Variety (Mar 1941)

FICTURES Wediiesday, March 5, 1941 19 CASES FILED FdR FOllRllfc Cl^arahc^ CoiiipUints Doniiiiate-^U Ex- kibs ^atisiieci with AAA Sctup-rMany ,. ■ Are' Attorrieys;, Reports; '.assertiedly ; reachihg the \Arrterlcan Arbitration Assri. are that' In Ijoth: tjife di'stribuUon and ejchibi- tion branches >atisfaqtioh^ Vis . bdiig e:<pressed ' concerning thie :.arbitrat- /ing setup-and the ihachifiery w^^^ the AAA has orgfnized ■ for the handling of disputes between^ buyer and seller. This-is said:to be noted on both sides although, In the first month of the fllni boards, from Feb. 1 to the: presehtv oriiy 19 cbmplaints have fae^n^ filed in ii oui pf/the 31 exchange'keys where they may be bought. : . _ ■ it is aiso relt that the AAA has done a ;good job of educating; the . trade on, arbitiratibn but understood that the: five distributors who are party to the : consent decree, in settlement of, thie U. S. anti-trust suit have refvised *to approve a bud- get for publicity: or 'public relations purposes. Result is that the AAA it -. self is bearing this cost ,with a vie;w to'keeping , the trade informed as to its: functions tinder the decree. > Among other things, the. AAA Is being compUiriehte^/ bn the caliber of men It has been able to procure for the. 31 tribunal paneiis through-, .out; the country which ihclude- a representativei number of attprnieys of. high rank as well ias de^ns .of law schools, credit men of much experi-.. ehce, certified public ; accountants and others who are familiar with contracts.: There Mie 'more attorrieys on the flliri panels thiari on any of the boards of. the. AAA serving other industries,-principally for the reason that it was felt .film disputes would fundamentally deal ^yith contractual problems. . On some of the pSanels attornieys represent as much as 50% of those'Certified to serve. . All panels now halve a minimum of Ifl arbitrators excepting Albany, where no caises have been filed. In New York, where 53 have been set, it h^s now^ beeii diecided to increase, the number to between 75 and 100 shortly after March 12 when the appeals board ' headed by former Judge Van Vechteri Veedier Is ready to function. The NeW Haven and Indianapolis boards obtained a mini- mum of 10 arbiters during the past week. - Outside of New York the full panels are to range from 20 to 40 but until <:ases begin to. pile up the full quotas are not being set.' Chiefly on Clearance Of the 19 complaints brought dur- ing the first month ol the existence of arbitration machinery^ 15 concern clearance and four the obtaining of .some run. Two of these involve drive-ins in Dallas and New Or- leans, with these wanting a change In^ clearance as well as some run. .New York leads with four com- plaints and Washington V has three, ■ while . Boston, Chicago . arid De- troit boards, have two each on file. • Single cases are in Denver, Milwau- kee, New Orleans, Cleveland| Buffalo cind Dallas. Priricipal reason that cleararipe dominates' complaints filed so far is that existing (1940.-41). contracts do nbi run out until. August and sell- . Irig, mearitime, does not begin under rthe decree until Jiine pi* later when .cases on 'forcing,' coercion, discrimi- natiori,: refusal of riin, etc;, , are ex- pected to clutter the dockets. Gliear:- ance complaints are being brought to change, the proiectiori which ex- ists, under this year's (1940-41 ).,d(eals to which thfe consent decree does riot- apply so far; ,aS blocks-Df-flve and screenings are concerned, but nuriier-: ous. efforts seeking ; relief under present clearance ^are}ript expected: to 'get; anywhere. .;in distributor circles It is pointed out exhibs are' trying to reduce protection against them when- in favor of. a house pay- ing many tiriies the ; film rental as the theatre registering tHe squawk, . Fourth N. 'T Complaint Tlie third case to be filed with the Par Wins LaCrosse Suit on Burford's AWOL; Court p. L Poddl's Stance In Hiliside AiiiiB. Siu^^ Madison, Wis., March 4. ■ ; Thrown oiit of-Federal court here: because of. failure of the chiief t:bm:- plaining. withewes to :apipiBar, . the often deiayed'^arid twice started," La- .Grpsse- Thieatres Go. .$1,470,000 anti-. trust " isuit against Faramourit Pic- tures Distributing Corp., United Artists, 20th. Geptury-Fox, Minriespta. Amusement .Co, and\ . 'V^TellWorth Theatres dorp, Is'how history. V This second triai startied. Feb; 17, arid: after a ,neW: jury; hM been- im- 'paneled orily two. defense witriesses —Eddit! Ruben, proprietor ojt the Hollywopd and Fifth Ave. theatrts in LiaCrosSe, and: John J. ; Friedl, presjiderit of the Minnesota: Amus. Co, (Par)—:had be^n heard .When Rpbert A. Hess, legal rep fpr La- Crosse .Theatres, asked the court last 'Wednesday (26) for a continuance on the grouhd/that .two.ot his prin- cipal witnesses were uiiayailable to "testify. William Purfprd; president of LaCrosse, w^s said to b^ .unable to retur.ri from. .California becaiise jpt ill health,, 'arid Frank Koppel- oerger, v.p. and general manager, i was said to .be in such a physical condition that appearance on the witness: stand would ^be faazardousi Judge Patrick T. Stone, obviously irritated, then heard and granted, ai deferise motion for dismissal of tiie :case, saying: 'From the present state of the rec' ordi the court is coii'Vinced that there was no conspiracy : at any time that ever existed between any of the de- fendants. The tourt la also con- vinced that Mr.. !Ruben did. business in an honorable and business-like way., 'And have in mind,* the judge added, 'that 1 have some corisidera' tion for counsel ipr the plaintiff and the position he Is in as: a result of the failure of bis witnesses to ap pear. 'The court does not feel inclined to grant a further: continuance. If I had Mr. Burfprd where I cOuld get my- hands on him, I would bring him into this court I would teach him to have Some respect for :Federal court procedure.' Judge Stone ruled that the plainr tiffs must pay the clerk's and mar shal's fees and the fees of the two witriesses who were called, Ruben and Friedl, the defense to. absorb its own cost of depositions and other expenses, He would like, he ob- served, to impose the clerk's and marshal's feeis 'on Mr. Burfbrd in dividually if I coiild.' After the case had been dismissed Edwin. Schwalbe, secretary of La Crosse Theatres, said Burfprd Was riierely: foUowli^g physicians' advice riot to' return to Wisconsin climate at this time of the year, although his condition is not .serious. Schwalbe was unable to say whether the . La Crosse Co. would attempt any^ fur ther action. . '■: _ Plaintiffs; had the theatre sifuatiori in LaCrosse. all to themselves prior to 1935 when Wellworth Theatres (Ruben ) built thfe Hollywood; , P*rorii that time on, LaCrosse alleged it whs unable to obtain 'A' i)roduct from ParampMrit,; 20th-;Fox arid IJnited I Artists, V thereby svifferirig: : great financial loss lii its houses^, . Dallas, .March 1. . Editofi Variety: Have just seen Variety of Feb. 26 coritainirig story on comniencement of treble damage ianti-trust suit in behalf. of Hillside lAmiisem.ent Co. versus the . picture companies, also referring to myself in relation to. the case, I - aril advised that Norman; Samuelson is the attorney of record in that case, and that Mortimer Hays of Hays, Pbdeli & Shiiliriari has been retained to act as trial counsel. I have been out of the city for several weeks on other litigation and the first knowledge I had of this matter Was When I read the announcement thereof in • VAaft'TYi While: I am counsel to the above law firm I have not been consulted about this matter and am not repre- senting ariy one therein, have rip In- terest in it, and will riot , cbndutt the trial. Certainly so far as I know this is a purely private civil suit. It has no .dpvernmental significance whatever. I wbiild appreciate your giving publicity to the above, facts. . ; Douid L. Podeil. [Abbve refers to story last week to the 'effect that Podell,; formerly a member of the Department of ju$tice staff,, in the anti-trust pro- ceedings against the inajbrs, had re- appeared as attorney for HiUside in its triple damage action against the film, companies.—Ed.] .. Wis. Complaint Vs. Par. Milwaukee, March 4 Dropping a projected Circuit cour action In favor , of arbitration pro cedure, Evansville Theatre, Inc in Minneapolis, March 4. Because no opponent of the anti- cprisent decree bill appeared to speak against it. before./the State Seriate coriimittee on general legislation, at the public hearing scheduled for last Wednesday (26),' ilorthwest Allied, its sponsor, is more confident than ever that it will be enacted into a law. the bill nullifies the consent decree's groups-of-five sales' plan, by compelling distributors In Minnesota to offer for sale to elxhibitbra their entire season's product. It also re- quires a minimum of 20% cancella- THE On bis return from Miami March 