Evening star., 1929-12-01
BY WILLIAM HARD.

The suits brought by the Department
Of Justice against two combinations
of interests in the motion picture In
dustry are thought here at this week
end to mark the beginning of strenu-
Gus effort by the Government to test
out the present state of the law re-
garding industrial mergers, which have
been so plentiful lately.
In the former administration a con-
siderable number of mergers were in
effect sanctioned beforehand by the
Department of Justice. This was done
in each case after prolonged and pains
taking consideration and was evidenced
usually by letter sent to the interests
concerned, stating that the department
at the time and in the circumstances
was unable to see any legal impediment
to the merger proposed. The meaning
in practice was that the department
would not, and did not, in such cases.
meet the merger with a suit in court
The situation was gratifying to large
numbers of business men and was much
applauded.
Under the present administration
since Mr.. Mitchell became Attorney
General the Department of Justice has
pursued different course. It has not
seemed to wish to undertake with any
great optimism to anticipate the views
Of judges and the decisions which the
courts might render. At any rate, the
numerous business men who have re.
sorted to it for opinions regarding their
prospective behavior have in all i'll
stances, it is believed, come away with
out having any of their doubts clarified
and without having any Of their future
actions safeguarded.
1t is known that during this period
a great deal of inquiry into merger
situations has been in process in the
department. It is reasonably suspected
that this inquiry might some time ago
have produced various suits against
mergers had not the stock markee
panic and the generally nervous state
of business intervened. The bringing
Of the suits now against the William
Fox interests and against the Warner
and First National interests in the
motion picture industry may be taken
as an indication that the department
has concluded that business is now re-
stored enough and strong and healthy
enough to endure a little investigation
Of the legality Of some Of its recent
tendencies.
1t also may be taken as an indica-
ton. more broadly, that the department
is resolved to clear away some of the
mists which have involved the merger
problem and to get from the only
ultimately authoritative source-namely,
the courts-a final and conclusive light
upon it. This policy. it is calculated
by the department. will in the long run
be the most serviceable that could be
adopted for business certainty and for
business stability.
DoIifinol {nfa offantne acponia1
to the suits against the William Fox
interests. This suit brings within its
scope the Loew interests and the
Metro Goldwyn- Mayer interests. 1t de-
livers a large load of trouble at the
doorstep Of Louis Mayer Of Metro
ldWyn-Mayer, who, by a distressing
coincidence, is one of the Presidents
most ardent and energetic friends ana
admirers and campaign contributors.
Mr.. Mayer just about wore himself
out in the last campaign on behalf of
the presidential ambitions of his hero,
Herbert Hoover. Now he is the first
notable victim through whom the idea
is verified that Mr.. Hoover'S Attorney
General, William D. Mitchell, is a
wholly juristic and wholly non-politicai
character.
II Mr.. Mitchell is willing as he has
shown he is, to bring suit against Mr.
Mayer. it is easily to be deduced that
he would have no qualms IN bringing
suit against julius Barnes or Claudius
Huston or Lawrence Richey. Members
of the medicine ball cabinet" to
which Mr.. Mitchell belongs are reported
here now to have given up all hope OF
acquiring any Immunity bath" through
their athletics comradeship with him
People who said that Mr.. Mitchelrs
legal spear would know no brother are
calling themselves good judges OF men
and good prophets OF events,
Another political aspect OF the motion
picture suits by the Department OF JUS
tice is that they in all probability. fore
stall and prevent all threatened inves-
tigation of the industry by the Senate.
The groundwork for those suits was
| laid during the last ADMINISTRATOR oy
Col. William j. Donovan when ne oc-
cupied the position OF Assistant 10 the
Attorney General, in special charge OF
antitrust matters.
Senator Thomas j. Walsh, Democrat
of Montana demanded what 1t was
doing to reduce the motion picture m
duStry to the reign of law. In response
Col. Donovan procured capaclous auto
and sent up to Senator Walsn large
bale OF documents containing the data
OF the departments motion picture m
quiries. These documents were, the
other day, returned to the department
by Senator Walsh without, so far as is
known, any comment. 1t is suggested
that possibly the motion picture In
dustry, now being prosecuted In the
courts by Mr.. Mitchell. has paid small
price for escaping being investigated on
capitol Hill by Senator Walsh.
X y
The scope of Federal proceedings
against motion picture interests and