The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1912-08-17
Civil Action Filed Against Ten
Big Film Manulae.
turers
CONTROLS THEATE8S, CHARGE
Government Contends Exhibitors
Must be Defendants Pictures
Exclusively

Philadelphia, Aug. 16,-The Fed
eral Government attacked the so
called moving picture trust in civil
suit filed here today for the dissolu-
tion of the Motion Picture Patents
Co and the General Film Co.
The following corporations and
individuals, who are officers or dl-
rectors, are defendants; Motion
| Picture Patents Co., General FUN
Co., Biograph company, Thomas "A,
| Edison finc.) Essanay Film Manu-
| featuring Co., the Kalem company
| (inc0 George Kleine, Lubin Manu-
featuring Co., Melies Manufacturing
Co, Pathe Freres, the Selig Poly
scope Co., the Vitagraph Company OF
America, Armat Moving Picture Co,
Frank l.. Dyer, Henry N. Marvin,
j. J. Kennedy, William Pelzer, Sam
uel Long, j. A. Berst, Segmund Lu-
bin, Castor Meles, Albert r., Smith,
George K. Spoor anc w, N. Selig.
Each of the defendants is alleged
to have overstepped the bounds OF
the lawful monopoly granted by|
their patents and one petition asks
that several complicated intcrlock-
ing license restrictions, tying pat
ents together, be ordered Cancelled.
The government charges that un-
reasonable and oppressive restraints
and conditions have been arbitrarily
imposed on the manufacture and
leasing of films and machines, de-
priving the public of the advantages
of competition, especially the COM
petition of foreign films, the inn
portation of which is alleged to be
restricted,
The Governments petition says
between 100000 and 100000
feet of pictures are printed each
week by manufacturers and distrib
uted to thousands Of exhibitors all
over the United States, The Gov
ernment declares a sum greatly in
excess of $t00,0 100000 has been in
vested in the different branches Of
the business. The defendants con-
troll, it is added, from 70 to 80 per
cent of the film business, furnishing
approximately 7000 exhibitors,
The Motion Picture Patents Co,
organized in New Jersey in Septem-
her, 1903, Is the holding company
Of all the motion picture patents Of
the defendants.
Sole Work to File Suits
Other than collecting and dstrib
uting royalties among the defend
ants the bill says the patents com
pany's only business is bringing OF
law suits under the patents 1t holds. |
Hundreds of suits have been
brought, il is alleged, "to harass ana
oppress all persons engaged in the
motion picture business who have
not obeyed its mandates"
The General Film Co, organized
in Maine in April, 1910, and alleged
to be the agency through which the
defendants films are distributed to
exhibitors throughout the country.
was formed, the petition AYERS. to
monopolize the business of the rent
al exchanges, which previously dis
tributed the films. This company,
it is declared, has acquired the bust
ness or Cancelled the licenses, held
from the Motion Picture Patents
Co. of every rental exchange in the
United States, with one exception,
at cost of S2,243,0S9 In cash and
$794,s00 in preferred stocks.
The alleged unlawful combination
OF the defendants became effective
Jan /. 1909, according to the petit |
ton At that time the power of the +;
monopoly of the defendants was alb |
solute, it Is stated, as they were the |
only manufacturers or importers of |
motion pictures In the country. No |
exhibitor, it is charged, can obtain |
a motion picture manufactured BY |
any Of the 10 defendant manufac. |
turers unless he has received IL |
cense from the Patents company, |
which obligates him to use the films
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