Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1913-01-17

| the matter close to the hearts Of the
people. It is estimated that a sum
greatly Dexcess of 500, 900 900 rep
| resents the aggregate Of investments
in the different branches OF the bust
! ness, divided among the manufacture
! ers of the cameras, films and exhibit
ing machines, the rental exchanges
and the theatre Owner
The Motion Picture Trust made
It's appearance in 1908 at which time
there were ten manufacturers or i'm
| porters, about 100 rental exchanges
and 5000 exhibitors. The keenest COM
petition existed at that time. As a re.
suit the manufacturers undertook to
combine under the new scheme Of pat
ent control. The Government charges
that in pursuance of this plan the Mo.
ton Picture Patents Company was in.
corporated in New Jersey, and to 1t
the manufacturers assigned their pat.
cnts, under provisions guaranteeing
the companies certain royalties.
From the patents company the man.
ufacturers took back licenses, binding
lllClllSClS Co 81 LlltiJ Willy llSSliSCS ~
could be used and then only in licens-
Ell machines. Royalties Of 81 per
week we're to be collected and no more
films we're to be sold, but only leased.
The allegation is made that under the
new plan the prices were gradually in
creased until at the present time the
exhibitor pays more for the rental Of
a film than he formerly paid to buy it
outright. ILL.,.
All rental exchanges were required
to enter into license agreements, with
the result that many were driven out
Of business. The exhibitors were d.
vided among the different exchanges
and each exhibitor was required to
obtain his entire supply Of films from
one exchange.
In 1910 the trust started out to O
opolize the rental exchange business
and organized the General Film Com.
pany, which proceeded to acquire the
business or cancel the license Of ev.
cry rental exchange in the United
States except m 1t bought out fifty.
seven exchanges, for which it paid
upwards of $4,000, 900 in cash and
notes and nearly $S,000,000O more in
preferred stock. At the same time the
patents company Cancelled the licenses
and thus drove out of business about
. ..,y exchanges. with the result that
Of all the exchanges doing bust.
ness when the trust was organized
four years ago. only one, the Greater
New York Film Company, survives.
The patents company absolutely
controls every branch of the business
according to the Governments allega-
lions and if an exhibitors license is
cancelled he cannot obtain pictures
in the United States. What is claim.
ed TO be one of the most iniquitious
features Of the combination is its
deadly grip on the motion picture
theatres. Its power enables it to open
or close a theater in any part Of the
country at will. The charge is made
that in many of the large cities GER
tain houses enjoy the favoritism of
the trust, because the officers and
members of the combine have financ-
ial or other interests in them, and
that in order that the favored houses
may enjoy the limit of profitable bust.
ness other houses that might inter.
fere with that business have been sum
marily forced to close their doors.
The trial of the governments suit
against the trust" is expected to ex.
tend well into President Wilson's ad'
ministration. After taking testimony
here Examiner Hacker will conduct
similar hearings in Chicago, Philadel.
Dhia, and several other cities. The
defense, it is understood, will be bas-
ed wholly upon the claim that the de.
PENDANT companies are merely e~xercis.
ing the lawful monopolies Of their pat