major companies Jiled ttteir ensxvers to the suit Thursday (29) in N. Y. federal court, almost a year after the bill of complaint was iUed. The nine include lA)ew's, Inc., Paramount Pictures, lot, Warner Bros, Pictures, Inc, BKO Radio Pic- tures Corp., Universal Pictures Co^ IiMX, 20th Century-Fox Film Corp^ National Tlieatres Corp^ the Chase National Bank of N. and Keith- Albee-Orpbeum Corp^ together with affiliated corporations, and officers and directors of these corporations. Tlie answers, although prepared hy separate firms of .attorneys, are almost identical, in that they «onsti> tute a blanket denial of practically all the charges of the Goveminent in fact, each film company starts its denial with a stock phrase stating that it denied it was violating, had violated, or intended to violate any section of the Sltennan anti--trust act, as stated in the U. S. complaint Complete denials of allegations of Hke complaint witliout further com- ment ran as high as 107 paragraphs. Some focts, commonly acceptable to those in the industry, are denied by some of the defendants, and para' doxically admitted by others. An example is the case of Para' mount which denies the U. S. diarge that without access to. product of the majors, an exhibitor's chance of suc- cessfully operating a theatre is small. Loew'^ on the other hand, admits that the -chances of successful operation is small, without the prod- uct-of one or more of the defendants. Paramount's answer is perhaps the most typieaL It is the longe^ and covers most of the ground filed by the others. Par, filing throu^ Simpson, Ihatcher & Bartlett, denies S3 para- graphs <^ the oomplaint entirely. It objects to Government definitions ot terms familiarly used in the indus- try, and substitutes its own mean- ing Among these terms are 'block «f pictures', 'pre-release*, 'road show*, and 'T^eat or subsequent run*. Paramount denies that a metro- politan, first run house' cannot operate successfully unless it has major product "on fair and reason- able terms. The company also denies that an independent cannot produce the better type of picture, unless it has access to the first run market on an . assured competitive basis. Continuing with its denials, Para- mount declares that the industry is not dominated by the defendants and their aflDiated Interests. They declare that the U. S. Is wrong when it ssys' that because of fiie 'majors «iomination of first run theatres, an independent cannot secure first runs, except through sufferance on the . part of a major.' All Deny Block Booking, Forcing Shorts, Pfd. Dates Paramount denies that major com- panie.s exclude independents from first run markets, and also say that it is jiot true that regardless of the merit of a picture of a major, it is assured an outlet through the theatres. It is furthier denied that under a commoa plan, throi^ franchises, agreements and monopolistic enter- prises, the majors split areas among themselves,, to the exclusion of in- dependents, and corner the 'better high grade-films for themselves. Paramount denies that along with the other majors,'it places stars, con- tract players, directors and tech- nicians , under contract, and loans them to each other, each company sharing , in the .profits, to the ex- dusion of independents. Along flie same lines, the conu>any declares that such pooling of personnel is not -a violation of the anti-trust laws anyhow. Paramount, along with the other majors, «nte!red a blanket denial to charges of -extendhig benefits and lavots to 'Oach other. Some ot .fliese were £liaring advertising costs, op- tional contracts, contract modiflca- i^ns, reduction in film rentals, overage, underage, cancellation of diorts, and move-overs. A denial is entered that the ulti- mate . and only market for product is the U. S. Paramount then entered a complete, denial to two statements by ttie GovenuneDl, the first to the eSect that free competition means a free and open market among buy- ers and sellers, in which the buyer does not control tiie sdler. or the seller control the buyer. Secondly the film company denies that free competition demands the existence of tree markets. Forty-two other statements of the Government are not answered at all. Paramount being content to dC' dare that it has not sufficient