Variety (January 1922)

4* «t PICTURES Friday, January 6, 1922 HEARINGS IN WASHINGTON ON GERMAN RAW FILM Senate Committee Hears Statistics on Picture Indus- try—Increase of Duty Pleaded For— Eastman Co. Attacked Washington, D. C, Jan. 4. Between $760,000,000 and $1,000,- •00,000 Is spent annually by the American people to see motion pic- tures was told the Senate Finance Committee during hearings held the past week by producers and direc- tors of the film industry. These men stated further that but 96 per cent, of those employed In the industry were receiving a living wage. The hearings were held for the purpose of taking testimony on an Increased duty on imported films. Paul M. Turner, of New York, speaking for the Actors' Equity As- sociation, and John Emerson, who styled himself as an independent producer, speaking for himself, as well as D. W. Griffith urged that the duty be increased to from 60 to 60 per cent, ad valorem in place of the 30 per cent. In the Fordney bill. These men stated that the indus- try was in bad shape, with many studios and a large number of the 18,000 picture theatres throughout the country closed. It was stated that $260,000,000 was invested in the Industry in this country, and that employment was given to about 250,- 000 persons. They declared that a high tariff was the only thing that stood between the -industry and ex- termination. Fifty-four German- made pictures were being shown in this country at present. It was stated, and four or five of these had brought to the exhibitors approx- imately $2,500,000. That the Amer- ican producers could not compete with the Germans was another state- ment made. Turner, who added that pictures made here that would cost from $200,000 to $300,000, could be produced in Germany for from $10,- 000 to $12,000. John Emerson, who directed Doug- las Fairbanks in "The Three Musk- eteers," disclosed information re- garding Mr. Fairbanks and this star's financial condition. "Doug" Fairbanks hasn't $100,000 to his name. I don't think he had $50,000 up to the time he put on 'The Three Musketeers/ when he morrowed $750,000 to put on this picture," stated Emerson, who added that the reported fabulous salaries of stars were only for the consumption of the public. One of the features cf the hear- ings was an attack on the Eastman Kodak Co. William A, de Ford, of New York, counsel for the Inter- national Film Service Co.; Fred- erick R. Coudert, of New York, counsel for the Pathe Exchange, and others charged that this company, through a monopoly of the raw film product, would be able to control the motion picture industry if Im- ports were shut off. They conse- quently opposed the 20 per cent, ad valorem duty on raw films pro- posed in the Fordney bill. That the agreement which he be- lieved had been made between the Eastman company and several la- boratories as a "club" to keep the others in line be investigated, was requested by Mr. de Ford, he charg- ing that, after the laboratories had opposed the proposed duty on im- ported films, this "club" had been made. Threatened with an invasion of their field, the witness said the representatives of the laboratories entered into a written agreement among themselves Sept. 9 last to U3e only American raw film. The Eastman company was also attacked by Daniel E. Forbes, rep- sentlng the Seneca Camera Co. He charged the Eastman concern con- trolled 90 per cent, of the produc- tion of rolled films. Mr. Forbes hoped that such films would be re- tained on the free list, although he requested protection for cameras, as the imposing of a duty on roll film would practically force his concern out of business. 14 MUSIC FEE SUITS STARTED IN NEW YORK 'TWO ORPHANS" WITHDRAWN Boston, Jan. 4. It's reported here that Fox in- tends withdrawing his "Two Or- phans" film, made some years ago. He opened it here to run ngalnnt Griffith's special. It looked foolish in comparison, which may have de- cided Fox. Publishing Concerns Proceed- ing Against Picture Exhibit- ors—Damages Asked Fourteen separate Federal Court actions have been begun in the local District Court by several of the local music publishers against as many picture theatres that have been performing certain of their compositions for profit, without license. These actions were instigated by the American Society of Composers, Authors and Publishers, which de- mands a tax for the privilege to perform Its copyrighted music for