Evening star., 1925-11-02
STORY OF FILM
'TRUST7' CREATION TOLD BY u. S.
Zukor Forced Rivals Who Refused to Accede to
His Proposals to Merge, Trade Commits.
sion Counsel Declares

! Circuit. and how Xukor. after being
/ responsible for this orga mia ton. at.
/ tempted first to absorb it and later
! to destroy it
! First National WAS orga nized in 1917
! as Il cooperative bookings compa ny
! or outlet for pictures. and 1t had a
| bylaw whereby it was not allowed
! to produce pictures. Its policy was to
buy the finished product only. The
! franchise holders pro-rated the cost
! of the pictures according to the posi-
! bilitieS of their territory. They could
! lease the films to other exhibitors To
! reimburse themselves. Later contract $
were made with stars and directors
to produce q number OF pictures.
Zukors deals in connection with
the First National are dwelt on at
length. 1t is set forth that Walter
w. Irwin. who had Incorporated the
V. i. :. r.. Co. distributing organ
| ization had a talk with Zukor in 1918
about the picture situation. and that
Irwin told him exhibitors would not
stand for non-cancellation contracts :
required by Famous Players Irwin.
il is said. advised Iukor To refuse I"
sell pictures to any of the original
First National fra nchise holders. Ir-
Famous Players.
Charge Plot by Zukor.
1t is stated there was talk about
producing = sufficient amount of fear
and discord in the ranks Of First
National to bring about disorga MIA.
ton. and it is charged that Zukor
began 1" scheme Ia break il up on
get control of it.
I
nf First National. 1t was testified that
Zullor persiStently endea vored to per.
Suade Williams 20 desert the com
pany, and offered to pay Il double
salary Ia him which Williams turned
down.
''Iukor then proposed a combined
booking company the Government
counsel state. Ito book all First Ma
tiOuHl tn eaters and avuwed 10 Williams
that his purpose in doing 50 WAS to
dominate and control the motion pic.
ture industry by obtaining control of
the stars and the theaters especia llv
the iirSt-run theaterS, and any time an
independent company got too strong
they would simply lay off their pic.
lures and refuse To book them in their
theaterS."
Also the statement is made by Coun-
sci:
Luhoi tOlI " llllumS nat II he
declined to work with him he
tZukorl would buy up all the indiVid-
ual units Of First National, or sum
cient number to make it impra cticable
for them to buy any pictures. At
that time First National had to have
the consent of q ma jority of units be-
fore they could buy pictures at Ger
tain price. Williams and the other
officials refused TO he bought"
Having failed 10 get control Of First
National through Williams. Zukor. il
* contended. did not abandon his orig
inal intention of ultimately controlling
that circuit of theaters. and slowly but
consistently made inroads upon The
First National franchise holders. This
he accomplished in New Engla nd
Pennsylva MIA anI the South. il is said
Numerous evidence is stated to show
working agreement between Zukor
and First National.
Stit1ed Competition Seen.
There was a meeting testified 10 at
Iukor's home in New York where
numerous franchis7 holders Of First
National were gathered. Zukor was
said to have addressed the meeting
stating that there were several prac.
ticeS in the industry which should he
done away with. and that he desired
to get those present into working
agreement with him. He felt. il was
said, they should work together to eN-
hibit pictures. stop raising the prices
for stars. and should not bid against
each other for the services of stars
or in buying stories or plays
Jules Mastbaum. president Of the
Stanley Company of Phila dclphia was
quoted as saying that First National
had ZllkOr on the r,ID nd that Iul-,r.