Variety (Nov 1943)

PICTURES Wednesday, November 3, 1913 Mayor, Spitz, Harry Colm, Other Film Toppers Among 40 Set to Testify As Racket Trial Moves Into 4th Week By PAUL ROSS With. 40 additional witnesses sub- poenaed by the defense, and top film industry figures including - Louis B. Mayer, Leo Spitz, and Harry v Cohn already .waiting to testify for the Government, the' extortion trial in N: Y. federal court of six Chicago mobster's Bnd two other defendants today (Wednesday) enters its fourth week. The sessions came to a halt Friday, afternoon i29) and were put over until this morning (Wed.) because of an illness developed by Boris Kos- telanetz, special assistant U. S. at- torney general. The defendants ac- cused of extorting enormous sums from film companies .:. Ralph Pierce. Louis ■ Compagna, Charles Gjoe, Paul. DeLucia, Phil D'Andrea and Francis Marilptc,. alleged mem- bers of the strong-arm Chicago un- derworld; John Roselli, alleged West Coast payoff-man for the mob, and Louis Kaufman, business agent of Lnca) 244.-IATSE. New-rk. N. J. Browne Denies Shooting. Sprees With Petrillo George Browne rounded out his fourth day in the witness chair on Friday morning (29).-despite his col- lapse with ulcer-trouble — Judge Bright called ' it 'stomach distress*— the day before. Browne testified that he was a friend of James C. Petrillo. in. 1925. He denied, however, that he. and Petrillo used to frequent a Chicago theatre and after the performance sit and shoot out the. houselights. Browne admitted he carried a gun without necessity, but said he did so because, he was once an honorary deputy sheriff, of Cook County, this post being a 'token of esteem' from the citizenry. He also admitted that he supplied the capital for a number of speak- easies but said he never drew profits, and frequently ■' lost his investment because he was the 'best customer.' Defense attorney A. Bradley Ebcn drew from Browne the admission that his' own brother-in-law,, Herb ■ Green, had been severely beaten by Bipff, Green dying soon- afte- . Schenck said, . arid -finally suggested that, 'I have a different way to do it. I'll take $50,000 from the latge com- panies, and $25,000 from the small companies'. Before-the day is over let hie know, one way or the- other. The minute we get out of here (i.e. the, meeting)' and. there's.no,answer, we'll close the theatres. I want an answer, not an. argument.' ioff again put the bee on him at the 1937 Basic Agreement meeting, Schenck declared.- He quoted Bioff as saying, 'I want $50,000 this/year,' arid when Schenck pretended sur- prise, Bioff. replied, 'Stop your,non- sense; you know it's coming to me.' The film head again paid, but sug- gested to Bibff. the now-famous raw film deal involving Aller & Smith, subsidiary of PuPont, and . Norman Nelson, Bioff's brother-in-law, .who went on the Alter & Smith payroll for .$125 a week and 7% 'commission' on iaw film sold to Metro, -ftie 'com- mission' was used to pay the shake- down money, in lieu of cash, but Schenck testified that he never re- ceived the. $50,000 he gave Bioff, though the latter promised to return it. Schenck described how he in- structed Louis' B. Mayer to set the raw film arrangement, going. Schenck volunteered the opinion that while it was admittedly illegal for a firm to receive a secret rebate, it was 'all right' to. arrange to give company's business to someone and then send a man to handle it. The Loews presi- dent also admitted that the shake- down money, was 'paid; out of the vault by the treasurer, who reim- bursed himself from the company.' He further conceded that this money belonged to the stockholders, not to himself, and said that the shortage was made up on the company's books by adding a given figure to' certain expense items. When Murray. took over the wit- ness, the fireworks:began. ..Schenck, declaring he had been a resident of New York for 20 or more years,-re- fused to be pinned down to a state- ment that he knew Thomas E. Dewey, in 1936, was jailing racket- eers with • union connections who tried to extort employers. The most REFEREE REFUSES TO OUST KAUFMAN & CO. Newark, Nov. 2. A decree refusing'to oust Louis Kaufman, business agent, and Harry Oppenheimcr, secretary, of Local 244, Motion Picture Operators' Union, was handed down here Satur- day 130) by Vice Chancellor John O. Bigelow in a suit brought by so- called 'insurgent members." .Bigelow at the same time ordered a union constitutional amendment to prevent abuses of the 'work permit' system and set up a seniority rating for the assignment of job's. George Gillignn headed the group initiating the move against