New-York tribune., 1912-08-17
.IIeoes "a Defendants Com
bined to Control an Invest
ment of $780, 100000.
PATENT co. IS ATTACKED
Petition Charges That Ten Film
Concerns Control Theatres
in Which They Have No
Proprietary Interest.
MON The Tribune Buresu.l

washington. Aug l6-Sut was filed to-
3sv IN tho United States District Court
/, Philadelphia TO dissolve tho Motion
picture Patents Company and the GEN
.,ol Film Company, and thus 20 Go
away with the so-called moving picture
t,ust" An investigation of the moving
ricture business has been conducted by
,se Department OF Justice for nearly 1
vssr. The action is additional ev dence
~ the activity Of the Attorney General.
ond swells a long list Of trust prosecu-
,ions during his administration.
Ten prominent moving picture film con-
Germs are accused Of combining 10 monop-
oBze the business. even to the extent Of
INCREASING or decreasing the number If
-ro,ion picture theatres in which they
lave no proprietary interest.
Tho petition alleges that the twenty
tour defendants determined in 1908 TO
s.stroy competition between them. 70
-,onopolize commerce relating TO the mo.
,,on picture art, and 20 exclude all
n,s.rs" II is everred that the defend
snts were to organize a company which
should DO no business and hold no prop
,-ty other than certain letters patent,
vhich were 10 be transferred TO II by
"A. defendants and others, and that this
conpany was 20 acquire all patents
srped by defendants and all other pat
,,ts relating TO the motion picture art.
In pursuance Of this alleged scheme, It
4. charged that the defendants. acting to-
ss,ber, Incorporated under the laws Of
New Jersey on September & 1905 the Mo-
ton Picture Patents Company, with a
stock Of 10000. Subsequently. it is set
forth, assignment Of patents was made
and the company practically gained
monopoly Of the moving picture business
Alleges Film Monopoly.
Under the alleged agreements, the ten
companies constituting the corporation
we're 10 40 business in exactly the same
manner Il is charged. They were 70
lease films and 10 longer sell them; they
we're 10 lease at uniform and nOn-com-
petitive prices. and only 10 such rental
EXCHANGES as should obtain a license
from the new patents company. end
should agree to handle only the defend
ants films and to suitcase only 10 eX-
Mbitors licensed by that corpora tion.
n describing the moving picture indus
Try. The petition states that between 2,J0@-
% and 10000 feet Of pictures are print
ed every week by the manufacturers and
distributed u approximately 700 exhio-
tors all over tho United States. II is
also stated that within the last ten wears
The moving picture business has reached
Enormous proportions" and that prob
ably more than sl00,0)0O0c has been IN
vested in the different branches Of the
business. Prior 10 the organization Of the
so-callod trust - 1865, &c s. claimed, there
we're souo l25 20 80 rental exchanges.
The defendants in the sYt arc:
Motion Picture Patents Company. Gen
ersl Film Company, Biograph Company,
Thomas Edison Nnc), Easanay t1!m
Company. The Kalem COMPANY OihcJ.
George Klaius, Lubin Manufacturers
l0al any. .urues Msnutact arms, ON
Nny. Pathe Freres, Th- Selig Po!yscope
COMPANY. The Nitagraph Company OF
America. Arnat Moving Picture COM
rany, FRANK l.. Dyer, Ienry y. Marvin;
j. j. Kennedy, William PelzeT. Samuel
Long J. 4. Berst, Seigmund Lubin. Gas
ION Melies, Albert +. smith, George IA
SFoCr ZaifR