Cinemalefactors

The Federal Trade Commission last week told Adolph Zukor, Jesse L. Lasky and their Famous Players Lasky Corp., now known as Paramount-Famous-Lasky Corp (TIME, March 28), that, although they were by no means criminals, they had none the less been doing evil to their cinema competitors and were in effect malefactors. Their trade practices had been monopolistic because: 1) By owning or controlling 368 theatres on June 30, 1926 (more than 550 now) the corporation had substantially stifled competition. 2) By renting films only in blocks, exhibitors had to accept pictures of poor drawing power. 3) By buying or threatening to buy picture houses, the corporation bullied exhibitors to come to its terms. Within 60 days these tactics all must cease, ordered the Federal Trade Commission.

The Federal Trade Commission's decision was based on facts true a year ago. At present Paramount-Famous-Lasky Corp. has as active competitors: Entertainment, Inc. (Pathe, First National, Keith plus Orpheum [TIME, June 13]); Roxy-Fox (Fox Film Corp. plus Roxy's Theatre [TIME, April 4]) ; Loew's Inc. (Loew's theatres plus Metro-Goldwyn-Mayer pictures) ; Universal Pictures Corp.