Kauf- man's leadership. Receivership for the local and a financial probe of its funds were sought. ' . Iii denying these motions, Bigelow said the "majority of members fared well under the Kaufman regime,' and ruled that favoritism charges were unsubstantiated. Kaufman and Oppenheimer were ordered by the court to repay the local a total of $13,000 which had been taken from the union's treasury to. pay counsel fees in litigation in- volving their union activities in 1936. As to the union constitutional amendment, Bigelpw's decree ruled provision should be made within two months that" members of 20 years' Standing be entitled to jobs with a $90 weekly minimum; those with a minimum of 10 years' membership get assignments witha $60 minimum and other jobs- be. distributed to younger members. ; Bigelow further ordered that whenever a vacancy occurs through death or resignation, the assignment' should be. posted at union headquar- ters with salary and hours listed, after which the executive committee should order Kaufman to fill the job. All such assignments, however, would be subject to approval of ex- hibitors. Herman Shapiro, counsel for Local 244, announced the membership ' would convene Sunday (7) to decide whether to ask Bigelow tor modifica- tion of the terms of his decree or appeal to the State-Court of Errors and Appeals. • House Committee Agrees on Admish Tax; WiU Yield $165,000,000 ZEVIN SENTENCING PUT OFF TILL DEC 1 Sentencing of Isadore Zevin, for- mer secretary to George E. Browne, convicted ex-president of the IATSE, was. postponed Monday Q) .in''-i.. Y. federal court by Judge Murray Hul- bert until Dec. Zevin pleaded guilty to an indictment alleging per- jury committed before a Federal grand jury investigating the where- abouts of a special $1,500,000 assess- ment fund collected from IA mem- bers. According to Boris Kostelanetz, Special: Assistant TJ. S. Attorney General. Zevin lied when questioned about the - fund and to how it was used. He swore it was created to pay the salaries "and expenses of unipn 'representatives, 'when, Said Kostelanetz, he knew that the fund was being: set up for use of Browne. Willie Bioff, Browne's personal aid and. Nick Circella .(Dean), Chicago gangster. It was, the 'Government's conten- tion that the fund was being vised by others besides the two former labor leaders. It has since been learned that 'The. Boys From Chi- cago' got their share of this fund. Zevin is named as a confederate in the indictment against the eight de- fendants now on trial. . He faces prison sentences of CO years and fines amounting to $42,000. Of the $1,500,000 special /und'. all but. $250,000 went to the mobsters, Browne, Bioff and Circclla, the Gov- ernment charges. Nicholas M. Schenck, presidents / ~J« .'„ „„ i>,.iJo« Schenck would grant on this point .ne on Fuday, • • - fV ,. f ■„„ 0 .. i Ki„. u„ Loew's! followed Brow appearing as a Government witness. Schenck started his testimony placidly enough, but before the session was over : ho launched into verbal war r fare with defense.attorney James' D. C. Murray, "he bickering between Murray' and Schenck reached such proportions that Judge Bright was forced to intercede several times to keep things orderly. In this respect, Schenck offered a stronft-contrast to Browne who during his four days had fought back just once—and then apologized for it. . Even before • Murray sailed into him, Schenck gave plenty of dra- matic testimony under direct exam- ination by Boris Kostelanetz, special assistant U. S. attorney general. The president of LOew's, Inc., described his first meeting with Bibff at the request of. Browne, lie later ad- mitted he had not inquired regard- ing'Bioff s status or character when Browne ■ iniroduccd him. Schenck told how ioff had ■ promptly de- manded money, and quoted Bioff as saying, "You've a prosperous .busi- ness here. Now .1 elected Browne because I Wanted him to do what I wanted him to do when I : wanted him to do it. . You understand, I'm the boss. I want $2,000,000 out of the. motion picture industry.' Schenck said he was so shocked, that - 'at first I couldn't talk.' Then lie refused to discuss the matter. 'You'll talk about, it,' Schenck said Bioff told him..'If you don't pay it'll cost .the industry ,,iillicns. We gave you a taste in Chicago.' three days later, at the 1936 Basic Agreement 'meeting in New York, Schenck and the late Sidiipy R. Kent, then prez of Fox Film,' were ap- proached by Bioff, who said, "Now look, I've thought the matter over since I talked to you . last. I asked $2,000,000 but that's :too much.- I .guess, at one tii.ie.