knowledge ot the facts to warrant an answer. These for the most part are statistical history of the indus- try, and setups of oQier major com- pahies. Most -of the, other answers followed suit in this regard. Paramount continued by admitting that with the increasing salaries of stars and tedmicians, the rising costs of films were shunted on to the distributor and exhibitor. How- ever, the company flatly states that the eight named defendants do not constitute all tiie majors, and that there are others. The company then defines independent producer. It denies that 80% of the better prod uct during a given season is pro- duced by the defendents. Paramount insists that indepen dents make fine outstanding films, whieh meet with public approval. After a rejection of the U. S, <lefinition of blodc booking, the com- pany says that Paramount's sales force sells . product to -exhibitors whether or not they are affiliated. It is stated that 'key city' is not capable of an exact definition, and states that the Government definl tion of 'Bfiiliated and unaffiliated not correct. More denials are entered as to Government statements that a first run regularly grosses the largest rC' turns in a .giv«n .area, or that the de' crease in the nnml>er' of films pro-' duced annually is pursuant to any agreement Paramount Vigorously denies that it has placed under cou' tract a greater number of stars, fea ture players, directors, or tech' iiicians than it can use. Hollywood. July 4. Dolly Haas makes her American screen debut as a featured player In We Are Npt Alone*. Paul Muni starrer at Warners. Miss Haas has been in Hollywood two years, under contract to Colum- bia and Ernst iMbitsch, -without mak- ing a picture.' Williams Setting Date Paul Williams, special assistant to the attorney general, con- ducting the Government anti- trust action against the major film companies, arrived In N. Y. Monday <1) and will c<»f«r with senior federal Judge John C. Knox today (Wed.) on set- ting the trial date of the action. Tlie suit was discontinued Monday <3) against Isidor Trey, of Loew's, who died June 18. MAE WEST-W. C. FIELDS' UPH:Bin)G£TEDAT6iM)G WB Wins Partkolars In Knb's %zr Sok; ibedier $75,000 Libel Federal Judge Edward A. Conger in N. Y. Friday (30) granted Warner Bros. Pictures; Inc. IS out of 19 re- quests for particulars, in defease ol the action of Fritz. J. Kuhn, indlvidu ally, and as p/esldcnt of the Gerinan< American Bund, against them for $5,000,000. charging libel in 'Confes- sions of .a Nazi Spy.' In granting .practically all the .ap- pUcaCons the judge de<!lared: 1 will use extreme liberality in granting this bill ot -particulars. This case must gst to trial soon. This is an im- portant case and the American peo- ple are entitled to -know, the answer. This is a public matter.' Then, turn- ing, to Knhn's attorney, the judge said: 'When some things stay in a dark room they b^in to smelL Let them out in the sunlight. If you are real^ good American citizens, as you claim, you will not have to conceal anything.' Katberine Moog the same day filed a $75,000 action in fiederal court against Warners^ charging libel in 'Nazi Spy.' 'She asserts that the character of Erika Wolf in the pic- ture, as portrayed by l^a Lys, refers to her. Hie characterization was 'scandalous and defamatory,' she de- clares, and has 'subjected her to hatred and ridicule.' Hollywood, July 4. Mae West 00f:stars with W. C. Fields in a picture with a western locale at Universal, rolling about Aug. IS. Eddie Cline will direct Grover Jones is writing the story. Fitan is budgeted at around $000,000. Co-stars s^ned for a fixed sum and a percentage of the profits. Studio obtained an option on two more films by actress. Reaile Asks Court To Rflle on Storrs Stod Not New to Hem Par Keynotes to Afojors Bar indies on 1^ Rons Last of the denials by Paramount, and one equally vehemently stated by all others, is a denial ot the charges listed in Paragraph 214 of tbe complaint, dealing with the harsh, onerous, and unfair trade practices imposed on independents by the majors. Here the company, together with the other majors, state that it is not guilty of block booking, forcing of shorts and newsreels, ar- bitrary designation of .play diates, protection of affiliates, overbuying, discriminatory