Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1915-10-01
u. S. COURT RULES
AGAINST MOVIE TRUST
Continued from Page One

August 1s, 1912. and the suit has been
carried on with frequent Interruptions
since that time. A unique feature of the
proceedings throughout has been the
claim of the Government that the de-
fendants have circumvented the anti
trust law by claiming the protection of
the patent laws.
The defendants admitted that some of
their acts might be construed to be
aimed TO evade the antitrust law, but
asserted that the consolidation was i'm
patents on films and projecting machines.
Testimony was brought to bear on this
point which showed, however, that the
defendants had obtained a strange
hold" on the motion picture business by
system of blackllsting dangerous"
concerns and operators.
II wns said that the General Film Com
pany, organized in 1909, and other large
coEporations, assigned all their patents
to the Motion Picture Patents Company
as trustee. giving the latter concern
power to enforce the rules governing the
use Of films and machine. 1t was averred
That blacklist of exchanges and ex-
hbitors who operated Independently was
compiled, and all exhibitors and produc-
ers we're warned not to supply the black
listed Independents with films or supplies.
under the penalty of also being included
on the "list."
COMPETITORS FORCED OUT.
To further the operation OF this plan
hundreds OF replevin suits are said to
nave been brought against various ex-
enanges and exhibitors to terrify them
INTO submission to the trust" 1t was
nfther asserted that within few
months Of the formation of the General
. Ia.
nught or forced out of business. and that
u the 116 exchanges that formerly.
sznaied the business of the defendants be-
.e'e lsS only one now survives, namely
VIC Greater New York Film Company,
which fought for its existence in the
statistics showing how this system
opeFate dto put 612 motion-picture thea
~ out OF business and kept 147 others
Ivm obtaining licenses were shown.
'ne .nle II was also testified that 50 other
sneAtres: who were caught loaning or
eo.o-ieaslng films leased TO them by the
heenses revoked.
VAST PROFITS OF COMBINE.
~ was testified that In the first year
its existence the General Film Com
..ny. having thrust most of It's COM
Fepeofs out Of the way, conducted such
ehormous business that II disbursed
e'e than 2,OOO.OO0 from profits, paid 4
cent on its preferred stock and 12
~ cent. on its common shares, and at
.al one OF the organizers netted 1900
Ky cent. on his $4,000 investment, accord
is . The estimates OF Attorney General
nsasl .~~,n 4. Grosvenor. who conducted the
ne also asserted that exchange men
ethloltors, who broke tins rules OF the
npany were made to suffer.
PICTURE coMPANY's DEFENSE.
ne defendants argued that patent laws
,.,,.'em as mem the right to 90 with their
<.rte',y what they willed. and that In or
~. W preserve their interests Il was nee
4-f 70 Impose severe restrictions on
~. "s use OF such property. Millions OF dol
have been invested in the Motion
<tefe Patents Company. Il was said, TO
49,. me art TO the highest standard OF
...',s .,se',on' and that singly the defendants
= ~ - nave been unable 20 produce any
II.'+' hsh-grade pictures now being ex-
a. +'a Without infringing on the rights
other companies.
~, vas also asserted that the public
~ eo1ne TO make such demands from
4 Mouon-picture producers as 10 make
".oaiiy impossible for a single con-
20 meet them. because OF the ex-
Il involved and without the benefit
d.. - adviee and patented devices OF
''AfF producers.
-. notion picture was exhibited IN the
.'. States District Court 10 show
.'-. plekinson that the "perfecilon"
..,.ni ..eni Of the present day pictures was
.o''. tne defense alHo raised ihe nice
t'e' Fl ~ 'oellne with an