- I want a inil'lion and I will not talk about it.' Schenck' and Kent refused, whereupon Bioff. 'repeated his, threats,' Schenck testi- fied, saying, 'You know what we'll ..do, we. showed you in Chicago and the other towns.' During the i .mainder of the 1936 meeting, Bioff made daily demands, was that 'possibly' he knew it, and then he jabbed at Murray,'.'Neither would you know it if you.didn't have it.looked up.' Schenck Admits Failure To Expose Racketeers Schenck was forced to admit, however, that he had done nothing to get rid of Bioff and Browne after they made their demands; that he had not gone to the authorities with what he knew when he learned in 1939 that Bioff was an escaped pan- dcrer, and that he had withheld the knowledge' he had from the stockholders and the Loew's board, of directors. ■ Said Schenck: 'I didn't conceal it; I didn't expose it; I sim- ply didn't do anything about it'.' One important bone of contention between Murray and. Schenck in- volved the affairs of Local 306. Schenck insisted Murray didn't really want to know:the facts concerning 306, and hotly denied that he. c-r Charles C. Moskowitz. Loew's Thea- tres v.p., had any discussions with Bioff and Browne, 'looking toward a reduction of wages', for members ;t 306. Schenck declared that Major Leslie T.' Thompson (RKO) was the one who contacted Browne, and Bioff. but only toward a settlement of strike possibilities. However, Schenck was forced to admit that Thompson's negotiations also" in- volved the matter of reduced sala- ries, in which, Loew's;was interested 'in part.' Murray drew'from Schenck the fact that he had earned around $250,<- 000 in 1935 on a salary and percentage basis, and then Schenck cracked that he: had earned 'plenty' anyway, for yotir purposes, becauie $250,000 year- ly is plenty far any man.' At the same time,' Schenck was forced to. concede that the negotiations ■ over Local 30G resulted in a 10% cut. for the members. Murray hinted that the $120,000 thus saved was nearly equal to the $150,000 .'paid Eiowffe arid Bioff. Ah i n t e r e s t i.n g . sidelight on Schenckls testimony of Friday is that he declared he had riol read the Basic Agreement.. This jibed with a (Continued on page 47) UPPED ADMISSION, CLEARANCE CUT . In' decision rendered by Appeal Board of the American Arbitration Assn., an independent exhibitor' in Los Angeles has obtained clearance relief as result of increasing admis- sion scales: Appeal was taken after the local L. A. arbitrator had refused to; gi ant' any reductions on that grounds Lewis & Co.. operating the Los Feliz. L. A., . complained that the former'clearance of 49 days over this house was unreasonable and since admission scales had been boosted, the clearance should be cut to 25 days. Case was directed against the Lomn and Apollo theatres, operated by West Coast Hollywood theatres.- L.A. to N.Y. Neil AgncW. . Barney Balaban. Hal Bock. • Samuel Bronston. George Burrows. • Lucille Defnct. William Dpzier. Charles: Eihfeld. Knowlcs Entr'iken: Fanchon. . . Emerson Foote. Preston Foster. Robert Gillha.n. Dorothy Gish' . John Harrington. Henry Herbel. John W. Hicks; Jr. Elizabeth J. Hlggins. Russell Holmanv ' Marsha Hunt. '. living Mansfield. Dean Murphy. Dudley- Miirphy. Irving Phillips. Arthur Piorson. Monte Pibse.iv Leo Robin. Sig Schlagcr. . Arthur. Schwartz. Matt ShelvcyU. Leo Spitz. John Swallow. •' Nancy Wi'lker; . • ■ ■■' ED SMITH RINGS 'BELL' N.Y. to L.A. 'Norman- Corwin.' Bill. Dover.-' 'Margaret. Eltinger."- ; Charles W. Koc'rrtcr. Louella O. Parsons:' Rocco Vocco. Hectic Experience of Springfield, Mass., Theatre Manager. ' Springfield, Mass., 2. , For an'hour and. 15 minutes last Wednesday (27), Ed Smith, manager of the Paramount, thought he: was the guy 'For Whom the Bell Tolls.. Arriving at the theatre at 9 for a 10:15 opening of the. Hemingway film, he found a line already formed in front of the theatre, but no sign of the reels. Perspiring freely, he wailed for the film delivery service lo arrive, but the feature was not in the lot. By thjs time, the queue extended a block down .ilai'n. slrcet and turned the corner into Hampden street. A call to the Paramount offices at Boston revealed that the shipment had been made the day before via baggage car. Dashing to the Union Station, he enlisted the aid of bag- gage room employees and at 10:15 the Aim was discovered in an obs- cure corner where it would have re- mained indefinitely unless someone called for it. Another dash back to the theatre and into the projection room got the introduction flashed onto the screen just as the City Hall bells were tolling 10:15. The house was full for the first show and busi- ness