The Van Buren press., 1912-08-24
GOVERNMENT SUIT
TO DISSOLVE TRUST.
Moving Picture Business Said
to Be Controlled by Big
Combination.
PATENTS WERE COMBINED
Attorneys Say That Manufacturers Of
Machines and Pictures Had
Working Agreement,

Philadelphia federal govern
ment attacked the so-caIed moving
picture trust in a civil suit filed here
for the dissolution OF the Motion Pic
ture Patents Company ana the Gen
eral Film Company. The moving
picture film concerns are accused OF
combining to monopoize the business
even TO the extent Of increasing or
decreasing the number Of motion pic
ture Jheaters in which they have no
proprietary interest.
The following corporations and in
diyiduals who are officers or direct
ors are named defendants.
Motion Picture Patents Company
General Film Company Biograph Com
pany, Thomas A. Edison Cucorporat.
ed Essanay Film Manufacturing
Company The Kalem Company lin
corporated); George Klieu, Lubin
Manufacturing Company Melies Man.
ufacturins Company Tathe-Friorcs,
the Selig-Polyscope Company, The Vi
tagraph Company of America, Armat
Moving Picture Company Frank L.
Dyer, Henry n. Marvin, j. j. Kennedy,
William Pelser, Samuel Long, j. A..
Berst, Sigmund Lubin, CASTOR Nellie,
Albert r. Smith George X. Spoor and
W. n. Solig.
The government charges that un.
reasonable and oppressive restraints
and conditions have been arbitrarily
imposed on the manufacture ana lcas-
ing of films and machines, depr.ying
the public of the advantages OF com
petition, especially the competition
Of foreign films the importation of
which is alleged to be restricted,
The government petition says that
between 100000 and 100000 feet of
pictures aro printed each week by
manufacturers and distributed to
thousands Of exhibitors an over ths
United states. The government de
claros that a sum generally I'm excess
Of SI0O00O00O has been invested in
different branches Of the business.
The defendants control it is added,
from so to so per cent Of the film
business, furnishing approximately
1000 exhibitors.
The General Film Company organ.
lied in Maine in April, 1910, ALLEGED to
be the agency through which the de-
fcndants films are distributed 10 oX-
hibtors throughout the country was
formed, the petitions AYERS, to monopo.
lie the business Of the rental oy.
changes, which previously distributed
the films This company 10 is de.
clarod, has acquired the business or
cancelled the licenses held from tho
Motion Picture Patent Company Of
every rental exchange in the United
States with one exception, at a cost
Of $22i3,0S0 In cash and $59lS0O iu
preferred stock
The alleged unlawful combination
Of the defendants became effective on
January I, 1909, according to the petit
ton,
An exhibitor has TO pay - week
to the Patents Company It is said, on
every exhibition machine owned by
him, even including machines sold
years before 10 the exhibitor without
any conditions being attached TO the
sale,
"Ucrcndants through the Patents
Company" the petition adds, "worc
enabled TO and did determine whether
now motion picture thoalors should or
should not be opened and whether old
ones should be closed, although de
rcndauts had no proprietary interest
In such thoators This offer they have
exercised and continue TO exercise ar
bItrarIy and mroa8on0bly through the
Patents Company"
Each Of the 10 film manufacturers
defendants huyo license agreements
with the Patents Company providing
that films shall not fan into The
hands Of exhibitors who use any but
the defendants exhibiting or project
lng machines,
Tho Patents Company agreed with
manufacturers % exhibiting machines
etlpuatlug that every machine should
be- sold subject 10 the condition that
It should be- used only for The films
Of the alleged combination
Washngton Tho 800 marines land.
ed by the collier Justin at cornlo
have been sent to Monagua To- rein
force the bluoIackols from the PUN
bonl Annapolis Americans and other
foreigners at MotOgapo have boon In.
formed by government authorities
that they must be prepared to protect
themselves
.4=as
souabbIe over Canal Bill,