Variety (Sep 1940)

Wednesciayt Septcw**' 4, 1940 PICtURES ON DECREE SOLUTION i Time d6<fs not seem to press heavilir tin thie Wgal prbfessibn pind for that reaison; it '.might be: jiist- as well ;tl\^t; Thurnvaii Arivoldi head of ;the anti-trust division of the Jjljepartiiiient pf Justice/ shall tike: his time about finally appr()vh^ oi tii< consent decree ending;: the film ;anti-trust M?it against jLoew'ji; Parain(iunt, W Bros., RKp atid 20tli^ ' The. siiit was filed:: more thaji 1:^yo years ag:o^ tlie^; consent decree dist^ussiohs, hayei; iextendied over a;: ■tlVree-iiilonth period;' Ndw, that a basis of settlein£nt'has iDeeti r goveinn\ent arid the five tlieatre^owning defeiiHahts, strong pppofiitioti to its terms and cQh^^^ the prf)diicer^iistributpr' farikSr^b pwm'i\s aiVd-operators.', - .. . ' The iii(iepend€nt th^^^^^^^ to tlve C'lPv- crtVr"ent:againsf aUe'ged inOtiopolistic practiGG^s of thevtiiajpr 11^ tompauies Were; the. caUse for: the suit ia the beginning,: Now It'is Uve co.iiiplaining of. tile alleged viplators, who are: prptesting agaih Verdict. cpn^c'nt dceree is aii ftsseiit:pf'vitiations and refriin in -tlie ji^tiirc: :Kx- ivibitoic are contending that thei/Gm'ernniejit, in its 'dcttli-nTiha- tipiv to sUmp pttt blpckbookiug and^^^ seHingy :and: in its :^a;g^'rne^s ^to- ^ct up .industry arbitration: pVerVsucli: :iriattei-s as -p'ver-buying and elearaiice, has erred oi^^ vfelief-:'.;^ ■ ■::• -^V■ ■ ■ ■■■ v.■ '' i ' .Arn61<i, ai^nd Jiis Govermnent/attorneys; Avere point eel to a ..jpoiirse of crcatihg a good deal .of .indtistry dissatisfaction once' they ■agi:e!e4 to. draft a cpiisent decree AVMcli :Avmild sery:e.also ti^- a trade pra:ctice code.: In attempting to; sutisfAve.very6he, tiiey bave satisfied no: dnpj. including inpist of: the Govern.tiVcivt ;:staiV 4:iiat had ,worke<l ior: moi^e thaii three iyeai-s digg into the facts of alleged: monopoly;: ' v.; : - r Justice ; Dept.; f Trust-Bust^Jr Reviews Squawks in Wash-^^ , ihgtbn Exhib: Leadiers PissaitUfied >^ of Five* Undw Propos'cd : ■;-.:Cbnseht to Not Personal ..With so niitch time.airieady:consitnied b^ siiit, liftleyould be lost on either side if Arnold. wpuidv'Weig^liVthorouglily tlic c6Jnp1ai,iUs against.the'^d^^ BIG TURNOUT ^ sf - '- ■■; .• .■'■.,;. .■::;■■.•; • '■ ■ By;' JiOHN ''C,. FliiNN- ' . ' . Washington,'Sept.^3. Exhibitor :ieaders .from: aU.sections of th e: couhtry : appeared today CTuesv). before Thurnian:y/; Arnold, chief; of tlie anti-rtrust .diiyision. of! the bepartririent of Justice and re:gisterec( theii' emphatic objectiohs to the pr^o- posed; consent decree which Croverii- ment attorneys and ma] or film, co»i\- .pany la\\7:€i;s have drafted, as a yyind- up : of the Goyerntnent'S. .fihri anti- trust, suit.^ \'' .;:•■•..• :■ • : : • : The/'conviction:: maintained - here, that • th> anti.-nvpriopoly suit was a fa.vdr. to the operatbrs of motioiv piCr. tiire theatres; was cdmpi^tely divS-. pelled ih the course of. eight hours of ..dpb'ate oyer the terms' of : the con- sent decree, .during which :there: was almost unanimous exhibitor .obiec- tion voiced . agaiirist . the five-pip.tui-e .sale's, package; as opposed to block- Ijobking:' -with liberal . cancielUtipn clause 'up to-25%;, . : Seating capacity of, .Arnold's office :was taxed to; t^e limit when he opened the doors this mornipg: to the bbj ectdrs; to the consent decree, most of whom had come from distant clt- ^ ".' . Hollywood, Sejpt. 3, . V: SajTi .Goldwyri's antagpnism: to dPublfe-features doesn't apply.oh- home grounds; Other ■ iiight /he had friehds oyer . to^ his house. V where ■ he .had projected 'Boys From Syr^iciise' Dal^'- tons Rode.' .. Running time, 2 hours and ;34 minutes, 2D FILM MAN The proposed new selling, schemes of previewing films before ies^ ^'^'*^^ ^*'"^^^^^!?