profit. Waterson, Berlin & Snyder are plaintiffs in two i.uch suits; Remick in five actions; Wltmark in two; Broadway in two suits; Harms in one; Fred Fisher in one; the Broadway Music Corporation in two and G. Rcordi in one suit. In each case a minimum of $25) damages allowable under the Federal copy- right statutes is asked. This is the first time such actions were ctarted locally, although the American Society of C. and P. has long been waging a campaign against picture exhibitors out of town. CORPORATION RECEIVER FILES Nil IN EQUITY In Attempt to Collect Judg- ment's Balance, Richard Campbell Makes Allega- tions RIALTO'S DOUBLE BILL Second Program, with Cosmopolitan Feature and "Carmen" The Rialto is running the.second of the double feature bills this week. The success that the first venture of this sort made at the house led to the presentation of a 30-minute version of the Gcraldine Farrar "Carmen" made by Famous Players some years ago, with Wal- lace Reid as Don Jose and Pedro de Cordoba as Escamillo. The Bizet "Carmen" score was played to the picture. Some weeks ago Pauline Fred- erick in "Tosca" was given with the score of that opera, and the inno- vation made money. In addition to the operatic fea- ture the Cosmopolitan production, "Just Around the Corner," was pre- sented, as well as a Sennett comedy, thus eliminating the weekly and the usual scenic. Sunday night's business, despite the cold, was terrific at the Rialto. FIRST NATIONAL SWITCHES Ralph Clark, manager of First National's New York exchange, generally believed to be retired the first of the year, will retain his present post. Joe Unger, Associ- ated Producers manager, who was to succeed him, will be transferred to other activities with the organiza- tion. A number of the First National exchange managers will be elimi- nated shortly to take care of some of the Associated Producers man- agers. The overhead will not per- mit the retention of both. At the present time there is con- siderable "lobbying" in First Na- tional. Some of the members are backing Al Lichtman for the post of sales manager, whereas Schwalbe and Williams, backe' by some of the influential franchise holders, are desirous of appointing Jack Woody, erstwhile Realart general manager for the job. Gumbiner Buys Another Chicago, Jan. 1. Abe Gumbiner, who conducts eight picture houses here, last week added another to his string when he leased the Argylc, at Argyle and Kcnmoru avenues, for a period of five years, with an aggregate rental of $52,200 for the term. The lease takes effect April 1, 1923, and tc ob- tain Immediate possession Gumbiner purchased the unexpired term of the lease of Applebaum & Katz, —ho are now operating the theatre. Richard Campbell, as receiver of the Associated Exhibitors, Inc. (the New York corporation) has filed a bill in equity in the local Federal District Court against the Pathe Ex- changes, Inc., Associated Exhibitors, Inc., Art Players, Inc., Paul Brunet, Lewis Innerarity, Samuel Harding, Paul Ousdanovlc, Herman H. Wei- lenbrink, Harry M, Crandall, Joseph H. Cooper, Hugo C. Lambach, Charles Olsen, Harold B. Franklin, Harry Stearns, Elliott C. Bostwlck, Dennis Harris, Isaac Upson and Frank H. Dowler charging the de- fendants. Including the Associated Exhibitors, Inc. (the Delaware cor- poration; not the New York com- pany In receivership) with having unlawfully diverted the assets of the plaintiff to its own use. The bill of complaint alleges the the Associated Exhibitors, Inc., is a subsidiary practically of the Pathe Exchange, Inc., and is dominated by Paul. Brunet and Lewis Innerarity, • respectively president and secretary of Pathe, averring "at about the time of the incorporation of the New York corporation (Associated Ex- hibitors, Inc.), and for some time prior thereto the condition of the motion picture business was such that the control by certain and very large producers of motion pictures had gone Into the hands of certain persons or corporations who or which also controlled motion pic- ture exhibiting theatres of the first class throughout the country, and it was exceedingly difficult and even impossible at ti es for independent producers to secure in certain dis- tricts theatres of the first class wherein to exhibit their feature pic- tures." This statement sounds not unlike the Federal Trade Commis- sion allegations in its procedure against the Famous Players-Lasky Corporation.. Ostensibly this suit