The united opinion. [volume] (Bradford, Vt.) 1881-1970, 1921-09-09
ATTACK FIRM AS
FILM MONOPOLY
Federal Trade Board Declares
Famous PIayers-Lasky Corpo-
ration Violates Trust Laws.
ACCUSES IT OF CONSPIRACY
Two-thIrds of Money Spent by Movie
Patrons Goes to Company, Is
chareed-s4, 900, 900 Day Is
Estimated Revenue.

Washington. - The Famous Players
Lasky Corporation, the worlds largest
movie concern, and owner of 400 thea
tiers in the United States and Canada
was charged with unfair competition
under the Clayton act, in formal COM
plant issued by the Federal trade
Commission. The complaint was oil
rected against the corporation ana
eleven other respondents.
The commission, tracing the history
Of the corporation from Its start as
small enterprise with small cap
Ital, set forth that now "as result
of conspiracies and affiliations made
In pursuance Of said combinations ana
consplracies" It has eliminated compe-
tition by buying up the businesses OF
Its competitors, and now has a monop-
oily over the entire motion picture IN
dustry.
The commission alleged that 67 cents
out Of every dollar paid into movie
theaters throughout the United States
is paid to see attractions under the
name Of Paramount and Paramount
Aircraft pictures, distributed by the
Famous PIayers-Lasky Corporation.
1t was said in the complaint that
there are approximately $4,000 movie
exhibitors in the United States, and
that about 20,000000 persons every
day spend approximately S4,OOO,OOO IN
cash to see motion picture exhibitions.
This was mentioned by the commits
sion in its charge that the Famous
Players-Lasky Corporation, in its con
troll of the majority of movie prOduc
Ing companies, distributes more than
10000 films each week to exhibitors in
the United States and foreign coun-
tries.
/ The commission cites at some length
the corporations activity in New York,
where 1t is alleged to maintain prac-
tically a monopoly. The complaint de-
clared in "furtherance Of the con-
spiracy charged" that:
/ 1.-THE Famous Players-Lasky Corpo-
ration acquired the New York Theater
building, containing the Criterion, the
New York Theater and the New York
Roof at a cost of $3,2O0,000; that re.
spondents acquired the Rivoll and
Rialto in the same district of New
York city, as we'll as the property on
which the Putnam Building is located,
where II Is proposed in the near future
10 erect a thirty story building to cost
! 100000 and to contain a motion pic
ture theater."
The complaint also set forth that the
corporation acquired the stock Of
Charles Frohman, Incorporated, which
IL was alleged, leases the Empire Thea
! ter, and has an interest in the Lyceum
Theater.
1t was charged that the policy of the
| corporation was to acquire and attili-
ate with it producers, distributors and
exhibitors. as a result of which pic
! lures of independent producers are
/ kept out of a showing In theaters In
many large cities, and that continua-
ton Of such a policy will eventually
eliminate all Independents If the prac-
| tees are continued.
Continuing its recital of the dan
gers of the corporations alleged I'M
fair competition, the complaint fur
Their stated:
"Thus, as the theaters owned, con-
trolled or operated by the Famous
! Players-Lasky Corporation are perma-
nently closed to all competitors, the
productions of many prominent artists
who are not affiliated with the Famous
Players-Lasky Corporation are denied
a showing Of their pictures in the
first run downtown theaters In New
York city, where three Of the FIVE frs,
run theaters are owned by the Famous
Players-Lasky Corporation, and show
Paramount and Paramount-Artcraft
pictures exclusively, and the remaining
two first run theaters are owned or
controlled by competing producers who
likewise exhibit their own productions
exclusively"