Variety (Nov 1943)

PICTURES PfastkTt Wednesday, November 10, 19-1S noimden, IA Official, Puts Finger On Chi Mobster As Bioff Associate Like an old-lime continued serial, which. left the hero hanging on the cliffs and then —'continued next ■week'—the extortion trial- of the eight men on charges of forcing the : film industry to pay millions reached a real climax yesterday ^Tuesday) a few minutes before the session ended in the N. V. .Federal Cbiirt. For the'- first time in this trial, a Government witness literally 'put the finger' on a. defendant, and defi- nitely linked him as being an asso- ciate of Willie Bioff. The Govern- ment witness was Harlan Holmden, first v.p. of IATSE. The defendant was Louis Compagana. .-.''. ' Boris Kostelanetz, "special assistant S. attorney-general, had asked Holmden to identify one 'Cook' who came to the West Coast IATSE office Willi Bioff, and asked him to see if this man 'Cook' was present in the iriclosure be'fore-the bar. Holmden, an elderly,, bespectacled man, looked around and first pointed to Charlie. Gioe as being 'Cook.' When Gioe arose, Holmden said, 'This gentle- man is a little, tall' and then de- mah is a little tall*, and then said 'Cook' was 5 feet. 4 inches. Asked to step down and ascertain : whether 'Cook' was among the de- fendants—who Were, all seated— ,. Holmden timidly took a few steps toward the row of defendants and then said 'Cook' v rriight- be seated at the other end, indicating Louis Com-.. pagana. When Compagana r.Qse he proved to be about the height de- scribed. Gioe. and Compagana have a facial resemblance. For the^proseciitiori, Holmden's .Identification of Compagana as bet- ing an associate of. Bioff is highly important, for it is the first time that « witness, other ■ than Browne or Bioff, has physically linked one of the Chicago 'outfit' with Bipffi who Is already convicted of extortion. Holmden testifies again today. Holmden's appearance climaxed, a dramatic day during which Otto Chrislianson, brie of:the battery of defense attorneys, twice made mo-, tlons for a mistrial and Was denied. Christianson acted after Austin C. Keough, general ; counsel. for Para- mount, had made statements the de- fense considered prejudicial to* its - fide. The first time keough.had de cJare'd.- that the. late Sidney R. Kent i20th-Fox prexy) gave in-to Bioff's demands, because he,. Kent, was con vineed that he and Schenck 'were dealing with desperate men' and that Bioff was 'a; member of the Capone gang.* Feared 'Vengeance* The second time came when Keough delivered a long statement to the effect that he had not gone to' the authorities in 1939 -with what he knew about Browne's and' Bioff' activities because 'Bioff was in some way connected' with people reputed to be 'gangsters,' that T thought terribly dangerous for.me and my company to volunteer as a witness, and that 'I might have directed vengeance upon myself.' The defendants in the present trial now in its fifth week, are Charles Gioe. Paul DeLucia, Louis Com pagna; Ralph Pierce, Phil D'Andrea and Francis Maritote, all alleged to be"members of a Chicago underworld gang: John' Roselli, alleged 'payoff man' operating for the gang on the Coast; and Louis Kaufman, business agent of Local 244, IATSE, Newark N. J.' The trial is presided over by Federal Judge John G. Bright. Most of Tuesday (9) was taken u with'- testimony., by Keough, also Government witness. Keough : de scribed how Bioff. had approached . him at the 1936 Basic Agreement meeting in New York and told.him he. wanted $50,000 from Paramount and instructed : him -to check with Nick Schenck, president of Loew Inc;, and. Kent. Keough testified he talked with Kent and learned that Kent arid Schenck) 'had made their minds, they were helpless an were going to give in'and that Kent •couldn't see that Paramount was i any different' position than his own company.' Keough - outlined his. ar- rangements to pay Bioff, first doing so himself and through his assislarit, .and then through' Henry Herzbi'Un v.p: of Paramount and resident Pa: attorney io. Hollywood. ' He described his stale of -milul j 1936 when the payments began as being one where .'the'-thinking I did about it.'was that if I did not make the; payments Bioff. had demanded he and Browne could . and would • greatly injure if not destroy th Paramount company.' Asked why he continued the .payments until 1938 Keough' added that he further thought that 'perhaps in some.per- sonal way'I.