Evening star., 1925-11-04
BY JAMES ROBBINS.
Article VII.

Aftlcle VII.
Doing away with the small fry that
only nibbled on the hook and fed the
big fellows that were sought, Is a
chapter in the Federal Trade Com
missions investigation of the motion
picture industry that Is replete with
examples of what counsel for the
commission have chosen to term the
unscrupulous methods used to destroy
and eliminate competition
The various alleged coercive meth
DDS employed are shown in color. as
result of the your years fishing In the
studios. and theaters.
One deal dwelt upon is the case OF
W. L. Sherry, one of the stockholders
in the old Paramount Pictures Cor
poration, which the Famous Players
Lasky Corporation acquired. ana
whose territory was New York State.
The Cardinal Film Company had
produced n picture called Joan the
Woman" featuring Geraldine Farrar,
which Famous Players bought and
gave the first showing in a New York
theater. The picture had a religious
element in 1t which made its success
questionable, and Adolph Zukor, pres
ident of Famous Players, it is stated,
did not want to handle it. He is said
to have approached Sherry and tried
to sell him the rights of the picture
for the State of New York for S12o,-
600, but to have had his proposition
turned down, Sherry feeling the re,
ligious element eventually would XIII
the picture.
Sherry Bought Picture.
Sherry had transferred~his interests
in the Paramount Pictures Corpora
in Famous pi1VPrS.
which represented about 100000.
Zukor, Government counsel assert,
persisted in endeavorS to sell Sherry
this picture and the latter finally
bought 1t, upon agreement that II
money were lost Famous Players
would make the amount good, or that
Zukor would. The consideration Is
stated to have been 100000 cash and
a SIS 900 note. Sherry, 1t Is related,
borrowed 100000 at a bank and put
up his Famous Players stock as Sc
curity.
After the deal was closed. it is
stated, Sherry was supplanted as mead
of the New York Paramount exchange.
In the meantime Famous Players dis
continued dividends on it's stock, which
cut Sherry out of all income. The
stock dropped and when 1t reached
between 90 and 80 Sherry had to sell
his to pay his note at the bank, so
that on Joan the Woman" he lost
close to 100000.
Sherry, it is said, later told Zukor
he was up against it, and through the
Famous Players directors a loan or
SIS, 900 was made to him, but with II
he was required to sign an agreement
waving all claims against the Cardinal
Film Co., Famous Players and Zukor.
fI,o 1r
to a letter from Sherry. to the treas
urer of Famous Players which was
submitted in evidence. In this let
ter Sherry acknowledged the can
ceiling of the $4,000 notes, extended
his sincere appreciation
He wrote only regret was that
the production did not meet with
the success hoped for.
1T is further Lcontended by defense
counsel that an endeavor was made
to hold Famous Players responsible
for the acts of Southern Enterprises,
which it did not then own.
Jacksonville Case.
l.. B. Joel of Jacksonville, Fla, who
had been an exhibitor for a number
of years. acquired lease on lne Auui- Cu
torium Theater in Lakeland, Fla,
which seated about 100. There was
another theater, seating about 45O,
owned by a man named Garner, who
had the Paramount contract. joel
spent S12 900 in equipping his theater
and a few months after it opened he
and Garner discussed buying each
other out. Each gave the other an
option. but no deal was closed. Joel
favored reducing the admission price
of both theaters to 10 cents. Garner
objected, Joel reduced and a price
war started.
While this war was on, 1t IS SAID
Garner and j. w. Sparks, Florida
manager for Southern Enterprises.
which is said to have been acquired
since by Famous Players, went to At
lanta and had a conference with Y. r.
Freeman, the general manager, which
resulted in Southern Enterprises TAX
ing a half interest in Garner's theater
and agreeing to furnish Paramount
pictures free to the theater for at
least two years.
Southern Enterprises, which is one
of the respondents in the Government
action, proceeded. 1t is stated, TO at
once take pictures away from Joel.
Each side started giving away passes
and cash bonuses of from $40 to SIS.
About 80 merchants gave away tlcketS
The fight, it is said, was carried on
for Garner under the direction of
Sparks. and Joel could not keep it up.
He concluded to go into the vaudeville
business and made a deal with the
Keith people for one day on the
vaudeville jump from Tampa north to
Augusta. He deposited $1,000 and
advanced the transportation of acts
from Tampa to Lakeland. Also he
equipped his stage for vaudeville at
a cost of from 81 900 to $4,000.
Big Opening Held.
Sharks is said to have been in Lake
land the first night of the vaudeville
in JoeTs theater and to have counted
the house, afterward congratulating
Joel in the big opening.
Southern Enterprises had a number
of theaters in the South in which 1t
was using Keith's vaudeville. About
two weeks after Joel's opening he re-
ceived a notice from Keith, 1t is
stated, of a cancellation Of their con-
tract with him, and no explanation
vas given for the action. Sparks
then opened Keith vaudeville in Or
Iando and a week later In st. Peters
burg. ,,.
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