FILM MONOPOLIES

Sun (Auckland), Volume III, Issue 880, 25 January 1930, Page 26

FILM MONOPOLIES

CLOSE WATCH KEPT IN U.S.A. “RESTRAINT OF TRADE” Film monopoly reports have led Mr. Mitchell, the U.S. AttorneyGeneral, to invoke the law against “combinations in restraint of trade” —commonly called "the Anti-Trust Law,” says a correspondent of the London “Daily Chronicle.” Mr. Mitchell has been watching the operations of the Fox Film Corporation on the one hand and of the Warner Brothers Picture Corporation on the other hand, since there have been reports of a contemplated amalgamation of these groups. He has filed a suit for the dissolution of both organisations. With nearly £ 15,000,000 assets, the Fox concern controls other companies having stock valuations of £30,000,000 or more. Warner Brothers, with £3,250,000 assets, controls concerns whose valuation is estimated to exceed £24,000,000. £75,000,000 Capitalisation Thus the combined resources of these combinations would total more than £75,000,000. Washington Government’s action, which has come as a complete surprise, is based on the recent acquisition by the Fox concern, or by some of its responsible heads, of the Loew chain of more than 200 theatres having a capitalisation of £2,250,000; and by Warner Brothers of the First National Pictures, valued at £3,250,000. The combined production of the Fox interests is put at 40 per cent, of the output of the entire motion picture industry in this country; that of Warners is put at 25 per cent. It is sought by the Attorney-General’s action to have the stock purchase by which the mergers of subsidiaries of both groups of interests are effected set aside; and to have the defendants ordered to strip themselves of their holdings. An injunction is also sought to prevent them from exercising the voting power conferred by the stock involved.