Year book of motion pictures (1925)

CASES BEFORE THE FEDERAL TRADE COMMISSION The outstanding feature of the Commission's cases hearing upon the industry during the last year was the unanimous decision of the United States Circuit Court nf Appeals for the Second Circuit affirming the order of the Commission entered against the Fox Film Corporation. This order to cease and desist was reviewed at length in thr 1924 Year Hook and is reported in 6 F. T. C. Decisions 191. The court decision is Fox Film Corporation vs. Federal Trade Commission, 296 Fed. .15.3. It is held that the Fox Corporation was engaged in interstate commerce and therefore came within the jurisdiction of the Commission, and that it is unfair competition for a producer to reissue old pictures under new titles as new photoplays and advertise such pictures as new pictures not previously exhibited, and induce the public to believe them to be new pictures. No petition for a writ of certiorari to the United States Supreme Court has been filed. Early in 1918 the Commission commenced an investigation of this practice, and as a result thereof has from time to time issued complaints against various concerns, and, after trials on the merits, has entered numerous orders to cease and desist similar to the order in the Fox case. This decision of the United States Circuit Court of Appeals fully and completely sustains the Commission's position as to this method of competition. The case against the Eastman Kodak ComI any, ct al, reviewed in the 1924 Year Book, was submitted to the Commission upon an agreed statement of facts, and on the 18th of April, 1924, the following order was entered against the re spon dents : CEASE and DESIST from conspiring, combining, confederating, agreeing and cooperating between or among themselves to hinder and restrain competition in the manufacture and sale of posicive raw cinematograph film stock and to maintain and extend or attempt to maintain and extend the monopoly of the Eastman Kodak Company in the distribution and sale of positive raw cinematograph film stock, in interstate and foreign commerce, by 1st. The acquisition and equipment by the Eastman Kodak Company of the Paragon Laboratory, the G. M, Laboratory and the Sen Jacq Laboratory, whose combined capacity equals the market demand for printing and developing positive prints of cinematograph films from exposed and developed cinematograph films, for the purpose of extending its business to include the making and selling of such prints. 2nd. The use by the Eastman Kodak Company of the ownership ami possession of the said Paragon, G. M. and Sen Jacq laboratories and their equipment and capacity for producing positive prints of cinematograph films from exposed and developed negative cinematograph films to rnduce, compel and coerce the Allied Film Laboratories Association, Inc., and its members, to use in their laboratories for the manufacture of positive prints of cinematograph films, exclusively, American made positive raw cinematograph film stock of which the said Eastman Kodak Company has a monopoly in the manufacture and sale thereof. 3rd. The agreement or understanding by and between members of the Allied Film Laboratories Association, Inc., and the Eastman Kodak Company that the said members will use American made positive raw cinematograph film stock, of which said Eastman Kodak Company has a monopoly in the manufacture and sale thereof, exclusively, and particularly to the exclusion of foreign manufactured positive raw cinematograph film stock, provided the Eastman Kodak Company will not operate commercially the said Paragon, G. M. and Sen Jacq laboratories in competition with the Laboratories operated by said members of the Allied Film Laboratories Association, Inc. / 4th. The agreement or understanding entered into by and between the Eastman Kodak Company and the members of the Allied Film Laboratories Association, Inc., that the Eastman Kodak Company will not operate commercially the Paragon, G. M. and Sen Jacq laboratories in the manufacture and sale of positive prints of cinematograph films in competition with the laboratoncs operated by said members, provided that said members use and continue to use American made positive raw cinematograph film stock, of which the Eastman Kodak Company has a monopoly in the manufacture and sale tlit-reof, exclusively in the manufacture of positive prints or cinematograph films from exposed negative cinemato graph films and the sale thereof. 5th. The continued ownership by the Eastman Kodak Company of the Paragon, G. M. and Sen Jacq laboratories and the mainten ance of the same in readiness for immediate operation for the production of positive prints of cinematograph films, or any other dominant control of the production, or capacity for production, of positive prints of cinematograph films from exposed negative cinematograph films. 6th. Utilizing any other equivalent means, not hereinbefore stated, to accomplish the object of unfairly forestalling, preventing, hindering or restraining the manufacture and sale of positive raw cinematograph film stock and the making of positive prints of cinematograph films from exposed negative cinematograph films, or the sale thereof, in interstate and foreign commerce. IT IS FURTHER ORDERED, that for the purpose of preventing the maintenance and extension of the monopoly of the Eastman Kodak Company in the manufacture and sale of positive raw cinematograph film stock to the use thereof in making positive prints of cinematograph films and of restoring competitive freedom in the distribution and sale of positive raw cinematograph film stock, the Eastman Kodak Company shall, with all due diligence, sell and convey the said Paragon. G. M. and Sen Jacq laboratories to parties not connected directly or indirectly in interest with the Eastman Kodak Company. This case will be reported in Volume 7 of the Commission's Decisions. From this decision of the Commission certain of the respondents have appealed to the United States Circuit Court of Appeals for the Second Circait, and a court decision is expected during the coming year. In November, 1923, the Commission concluded the taking of testimony in support of the charges in the complaint against Famous PlayersLasky Corporation et al, and rested its case. In January, 1924, the resopndents commenced the introduction of their evidence in support of their various answers, at Jacksonville, Fla., after which hearings were held at New Orleans, Dallas, Atlanta, New York, Cleveland, St. Louis, Oklahoma City, Denver, Los Angeles, San Francisco, Chicago and Charlotte, N. C. It is anticipated that the case will be submitted to the Commission for final determination early in the coming year. In the case against Films Distributors League, Inc., Docket 913, which has been heretofore reviewed in the Year Book, all of the testimony has been taken, the Examiner has made his report, and the brief of counsel for the Commission has been filed. This is the last of the re issue cases pending before the Commission, and an early decision is expected. During the last year no new cases of special interest to the motion picture industry have been filed by the Commission. Citations to decisions renewed in the Year Book, 1924, are as follows: Chamber of Commerce of Missoula et al, 5 F. T. C. 451. American Film Company, C F. T. C. 89. Signet Films, Inc., 6 F. T. C, 119. 588