Evening star., 1925-10-28


found necessary to prevent unfair
methods in competition and monopoly
In other great industries" it is stated
further, must be rigidly spilled to
this new industry, at least to the ex-
tent sought in this case, that the in
dependent theater owner should be
left free to lease from any and all
producers, and free to lease only such
films as he deems suitable for his
locality and acceptable to his patrons"
And:
Whether the motion picture will
prove to be a blessing or a curse to
the world will depend upon whether
or not each of the three branches of
| the industry, production distribution
and exhibition, can be kept free from.
the evil influences of monopolistic con-
troll"
Sweeping Denials Made.
Cravath. Henderson & De Ceres
dorff of New York. attorneys for
Zukor and Famous Players, in an eX
ception prepared by Robert T. Swaine
and Bruce Bromley, have filed sweep
ing and detailed denialS OF the allega-
tions against him and kis associates.
1t may be stated that the defense
counsel viii contend the proceeding
Of a manufacturer to sell his product
directly to the public; that Famous
Players, While the largest corporation
in the industry, has no monopoly or
domlnative position. that the fire of
the commission should be directed at
the organized Independents and eX-
hibitors who are endeavoring to pre-
vent the manufacturer selling his pro
duct directly to the consumer; that
h1
exaggerated; that inferences and con
CluSions not supported by evidence
have been drawn, and, in summation,
that the statements of the commits
SiOn'S counsel and examiner are mis-
leading as to the facts and in many
cases wholly unfounded
Zukor has taken steps to separate
Famous Players theater interests
from production and distribution by
placing them under other manage
ment than his, but is not selling them
Another investigation of the indus
try has been carried on by the De
partment of Justice, independently of
that of the Trade Commission. Usual
ly where two Government departments
start inquiries along the same line,
one steps aside at least until the initial
one ends.
The Department of Justice probe is
under the direction of William ].
Donovan, chief assistant TO United
States Attorney General Sargent
Donovan did not wait on the Trade
Commission. He kept on. A particu-
lar part of his inquiry had to do with
the Film Boards of Trade, chartered
for dissemination of trade information
and which independents in the busi-
ness claimed operated as arbitration
boards and cracked their heels.
Hays Created Boards.
1t was discovered by the officials
that the boards We're a pet creation of
VIII II. Hays, president of the Mo
ton Picture Producers and Distribu-
tors of America, who, as chairman of
the Republican national committee.
ran President Harding's campaign.
Department of Justice officers de-
cline to discuss their findings.
In the commissions case the evi-
upon thousands Of
pages of it-brings out the inside of
the movies" in its most interesting
phases.
Never has there been a case
brought by the Government in which
the general public has been more vital
ly concerned" it is contended by the
commissions counsel.
1t is estimated the daily attendance
l3 200 600 to 10000. 900 persons, or one
daily from each family in the country,
and that approximately $1,000 900 900
is paid yearly for admissions.
The claim is made that, with all the
importance of the industry shown.
theater owners have been compelled
to show poor pictures in a bulk sale
practice or not get any good ones.
Out Of the investigation there has
the film business. 1t includes acCusa-
tions of coercion, intimidation and
conspiracy.
Running through the evidence is
testimony of how Zukor. head OF the
Famous Players, sought to be pro-
ducer, distributor and exhibitor of pic
lures, and. with ambitious design for
becoming the head of the largest and
most successful organization in the
industry, played for the stake OF
81 500, 900 600. representing the invest
ment in motion pictures, and a sum
larger than the total capitalizat ton of
the United States Steel Corporation.
Career Is Thrilling.
These threads of testimony have
woven a story Of his own career that
is more striking than any of his screen
pictures with the thrill of swift hap
peningS that show life in its most
vivid and stimulating phases" as they
are advertised.
In his rise to power it is like that of
one of the young characters in Horatio
Alger'S books.
Zukor came to this country a Hun
garian immigrant lad when he was
16 years old. He is now 81.
His first job in New York was as
sweeper in a fur store. He swept
clean and spent his spare time figur-
ing on the fur business. He noted
that women had difficulty keeping
boas about their necks and invented
patent snap for fur neckpieces.
-Four years later found him in Chi
Cago-in the fur business, prospering,
but too slowly to suit him. Nine
years after that-in 1903-he was back
in New York and started a penny
arcade in Fourteenth street with
Marcus Loew, whom he had met in
the fur business. Their penny-in-the-