The Waterbury Democrat., 1938-01-13

decision to tackle the big ducers was no sudden one. They have been under quiet scrutiny by the Justice Depart ment for nearly year.
 Cause of the inquiry was l1u- merous complaints by independent theater operators that the big dis tributors were discriminating against them by refusing to let them have first run" pictures. These new feature films are giv- en to theaters owned or controlled by the big boys, and the independ- ents are left out on the limb.
 In moving on the Hollywood moguls, the Justice Department reversed its previous policy toward them. For many years, the De- partment had an arrangement with "Czar" Will Hayes whereby complaints against the industry were referred to him for adjust ment. But when trust-busting Bob Jackson was made head of the Anti-Monopoly Division he put an end to this.
 Under Jackson a complaint is handled as the basis for possible legal action. There have been no soft-pedalling out of-court nego- tiations.
 The suit against the movie satraps may introduce a new anti-monopoly technique. In view of Judge Geiger's dismissal of a Milwaukee grand jury just as it was about to vote on indictments against the Big Three motor makers, government lawyers may sidestep 8 grand jury altogether. Instead, they would take the movie case di- rectly to a federal court with request for an injunction against alleged monopOEstic practices.
 Some of the government legal ists advocate an even more dras- tic course, namely an injunction requiring the producers to get rid of their movie houses.
 Opposition to Frank
 One unique feature of the Roosevelt administration is op- position by Jewish friends of the New Deal to Jewish appointments. Latest instance of this occurred in connection with the SEC ap- pointment of Jerome Frank, hard hitting eX-counsel of the AAA.
 Franks name was proposed for Securities Exchange Commission CT by some very powerful non- Jews, among them Judge Pecora Gtalian descen) and SEC Chair man Douglas (Scotch), who made a special trip to Hyde Park last fall to push it. Joe Kennedy, a staunch Catholic, also urged the Franuk appointment upon Roose- welt.
 But Berny Baruch, heavy con- tributor to the Democrat party and wealthy Jewish leader, in- terceded personally with the President and did his best to block it. One other high Jew ish member of the administra-
 tion looked askance at Franks appointment, but Roosevelt, who always felt Frank got raw deal when busted from the
 AAA, ignored their protests.
 Some time before this, Ben Cohen, PWA counsel and one of the most brilliant legal minds in the Administration, was proposed for the SEC. Roosevelt consulted Governor Lehman, and Lehman turned an emphatic thumbs-down. At that time Lehman carried more weight with Roosevelt than he does now, and Cohen never got the job.
 NOTE-What came nearer blocking Franks appointment than the opposition of his CO., religionists was the attitude of MT. Frank. She was adamantly opposed to his abandoning lucrative New York law practice and returning to Washington.
 John w. Hanes, other new SEC Commissioner appointed with Frank, also came nesT turning down the appointment because of his wife. She objected strenuously to coming to Washington, didn't want to close her 125-acre estate at Rye, N. Y, built by Sanford White just before he was shot by Harry Thaw. where she employs 40 caretakerS.
 South American War
 Just as people were beginning to forget about the Chaco War, Bolivia bought $13O,000 worth of machine guns from U. s. muni- tions makers in one month (De- cember).
 Confidential information re- ceived at the State Department indicates both Bolivia and Par aguay are quietly re-arming, de- spite the fact that both are OFF THE RECORD