^'- 1 )fVering. thtlih for exhibition licb^^ groups; 6f five, is an experiment that is not sustained by any •revioiis industry experience. .' V There is a tendency to ptish through the coiisent decree on tlie theoiy that it is binding.only for a tlVree-year period, if tlie poyertiinent at the end of that tinie desire* to proc eed Avith the trial. ' ■ : ' A century of events may happen ih tire next three years. flight Jiow Is a good time to plug up the bad holes in the fonsent decree. SCHINE AND U. DENY ANTI-TRUST CHARGES on Sent. 18 Columbia: Pictures . financial offi- cials last week, clarified how the pro- po?«d profit-sharing arrangement for Harry Gohn. and Jack Cohn will work put if approved at the annual meeting of stockholders; Sept. 18, In-- oreases in salary, \yould be depeh.d- f;';tentirely on substantial net profits shown by the ; corpprationi, it was ■ claimed; ' '^'' 'i The. newr piicts; to' be voted on by shareholder-s',. provide that'. Harfy Cphn riiay have -his old salary (prior to October, 1939) of $3,500 per week restored and Jack. Cohn's .. to ' his previous peak of $2,500 weekly—all put of : the. profit-sharing ; arrarige- ment of I2»i: for Harry Cohn and 6% for the latter, computed after pay-' ment of the preferred ■ divvy. If profits warrant disbursements creat- ing such' salaries/there will be ap- pipxin;iateiy $1.18 per share left for. cojnmoiv stockholders .'after: paying tlie preferred dividend. : Company officials claimed that' salaries, of $2,500 for Hari-y Cohil' and $1,500 for Jack Cohn; are virtu- ally the stipends they have been -: ceiying during, the past year after laying effect to the voluntary cut 6f 33»^% of 1939. parent that np progress could. be made by a town meeting process, so; objectors were divided into their particular trade groups,, and Ai'hpld took them on dne: at a time. Indies, MPTOA, tl Al. : He started with Harry Brandt and a committee of independent Manhat- tan theatre owners,- followed by Ed Kuykendair and. the MPTOA execu- .tive cpmmittee,. consiisting.. of Fred Wehrenberg, Max Cohen and Judge Walker of Texas, Later in the. day Abram Myers of the Allied States group put in his: objections. Indi- vidual arguments against the; sales; provisions of the decree were made also by Robert Wilby .(& Kincey) repre.sehting Paramount southeastern theatre partners; Robert White, of the Pacific Coast Conference of In- dependent Theatres; and Mrs. W. T. 'Bannerman, representing hefty group of jjuBlic organizations, in- .,, . , „ „ 4 „ [eluding-the National Committee for; : Glpyersvil^t'.N. Sept. 3. ^ I Legislation to Abolish Blockbobking Schine Cham Theatres; Inc.. of -qi^^-^^ Selling «• GloversviUe, and Universal; :flled j Arnbld-;;-procedure Is to hear' all answers in Federal court at Buffalo objectors tP the proposed decree and: Friday ;.(3P). denying Government : ai:(e«;cpnrerence with his own assist- charges they, violated the Sherman - ants he will decide whether to' rec- anti-tru.st act, The five-state Schine . ommend acceptance Of the decree by chain, which the U, S. states m jts .^hg atj.oyhev-genera^^^ In any event,' complaint consists;;pf six operating : ^,.nold told dissenting exhibitors, he compainies,: denied that it was cn^ gncoiirage any' who disagree gaged in interstate .coriimerce, ov that'..^yith the ^irbWsions of the decree to it in' any way attempted, to coerce appear before Judge Henry W. God- independent theatr ■ -an ef^ ^.dard - (in' N; V.y: and give the court fort, to; obtain- a monopoly in con- ■ the benefit o£ advice before the order nection with the distribution of first-flpaiiy is signed. ' class films. .. ■; .:' . : - , : Through spokesmen for national ^ :.1tJniversal ...alsa. denied- charges it and ;stat •.