10, Austin C. Keough, v.p. and gen- eral counsel of Paramount, will cover a half dqzen remaining exchanges to hold meetings With the sales staff to explain the con^nt decree, what Can be done under it and what can't be done. He held sessions'in numerous branches earlier this' year before taking ill, the Florida trip following; Louis Phillips, taking half of the Country, including the west, has cov ered 17 exchanges, and reports that he believes the branch workers now imdersiand the decree except that it Will no doubt be necessary from time to time to clarify problems which arise as the company gets into actual selling. .Most of the questions asked by branch managers, salesmen and others concern the blocks-ofrflve, Phillips stated. Back on the Rails Hollywood, March 4, William. Winter Haines, who used to be a railroad worker,, has been signed by Paramount to script 'Casey Jones.' Picture is on Sol C. Siegel's pro- duction slate; Studio Contracts (Eskin),; operator of the Rex, Evansyille, Wis., has started action »y tr u J U-....-1.4: ^ w-J before tfie local arbitrators charging ?o,7k ""^.f^r' ^""f* ^" ^"^^y Paramount with 'urireaspnable clear* f23) by the Monseigneur Enterprises. | ance' to Jeffris theatre in Janesville. ■ o'ieratin.? the Forum at Metuchert N: 3. Theatre claims, that Plainfleld. where Walter Reade Operates, has so much clearance (not indicated) that It (Forum) Is the last to get film in that area. This house nariies Metro, . ^ (Contiriued 27) . Wis., . operated by Wamer-Saxe; While there is an intimation of buy- ing power irifluence in Ihfe case, the chief reasori beiiind the action is said to be the Janesville hpuse lowering its admission prices, thus penalizing the Evansyille theatre. Hollywood, March 4.. ; 20th-Fox picked up Elena Ver dugo's player option..., ■'. Anna Lee, British actress, signied to contract by RKO. Stephen Longstreet, novelist, drew writing ticket at Warners. Geraldine Fitzgerald renewed by Warners. * Barbara Brantingham handed stock player deal by .Paramburit; ' . Warners signed Craig' Stevens, to acting ticket, Lee:. Patribk . drew optipn lift at Warners. . Paramount renewed Patricia Mori son's ticket for one year.. Republic, lifted Lois Rarisbn's player option.; June Preisser inked to term con tract at Pariamount. ' , . Samuel Goldwyn and 20th-Fox picked up their joint optibn on Dana Andrews,; ictor. : . William Wright drew player ticket at Paramount, .. Todd Karns signed to five-year personal acting contract by Leo McCarey.. ''\ Labor Sidesteps If wood Breach ;• • • ■ Hollywood, March 4, Open break betweefi the studios arid som^ 10,000 film technicians has been tiem^orarlly averted by acceptance of a proposal to negotiate standard contracts. Most Important conditions accepted, Jt is under- stood, include minimum calls, time and a half pay for overtime, Ipca-' tion work, .and similar assignrivents that take extra time or labor. Various other phasM of employriient are to be worked out with studio heads. ' :!' ;■ ■'. : ' ! - •• .".' ■■■.':■ /'■■ Reported that unloii leaders have been told that because of uniset'-. tied conditions resultinig from the war abroad, major cpmpan are reluctant to grant further wage increases but are willing to negotiate standardized conditions. . Majority of the lATSE .locals avoided calling on the International to take over negotiations. Locals feared that if International moved in they Would lose thie;ir autonomy. Also figured that demands for Improved conditions would. be pigeonholed, as had happened on previous occasion when hiandled through the Interriational, ^ NON-DELIVEY SUIT VS. UA UP THIS WEEK Columbus, March 4. Trial is slated to open. In state court here this week on charge by Ardmpre Amusement Go. that United Artists failed to deliver cer- tain films It promised. Ardmore, operator of the Bexley theatre in nearby Bexley, asks |25,000 damages. It clabns that 'Gold>vyn Follies of 1938' and 'Adyientures of Marco Polo' were both given to the compet- ing Drexel, although promisM the Bexley, and the house in both cases had to return. admissions and close down. 9G False Arrest Award Stands Against Warners Hollywood, March 4. State supreme coiirf has refused to review the $9,000 judgment award on a.f alse arrest case which was Won In 1938. by Herbert Sorrell, business representative of 4he Studio Painters Union, and Ralph Peckham, member of the siame local, against Blayney Matthews, Warner Bros, police chief Judgment, with