The Prince George's enquirer and southern Maryland advertiser., 1921-09-16
ATTACK FIRM AS
FILM MONOPOLY
Federal Trade Board Declares
Famous PIayers-Lasky Corpo-
ration Violates Trust Laws.
ACCUSES 1T OF CONSPIRACY
Two-thirds Of Money Spent by MovIe
Patrons Goes to Company, Is
charged-s4, ,ooo, 900 a Day is
Estimated Revenue.

Washington. - The Famous Players
Lasky Corporation, the worlds largest
movie concern, and owner Of 400 thea
ters 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 d.
rected against the corporation and
eleven other respondents.
The commission, tracing the history
Of the corporation from its start as
a small enterprise with small cap
ital, set forth that now ''as result
of cOnspiraCies and affiliations made
in pursuance of said combinations and
conspiracies" it has eliminated compe-
tition by buying up the businesses OF
it's competitors, and now has monop-
oily over the entire motion picture in
dustry
The commission alleged that 81 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 Players Lasky Corporation.
1t was said in the complaint that
there are approximately $4,000 movie
exhibitors in the United States, and
that about 20OO0,O0O 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 ma ajority Of movie produc
ing companies, distributes more than
the United States and foreign coun-
tries
The commission cites at some length
the corporations activity in New York,
where ii is alleged to maintain prac-
tically monopoly. The complaint de-
clared In 'furtherance of the con-
spiracy charged" that:
The Famous PlayersLasky Corpo-
ration acquired the New York Theater
building, containing the Criterion. the
New York Theater and the New York
Roof, at a cost of $3,2OO,000; that re.
spondents acquired the Rivoli and
RiaItO in the same district of New
York city, as well as the property OH
which the Putnam Building is located,
where 1t is proposed in the near future
to erect a thirty story building to cost
s8,0O0,000 and to contain 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 atfiii-
ate with it producers, distributors and
exhibitors, as result of which pic
lures Of Independent producers are
kept out CT q showing in theaters in
many large cities, and that continual
ton of such a policy will eventually
eliminate all independents if the prac-
tices are continued.
Continuing It's recital of the dan
gers of the corporations alleged un-
fair competition, the complaint fur
ther 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
showing of their pictures in the
first run downtown theaters In New
York city, where three of the five first
run theaters are owned by the Famous
PIayers-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"