■exhibitor-orgahiitatipiis. the gave the Schine 'chgin; . ipreference ; Doparlment of Justice is learning to- ' Of films over Plhcr.picUjreVhouses/; ; ;4ay/tha^ of pacifier of tinde The Gove:riTment iS' sleeking, an in-j.disjHiles;^^ junctibn pro'hibiiing.the Schirie ;,chaiu';.Giu.slry i.s a .'mpst Unhappy one,';Froin froih obtaining more hou.ses.- and i.s ' all, .seciiohs; of the - .countfyi ■with' asking'' the F.ecl^ral. (i'O.urt to' rear-: ' only slight drflerences of ex^ range- the ..Schine' oi-ga.nizalion.^.i.n'Tp-; di.<:."^.atiprac|iOnv .and <lissent, : inde- '-smaller .cprnpanies.'; - ■ ■■; , ' pendent thcatrje ppei*ators-' ,a)'e:.voi:cr ...The S.chihe circuit operalevS -hciirly. ing : their . di.s'ap.prbval >of : the con- 200 . .theatres ;: in ; New- York. .Qhio.Y t^e.i.iipUit.cd'settlement^: de- Kentucky, Delaware and IVlsiryJaiidv of the^./Covernmehts anil-trust , ■ ••■•;:-. — —— .• :'..:.. :. [■ .suit agaiiist'. the ' rnajor.'film.. comr. . panics, : ^=' '. .', - /' :.. For nearly, three 'mpnths attprneys ■:.for the. antirtrusl division .'■ — -r-^' > ■- i'.sel for the picture concerns have ;■ ;-'■ .: .-. , .'Hbllyvv'bod. Sept; 3. : been . negotiating a ;settlenient bt the - . George. Haight. Bhift.s from RKO , aclit'h. w'hich was. filed'in:- New ."Voiic to Metro .prodiiCer . Oct.. 1: fol- i in June. 1938. Trial ;of the suit ac- urn. frpni ii New York , tually star ■ Frank C. . Walker, a leading execu - tiye .in motion picture affairs for the past decade, Will succeed James A. Farley; in; the office of Postmaster General. ' President Roosevelt -on Sunday (1) announced his intention of sending Walker's name to '\ the Senate for ratification. One of the pearliest iand most - ac- tive siipporters pf: the . nortiination drive in behalf of President Roose- velt, Walker has refused appoint- rneht tb: high Goyernment posts: xe- peatedly, although he did serye; as close adviser to the Presdent in 1933- 34. as; chairman pf the National Emergency Council. During the 1932 campaign he was' treasuriei: of the Democratic party,' Through his; important conhection a^ head of; the Cpmerford circuit of theatres,, rather than .because pf his. political: connections, IWalker has been highly regarded in the. film industry. He' sueceedied to the presi- dency of the theatre circuit several' .years ago upon the death of M. E, Corherfpr^t his uncle/ Previously ^K^ had been, general, cpunsel,,. He -was born in Plymouth, Pa., but Was raised in tlve far west. He was graduated frorri Gbnzaga University, Spokane, and from Notre Dame Uni- versity. After, serving as district at- torney in Butte, and in law practice there, he came cast In 1924, \ Walker has been prominently identified with various industry charity.' drives, usually serving as treasurer. ' He •was mentioned fre- quently as the possible successor to .Farley as chairman of . the National Democratic Committee. He is the second film man to hold office of Postmaster-General. Will ■If. ilays stepped from that post in 1922 to become president of the Mo- tion Picture Producers and .t)istribu-; tors of America, Inc. '. Lois Andrews Replaced In George Jessel^ . Los Angeles, Sept; 3, ' With Jean Gary,;: formerly of the : dance.toarti of Gary iand Dixpn,.'re- placing .Lois ■ Andrews.: (.Mrs. vJessbl), ;Uie:..(jePrge:.Jesse night for St. Louis, where i,t p:peri,'; a personal appearance toilr Friday. (6,); .,at the Mi.ssouri thcat]'e; . Gther.s in the Jessel -unit include 1 Isabel. Jowi?'ll; Jean Pa:rkeiV Lya Lys i:aiid....Roch'eii:<; iiudsoh. v to Ipwing his ret I yacatibri,' \ Hi^ la.st- job at RKO. where he .had, worked,lor/ two years,^ was:'Lucky Partners.' ; . Haight was .