Famous Players–Lasky

Formation In 1914, film-production companies Famous Players Films (founded in 1912 by Adolph Zukor in partnership with the Frohman brothers) and Jesse L. Lasky Feature Plays (founded in 1911) signed a distribution deal with Paramount Pictures Corporation (founded by William Wadsworth Hodkinson in 1914). Under the agreement Hodkinson would distribute the two companies' films through a 65/35 arrangement in which the producer agreed to take only 65% of film profits with 35% of the gross revenue going to Hodkinson's Paramount. While initially the agreement seemed like a good deal, Zukor and Lasky quickly realized that they could make much higher revenues if they could integrate the production and distribution of their films. Accordingly, less than a year into their distribution contracts the two men began looking for a way to buy Hodkinson out of Paramount and to incorporate the three companies. In late 1915 Zukor began buying as much Paramount stock as possible, including stock belonging to Hiram Abrams, a member of the Paramount board of directors. On July 13, 1916, at Paramount Corporation's annual board meeting, Hodkinson found himself ousted from the presidency and replaced by Abrams, who won the seat by a single vote. After accepting the presidency, Abrams announced to the board, "On behalf of Adolph Zukor, who has purchased my shares in Paramount, I call this meeting to order." Zukor needed to increase revenue, and he would do so over the next ten years by integrating film production, distribution, and exhibition into one corporation. In order to weaken First National, Zukor also sent Lynch and Black to acquire theaters held by First National members, often employing heavy-handed tactics. By the mid-1920s, the Famous Players–Lasky Corporation was one of the largest theater owners in the world, with a controlling interest in the Rialto, Rivoli and Criterion theater chains. However, in 1921 the corporation hit a brief stumbling block when Zukor's practice of block booking films and buying up theatres led to an FTC antitrust suit. The finish On April 24, 1930, Paramount-Famous Lasky Corporation became the Paramount Publix Corporation. Financial problems within the movie industry as a result of the Great Depression pushed Paramount Publix Corporation, with $2,020,024 in debts but only $134,718 in assets, into receivership on August 3, 1933. ==Federal Trade Commission v. Famous Players–Lasky Corporation, et al.==

Charges On August 30, 1921, the Federal Trade Commission formally charged Famous Players–Lasky Corporation, Realart Pictures Corporation, The Stanley Company of America, Stanley Booking Corporation, Black New England Theaters, Inc., Southern Enterprises, Inc., Saenger Amusement Company, Adolph Zukor, Jesse L. Lasky, Jules Mastbaum, Alfred S. Black, S.A. Lynch, Ernest V. Richards, Jr., with restraint of trade as part of an investigation into the industry practice of block booking. Describing the corporation as the "largest concern in the motion picture industry and the biggest theater owner in the world," the Federal Trade Commission accused Famous Players–Lasky and eleven other correspondents with "conspiracy and restraint of trade" in violation of the antitrust laws. In addition to block-booking charges, the case also accused Famous Players–Lasky of using theater acquisition to intimidate film exhibitors into agreeing to unwanted block booking deals. Several grievances were brought to court, including one from an independent theater owner in Middleton, New York, who claimed when his movie house rejected a five-year block booking deal with Famous Players–Lasky, the distributor used predatory tactics to run him out of business. The theater owner reportedly withstood threats and goon-squad intimidation that recalled the tactics of the former Edison Trust. When those tactics failed, the theater owner claimed Famous Players–Lasky built a movie house across the street from his theater in Middleton, and resorted to temporary price cutting and overbuying in order to destroy his business. Case results After reviewing a massive 17,000 pages of testimony and 15,000 pages of exhibits the FTC concluded in early 1927 that block booking was an unfair trade practice. On July 9, 1927, it ordered the Famous Players–Lasky Corporation to cease and desist block booking practices and reform its theater purchasing policies. The three respondents- Adolph Zukor, Jesse Lasky and the Famous Players–Lasky Corporation- were given 60 days to comply with the ruling. The corporation largely ignored the cease and desist order and stalled reforms. After the 60-day deadline arrived, they were granted two extensions. On April 15, 1928, the corporation, now the Paramount-Famous-Lasky Corporation, submitted a report of compliance to the FTC. The report disputed the charges, and denied that it practiced block booking. The defiance attracted negative press attention and the report was rejected by the FTC. The corporation's non-compliance eventually led to the FTC taking antitrust action against the Paramount-Famous-Lasky Corporation. ==Star power==

In part, the success of the Famous Players–Lasky Corporation can be attributed to Adolph Zukor's adept handling of the star system. Celebrities such as Mary Pickford, Marguerite Clark, Rudolph Valentino, Gloria Swanson, Clara Bow, Nancy Carroll, Sessue Hayakawa, Mae Murray, opera singer Geraldine Farrar, Owen Moore, Thomas Meighan, Cleo Ridgely, and Ruth Chatterton helped to define the Famous Player-Lasky brand. ==Major films==

• The Sheik (1921) • Blood and Sand (1922) • The Covered Wagon (1923) • The Ten Commandments (1923) • Beau Geste (1926) • It (1927) • Wings (1927) ==References==