Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1912-08-17


government attacked the so-called
Moving Picture Trust" in civil suit
filed here, today. for the dissolution of
the Motion Picture Patents Co. and
the General Film Co. Ten prominent
moving picture film concerns are &C
cused of combining to monopolize the
business, even to the extent of in
creasing or decreasing the number of
motion picture theaters, in which they
have no proprietary interest
Each of the defendants is alleged to
have over stepped the bounds of the
lawful monopoly granted by their pa
tents and the petition asks that sew
eral complicated interviewing license
restrictions, tying patents together, be
ordered cancelled. The charges that
oppressive restraints and conditions
have been arbitrarily imposed on the
manufacture and leasing of films and
machines. depriying the public of the
advantages of competition. especially
the competition of foreign films. the
importation of which is alleged to be
restricted.
Edwin r. Grosvenor, special assist
ant 70 the attorney general. who has
charge Of the pending antitrust suit
against the International Harvester
Co. made exhaustive investigation
of the moving picture business. draw
ing the petition filed, today. by Unit
ed states attorney Swartley.
In addition the bill is signed by At
torney General Wickersham and
James A. Fowler. his assistant.
The governments petition says that
4. rnaa M. q ma no
pictures are printed, each week, by
manufacturers and distributed to
thousands of exhibitors all over the
United States. The government de-
elares that sum greatly in excess of
s1ooo00,00O has been invested in the
Business. The defendants control. it is
added from 70 to so per cent of the
film business. furnishing approximate
ly 1000 exhibitors.
The Motion Picture Patents Co., or
ganized in New Jersey in September.
1909, Is the holding company of all the
motion picture patents of the defend
ants.
Other than collecting and distribut-
ing royalties among the defendants.
the bill says the Patents Co.'S. only
business Is the bringing of lawsuits
under the patents Ii holds. Hundreds
of suits have been brought, it is al
legged, ito harrass and Cypress all
persons engaged in the motion pic
ture business who have not obeyed
its mandates.
The General Film Co., organized in
Maine, In April, 1870 alleged to De
the agency through which the de-
PENDANTS films are distributed to ex-
hibitors throughout the country, was
formed the petition AYERS, to monop-
Ollie the business of the rental ex-
changes which previously distributed
the films. This company, IT is declar-
ed, has acquired the business or can
celled the licenses, held from the
Motion Picture Patents Co. of every
rental exchange in the United States,
with one exception, at a cost of 81
24s.0S9 in cash and S794s00 in prefer
red stock.
The alleged unlawful combination
of the defendants became effective
Jan. /. 1903. according to the petition,
as at that time they were the only
manufacturers Of Importance of mos
ton pictures in the country. Not one
of the thousand of exhibitors through
out the United States it is charged
can obtain a motion picture manufac-
tured by anyone of the 10 defendant
manufacturers unless he had received
license from the Patents Co. which
cbiigates him to use the films of the
alleged combination exclusively.
An exhibitor has 10 pay 50 a week
to the Patents Co. it is said, on every
exhibition machine owned by hirn.