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Big Shake-Down of Chicago Managers

Authorities Discover Conspiracy Against Showmen

Source: Variety, 18 February 1921, pg. 9.

An organized conspiracy to "shake down" owners of picture theatres throughout Chicago was exposed by the State's attorney after a raid on headquarters of the exhibitors' own association. Sam Atkinson, secretary of the organization of theatre owners, was questioned and it developed that with few exceptions the exhibitors had signed, under threats, a contract actuated by labor officials, levying tribute on the houses. All the prominent firms "fell" for the malodorous deal.

The matter was first called to the attention of the authorities when on one Sunday eight picture houses were "bombed" with stench missiles, in every instance driving out the patrons. The police learned that these owners had refused to sign up with the blackmailers.

The "contract" which the others had subscribed to in order to avoid trouble called for a monthly payment of five cents per seat for "electrical maintenance." In addition to this the houses were to pay $1.25 an hour for all mechanics' time employed in said "electrical maintenance." In addition all such work had to be done through one specified electrical company. No other contractor was allowed to work in any house. If immediate service could not be supplied the house had to wait. The company was allowed "full discretion" as to repairs.

The investigation showed that $12,000 a month was being gouged from the exhibitors by this system.

John O'Brien was arrested as an agent of this scheme and in his possession was found a quantity of the obnoxious fluid used in making the stench bombs. O'Brien claimed he had bought it to disinfect chicken coops.

It has been clearly established that the managers were solicited by union agents to enter the "electrical maintenance" pledges.

Sunday night, at the height of the scandal, the Harper theatre was "bombed" for the second time and the audience dismissed with all admissions refunded. The Harper belongs to Lew M. Goldberg, vaudeville agent, and his father. It was one of the houses standing out against the demands.




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Page authored: 18 February 2000 -
Copyright 2000 by Scott A. Newman
Source: Variety, 18 Feb 1921, 9.