The Washington herald., 1921-09-04

J of stock in competing concerns in violation
of the Clayton act the charges con-
tanned in a formal complaint issued by the Federal
Trade Commission against the Famous Players-Lasky
CORPORATION and eleven other respondents last week.
The respondents named with the Famous Play
ers-Lasky Corporation the Stanley Company of
America; Stanley Booking Corporation; Black New
England Theaters. incorporated; Southern Enter
prises. incorporated; Saenger Amusement Company:
Adolphe Zukor: Jesse L. Lasky; Jules Mastbaum:
Alfred S. Black; Stephen A. Lynch and Ernest V.
Richards, jr.
The complaint declares that the Famous Players
Lasky Corporation Adolphe Zukor and Jesse l.. Las
ky combined and conspred to control and mo-
nopolze the motion picture industry and to restrain
restrict and suppress competition in interstate
merce in motion picture films In pursuance OF this
conspiracy and combination the complaint charges
that the respondents acquired in 1916 Bosworth Inc,
Jesse L. Lasky Feature and Play Co., Inc, and Fa-
Players Film Company. and that since the time
of such acquisition the Famous Players-Lasky Cor
poration has. and still owns, the whole of the stock
OF the firms mentioned, and that the effect OF such
acquisition has eliminated competition between such
corporations and tends to create monopoly in such
commerce in the motion picture industry.
Acquisition of motion picture theaters through
coercion and intimidation Of into selling their
theaters after threats Of erecting competing houses
and of interfering with their hlm service as fur
therance OF the conspiracy alleged charged 1t is
declared that in 1919 the respondents entered into
comprehensive plan of extending the corporations
activities by the acquisition OF heaters. particularly
the key cities.
In pursuance of this program the respondents
conspired. the complaint alleges. with the Black New
England Theaters Inc, of which Alfred S. Black is
president to secure control of the distribution and
exhibition of motion pictures in Maine, New Hamp-
shire Vermont and Massachusetts,, and that by ac-
QUESTION Of 50 per cent Of the stock Of the Black
New England Theaters. Inc. the respondents control
more than sixty theaters in the States mentioned
This has, is charged, either entirely excluded nde-
pendent producers from that territory causes in
dependent producers to lease their films at loss or
upon undesirable conditions
The complaint declares that further pursuing this
program the respondents conspired with the Stanley
Company of America which owned or controlled
more than ffty-seven theaters in Pennsylvania West
New Jersey and Delaware; and with the Stanley
Booking Corporation, owned by the Stanley Company
of America to secure control of the motion picture
industry in this territory and that result OF this
conspiracy the Paramount Pictures and Paramount
Aircraft pictures either shown exclusively
given a preference others in this territory, and
that well-known independent producers either en-
trely excluded or only able to lease their films
at loss or under undesirable conditions 1t is de-
clared that in acquiring this control theater owners
have been coerced and intmidated into selling their
theaters into giving the respondents the exclusive
rights booking motion pictures for their theaters
The same program followed, the complaint
charges, regards the Stephen A. Lynch Enterprises
Corporation which and operate theaters in the
Atlantic and Gulf States from North Carolina to
Texas and in Tennessee, Arkansas and Oklahoma.
The complaint declares that acquisition of many
of these theaters was accompanied by coercion and
intmidations of theater owners into selling their
theaters giving respondents exclusive rights to
book pictures for their heaters by threats of erecting
competing houses by interfering with film service
and causing cancellation of contracts and by other