Evening star., 1925-10-31
by JAMES ROBBINS.
ARTICLE w.

ARTICLE w.
Strangling of competition as well
as unfair and unscrupulous' meth
DDS are fatty alleged by counsel for
the Federal Trade Commission In
their study Of the record Of the mo-
ton picture investigation.
They attribute most of the choking
off OF healthy competition TO inter
lockings OF the interests OF producer,
distributor and exhibitor.
Block booking. or the whole of a
producers output or none, and which
IS largely responsible for the theater
owner being forced TO present poor
pictures. is set forth as a glaring evil
In the exposition OF testimony.
The working combination" be-
tween Adolph Zukor. head OF the F'a-
nous Players -Lasky Corporation. and
Marcus Loew In New York City is
dwelt on at length.
Own Large Theaters.
Famous Players owns the Rivoli.
Rialto and Criterion Theaters, in the
heart of New York's Broadway thea
ter district. The Rivoli and Rialto
each seats $500 persons. The Criterion
is smaller. The Metro Goldwyn Mayer
Corporation, headed by Loew, owns
the Capitol. seating $500. The Strand,
which seats 1900. operates under Il
First National contract. Loew is
stated TO also rent the New York
Theater and New York Roof from
Zukor and Famous Players. which
are in the same building with the
Criterion.
This Goew's) is the largest and
strongest circuit OF theaters in New
York City" Government counsel say.
'and II has for years used Paramount
Famous Players) pictures 100 per
cent. Each year the Paramount
product is offered to Loew first. and
he has the refusal OF It before 1t is
offered to any other exhibitor or eX-
hibitors in the metropolitan district
The Loew houses are given protec.
ton over all other theaters, with the
exception IN some cases Of the
United Booking Offices or Keith's
circuit theaters. The effect Of this
has been that the individual exhibit.
tors in New York, who formerly had
first-run theaters, have now been
showed aside and their houses have
deteriorated into second or third runs
on account of the protection afforded
Loew's. Many exhibitors testified
showing how this Loew protection is
gradually eliminating them from the
industry.
~. Bradbury has operated the
Olympia Theater for years and used
Paramount pictures 100 per cent. His
house was first-run theater until
1921, when Loew opened his Eighty.
third street Theater IN the same zone
or district. After this Bradbury had
1ny TO trxy, o. kA 10
after Loew and his house had"
Many similar instances Of alleged
favoritism shown to Loew were given
by metropolitan theater owners.
Advantage Is Great.
A run OF a week or more in a first
class theater on Broadway has great
effect on the exhibition of picture
elsewhere all over the country. The
New York run" advertising carries
q wealth Of magnetism. Exhibitors
In the smaller towns frequently call
attention to the fact that q picture
has been shown in one Of the big
theaters in q large city at a much
higher price than Is to be asked to
see It. The advantage of New York
runs is great.
Such theaters as the Capitol,
Strand, RivoIi and Rialto can afford
to and do pay more for pictures than
the houses running vaudeville. be-
cause they charge high admission
prices and do not have the expense
of vaudeville acts.
Counsel for the respondents point
out, however, that these houses have
musical and other programs frequently
recruited from vaudeville.
AL Lichtman. president Of the Pre-
ferred Pictures Corporation, testified
that in two years he had been able to
place only pictures out Of "a on
Broadway, and one he placed by rent.
ing q theater at his own expense.
Defendants counsel recall that testi
mony OF managers of high-class the
aters was introduced that the pic.
lures were not considered what was
wanted for the Broadway theaters.
He rented the Criterion for two
weeks for $4,000. he testified, and in
addition paid $4,000 for the electric
salaries Of the employees and orches
ira, making total expense Of ap.
proximately $4,000 for the two weeks
while his receipts were $4,000.
It is stated on behalf Of Zukor that
this was q fair rental, and the fact
that Lichman was unable to make
money was due to his picture.
The producer who does not have to
rent outright receives 25 per cent OF
the gross returns OF q picture for the
first-run showing in the f1rst-class
theaters in the key cities.
Describes Independent Role.
Testifying as to the position Of the
Independent producer and distributor
when It comes to competing with the
producer distributor exhibitor. LIGHT
man said: