The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-09-01
LASKY CORPORATION
ACCUSED OF HOLDING
MONOPOLY ON FILMS
Trade Commission Com.
plains of Unfair COMPETE
ton Under Clayton Act.
OTHERS FROZEN OUT
Two-thirds Of Money Spent
by Movie Patrons Goes to
Company, Is Charged.
FIRM GRIP IN NEW YORK
@, 900, 900 Day Is Sum Esti-
mated as Revenue of the
Industry in Country.
FIRM GRIP IN NEW YORK
Special Despatch to THE Ngw York HERALD.
New York Herald Bureau,

Special Despatch TO THE NEW YoKK HERALD
New York Herald Bureau,
Washington. ID. G., Aug. 81.
The Famous Players-Lasky Corpora
ton, the worlds largest movie con-
Germ, and owner of 400 theatres In the
United States and Canada, was charged
to-day with unfair competition under
the Clayton act, in formal complaint
issued by the Federal Trade Commits
sion. The complaint was directed
against the corporation and eleven
other respondents.
The commission, tracing the history
of the corporation from it's start as a
small enterprise with small capital,
set forth that now "as result of con-
spiracies and affiliations made in pur-
suance of said combinations and con-
spiracies" it has eliminated COMPETE
ton by buying up the businesses of its
competitors, and now has a monopoly
over the entire motion picture in
dustry.
The commission alleged that 81 cents
out of every dollar paid into movie
theatres 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.
10000 Films n Week.
It was said in the complaint that
there are approximately $4,000 movie
exhibitors in the United States, and
that about 100000 persons every day
spend approximately s4.oo0,o00 in cash
to see motion picture exhibitions This
was mentioned by the commission ~ 10
charge that the Famous Players-L-tsky
Corporation, In its control of the ma
jority OF movie producing companies.
distributes more than 10000 films each
week to exhibitors in the United States
and foreign countries.
The commission cites at some length
the corporations activity in New York,
where II Is alleged to maintain prac-
tically a monopoly. The complaint de-
clared in ''furtherance of the conspiracy
charged that:
1.-THE Famous Players-Lasky Corpora
ton acquired the New York Theatre
X,
New York Theatre and the New York
Roof at cost of S3.200,000; that re-
spondents acquired the Rivoli and
Rialto in the same district of New York
city, as well as the property on which
the Putnam Building Is located, where
II Is proposed in the near future to erect
a thirty story building to cost ss,o0o,O0O
and to contain a motion picture
theatre"
The complaint also set forth that the
corporation acquired the stock OF
Charles Frohman, Incorporated. which
II was alleged. leases the Empire Thea
tire. and has an interest in the Lyceum
Theatre.
Grip on New York.
II was charged that the policy Of the
corporation was to acquire and affiliate
with II producers. distributors and ex-
hibtors. as result of which pictures
OF independent producers are kept out
OF a showing in theatres in many large
cities. and that continuation of such a
policy will eventually eliminate all in
dependents II the practices are con-
tlnued.
Continuing its recital of the dangers
OF the corporations alleged unfair COM
petition. the complaint further stated
Thus, as the theatres 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 hrst
run downtown theatres In New York
city. where three OF the five first run
theatres are owned by the Famous
players-Lasky Corporation, and shoy
Paramount and Paramount-Artcraft
pictures exclusively, and the remaining
two first run theatres are owned or
controlled by competing producers who
likewise exhibit their own productions
exclusively
THE commission gave the respondents
thirty DAYS In which to answer the COM
plant, and any further action VIII DC
determined by the Acknowledgement.