The United States of America, petitioner, v. Motion Picture Patents Company and others, defendants (1912)

Record Details:

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OKIGIITAL PETITION. 27 A copy of the license agreement under the exhibitingmachine patents between the Motion Picture Patents Company and the Armat Moving Picture Company is attached hereto as a part of this petition marked ''Exhibit 5.'^ This agreement is similar to those issued to the other companies named above. IX. GENERAL FILM COMPANY. As has been pointed out above (supra, p. 6), persons engaged in the motion-picture business belong to one of three classes: (1) Manufacturers of cameras, films, and other appliances relating to the motion-picture art, and distributors of these articles to the rental exchanges; (2) rental exchanges or wholesale distributors, constituting the source of supply of the exhibitor; (3) exhibitors of moving pictures. By means of the Motion Picture Patents Company and the agreements above described, defendants restrained the commerce of the manufacturers and dominated and controlled the business of the rental exchanges and exhibitors. On or about April, 1910, defendants set out to monopolize the business of all the rental exchanges in the United States, their purpose being to drive out of business all persons so engaged and to absorb to themselves the profits theretofore made therein. This unlawful end they accomplished in the manner to be presently described by means of a corporation organized by them for that purpose. General Film Company, corporation defendant. In April, 1910, defendants, with an intent to monopolize the rental exchange business, organized the General Film Company, a Maine corporation, capital stock $2,000,000, reduced March, 1911, to $1,000,000, preferred $800,000, common $200,000, common stock alone having voting rights