-'would become "involved. Having started; to do anything else but pay, Mr. Bioff and his associates, whoever they might be,'might injure me physically or otherwise.' Capey Witness On cross-examination by James D. C. Murray, Keough. proved a Cagey -but. frequently .hair-splitting witness. He. stated ttrnt he did not consider ,.his conduct 'unethical as a lawyer': because he was forced to make the payments. He conceded that Sidney Kent was 'unfortunately' hpt alive to contradict him but added that Kent couldn't corroborate him,; either. He contended that he did not, and even now does not know, of any law in New-York prohibiting bribery. of union officials. He maintained .that by .paying "he was . not 'entering' a deal with Bioff and rowne' and' that.he was 'upholding the law.' ; Keough admitted, 'I caused it;' when the' question 'false entries' for 'corporate expenses" on the Para- mount "books came up, but insisted he was not'responsible;' drawing a istiriction between "responsible*, and cause.".'He staled that 'I don't Con- sider that .a deception' while .admit-' ng that the 'corporate expense' en- ies were a 'concealment' from the Government and the stockholders. He also maintained, rather per- sistently,' that the payments to Bioff could be classed as 'corporate ex- penses' because they were 'produc- tion expenses' just like salaries, etc., since they 'kept production going.' Asked why he had not told of his personal fears in the Browne-Bioff ial, Keough ..answered, 'I didn't tes- fy to it, and I didn't leave it out by deliberation.'' Keough ended, his day. on the. stand in a stale of white-hot anger when Murray asked him If he 'still has a license to practise' in New York. He replied he had, where- upon Kostelanetz jumped up and asked Keough whether he knew that Murray has a license to practise. Murray then interjected that he might as well, ask if Kostelanetz had license. Judge Bright rapped for order, amid laughter, and reminded the' pair that they were both guilty of contempt of court. In his early testimony, Holmden placed John. Roselli as an associate of Bioff and told how Roselli was given a bunch, of envelopes contain- ing money.. The envelopes came from one Daniel McCarthy and Were mailed to Bioff. '/'. He also outlined how a bunch of the boys' came to protect him,' the West Coast IATSE office arid hiring hail-alter an altercation in 1937 dur ing which furniture was thrown out of windows. Albert, Harry Warner Bare Bioff Shakedown The most important witnesses to appear last week at the trial since Nick Schenck were the 'Warner brothers, Albert and Harry, who tes ■lifted on Thursday. (4)'and Friday Harry Warner explained that he kicked-in because he 'felt that man had power arid with his backing could destroy the business. Warner insisted that he did not sic the law onto. Bioff because the enforcement agencies 'couldn't help me if I was dead.' Defense attorney Murray came back at him; 'You mean to. say that all. Jhe -law-enforcerhent agen- cies could not stop you from bein killed." Warner replied, 'Not after was dead.' Feared Bankruptcy , • Major Albert Earner, ' th imorhin" . readily admitted, paying Bioff"money because he was afraid his. firm would be forced into bank ruptcy by a strike. To suggestion that perhaps he -was paying a bribe, Warner replied, 'Definitely not:' Like his brother, later in the day Albert denied having knowledge Jj| a $26,000 payment to Tom Malloy, deceased business agent of Local 110, Chicago, to pull the second projec tionisl out of two-man booths. 'Plenty Scared' The most raniatic ^witness the previous day. was Major ..Warner Queried as to his motives, in agree ing to shakedowns, Warner candidly replied, 1 was plenty* scared Smarter suys thani I. would have been frightened. 