United States of America v. Motion Picture Patents Company and others (1914)

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22 Mr. Karson, a Philadelphia exchange man, testified that 75 per cent of the theaters in Philadelphia are licensed (II, 1097, fol. 4). Defendants argue that the business done by the ten manufacturers must be looked at as part of the entire motion-picture business, and that a monopoly of the distribution of the business of the ten manufacturers does not constitute a monopoly of a part of trade and commerce within the meaning of the Sherman Act. This proposition we dispute. However, even if the business of the ten manufacturers should be looked at from the defendants' point of view and be considered in its relation to the total business, it is still manifest that the General Film Company does much more than half of the total motion-picture business in the United States. The only two competitors of the ten manufacturers who distribute film generally throughout the United States are the Mutual Film Corporation and the Universal Film Company. Mr. Frank L. Dyer, president of the General Film Company, a witness for the defendants, testified that the General Film Company's weekly service constitutes 61 reels, while 'the Mutual distributes only 26 a week and the Universal 28 (III, 1579, fols. 3-4, and 1580, fol. 1). The evidence of defendants in regard to the extent of the independent business was confined to testimony given by managers of the General Film Company and by certain of the defendant manu