Variety (Dec 1939)

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VARIETY PICTURES Wednesday, December 20, 1939 Secret March 1 Pre-Trial Expected To Cut Anti-Trust Sessions Actual Issues Go to Bat May 1 Trial of the Government's anti- trust suit against the major film companies, the most iinporUnt liti- gation the film industry has ever been engaged in, will start May 1, 1940, in the New York federal court. StipulaUons to that effect are being drawn now between film majors' counsel and WilUam Farnsworth, special U. S. attorney. The agreement on the. date of trial was reached late Thursday (14) night, as result of a conference be- tween Paul Williams, Government prosecutor, David L. Podell, Farns- worth, his assistants, and company attorneys. The approved starting time was then submitted to senior federal judge John C. Knox Friday for his approval. Judge Knox ap- proved the date, and shortly is ex- pected to announce the name of the trial judge. It is expected that John M. Woolsey or Francis G. Caffey, both veteran federal jurors, are the most likely to be chosen. Trial of the action, \yhich had been estimated from a minimum of nine months to a year and a half, will probably be considerably shortened, as a result of an agreement reached between counsel for both sides on Friday. Pre-trial conferences will be held under Rule 16 of the new Federal rules of civil procedure, in which it is expected that many of the Issues at stake will be stipulated to and agreed upon. There are many charges in the action which the film companies realize are common knowledge as to their veracity. Rather than have a prolonged dis- pute over these issues it is expected that the majors will concede these points, and thus reduce the time needed to prove them, Such things as history of the film companies, defi- nition of terms and the like can be Included in this category. 'Clearing the 'Underbrush' Pre-trial conferences will take place by March 1 behind closed doors under the supervision of Federal judge. In the meantime 'clearing away of the underbrush,' as classified by Paul Williams, will con stitute the Government's activities, This means that Williams expects all Interrogatories be disposed of by the middle of February, at the latest. It is understood that the U. S. does not contemplate answering all the majors' interrogatories as served upon them Too many of these are far-fetched and useless, in the Government's opinion. It is true that under the rules the Government must give in formation, even if that information Is common knowledge of the defend antsTbut it is felt by the Department of Justice that questions of organiza- tion set up, etc., are a needless addi tion of work to them. The U. S. also, while willing-to give up the names of its witnesses, feels that it should not be asked to state what these wit' nesses will be asked, and what their answers will be. If forced to answer all the questions, it is likely that the film companies will have more knowledge of the Government's plan of attack than the U. S. itself. Any possibility of further stalling before trial, as indicated some time ago, by the possibility of introducing a demand for examination of wit- nesses before trial shortly before the trial commences, was done away with, as the stipulation will' provide that any examining of witnesses will be done before March 1, the date of the pre-trial. Thus ends the long delays and bickering which has endured over a year, with the film coinpanies jockey, ing to delay trial until after Novem' ber, 1940, with the hope of a change t>f administration, and the Govern' ment trying desperately to get its case started before any such possibil- ity might become an eventuality. Colnmbla's Objections Late Saturday Columbia filed ob Jections to Government interroga- tories. Columbia was the only com- pany to protest; all the other majors will answer the U. S. in fiilL hearing on Columbia's protests will be held Dec. 29 before Judge Vin cent L. LeibelL The Government served 59 questions' on the com panies, of which Columbia objects to nine. Columbia declares, for example, that to give the name of each of lis (Continued on page 39) You Name It Hollywood, Dec. 19. Title makers at 20th-FoX are cooking up new names for four pictures slated to roll within 10 daj's. Films due for re-naming are 'Twinkle, Twinkle, Little