is for the purpose of satisfying a $1,681.95 judgment claim of John P. McCar- thy for services rendered. Having been paid $700 only there is still the major portion due and no assets to satisfy it. Mr. Campbell, acting through Zalkln A Cohen and A. Spootswood Campbell, his solicitors, charges that the latter named de- fendants, formerly directors of the Associated Exhibitors, Inc., and who were indebted to the corporation, re- signed "fraudulently, and for the purpose of carrying out the illegal scheme to relieve themselves from their liability under said contracts and to defraud the said creditors of said New York corporation"; and that their places were filled by a "dummy" directorate consisting of employes of the Pathe Exchange, Inc., which board attempted by reso- lution to ratify the alleged illegal transfer of the New York corpora- tion's assets and releases. After this transfer, Mr. Campbell alleges the corporation ceased transacting busi- ness, charging that the original of- ficers and directors knew of the im- minent insolvency of the corpora- tion, knew that such stripping of the corporation's assets was unlaw- ful and realized that the organiza- tion was in a "seriously embarrassed financial condition" and without funds. These assets specifically Included the Harold Lloyd comedies and the contracts thereto; "The Riddle: Woman" (Gcraldine Farrar), "What Women Will Do" and "The Devil" (George Arllss). The receivership of the Associated Exhibitors, Inc., resulted from John P. McCarthy's petition to satisfy his Judgment claim. The receiver prays that the as- signed assets be declared invalid, void and set aside; that an account- ing of the profits from these trans- ferred assets be rendered; that the defendants account for their conduct in the official management and dis- position of these funds; that a re- ceiver for the Associated Exhibit- ors, Inc., be appointed or that the receivership of the New York cor- poration be extended and that the pictures named be placed in receiv- ership. BEAUVAIS FILM ADVERTISING AROUSES STATE CENSOI ■JL J a X 1 1 Chairman Cobb Threaten* to Revoke License fof "Lonely TreU'V-Jurudiction Claimed Over Film 1 and Advertising j WRITER ASKS COURT TO PROTEa RIGHTS Clarence E. Mulford Seeks In- junction Against Pearson's and Others Readjusting F. P.'s Stars There may be a good deal i.f re- adjustment in the continuance of Famous Players' Stars. It has al- ready released Wanda Ilawley and Constance Rinney, former Realart stars. A. question of the unauthorized sale of picture rights to an author's stories by a publication is involved in the injunction suit begun by Clarence E. Mulford against Pear- son's Magazine, Inc., Alton Play Bureau, Inc., Magazine Syndicate, Inc., Joseph Sciden and Hugh Weir, in the Kings County Supreme Court. Motion to show cause why a preliminary injunction should not be granted has been postponed to next week. Mr. Mulford sets forth he sold 10 stories to Pearson's Magazine dur- ing the years 1909, 1910 and 1911, disposing of the serial rights only and reserving all dramatic and other rights. At that time picture rights were not taken into con- sideration. He states that while engaged in disposing of two of his stories recently for $3,000 and $4,000 each, he was advised by the pro- spective film producer that certain of Mr. Mulford's stories are being peddled around by the Alton Play Bureau at from $250 to $500. The* author charges Messrs. Seiden and Weir with having acquired the film rights from Pearson's Magazine and knowing that such assignment was invalid organized the' Magazine Syndicate, Inc., (which it is alleged they control), to lend the appearance of Innocent purchasers. In turn the syndicate commissioned the Alton bureau to do the actual selling of the stories at low prices. His prayer for immediate injunction be- comes necessary, the plaintiff con- tinues, because his film market is thus being destroyed. John Thom- son, then an associate editor of the publication, has filed a supporting affidavit substantiating Mr. Mul- ford's claims. Kendler & Goldstein, who repre- sent Pearson's Magazine, state that Mr. Mulford's allegations are cor- rect. That he did reserve the dra- matic rights and that none have ever been ceded to anybody else. If such stories are being sold they are done so without authority from this defendant. SUIT F OR 88 FILMS Distributor 8ays Famous Players Is Withholding Property Syracuse, Jan. 4. The Better Service Film Co. has started suit in the Supreme Court here against the Famous Players- Lasky, Charles T. Jordan and Irving L. Brown, charging illegal seizure, wrongful detention and illegal con- version of 88 reels of motion pic- tures, and asking for $50,000 dam- ages. They charge that F. F.