The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1912-08-17

NH1LADELPHlA, Aug 1b,- The
~ federal government attacked the
so-called moving picture trust in
civil suit fled here today for
the dissolution of the Moving Picture
Patents company and the General Film
company, Ten leading film concerns
are accused of combining to monopolize
the business, even to the extent of in
creasjng or decreasing the number OF
motion picture theaters, in which they
have no proprietary interest,
The alleged unlawful combination Of
the defendants became effective ,Janu-
ary !. 1909, according to the petition.
AT that time the power of the monopoly
of the defendants was absolute, it is
stated as they were the only manufac-
turers or importers of motion pictures
in the country. Not one of the thou
sands of exhibitors throughout the
United States, it is charged, can obtain
a motion picture manufactured by any
one of the ten defendant manufacturers
unless he has received license from
the patents company, which obliges him
to use the films Of the alleged combiDa-
tion exclusively.
Exhibitors Tolls.
An exhibitor has to pay 50 week
10 the patents company, it is said, on
every exhibiting machine owned by him,
even including machines sold years be.
fore TO the exhibitors without any con-
ditions being attached 10 the sale.
defendants through the patents
company the petition adds, "were
enabled to and did determine whether
new motion picture theatres should or
should not be opened and whether old
ones should be closed, although defend
ants had Iv proprietary interest in
such theatres This power they have
exercised and continue to exercise arbi-
trarily and nnreasonably through the
patents company
License Agreements.
Each Of the ten film manufacturing
defendants have license agreements
films shall not fall into the hands Of
exhibitors who use any but the defend
ants exhibiting OF projecting machines.
The patents company agreed with
manufacturers of exhibiting machines,
stipulatlng that every machine be sold
subject to the condition that it shall
be used only for the films of the alleged
said, fixed the selling price Of machines.
The following corporations and indi-
viduals, who are officers or directors,
are named defendants;
Motion Picture Patents company: Gem
eral Flln company; Biograph company.
Thomas A. Edison Gnc), Essanay Film
Manufacturing company; the Kaem COM
pany Unc); George Kleine: Lubin Man
Polyscope company; the vitagraph COM
pany Of America; Armat Moving Picture
company; Frank L. Dyer: Henry N. Mar
Samuel Long; J. A. Berst: seigmund Lu-
bin: CASTOR Melies: Albert E. Smith;
George X, spoor; w. N. selig.
Screws Too Tight.
Each OF the defendants is alleged to
have overstepped the bounds Of the law
full monopoly granted by their patents
and the petition asks that several com
pIicated interlocking license restrictions
tying patents together. be ordered can
celled
The government charges that unrea-
sonable and oppressive restraints and
conditions have been arbitrarily imposed
on the manufacture and leasing OF films
and machines. depriving the public of
the advantage OF competition, especially
the competition OF foreign films. the I'M
portston of which is alleged to have been
restricted.
Edward p. Grosvenor, special assistant
TO the attorney general. who has charge
OF the pending antitrust suit against the
International Harvester company, made
an exhaustive investigation of the NOV
g en fled oday bS ss the pet
ncy John S, Swartley. In addition the
bill is signed by Attorney General Wick
ersham and James A. Fowler. his assist
ant.
The governments petition says be-
tween 100000 and 100000 feet OF pic
lures are printed each week by manu-
facturrs and distributed TO thousands Of
exhibitors all over the United States.
The government declares that a sum
greatly in excess OF 100000 600 has been
invested in the different branches of the
business. The defendants control IN Is
added from 20 10 so per cent OF the
film business, furnishing approximately
400 exhibitors.
Holding Company.
The Motion Picture Patents company,
organized in New Jersey In September
1905, is the holding company of all tho
motion picture patents OF the defendants
Other than collecting and distributing
royalties among the defendants, the bill
says the patents company's only business
is the bringing Of lawsuits under the
patents II holds. Hundreds OF suits nave
been brought. II is alleged stn ha "a ss