Star,' 'Sweetheart Of Turret One,' Cisco Kid Nor 2' and 'Hotel for Women No. 2.' MOSS' THEATRE BLDG. IDEAS B. S. Moss, veteran showman and former link in the Keith circuit, has 1 several sites in the Greater New York area on which he eventually proposes building theatres but at present has no plans laid. One of the sites is in Queens, which Moss points out is developing into one of the best-populated sec- tions of the metropolitan area but does not have' many theatres. He has another site at the northern end of Manhattan. ' Moss is interested in the Criterion, N. Y., and about a year ago built the theatre at 49th and Broadway which is under lease to Trans-Lux. New :.C. 1,90«-Seater Kansas City, Dec. 19. Bertram Rosenberg and associates have made application to the board of zoning adjustment for the Con- version of a former ice plant into a 1,000-seet theatre. New house will be named the 'Varsity, being near the University of Kansas City, the Barstow school and Rockhurst Col lege. Rosenberg was formerly engaged in theatre biz in South Africa and with the Schlesinger houses, and later with Dr. Lee DeForest in sound synchronization. He was ;re cently made a citizen by act of Con gress. STEINBECK'S WES/ TWICE' NECK 'N' NECK Two John Steinbeck fllmizations follow each other on Broadway with- in a month, of which 20th-Fox's 'Grapes of Wrath' may be sold away from the Roxy, and go into the Rivoli, N. Y., for a run. United Artists' 'Of Mice and Men' (Hal Roach) will go into the Roxy, preceding 'Grapes.' Sam E. Morris, Although Retired, Reelected a WB VP* Entire Slate Sticks Although he withdrew actively from the company as vice-president in charge of foreign distribution, Sam E. Morris retains the v.p. title in the company, being among v.p.'s reelected at Thursday's (14) meeting of the Warner board. Harry M. Warner was reelected president, while v.p.'s in addition to Morris are Albert and Jack L. War- ner, Herman Starr, Stanleigh P. Friedman and Joseph H. Hazen. Albert Warner also reelected treas- urer. Others retaining their posts are Samuel Carlisle, controller and as- sistant treasurer; W. Stewart McDon- ald, and Cyril H. Wilder, assistant treasurers; Robert W. Perkins, sec- retary and general counsel; Harold S. Bareford, Edward K. Hessberg, Ray Obringer and Herbert Freston, assistant secretaries, and Thomas J. Martin, auditor. DuPont's Unusual Defense to Patbe's $210,000 Suit: Deal Violates U.S. Law Radio's Shadow Cincinnati, Dec. 19. The Boone County Jambore«, hillbilly unit on WLW, which is an NBC Red affiliate, personalled at the Midland theatre, Newark, C, Wednesday (13). On the screen were 'Meet Dr. Christian' (RKO), which has to do with a CBS series, ond a short subject, 'Information Please," linked with an NBC Blue program. John C. Spears, manager of the Crosley troupe, reported that the day's business was mutually satisfactory. Re-Edit British Fihn Propaganda for U. S. New commentary for United States audiences is being dubbed on "The Lion Has Wings,' which Alexander Korda made in cooperation with the British government to exploit the power of' the English air force. Lowell Thomas is doing the gabbing for the new sound track, the work being done at Fox-Movietone studios in Manhattan. Release date for the film is still uncertain, due to the voice switch, but it is expected that it will be within several weeks. Film went into release in Canada and England almost a month ago. While the prop- agandizing tone of the talk was con- sidered okay for His Majesty's sub- jects, it was felt that it would be more effective in U. S. if toned down. 5 New, 4 Texas, 1 In Ga. DaUas, Dec. 19. Five .new houses, four in Texas and one in Georgia, are either just com- pleted or under way. Included are: Queen, at Bryan, opened last week on site of old, demolished house, a SSO-seater; The River Oaks, Houston, opened Tuesday (5), 1,000-seater; the Wichita, Wichita Falls, opened last week by Interstate, with A. D. Dea son, ex of the Majestic (Dallas) staff in charge; a new Interstate house at El Paso, as yet unnamed and just be- gun, to seat 600, and a new S50-seatcr at Albany, Ga, just started for C. E. Hilgers. KIDS NEVER FORGET Explains Why British Boyalty's Film Record Did Such a B.C. Brodle MRS. JEROME ODIUM'S $100 ALIMONY DEMAND Minneapolis, Dec. 19. Jerome Odium, screen writer, has posted a $1,000 bond in