1 .' Asked if he would have 'kicked .Bioff put.of your office'|f he had not heard about the shakedown fi; Nick . Schenck first, Warner an s\vered, 'I doubt it.' On coining to his office for the first time, in 1936; Warner said. Bioff promptly opened the discussion by asking. 'You know why I am here?" nd when Warner answered that, he had- spoken with Schenck, Bioff lmly added, 'I want $50,000.' Bioff got a first payment Of. $10,000 In May, 1936,- but: protested, because: 'by the me'I split it with the boys it will be peanuts.' Bioff cunningly refused check for the remainder. At the. 1937:Basic Agreement meet- ing in New York, Bioff again put the m on Major Warner, who had beeri- unde'r the impression that it U'. «•> the previous payments) was the last the money." Bioff reassured him al'.'You -will have lo pay arid pay.' Warner said he ; agreed to the pay- ments because he 'knew the, power of these people arid the harm they-could He added they were, people with, a murder or two to'their cred- but this remark was stricken from the record. . ;. Schenck's Revelations . Nipk Schenck. finished his sensa- tional testimony bri Wednesday (3). Before :he left the stand, Schenck imprinted on the minds of the jury ahialic words.like 'a -man'slife was danger' and a statement of Bio'ff's, made lo Louis B. Mayer, that 'there's room for both of us in this world, and I'll be here.' ■-...'. •■'■ Despite these quotations; however, fense attorney Murray drew from Schenck the reluctant admission that Schenck, was: unconvinced Bioff actually was threatening Mayer's fe. ";. .-' ;'■. ' J, Wesley .Smith," co-owner of Smith 8c Alleiyfolloweci Schenck and detailed how Louis-B. Mayer and other Metro executives instructed im to hire Norman T. Nelson, and Harry Beatty, of Local 110, as 'sales- men' of ' raw filiri'. to Metro,' both rawing $125 weekly and - 7% 'com-" mission.' The 'commission' went to ioff. Smith testified that neither Nelson nor Beatty rendered any ac- tual sale's service and' often did not appear. Defense Gains Point By Coston Testimony The defense made its most impor- tant gain to date when James E, Coston, Western zone manager'of the Warner Theatre.' Circuit, took .the stand Monday (8). and revealed, un- der cross-examination, that as early as 1932 Warners had an arrangement whereby it Was paying 'someone' $1,- 060 for. every second man taken out of a Warner projection booth in. Chi- cago; ■ v For Coston's testimony established the fact that Warner's was paying off in 1932 to keep labor costs <fbwn two years before Browne 'became IATSE president and before the Chi cago 'outfit" swung into, action. The $26,000 paid by Warners in 1932, Cos ton admitted, was 'paid for taking the men out of the booths.'" Under a hammering cross-examir nation, Coston spent the day outlin ing his own role in., the.'payments. He. revealed that Warners began paying for 'eliminated' projection ist.s in January, 1932, through one Jack Miller, business manager of the Chicago Exhibitors' Assn. Tells of Bernhard Meeting Two-three weeks after the death of Tom. Malloy, business agent of Local- 110 projectionists), Chicago, Willie Bioff appeared on the scene, demanded $30,000. and told Coston, We're going to do business differ entry-than the way Malloy did.' ioff insisted that Miller, the middleman, should be by-passed, and dealings should, take place with film, com panies directly.' Coston testified how he, Browne and Bioff .flew, to New York, where he introduced the pair of. racketeers to. Joseph Bernhard v.p. of Warners. Later Coston learned from Stewart McDonald, assistant Warner' control ler, that, a $30,000 check would be is sued. Said: Coston on Monday knew that the $30,000 was for the specific purpose of giving, the money to Bioff.' According to Coston, War ners saved about $300,000 on wages to projectionists between 1932 . and 1935, with these deals. In both cases, the payments wer disguised as 'legal expenses' paid ; to the Chicago law. firm of Chapman and Culler, attorneys for Warners, Costoriv also testified that Warners paid part ot the income lax demand ed from (he Torn Malloy estate by the. government. . Cpslbn Cold further about Bioff': .1936 deal with the Warners.'