interest from Aprils 1938, will amount to approximately $12,000. Court trial-was the outgrowth of the 1937 studio strike when Sorrell and Peckham were imprisoned for several hours without any charges filed against them. Sorrell resigned, as Studio Painters Union business agent over the week end to returri to studio work. 5 Phoney Film Cos. Washington, March 4. , Fraud order, closing the mails, has been issued by the Post Office pe pariment against five; outfits in Hollywood representing themselves jas connected, with the film business Holding that the outfits aire 'fic- titious,' SolicitOT Vincent M. :Miles directed no money orders should he issued or paid in favor of Peerless. Peerless Mailing Service, Peerless Motion Picture Industries, Peerless of Hollywood, and Hollywood Film Brpkers, Using address Bpx 1310, Hollywood Station. tloh in film contracts . arid outlslws forced sellmg oi^^ shorts, newsreels, trailers, etc. When' ripbPdy. show:ed up at the seriatje hearing tP argiie against; the measure's . passage, Fred S t r 0 in, Sforthwest Allied executive secretary, asked that the hearing be adjourned for one Week, to.-permit any pros- pective : patron more ■ tlmief so that there could be no squawk that tiie measure V was rushed through. He said he was notifying all circuit heads,- including the Paramount chain; dLstribUtbrs arid others who might be interested, and asking them to. come before the.cpmmittee if they ■ wanted to be heard. If no opponent comes forward, Stroiri points out, it will be unneces. sary for Northwest Allied officials or members to do anyAarguing^at the hearing. He anticipates then^an im- mediate urianlmous vote recommend- ing passage. Action by the general legislation coirimlttee Pf the lower ■ House is expected promptly. A heiaring is also scheduled in. the state senate on a bill Compelling pro« ' ducers-distributors to divest them- selves of their theatres. Strom says Northwest Allied is not 'interested* In the measure, having gone on rec- ord at its recent convention here not to go to bat for theatre divorcement In consequence, nbbpdy. representing. Northwest Allied will appear before the Senate committee ! on general legislation In the bill's behalf, he as- serts.' •• Bennie Berger, a former Northwest Allied president now at bdds with the organization's attitudes on vari' ous controversial trade policies, says that Northwest exhibitors have been doing a . lot of squawking and wailing these past few years, but apparently are in reality, well satisfied with con-, dltipris and content to have the status qiip maintained. , 'pespite their agitations and beef- ing they must be prosperous and happy,' says Bergei. - 'They're taking the opposite side from what W. A. Steffes, their leader ior many years; tooki They're opposing the Neeljr bill principles by trying to knock out. the consent ^cree selling plan. They don't want theatre divorcement legis- lation. And the arbitration board has . been functioning f^ more thsia a month and there hasn't been a single complaint filed. Apparently the only ones dissatisfied are the ex- changes who think they're not get* ting enough money for film and want more.' . . Okays Ipye; Providence, March 4, Change in classification of "This Thing Called Love' from the 'C to 'B' rating brought about. chanRe in policy previously anhpunced by, Gapt. George W. Cowan, police amusement irispector here, that pic could not be shown here. , . Subsequent-run houses may now screen it. . Ga. Jnst Ignores It. Atlanta, March 4. Despite consent decree governing the picture Industry, Senator Homer Ederifield, of Klngsland; last week introduced hill that wpuld curtail blpckbooking and permit exhibitors. to cancel up to a maximum of 20% of features contracted for In a block each year. . Measure also prohibits distributors frpm requiring exhibitors to accept short subjects in order to get cer- tain features. Violations Would carry. misdemeanor penalties. ■ . . First Boston Complaiai : Boston, March 4. A complaint on clearance of prod- uct starts: off the AAA parade here. Garbbse Bros.; ope^ratbrs of the:Yprk and Capitol, ; in Athol, Mass., . are seeking day-and-date releases with Boston and Fitchburgh, whereas now they nlay. after both. ■/ Garboses complain against Para- mount. Loew's, Vitagraph, 20th and RKO, as well as . M & P. theatres, RKO theatries, Loew's Boston, thiea- tres,' a'p<» Maine & New/.Hampshire theatres (operating the Fltchburg theatre, Fitchburg).