district court guaranteeing that he will remain within the court's jurisdiction until the determination of his wife's suit for $100 a week temporary alimony and $750 attorney fees. Although under contract now to Paramount at $2,500 a month, Odium is doing his writing here. In her suit for divorce against the writer, Mrs. Odium charges cruel and in- human treatment, She alleges that he exhibited a violent temper, beat her, squandered his money on luxuries and other women while in Holly- wood and drank to excess. The couple were marriei in Min- neapolis in 1937. Moe Snyder Released Los Angeles, Dec. 19. Col. Martin (Moe) Snyder—The Gimp—was released on his 6wn recognizance following reversal by the District Court of Appeals of his conviction for the attempted murder of Merle Alderman, husband of Ruth ' Ettihg. Another trial is unlikely. Detroit, Dec. 19. British royalty's goodwill visit to Canada last summer did a boomer- ang in Windsor, Ont., just across the river from here. ' Last week, looking for big things in view of vast turnout for King and Queen's visit to town, Windsor's Palace brought in full-length film record of the royal tour. Canadian house expected to mop up. The first day it was lonely for the ushers. Second day brought only a handful of customers. That's the way it went for the stay of the doc- umentary film expected to be hot b.o. You don't have to look for the answer. Windsor School Board, ap- proached for help in the exploita' tion, had turned a cold shoulder to the proposal. They remembered big gest boner of the toyal tour. More than 40,000 school kids, from Windsor and nearby Ontario^ had been gathered at one spot where the royal couple were to greet them from platform. Kids stood for hours in hot sun, scores keeled over and got medical aid, but the pack stood it out even if train was hours late Then, making up time, train flashed right by 40,000 disappointed faces and didn't make the scheduled stop. Press, both in Windsor and Detroit, gave a heavy play to the long wait and seeming disregard for kids' loy alty. A royal apology came along later. So did explanations of why stop wasn't made. But shunning of the film would indicate 40,000 kids, their parents and the schoolboard hadnt forgotten. LOEfSNETFOR YEAR, $ WO Loew's net income for tha fiscal year ended Aug. SI last totalled $9341,530 .as compared with $9,024,- 934 in the preceding fiscal 12-month period. Despite this improvement, the company actually reported $5.48 per common share as against $5.65 in the fiscal year ended Aug. 31, 1938. Per share earnings on the preferred also dipped about 61c. as compared with the previous year. Remarkably strong showing en- abled Lo'ew's, Inc., to increase its balance from $47,787,157 as of Aug. 31 in 1938 to $52,339,175 listed on Aug. 31 last. Company., showed gross revenue from theatre' receipts, rentals and sales of films and ac- cessories amounting to $122,577,542. Added to this amount was $2,541,801 in rent income, Loew's allotted $46,692,078 "for amortization and writeoff of film costs. Report stated the company paid out $4,097,565 in dividends to com- mon shareholders during the fiscal period covered. This is in addition to $888,693 distributed in cash divvys to preferred stockholders. Loew's paid $1,958,851 in federal income taxes. Note made to directors by the ac- countants said that it covered re- sults of operations in the foreign field only up to last July 29. Addi- tional note revealed that one for- eign investment included Italian government bonds, due July 31, 1940 (with.face value of $1,131,900), car- ried' on the books at $739,977. It showed fixed deposits in the Yoko- hama Specie Bank, San Francisco, due in 1941-42, valued at $230,240. Stonley Co.'s $1,734,562 Net Stanley "Company of America, a subsidiary of Warner Bros. Pictures, Inc., showed a net profit of $1,734,562 for the fiscal year ending last Aug. 26. Company showed net income of $5,747,951 before other income and charges that included $2,332,860 for amortization and depreciation of properties, and an interest expense of $1,427,046. Corporation paid $32S,- 000 in federal income taxes. Stanley Co, reported an earned surplus of $4,946,790 as compared with $5,007,582, shown for Aug. 27, 1938. This showing was made even in the face of $1,809,693 dividend paid during the past fiscal year. LET'S 60, TRIGGER