. th lime amounting lo 5"<- of the Warner intake; The effect of this arrange ment," Coston admitted, Avas that Bi off was paid while the Chicago pro jcclionisls -went without the 20 r, c pay cut restoration they were de manding. : . Earlier in the day t Coston told of Bioft's agitation .when, in 1940, it de yeloped the racketeer would have to go to jail on his old pandering sen tence." "..Bioff asked Coston to be character witness, but Coston refused and told Bioff to go to jail. 'Not without Joe Schenck,' Coston said Bioff answered, "Im too big of a shot, too important a man in the industry.' Ungar, Roddy East Hollywood, Nov. 9; 1 Arthur Ungar, editor of Daily Variety, and Ralph Roddy, labor re- porter for the same paper, trained today (Tues.). for New York; Where they have been subpoenaed as' wit- nesses in the. motion picture ex- tortion trial in U. S. District Court. : Labor leaders going, east at the same , time for the ..same purpose were Herb Sorrell and Curly. Davis. BALLARD JOINS FEIST ON SPECIAL M-G BALLY Harry Link; general prof, mgr, of Feist, has just put the finishing touches to a plan,, long contemplated, to. further . 'exploit' Metro picture' songs in cooperation with the 39 field representatives associated with the film company. Link's idea is to plan special pro- motion campaigns on each important song, furnishing the local Metro reps with a detailed scheme for local plugging to augment the advance .promotion used by Feist.•; The local bands and singers, will be contacted by Metro reps, with local radio sta- tions, newspapers, theatre organists, tc, handled in much the manner used by Link's N. Y.- staff and six field representatives. Pal Ballard, former p.a- for Fred Waririg' artd NBC; has been engaged by Link lo handle this special pro- motion and Ballard will work 'close- ly with the various Metro,local reps; also channeling press, stories through the N. Y. Metro exploitation dept., working up special, stunts, fieups, etc, to be used in each locality in advance of the picture. First picture to be-handled in this mariner - is 'Thousands Cheer,' soon to be released'nationally. 'hilly Cues 'Diary* Preem To Leathernecks* Anni Philadelphia, Nov. 9. The world premiere of 20th Cen- tury-Fox's 'Guadalcanal Diary' to morrow (Wed.) will^be the main feature' of the city's celebration of the 168th anniversary of the found: ng of the U. S". Marine Corps. In fact, the ballyhoo surrounding the film will be. virtually the entire celebration in Philly, birthplace of the leathernecks. Picture will be shown sirnultane- ously at a banquet at the Bellevue- Stratford Hotel given by the city of Philadelphia and at the Fox. where the seats have been priced at $5'each the proceeds of the showing to go to the Emergency Aid's , service kit fund. Preceding the showing of the film will be a- tableau at which 125 Ma- rines from the Navy Yard here pres ent 'The Spirit of Guadalcanal. Twenty-one men who were wounded at Guadalcanal will receive medals of valor on the Fox stage. Celebs, including Prestpn Foster Phil Regan, Lowell Thomas, and Lucy Monroe, will 'bicycle' befween the. Bellevue banquet and : the the atre. Also to be present will be Lt Matthew Keogh, Marine Chaplain who is the real life counterpart o the character played by. Foster, in the picture. 20lh-Fox execs scheduled to alteiul are W. C.. Kupper, general sales manager; W. C. Michel, executive v.p. and treasurer, and Hal Home director of advertising and publicity In the absence of Spyros Skouras, prexy, Michel will receive the. cita lion from the city of Philadelphia to 20th-Fox. Omaha's Second B.O. Tilt But Nobody's Squawking Omaha, Nov. 9 , Major- house operators coming ou bf the bomb-proofs, following sec ond lipping of admissions^ surprised at complete calm' and freedom from squawks. : Recently, prices went from 40 to 50c lop, and. only a few day ago.. they were shot to 55c. Public shelling oci't without'.howling.'.'