GIGANTIC CINEMA TRUST.

Hawera Star, Volume XLV, 24 December 1925, Page 10

GIGANTIC CINEMA TRUST.

CONTROL OF AMERICAN PICTURE INDUSTRY. NEW YORK, Nov. 4. An alleged gigantic cinema trust, which, aims eventually to control the whole of the moving picture industry in this country, representing an invested capital of ±<300,000,000, wid soon receive the attention of the 'Federal Trade Commission, which for lour years has been quietly investigating its activities. According to Mr W. H. Fuller, chief Government counsel, the Famous Players Lasky Corporation dominates the industry here through its connections with the First National and Metro organisations, and, by its ownership of theatres, constitutes an unfair method of competition. Adolph Zukor, head of the Famous Players, is, according to the Government attorneys, a veritable Tsar of the films, enjoying practical monopoly of the leading cinema stars and comedians, and producing most of the big films. Zukor came 'to the .United States a penniless Hungarian immigrant when he was 16 years old. It is alleged against the trust that oppressive methods had been used to eliminate independent theatres, and that poolpictures had been forced upon exhibitors under the penalty of being denied popular films: Counsel for the defence deny the existence of a monopoly, and declare that, the commission should investigate independent producers and exhibitors who have organised in an endeavour to prevent the manufacturer from selling his product direct to the consumer. They assert that the Famous Players Company produces only 17 per cent, of all the pictures it distributes, and owns about 150 theatres or 2 per- cent, of the total.

The evidence submitted contains remarkable statements indicating that the lot of Mary Pickford, Douglas Fairbanks, and other “stars” who have declined to be dominated by the “factory system” is distinctly unhappy. The “stars” apparently object to their films being sold by “Cinema Tsars” in a group with films by mediocre and unknown artists on the system of “take the lot or leave it,” and they describe their personal grievances in detail. Pickford and Fairbanks pictures, it is alleged, have been used as a bait to sell other series. When Miss Pickford protested against the conditions and the- percentages of payment, Zukor is quoted as saying: “I think you have worked hard enough. Why don’t you leave the picture business? , I’ll give you £50,000 to leave.” A brief submitted to the investigation commission cites Miss Pickford as telling Zukor that she was a young girl, and asking why she should retire at her time of life. After that she entered into negotiations with the First National and closed a contract on the same basis and terms as she had demanded from Zukor. The Cinema Tsars, it is alleged, by tlieir system of eliminating smaller Tsars, and their “factory system,” are debasing the picture business, and application is made for the door to be opened to a free market for the sale of motion pictures.