Hollywood, Dec. 19.. Roy Rogers opens a personal ap pearance tour Jaft. 6 with his horse, Trigger, and a new act. Route covers Seattle, Portland, "Vancouver, Tacoma and other north' west towns. DuPont Film Mfg. Co. filed u, unusual answer in N. Y. federal court, Monday (18) to the $210,000 suit against it for breach of contract by Pnthe Laboratories, Inc.. DuPont admits practically every charge, in the complaint, but alleges that it it had not breached the contract It would have been subject to action for triple damages under the anU. trust laws. Pa the claims that DuPont, which In I February, 1935, agreed not to chargt I more than 30% over cost for film, ) had recently charged it at a rate of Ic, a-'footv a considerable-increase. ' - It is claimed by the defense that under the Roblnson-Patman bm, known as the Price Discrimination Act, the contract as originally signed ! ia illegal. DuPont has many cus*. j tomers in the same business as Pathe^ and charging them more than Path* destroys competition in interstat*^ commerc«. Patha paid tlie increas*'' with duress or misrepresentation, and by doing so voluntarily waived any rights it might have had. A dis- missal is requested. Hope for Pathe Divvy Prospects for a small dividend on F'athe Film Corp. common shatei loomed brighter this week, with re> ports in Wall Street that DuPont Film Mfg. Co. might declare $30 p«r share dividend this week. Patbt > holds 35% interest in any such divvy, which, at this figure, would giv« ' Pathe about $105,000, amounting to ' nearly 20c If split among 581,(70 common stockholders. Pathe Film showed 26c on tiM common stock for the first nin* months this year, and the year-end melon-cutting by DuPont Film would bring the total to around 40c. TU establishment of Pathe Labs as ilia operating company might justify i I dividend distribution as result of thll setup. Act on Laemmie Claim Los Angeles, Dec. 19. Executors of the Carl Laemmle es- tate asked permission of probat* court to compromise a $210,000 claim, filed by John W. Tippet, for $16,2». Claim has been in litigation here and in New York for several year."!. Pe- tition will be heard Friday (22). Charles. V. Henkel withdrew hli $126,000 damage suit iagainst the So- ciety of Motion Picture Film Editon, charging unlawful suspension. Dismissal of the action was thi result of a proposal by SMPFE to reinstate Henkel if he dropped th« suit. REP. WANTS VALLEE FOR 'HIT PARADE' PIC Hollywood, Dec. 19. Negotiations are under way for Rudy Vallee to topline Republic's heavy budget musical, 'Hit Parade of 1940.' Bandleader is holding out for a fat acting part, rather than merely waving a slick. Frances Langford is the only fea- tured player set for the film, which rolls in February. —AND CHANGING Hollywood, Dec. 19, 'Vincent Sherman replaced William Keighley as director of 'Married, Pretty and Poor,' v^hich rolled at Warners yesterday' (Mon.) *ith Olivia de Havilland in the top spot vacated by Jane Bryan on account of illness. Keighley is busy editing The Fighting 69th,' which is being rushed to release. Smith's Salary Claim Suit of Edwin J. Smith, former vj>. of Imperial Pictures, Inc., against tb« company for $8,457 back salary wai- revealed Wednesday (13) in N. V. supreme court. Action was started in June, and claims the. plaintiff wal hired at a salary of $100 weekly plus 2M!7e of the gross. The contract waJ for two years, but Smith left InS* perial June 3, after having served from Sept 1, 1937. WOULD EXAMINE J. P. KENNEDY IN PAR SUIT Supreme court justice Samuel Hof- .stadter in N. Y. Friday (15) reserved decision on the application of Ra* Nasoff, minority Paramount. stock- holder, to examine Joseph P. Ken- nedy, U. S. Ambassador to England, tiefore trial. It is claimed that Ken- nedy, who was engaged in 1936 to make a report on Paramounts financial condition by the board of directors, will be able to testify M to the waste and mismanagement prevalent at the time. ■ Miss Nasoff is suing for $20,000,00U, and directs her action against all tM Paramount officers and director from 1935 to date. There are over 9V charges in the action. Disney m New Plant Hollrivood, Dec. 19. Walt Disney's production stan moves into the new Burbnnk stuoio next week. j Old Hyperion plant will be.us« to house the promotion deparlnw" and training school, which has W" occupying rented quarters on vm street