Variety (November 1917)

VAUDEVILLE RATS' HEARING MAY GO BACK MANY YEARS IF NECESSARY Referee Schuldenfrei Hands White Rats Executives Body Blow by Ruling Out One Year Period Claimed by Latter in Present Examination—May Bring in Evidence from 1911 to Lay Bare Real Status of Organization. The first session of the investigation into the monetary affairs of the White Rats Actors' Union, held last Friday before Attorney Louis Schuldenfrei, who was appointed referee by Su- preme Court Justice Mitchell to take testimony in the matter of Goldie Pemberton's claim of alleged misap- propriation of the organization's funds, developed a number of import- ant points, and before the hearing was adjourned for one week, the ref- eree decided that the examination of the Rats' affairs did not only extend for the period of o.;t year—May 30, 1916, to May 30, 1917—as stated in Miss Pemberton's petition, but would go back as many years as deemed necessary to arrive at a conclusion. This is the point which Alvin Sa- pinsky, attorney for the petitioner and Harry Deveaux of the Actors' Interna- tional Union (which is said to be back- ing Miss Pemberton's claim) wished to establish, for it opens an avenue for the introduction of evidence and the probability the financial history of the Rats will be laid bare from 1911 to the present. The referee—a man of keenest per- ceptions—realized the importance of the ruling and advised Joseph J. Mey- ers, representing Harry Mountford and the Rats, that if he wanted the examination limited to a definite per- iod, he might apply to the court, but Meyers was satisfied to note an ob- jection in the record. Said Mr. Schuldenfrei: "I have the right to inquire regarding the liabili- ties and assets prior to the time men- tioned. This order is not limited to the twelve months stated in the peti- tion. But as this ruling may open a broad line of discussion and large inquiry, and If you think the order is not properly limited, you might apply to have it re-settled." The early half of the session was taken up over the location of the books and records of the Rats, with the final admission that the most im- portant records were in Waterbury, Conn., ostensibly in the possession of James William Fitzpatrick. These are the membership cards, upon which are made notations of dues paid, and also in Waterbury are the "levy list" cards. Mountford, who occupied the witness chair all afternoon, said that these were the lists which "our op- ponents wish to obtain so that they might blacklist acts." The referee re- plied that was not interesting to the court, which wanted to know if there was any way of telling if the amounts entered in the ledgers and statement were correct, without inspecting the cards. At first Mountford said there was an office in Waterbury. Later he said there was not. And towards the close of the session he said he was not sure that the membership lists were still in Waterbury, for "they may have been removed by now." This led the referee to remark he was going to assist in compelling Mountford as an officer of the rcspond- ant corporation to produce all records and entries relating to the investiga- tion, and that the witness should have brought them with him. Meyers was disposed to contend that the books might be examined at the Rats' pres- ent headquarters, which caused the referee to order all books produced at the hearing. When Meyers said he would direct the witness negatively, Mr. Sapinsky asked the court to pun- ish both the witness and his attorney, if the books were not forthcoming. After being sworn, Mountford said he was the international secretary and treasurer of the White Rats Actors' Union, which was a "going corporation" of the State of New York, that its headquarters were at 207 East 54th Street, and that his personal ad- dress was 673 Broadway. The matter of the Rats' books was immediately broached, with the witness stating there were many books at the 54th Street address, most important, ac- cording to him, being the "controlling ledger." In this book, he said, were shown the amounts of dues and levies. The referee remarked that the book should have been brought to the hear- ing, and that started a controversy, with Meyers saying the examination of the books should be made at the Rats' headquarters, with the referee finally making a ruling that he would compel them being brought before him and assist in carrying out his order. Mountford explained that there were branches which did not make direct reports, but paid a per capita tax, these beinsr the Yiddish, German, caba- ret and "bicycle trainers" branches. Few present ever knew that the latter "branch" existed. The witness asked the court if he understood what per capita tax was and the referee dryly answered that he would inquire fur- ther if he didn't. Asked to explain how the member- ship list, which appears to be a card system with notations of payments, was taken out of the State, he said that on April 19. 1917, the Mutual Bank called a note for $49,000. and upon the inability of the Rats to take up the note, insisted that they give up the lease on the club house premises at 229 West 46th Street. "We agreed to- do so," said the witness, "provided we were allowed to remove all our books, papers and furniture. The next day the bank's attorneys said we couldn't take anything out of the building. I began to suspect that the purchasers were our opponents, and wanted to get a line on our membership and levy list. So I called together some Rat members and removed the lists out of the State, Mr. Fitzpatrick taking them to Waterbury. The only secret of a labor organizat ; on is its member- shin list." When asked how much in levies had been collected the witness gave the amount as $12,248.49, and that this money came into the branch offices in charge of "deputies" and "to Fitz- patrick. me and the New York office." He then said that the levies were en- tered on cards, and into a book called "the levy list," which, he said, was in New /ork. doing into the statement of assets and liabilities submitted, the first item of $16.23988, listed as outstanding loans to members, was considered. The wit- ness said he knew little of that ac- count as some or the loans were made in his absence in 1911, 1912, 1913 and 1914. He did admit, however, that some of the vouchers for these loans were probably O. K.'d by himself. The next asset was that of $101,000 worth of stock in the White Rats Realty Corporation. Mountford said the money was paid by the Rats 1 Union to the Rats Realty Corporation, as shown by the controlling