-:. Orphcum maintains its. 65c. lop for stage show's but drops to-55c for its rare allrfilm programs, one of which conies in following current bill. BRAND DUE IN N. Y. . Harry Brand, head of 20th-Fo publicity advertising at the studio, is due in- New York from the Coast spine time after Now 12. ' He will huddle with 20th toppers in N. Y. JL). Promotions; Exchange Briefs Atlanta, Nov. 9. As forecast,' William K. Jenkins was named prez of Lucas & Jenkins circuit. His former post was v.p, and g.m. and he has been titular head .of chain since death of Arthur B. Lucas; founder. Name of operating company he heads was changed from Gebr ' Theatres Service Corp.' to Georgia Theatre Co. Mrs. Arthur Lucas, widow of ,cir- cuil's founder, was named' -v!p. , Following' meeting, which was at- tended by New York reps of Para- mount Theatres Service ' Piolures, Inc., partners in Georgia-wide L. & J. chain, following promotions were ' announced. Mrs. Alma King, former, city mgr. at Brunswick, placed in charge of newly created, post of district public relatibns mgr., and' Harry Glenn, fprmer , Macon, theatre manager, named district, maintenance boss. District managers are John Cun- ningham, Savannah . district;. I. L.-: Shields, Columbus;-and T. O. Tabor, Athens. Thomas H. Read is. city.' mgr. and H. P. -Rhodes booker for circuit. L. & J. operates 43 houses in 14 cities .throughout state, viz: Athens, Atlanta, Augusta, Brunswick, Bu- ford, ■ Barnesville, Columbus. Elber- ton, Gainesville, Macon. Moultrie, Savannah, St. Simons Island and Waycross. •'•; ■■ It was announced following Jenk- ns'.election that no changes in pol- cy of house management or methods of operation are '.contemplated!. Other recent changes in L. & J. personnel brought, in : Stuart Moore, erstwhile mgr. of chain's Grand at Maco'ri. as manager of /Fox;"circuit's ace 4,400-s'eater, here. Moore was with Sams' Theatres in North -Caro- lina before joining L. & J. pan- Hill,- formerly with Bariiford . Theatres in Asheville, N. C, as mgr. . and public relalioner, ■ was made city mgr. for circuit, at. Athens, Ga., succeeding T. O. Tahor,. who was': promoted to district managership of L. & J. houses in Buford, Gaines- ville, Athens and Elberton. Hjl) was for 12 years mayor of. Asheville, ex- pre'z'of Asheville B.B club as well as Piedmont, League and barely missed, becoming prexy of Southern Bp Association. Schrelber's Heads Drive Detroit. Nov. 9. ': Alex Schreiber, president of Asso- ciated'Theatres, has been named mo, tion picture chairman of .the. Detroit War Chest drive. Also named to the committee for this month's drive are Frank Wetsman, circuit owner,'as cbr chairman; Joseph Lenahan. theatre insurance agent; -Arthur Robinson, circuit owner; Arvid Kantor. Nation-, al Screen Service, manager; Morris Dudelsbn and. Sydney Bowman, of UA:' Irwin Pollard, manager for Re- public; Jay Frankel, Universal; Wil- liam Schuttenhelm,- Globe theatre manager; Ben Holmes,.Republic; and (.Continued on page 35) U.S. Shorts Awards to Be Made at Luncheon (Fri.) Judging of Universal's second fear turelte (shorts), exploitation cbiitest will be held.at a luncheon next Fir- day. <12) : at the Astor. hotel. Affair will be unusual in that there will be one guest of . honor and single, speaker, Bob O'Donnell, of the Texas Interstate circuit. Contest prizes total $3,000, plus a $500 silver trophy for best campaign: on 'Roar, Navy, Roar.' Leading exr hibitors and trade paper editors will pick the winners. Arthur Jeffrey Upped* Paul N, Lazarus, Jr., director of ad-.- vertising and publicity for United Artists, last week announced ap- pointment of Arthur Jeffrey as UA publicity manager.. Lou Pollock, appointed to fill the vaCancy occurring wh e n - Robin iCurly) Harris resigned to go Into the Army, will handle both.a'dv'er.lis--'; ing and.publ.icily matters In his po> as assistant to Lazarus. ' ! • Jeffrey was publicity director for Warner Bios., N! Y. theatres bol"ie joining OA in-iS-37. ■ UGAST WITH COL. :'. Edward Ugast, ■ formerly .of Par- amount's sales staff in N. 'Y.i ..has ■joined Corumbia Picture's, exploita- tion department under Frank P. Ro- senberg. . Ugast will -work out. of the homf olfice.