Evening star., 1923-04-18
MOVIE MONOPOLY
IS CHARGED BY US
Big Corporations Summoned
to Bar for "Conspiracy to
Kill Competition"
BY FREDERIC WILLIAM VILE.

For the first time In the history Of
the movies" the United States gov
eminent has opened fire on tine vast
motion picture industry. which is
alleged to be under monopolistic con-
troll.
The Federal Trade Commission
charges a powerful group of corpora
tions and individuals, including the
Famous Players-Lasky combination,
Adolph Zukor, Jesse L. Lasky and
Jules Mastbaum. with using unfair
methods of competition in commerce" !"
They are charged with violation of
section of the act Of Congress under
which the Federal Trade Commission
was created. Months OF investiga-
tion in Hollywood, New York and
other movie centers having con-
vinced the commission that proceed
ings in respect thereof would be to
the interest of the public" the de-
fendant group has been formally
summoned to the bar. |earings will
begin on the premises of the Engi-
neers' Societies in New York city
april %. They will be conducted for
the government by William H. Fuller,
chief counsel OF the Federal Trade
Commission. Paul d. Cravath of the
the defense.
The companies and persons against
whom proceedings lie are: Famous
Players-Lasky Corporation. Realart
Pictures Corporation. the Stanley
Company of America. Stanley Book
ing Corporation, Black New England
Theaters, Inc: Southern Enterprises.
Inc; Saenger Amusement Company.
Adolph Zukor, Jesse L. Lasky. Jules
Mastbaum, Alfred S. Black, Stephen
Charged With Conspiracy.
The above-named defendants are
charged with unduly hindering COM
petition in the production, distribution
and exhibition Of motion picture films
in interstate and foreign commerce.
They are further accused Of "conspir-
ing and confederating to control,
dominate, monopolize or attempt to
monopolize, the motion picture in
dustry."
After reciting in detail the actual
methods by which film companies
produce, release" and exhibit motion
pictures, the Federal Trade Commits
SiOH SollpldihI io" oO
called "tirst-run" and "repeat-run"
picture theaters are conducted. First
run" houses are those in which occur
the initial presentations OF pictures
In certain generally defined ter
ritories. Approximately SO per cent
of the revenue from film is derived
from "first-run" showings within six
months from the date Of its release.
The remaining revenue comes from
second and repeat runs" in other
theaters. extending over a period of
two or three years.
1t is alleged that in the spring of
1916 there were three corporations
Jesse L. Lasky Feature Play Com
pany of New York. Famous Players
Film Company of Maine and Bos-
worth, Inc, of California-engaged in
producing films in competition with
one another. There also existed the
Paramount Pictures Corporation OF
New York. the principal agency en-
gagged exclusively in distributing and
leasing pictures to exhibitors and
which made it's trademark, Para
mount Pictures" well known through
out the ptcture-theater public.
Combinations Formed.
The Federal Trade Commission con-
tends that Adolph Zukor and Jesse l..
Lasky. through the Famous Players
Lasky Corporation, conspired to ac-
auire the capital OF the producing
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