Evening star., 1925-11-03
BY JAMES ROBBINS.
Article vi.

tiIlcIe vi.
| Characterizing the Government
brief in the Federal Trade Commits
! sion's investigation of the motion pic
! ture industry as a lurid melodrama
! spun by counsel for the commission,
CraVath, Henderson & De Gersdorff
/ of New York, attorneys for Adolph
| Zukor and the Famous Players-I.a
| Corporation, contend in the first part
of their brief filed yesterday after
noon, they have ''pricked the bubble
of monopoly blown in the imagina-
| ton of commissions counsel"
They say picture was drawn of
Famous Players as monster well
on the road to swallowing the indus
try, and that large part of it was
based on mere back stairs gossip"
"Villain of Melodrama."
Every melodrama must have it's
villain" it is stated. I'm casting
about for some one to play that role
in their thriller commissions coun-
sci naturally hit upon the man who
has been most prominent in the de-
Velopment of Famous Players-Lasky
Corporation, Mr.. Adolph Zukor''
But it is denied that Zukor is a
superman. He is described as a man
who, despite the handicaps of humble
origin, has been able, by associating
of his business and by a keen sense
OF appreciation of the American sense
Tor entertainment, to lead in building
up in single decade a company that
has dfenitied a heretofore discredited
industry.
Famous Players has never domi-
mated or controlled the motion-picture
business, it is said its position never
having measurably approached domi-
nation ranTrnl q whole in
any one of its three phases-produc-
ton, distribution and exhibition.
Admit BoastfuI Advertising.
True, the advertising of the largest,
grandest collection OF famous players
ever assembled by any moving picture
organization was a bit boastful, but
the members of the commission are
asked not to forget their own youth
and the superlatives they swallowed
when the circus came to town.
Defense Counsels analysis of the
facts is that the ''monopolistic" merg-
ing of producing and distributing
units, of which so forbidding a picture
was drawn, was nothing but the union
of four little" producing companies,
their joining OF forces with their own
distributing agencies, and their organ
iZation of a few small subsidiaries,
either to satisfy the vanity of some
of administration"
The brief is written in defense of
the right of the American manufac-
turer to sell his product directly to
the consumer without the interposi-
tion of wholesale or retail middlemen.
which is declared to be the issue of
the case.
Theater Retail Store.
Divesting themselves and their CO.
respondents of all theater interests,
which counsel for the commission
have asked an order for, would en-
tail, it is admitted, the disposal of
property of probable value of more
than S100,000,000.
The exhibition of their own pictures,
defense counsel contend, is not illegal, |
but commendable. They state it is no
more than a manufacturer selling to |
the public on the direct-to-the-con- |
sumner plan. the theater really being !
the retail store.
Furthermore, they hold it is not
nearly so broad or complete an inte- !
grafton as in the case of the Ford !
Motor Co.. as Famous Players does
not handle the raw materials that go
into film.
1t is recalled that the Federal Trade
Commission itself has been the fore |
most governmental agency in protect |
ing the right of the manufacturer to |
retail his product, or shortening the |
course of trade. Also there is the re-
minder that the courts have sustained
direct sales and confirmed that CO.
operative effort on the part Of the
tailerS, wholesalers or others to inter |
fere with the course of direct dealing
is itself a violation of the antitrust
law.
Rights Under Copyright.
1t is submitted that an order which |
purported to deny Famous Players the |
right of controlling theaterS would be
an abridgment of the Government
copyright of its films ito exhibit in
any manner or by any method what |
Soever."
Five reasons are set forth for the |
ownership of theaters by producers |
First is the advertising of pictures on
their initial runs. second is the i'm |
portance of their having a favorable |
setting and program of music; third, |
that f1rst-run theaters in key cities
furnish from 25 to 40 per cent of the
total revenue received by producers
and distributors in those territories.
fourth. the reduction of overhead cost
and waste motion, and fifth, the abil-
ity to establish standards for the bet
terment of pictures generally.
Since the primary object of Fa-
nous Players holding its theaters is
pictures, natural preference is given
to it's own pictures counsel state.
But. while we insist that Famous
Players has the absolute right to de-
vote all of the time of its theaters
solely to the showing of it's own pic
lures, the great majority Of the time
of the theaters in which it has an in
terest has been taken up in the ex-
hibitiQn of the product of its competi-
TORS This is because MANY Of
theaters, due to a policy of frequent
change of program, use many more
pictures than the company manufac-
lures"
Groups of Film Theaters.
In connection with a recital of Fa-
nous Players determination to fight
for it's own preservation against what
is termed the "inroads" Of First Ma
tional, tables are given on theater
ownership. One shows First National
had 639 theaters on September l, 1924;
Famous Players, 159; Metro Goldwyn
ia; Fox, 80, and Universal, r. Only
165 of First Nationals We're first-run
houses in key cities, however, while
Famous Players had 90 of these, more
than 81 per cent of it's total
1t is stated that each year since
it's organization Famous Players has
had at least twelve large producing
and distributing companies in active
competition with it. The first two
named are Metro -Goldwyn, with which
Famous is alleged by Government
counsel to have a working combina
tion,' and First National with which
it is said to have business connec
TONS
mentioned are Universal, Fox, Pathe.
Preferred Pictures Select prOdi1cerS'