film rentals, prohibi- tion of double features, score charges, and minimum admission charges. A blanket statement at the end of the answer is made by all, denying domination and control of the pro- duction, distribution, or exhibition facilities, of -ttie picture industry, and that the marlret tor exhibition is free, open, and untrampled.' Tlie petition of the Government 'fails to state a cause of action against us,' Paramount declares, and a dismissal with costs, and attorneys fees is de- manded. The Paramount answer was: filed in behalf of Paramount Pictures, Inc., Paramount Film Distributing Ciorp., Barney Balabaii, Adolph Zukor, Neil F. Agnew, Y. Frank Freeman, John W. Hicks, Jr., Austin C Keough, Walter B. Cokell, Stephen G. Callaghan, Duncan G. Harris. John D. Hertz, Harvey D. Gibson, A. Conger (Soodyeair, Earl L McClintock, Maurice Newton, Ernest 'V. Richards, Jr., Stanton L. Griflis, (jeorge L. Ba|£naU, Edwin L. Weisl and Norman Collyer. The Chase National Bank of N. Y. City, of all other defendants, is per- haps the least interested. The bank, in its answer, admits its ownership of S8% of the stock of-National Tbe- atre^ C!orp.. but denies that National Theatres is a holding company for (Continued on page 22-) Hollywood, July 4. James Clagney and Pat O'Brien do a brother act In Two Sons,' an orig- inal by John Fante and Rose Wills at Warners. Picture rolls in September with Michael Onile directing and Brenda Marshall in the femme lead. Par's Conrad Yhfn . Hollywood. July 4. Paramount voted a heavy budget for the filming of "Victory.* Joseph Conrad's yam ot the South Seas. Marc Connelly assigned to the screen play. Walter Reade, Jr., filed a N. Y. su- preme court action Wednesday (38) against Leon Goldberg, B. F. Keith Corp., Trenton New Brunswick The- atres, Co., Richard M. Huber, Frank S. Hirst and Alan L. WoUe, as ad- ministrators-of the estate of Frank V. Storrs. Reade is seeking a decree by the court, recognizing the transfer of 2S0 shares of Ti«nton New Bruns- wick's voting stock as legaL Goldberg, trustee under an agree- ment made with the three stockhold- ers, Walter Reade, Sr., Keith Corp. and Frank Storrs, refuses to recog- nize the transfer of Reade, Sr.'s, stock to his son. Under an agree- ment the stock could not be trans- ferred without the consent of the other two stockholders. They have agreed, but Goldl>erg will not Hamilton, Ermini Say Dufaycolor AUSetforaSMM. Dufaycolor expects to hit the 35 mm. market within the next three months.' Under guidance of Pierpont Morgan Hainilton, prez, and Aldo £r- mini. formerly with Technicolor, now in charge of the 35 mm. department, the original negative reversal pro- cess, under which it was impractical to turn out more than the orginal negative and one print, has been abandoned and a new negative-posi- tive technique, which can produce as many prints as desired, similar to the black and white prin.ting process, will be available. Two tjpes of color film .are to be turned out; one balanced for day- light and other for mazda light use. With the new type of film, the nega- tive is shot' in one set of colors and then developed in a complementary set of eolorB in positive prints. For instance, the reds appear as blues in the negative; yellow as -violet and green as magenta. Whoi positive prints are made, the colors reverse and original colors photographed are retained.' Dnl^color expects to compete with other- oolor systems on cost, as no special cameras, prisms or lens systems are required, .and the only laboratory x«quirement for making IMints is the insertion of neutral den- sity filters in printing machines to oontrol the density of light Diifay Chromex C^olor Co^ Ltd., the English holding company, is no-w op- erating two laboratories, the Sasston plant and the Ilford plant. Former has a capacity of 2;800,000 feet of 35 mm. film weekly.. The British com- pany in no way controls the policy of the American company. Saroyan Beturiung FYom London for Film Huddles 'William Saroyan, vacationing in London, sails today (Wednesday) and is due Monday (10) in New York. Novtiist-playwright had planned to travel through! EUigland, Ireland and France and return to the U. S. in the fall, but is cutting the trip short to huddle with bis agent. Fat Oug- gan, on a