ledger, but the pavment was not made in my time. (Since Mountford assumed office the second time.) Whtn asked what office he held in the Realty Cor- poration he said: "I was president and am now." It was over the $101,000 item that the fight over on how far back the investigation could go was started. With the referee's ruling the order was not limited. Questions to show the relation of the Realty Cor- poration to the Rats' Union developed the fact that there appeared to be but four other Realty Corporation stock- holders outside of Mountford, Frank North, James W. Fitzpatrick, Edward Esmond and Frank Herbert. All are directors in the Realty Corporation, and three are directors of the Rats' Union. Whether this stock was held by the White Rats' Union or person- ally by the directors was not made clear. The witness testified that in addition to the $101,000, there were $66,000 in bonds sold and as the club had cost about $202,000 to build, the balance had been obtained from the bank in the form of a pledged loan. Just before adjournment Meyers said they would produce all the books. Af- ter the session Mountford rebuked Meyers for entering so many objec- tions, saying that he was willing to "tell all he knew and that he was proud of the record of the Rats since I took office." Whether this was a frame-up designed to impress those present, remains to be seen. The ref- eree remarked that the meaning of the investigation was to learn if there had been any diversion of the organi- zation's funds, and that while the hearing was not a trial, if the com- plainant's contention was true, indict- ments might follow. This led Mountford to ask whether any others who might be called for examination had the right to be repre- sented, and when the referee said they had that right, Mountford de- clared he certainly would advise them to be represented. Mountford was nattily dressed as usual. For the most part he remained cool, but several times becime per- turbed, once being inclined to become rattled. When taxed regarding the scope of certain books, he renlied to the court: "I am not a bookkeeper, Mr. Referee: T am like an officer in a big corporation." At the opening of the session Mr. Mevers weakly tried to have newspap- ermen excluded, but the referee reolied that he did not care to take such ac- tion, nor would he presume to exer- ci ^ such authority. An adjournment was taken to today (Friday) at the same time. DETROIT POLICIES CHANGE. Detroit. Oct. 31. The Colonial, a vaudeville theatre recently opening here, will shortly change policv, playing two per- formances daily, including Sundays. With the switch, according to report, will be an effort by the Colonial to oresent big-time names at the top of its programs. These are necessary to put over the house. It has capacity, location and is a handsome playhouse, but needs headliners to attract the right patronage. The Orpheum here starts a policy of split weeks, commencing next Monday. It will split with the Grand, Cleveland, both houses under the management of C. H. Miles. PERIOD FOR THE RATS. When the American Federation oi Labor holds its annual convention in Buffalo, starting Nov. 12, the Federa- tion is epected to spread itself on rec- ord as washing its hands completely of Harry Mountford and the defunct White Rats' Actors' Union. Some time ago a subcommittee of the A. F. of L., after making a thorough investigation and hearing testimony galore why the Rats' charter should not be revoked by the Federation, re- ported back to the Federation a very strong recommendation that the char- ter of the Rats be taken up. The Executive Council of the Feder- ation by submitting such a recom- mendation automatically suspended all operations of the Rats, although there wasn't enough membership at the time to consider the Rats any kind of an organization. It appears that when President Samuel Gompers of the A. F. of L. held a conference at the Continental Hotel, New York, recently, and the Rats' leaders were given a chance to state their predicament, that Mountford was there and launched into a two and one- half hour oratorical debauch extolling his own virtues and panning everybody in general. President Gompers listened attentively and decided the best answer could be made by the Federation itself at the Buffalo convention. In the presence of witnesses Mount- ford is reported as jumping with all fours into the china shop like the proverbial bull and going as far as to threaten President Gompers with in- junction proceedings. Then later Mountford is understood to have made a veritable sympathy plea to Gompers to give him and the Hats' leaders an- other chance, etc. I. A. T. S. L MEETING. When the annual convention of the American Federation of Labor is held in Buffalo, starting November 12. the officers and board cf directors of the International Alliance of Theatrical Stage Employees will also go into its half-yearly executive session in that city. Inasmuch as nearly all the executive members of the Alliance go to Buffalo as A. F. of L. delegates, the Alliance chiefs arranged for the holding of the executive session. The Federation is expected to hear some important reports from the Alliance delegates, as the I. A. T. S. E. has become quite an active affiliation of the Federation. REPORTED KILLED IN AIR RAIDS. Tucker, the violinist, is reported in New York as having been killed dur- ing one of the recent air raids in which German boches bombed London. Tucker left for London several months ago, and has been appearing over there. PRODUCTION ENGAGEMENTS. Joe H. Niemeyer, wbo closed with "The Riviera Girl" at Philadelphia prior to its coming into New York is now dancing in "Furs and Frills" at the Casino, with Billie Allen as his partner. He is also working his danc- ing specialty (alone) in the new Reis- enweber Revue. Ray Conlin, ventriloquist, with "Over the Top" at the 44th st. Roof. FILM HOUSE ADDS VAUDEVILLE. Jamestown, N. Y., Oct. 31. The Majestic, a picture theatre, will commence playing, in addition to the film, two dt three acts of vaudeville, commencing Nov. 5, using a fairly good gride of turn. ^ The bookings will be obtained through William 1 Delaney in the United Booking Offices, New York. Forgotten Passports Annoying. Lowell, Mass., Oct. 31. Through forgetting to secure pass- ports when entering Canada, some members of the Jack Van Musical Comedy Co. were held up when leav- ing Montreal for this city. The show should have opened here Monday at the Academy. But about one-half the troupe appeared. The evening was filled in with vaudeville and pictures.