-L. and the co-defendants held the reel" in- volved from June 19 to Nov. 15 last, preventing the local corporation from distributing them. Eleh John Ludvlg, representing the defendants, with Cobb, Macken- zie, Smith & Edgecomb as local counsel, have asked for a bill of par- ticulars setting forth the titles of tho reels, their number, value, subjects and tho producers. The court grant- ed the order, with the exception of the necessity of tho naming of the producers. JACK JOHNSON FILM, M. 0. H. The picture starring Juck John- son, colored ex-champ, produced re- cently by the Blackburn Yuldi and carrying the tentative title "For His Mother's Sake," goes into the Man- hattan opera house, New York, t.i Sunday (Jan. 8) f a run. The film will alro be ployed at the Douglas, an uptown picture hou^e devoted to negro patronage, begin- ning Jan. 8. Albany, Jan. 4. Former Senator George H. Cobtt chairman of the New York Stati Motion Picture Censorship Comml* slon, served notice on the producer* of the film, "The Lonely Trail," in which Fred Beauvais, the Indian guide who figures as a co-re* spondent in the James A. Stillman divorce scandal, is the author and star, that unless certain ad vert is* ing matter now being used in ex- ploiting the picture is withdrawn the license for the presentation of the film in this state would be re voked. Senator Cobb announced that he had sent a telegram to the producers of the film In which he had set forth the purpose of the commission. "I And," he stated, "that the law gives us control over advertising matter and that It is our duty un der the law in this case to prohibit the picture entirely by revoking the license unless the advertising now used is withdrawn. The law gives us jurisdiction to the extent that the corruption of morals must not be allowed eittK.' in the film or in the advertising. "The capitalization of crime, par ticularly when the actor has no claim to prominence except his con nection with some scindal or crime, we deem improper. "We asked for copies of the ad- vertising m-lter used by the com- pany producing the film and find that reference is made to the fact that Fred Beauvais, the Indian guide, is v j-respondent in the'Still- man divorce case. This reference must be suppressed or the license will be revoked." Senator Cobb said there was no doubt in his mind that the courts would sustain the commission in its position should an appeal be taken from the ruling of the censors. "The question of the propriety of the film itself is not involved," Senator Cobb said, "for the bare fact that Fred Beauvais is featured in the production does not of itself make the film immoral or give it tendency to corrupt morals. The moment the management draws patronage through special adver- tising of the fa$t that the hero of the picture is involved in the Stilt- man divorce scandal, then there is a reflection upon the morals of the man which we consider objection* able, and which renders the pres- entation of the picture improper." Montreal, Jan. 4. Fred Beauvais, the screen-acting co-respondent and first time hero of "A Lonely Trail" on the film, is much perturbed because the New York exhibitors don't seem to like Ms work through barring the film. Beauvais is a resident of Mon- treal, fairly well known around, more so of late. CATHOLIC BISHOP AGAINST SUNDAYS Urges Priests' Activity Against Repeal of Ordinance Albany, Jan. 4. EiHhop Edmund F. Gibbons, of the Catholic Diocese of Albany, has written letters to all pastors in bis I district suggesting they oppose the repeal of the ordinance prohibiting picture shows on Sunday. The new Common Council, Democratic, may attempt this. That a "promise" might have been made for Sunday shows by the Re-^ publican chieftains in the event of victory was indicated on election day when several local theatrical magnates worked at the polls for the Republican ticket. Mayor-elect "William S. Tlaokett, the first Democrat elected in twenty- two years, entertains liberal vicv.s Worseley Not with Universal The report that Wallace "Wors^ ley, Goldwyn director, had sigf. • with Universal is denied by him. i