continued good throughout the week. The episode was just another in- cident in a '.hectic, week that was climaxed by the return on furlough of his son, Capt. Jack Smith from the Near East and Africa where he has been flying for 18 months. The youth has several decorations. ■ Washington^ Nov. 2. The House-Ways & Means Com- mittee voted yesterday (1) to boost amusement admission taxes to: 20%, twice the present figure. The in- crease, is expected to. put ah addi- tional $165,000,000 a year into Uncle Sam's money bags, according to Treasury estimates. Earlier, the com- mittee voted favorably on. a proposal: to boost taxes on pa'ri-rhutuel race- track betting to 5% instead of the 4% levy originally introduced: No change- was. recommended in the 30% :t'ax on hitery checks, which how carry only a 5% bite. Iii doubling second class mail rates the committee sidestepped', a scrap with the press by exempting news- papers arid religious publications. Excise increases voted by -the.-group- would end automa tical.ly six months after the war's end. ..' ''. ■ The theatre " admissions tax en- joyed a free-roller -coaster trip be- fore finally reaching the present level; which may be the final figure. Originally the Treasury recom- mended 30%. The Ways & Means tax experts cut this down to 2c on each 15c admission.. Then the com- mittee upped it again to 30"J, only to drop it tb 20% /yesterday. Theatre interests aren't happy over the levy and are expected to fight it when it reaches the Senate'since the .committee's -''recommendations' prob- ably will pass the House. Senators are expected to . receive a heavy mail from the folks back home o\'er the increase. -A voice from home,' explained one indie;' theatre representative, means' more than. 150 at headquar- ters". Feeling in theatre circles is that Congressmen are being' fooled by crowded showhouscs in Washing- ton arid believe this condition exists all over the country. Another in- fluencing factor, it is thought, was. the recent Treasury announcement ■ of. the $75,000 earners although most theatre operator's don't get much of the kind of coin that goes to the stars. Glenn Hunter Makes Coast Stage Comeback Hoilywodd. Nov.-2. '. Glenn Hunter, long' lime off : lhc boards; makes hi.vcomob.ack in' Rob t>u Roys coniedj', 'A Public Affair." at-Chelle Janis's Left Bank theatre Dec.. 8. William ig Bill' ildens 'War Song,' a three-act drama, has been booked in for Nov. 2 without the author in. an acting role. . Charmed, Ladies ; Hollywood, Nov. .V Jack Bcniiy draws. Alexis Smith and. Dolores Mbi'an. as conflicting femin'e interests in his next starrer, 'The lloin lows at ^Midnight,' at Warners. " . ' Sam Hf'llman and James V. Kern wrote the story, tti be produced by Mark Hcllingcr and. directed by Raoul Walsh. .: Mpls. Exblbs Protest Tax Minneapolis, Nov. 2. Mass protests against the proposed 30% admission tax are being organ- ized in Minnesota and North and South Dakota. The trade in. the: ter- ritory has been urged by industry leaders', to take a hand in the fight. .Prominent exhibitors in every, county of the three states have been lining up theatre owners and map- ping a course of action. Contact will be had with congressmen in an ef- fort to drum up opposition to the admission tax boost. "" ... It's feared by the trade here that such a stiff opposition tax would dent grosses to such an exfent that many smaller exhibitors would be forced out of business. In all this connection, exhibitor leaders: point out that theatre patronage now has levelled off with the main responsi- bility. placed . upon a tightening of piirscstririgs due to the cumulative effects of the withholding and other taxes. The trade here proposes to point , out that ifs essential to keep small town theatres open in the .interest of ■ public wartime morale. ■ Miss Tandy's 1st U. S. Pic Jessica Tandy, the British stage ac- tress who has also appeared on Broadway; is scheduled for one of ; the top- roles in Metro's production of 'The Seventh Cross,' Spencer Tracy starrer.: It'll be Miss Tandy's first appearance in American films. Hume Cronyn pacted for role in pic- ture. Signe Hassd has the femme lead- Swedish actress returns from the Pararnount lot where she played a: loanout role in ■'The Story of Dr. Wassell." ' Six to Go at Mono Hollywood, Nov. • Moiipgrain is stepping on the pro- ducfion gas in November arid ' start- ing six pictures,; beginning wi<h;th'e' King Bros, feature,-'Johnny Doesn't Live Here Any More.'- On • the November list are "Hot Rhythm." 'Black Beauty,' 'Charlie Chan Solves the Perfect 'Grime.' ''Raiders of the Border', and 'The Kid From Sohora.'