picture deal. Besides 'The Light Fantastic.' which Eddie Dowling Intends pre- senting on Broadway in the fall, Saroyan has also completed an origi- nal drama to be broadcast by CBS during the summer. His 'My Heart's in the Highlands.' offered last spring by the Group Theatre, in association with the Theatre Guild. Is being pro- duced in I/>ndon and released lot amateur productions by Samuel French. BntWffl Use AnhBated Scored C>hicago, July 4. With the announcement by Ute Chicago White Sox (American League) ball dub that lights will be installed in Omiiskey Park for night baseball.. the exhibitors are readying for a real battle to keep their customers from hopping off to ball games. While otlier cities have taken night baseball lying down, the Ckd exhibitors are determined to make a fight for it, and are now readying a series of stunts and ads to hold their picture fans. Baseball plugs and buildup in the general exhibition Vill be held to a minimum, with jshorts and features exploiting baseball as an amusement to be relegated to the wastebasket Houses which tised to book ail occa- sional outstanding ballplayer for a personal appearance have now de- cided that this is strictly a thing of the past However, on the actual nights that Uie baseball be played in Ckuniskey Park here, the exhibitors are' plan- ning to give tlie customers evtfry in- ducement to attend the theatre ratiter tiian the ballpark. WlU put toeir hcst toot forward and conw through with the most outstanding flicker available for ttat evening; and will top that off with some sugar coating of giveaways or some -stage stunt as added competition for the ballpark. But even more important, exhibi- tors plan to offer their customers all the best of the current ball game without any of the inconveniences. Will trailerize and advertise that play-by-play descriptions of the hall game will he available In the thea tre lobby and restrooms, plus an animated board to give a visual por- trayal of the progress ot the game. Will plug the theatre's comforts as against the discomforts of the ball- park and ask their patrons, 'why go to the ballpark and be pushed around by crowds, when you can come to the theatre and follow the gam^ on our animated board? And, in addition, see our complete picture show, aU tor tiie single admission price.' Night baseball is still five weeks away In Chicago but already the ex- hibitors are readying for the entry and are going to combat It with a 'flood ot exploitation and adv^tising extolling the theatres and Its low- cost amusement OK'd for F3m Deafness Syracuse, July 4. Add hazards of tolking pictores: Ernest W. Holland, projectionist at the Bnpire here, had a claim for compensation based on a 25% loss ot hearing, substantiated yesterday— and as a result upstate film house owners are still scratching their heads in wonderment Holland's claim, based on the fact that he -was deafened by a picture, petitioned tlie Division of Workmen's Comp^isatton of the State Depart- ment of Labor that on AprU 25, 1938, while serving as projectionist at the Empire^ showing Uie film, 'Cliina Clipper.' In one scene there came a time when .an airplane went into a roar- ing dive on the screen.' So loud was the roar of the motorg, Holland con- tended, and so sudden was the stiock of the tremendous volume of sound that he suffered Injury to his hear*' ing. He applied for compensation on the grounds be had suffered 25% loss of hearing. His claim was upheld by Mark C. Kelley. iieferee in tiie compensation division .and Holland bejgins collect- ing shortly. H-O TIES BUZZELL Hollywood, July 4. •Eddie Buzzell has been handed • new directorial contract by Metra ■ Currently he is working on 'A Day at the Circus;' Sladio Contracts H-oUywood, July 4. RKO lifted Alan Lane's option. Anne Nagel inked player pact at Universal. 20th-Fox Iwisied Kane Richmond's option. . Warners handed new player ticket to Vera Lewis. Universal lifted Frances Robin- son's player option. Paramount renewed Judith Bar- rett's pact for one year. John Hamilton inked actor ticket at RKO. . John Allen, Jr., drew new player deal at Paramount aOth-Fox lifted Robert Shaw a player oi>tian. S(4 Halprin signed three-year deal as process technician at aOth« Fox. Richard Denning's actor option hoisted by Paramount