\s ilh Samuel Goldwyn - until fall. Government and the.;de-:. before'niovi'ig-to RIvO. .| . -- . . r^^^^ on page. 54:» i"tQd.and..c6htihued for three'; days, when, on petition ;of the lili- gants that, they ;.were agreed to ' a. basis pf settlement, court adjourned Fact-Digging Femm?s ; - :'V'' ::Hoily\vood, Sept. 3. • New . fact-finding pUtfit, Research tinlin.lile.d. .ha.s::bccn; prgahized .by .three gal.s, ::Diana...Mairsh,. Beriiice Benner...- and.' Na.n .Burroughs, : .ifpr- ni'ei'ely with the Walt Disney studio.s.; ' Company ■'specl.alizw in rnaterial, hislovical. a>id ;m.bd6rn, fpir - film :3torie!f. •. That there Insufficient iiumber of . good filiiis'-r^the priricipat reason given; * Vaiuett.'s recent naV tionwide poll posiiig the qUestibii, 'Why don't you go to the movies?'-r-; is refuted by dislributipn; execs with lists of films recently released or to be; released.- They mkintairi that the American public scarcely realizes how many really good pictures Hol- lywood turns out—and Mdlpeshit: air ways support those oil which most effort haS: been expended to appeal Ip.partieular'tastes..- .; Careful scrutiny of bpoking; charts by: one ■ disttib head Tevealed apr proximately it)0 pictures of acknowl-, edged value in various categories re- leased overa six-month jjeriod. 'That means,' he declared, 'that there are approxirnateiy:; four good pictures a week, turned: oiat. Allowiiig for the; fact that not everyone likes the same type of fiimi, there, is without a doubt ah- average . of at .least phe .ipicture a week to.: suit anyone's taste: Of course, these:, preferred films are oc- casionally bunched, leaving periods when :there is, hothihjg you particu-; larly like, but that is unavoidable iii view of variance of taste.' ■ 'During the period V.^niETT wa» running its ,pol 1-' ■ another 'salesman- ager pbihted out, 'there were .two films pri. Broadway with enough, strength to' run four: weeks,' and. ;.a. nurnber of others yvhich .played two weeks or more. It takes a hiiih-class fl.lm tp do that. I :dph't: understand why potential audiences should com* plain about a lack of good pictures— although they've been doing it since nickelodeon day.s—in the face of what we are offering.' ,-: ■ 4-Weekers on B'way Pictures referred tp are 'Pride and Prejudice,' which is cpricluding its^ fourth session a.t. the Radio , City Music Hall this week with a total' gross in excess of $375,0pO, and 'Sea Hawk' at the Strand. Latter film has given the house four of the best sum* mer weeks under its present policy, although the draw of Phil Spitalny's all-girl band on the stage is not to be discounted. Other; celluloid strength was being shown bii Broadway at^the same time by 'I Loye You Again' at the Capitol, 'Great; McGinty' at the (Continued oh page 21). BIG DECREE' ^ " , . Hpilywppd, Sept. 3. Plan to stabilize productipn .and eliminate, extreme highs arid lows is: being mulled here by 20th-Fox hofniai office : execs, headed .-by: Sidney R. Kent, Joseph M. Schenck and Her- man 'Virp.bber.. . Result will be a pro- duction drive; to pile up a substan- tial baeklpg- pf pictijres to meet new selling ;condition.s .expe.cte under cPnsent decree terms. Uriderstopd several high-budgM film.v'are being, readied for an eairly ;t start. ; : ' - ' Last -spi'ihg the.;studip .adopted:: a; prpgrarri; calling for six; pictures in active work at all. time.s, . but: the' schedule .wa.s .disrupted .by a 'shprt'' age of tpP; hameji;and :delays\in story preparation. ' . -...'■- ■;.' . ■ ■ .Jlollywood, Sept. 3. Nate Elu.mberg ends a threcr month stay at Uni.versar'Studio /and -heads east over the.. wecke.nd., .. jMatty Fox. east; , for a ■ similar period, is d ue b'apk -next ..week.