Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1912-08-16
Govt Starts Action
Against Ten Firms
Accused as Moving
Picture Monopoly.
PATENTS POOLED TO KILL
COMPETITION, Is CHARGE
Purpose of Holding Co. Formed
in Jersey Is to Bring Law
Suits TO Harass Competitors,
Complainant Alleges.

Suit was fled today in PhfIadei-
phia for the dissolution of the 81
called moving picture trust.
The Motion Picture Patents Com
pany. of New Jersey. and Thomas 4
Edison, Inc, are among the defend
/ ants.
Ten moving picture hlm Concerns
are charged With combining to mo-
nopolize the business OF the coun-
try
1t is alleged that they increas "a
n decrease the number of motion
picture theatres, that they shut art
foreign films and that they impose
oppressive restraints and Conditions
on the manufacture and licensing Of
films and machines.
The Motion Picture Patents Com
pany. which was organized in this
State in September. 1908. is alleged
to be the holding Of All the
moving picture patents OF the defend
ants.
Because Of the absence of his per-
sonal counsel. no statement could IS
obtained from Thomas A Edison At
his West Orange laboratories 3 W.
The following corporations and IN
~dividuais. who are officers or direc-
tors. are anne defendants:
List -of Defendants.
Motion Picture Patents companv
General Film Company: Biozra,h
Company, Thomas A. Edison. Inr..4
Essaney Film Manufacturing Cons
panys The Kalem Company. Inc.
George Kleine. Lubin Manufactnrine
Company. Melies Misunderstanding
Company. Pathe Freres. the sex
Fefyscone COMPANY. the Eifaxraph
Company of America. Armat Moving
Picture Company, Frank L. Dyer.
Henry N. Marvin. J.. ]. Kennedy,
William Pelzer. Samuel Long. J. A.
Berst. Siegmund Lubin. CASTOR Me-
lies. Albert E. Smith, George K. spoor
and W. n. Selig.
Each of the defendants is alleged
to have ov~erstepped the bounds Of
the lawful monopoly granted by their
patents n the petition asks that
several complicated i~nterlocking H.
cense restrictions. tying patents to-
gether. be ordered cancelled. The
government charges that u-nreasona-
BILE and oppressive restraints and
conditions nave been arbitrarily in1-
posed on the manufacture and lea -
~ u li"s - iha0ins. aep1isinz
petition. especially the Competition
of foreign films. the Importation Of
which is alleged to be restricted.
EuNih SiosNshor' spsciaa as
sistant to the Attorney General, who
has charge of the pending ant1-trust
SUIT asainsl the i~hternatlonai Haf-
Nes'er maze an
investigator OF the moving picture
business the petition lied
1ooay by united states Attorney John
y swarues, IN aodltion the Dill -
sisheo oy attorney General wicker
sham ana James A fowier, his as
slstant
sioo'ooo'eoo Invested.
The governments petition says that
between 2,50o,oeo n 100000 feet ot
pictures are printed each week by
manufacturers and distributed 20
thousands OF exhibitors all over ths
United States. The government de-.
clares that a sum greatly in excess
of 500. ooO.o oo has been invested in the
different branches Of the business. h
20 TO 80 per cent. OF the hlm business
furnishing approximately 1000 exhlh-
TORS.
The Motion Picture Patents Coni-|
pahs' organized IN New JersrT N.
: oepee tsoe' = ene hotoiae com
pany Oh an the inet'on picture patents
Oh the ~oetehoah.s.
oener man eohectlng ana disIrleu~
: tlng royaities among the defendan{s
tne pil SAYS the patents companya
oniy business Is the prihglng OF law
suits under the patents 1t holds Huns
dreds OF SUITS nave been brought. ~
is alleged. TO harass and Cypress all
persons engaged IN the moving Picture
business who have not oheyed is
mandates.