Big Shake-Down of Chicago Managers
Authorities Discover Conspiracy Against Showmen
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Source: Variety, 18 February 1921, pg. 9.
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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.
[End of news article]
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Page compiled: 18 February 2000
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