***************************************************************************** * T A Y L O R O L O G Y * * A Continuing Exploration of the Life and Death of William Desmond Taylor * * * * Issue 82 -- October 1999 Editor: Bruce Long bruce@asu.edu * * TAYLOROLOGY may be freely distributed * ***************************************************************************** CONTENTS OF THIS ISSUE: Mabel Normand in "Photoplayers Weekly" Fragments from Official 1922 Statements: Fellows, Dumas, Maigne The Federal Trade Commission vs. Famous Players-Lasky Rudolph Valentino characterizes Charles Eyton Affidavit filed by Charles Eyton regarding Rudolph Valentino ***************************************************************************** What is TAYLOROLOGY? TAYLOROLOGY is a newsletter focusing on the life and death of William Desmond Taylor, a top Paramount film director in early Hollywood who was shot to death on February 1, 1922. His unsolved murder was one of Hollywood's major scandals. This newsletter will deal with: (a) The facts of Taylor's life; (b) The facts and rumors of Taylor's murder; (c) The impact of the Taylor murder on Hollywood and the nation; (d) Taylor's associates and the Hollywood silent film industry in which Taylor worked. Primary emphasis will be given toward reprinting, referencing and analyzing source material, and sifting it for accuracy. ***************************************************************************** ***************************************************************************** Mabel Normand in "Photoplayers Weekly" Reprinted below is a selection of items pertaining to Mabel Normand which were originally published in PHOTOPLAYERS WEEKLY during 1915-16. In some of the items, it appears that the Keystone press agent had a very active imagination. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * April 9, 1915 PHOTOPLAYERS WEEKLY Mabel Normand, "Queen of the Movies," left last Saturday for San Francisco, where she will play the leading role in several Keystone pictures. With Miss Normand were Adam Kessel, Jr., President of the Keystone Film Company and the following members of the company which will support Miss Normand in the releases made in the Exposition City: Roscoe Arbuckle, Alice Davenport, Joe Bordeau, Glen Cavender, Billy Gilbert, Eddie Kennedy and James Leslie. Mr. Kessel returned to Los Angeles on Monday. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * April 23, 1915 PHOTOPLAYERS WEEKLY Now that Mabel Normand, Keystone comedy star, has returned from San Francisco, Mack Sennett, managing director of all the Keystone companies, will resume work on the six reel feature that is nearing completion. Mr. Sennett himself is playing an important part in the film, together with Miss Normand, Ford Sterling, Owen Moore and other prominent actors. More elaborate scenery and costumes are being used in this multiple-reel than have ever been seen in any one comedy that has ever been made by any company and, notwithstanding the unprecedented success of the first six reel Keystone, "Tillie's Punctured Romance," there is every indication that the new release will be a superior product both artistically and financially. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * April 30, 1915 PHOTOPLAYERS WEEKLY Miss Mabel Normand, "Queen of the Movies," was greatly annoyed a few days ago by a "nut" who followed her to her home and later to the Keystone studio. He informed the gardener at her home that he was the "King of the Movies," but being no respector of any royalty other than his employer, he chased the "King" into the street. The self-made "King" waited until Miss Normand left her home to go to the studio and followed her, attempting to enter when she did. He was promptly seized by the gateman and placed under arrest. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * May 14, 1915 PHOTOPLAYERS WEEKLY Mabel's Mail Mabel Normand, Keystone star comedienne, has a secretary to care for her correspondence which has long since overflowed all possibility of personal attention. Last month she received a total of seven hundred and twenty-six letters from all parts of the world. Many contain requests for photographs; others seek advice about sisters or daughters entering the moving picture profession and some are freak letters on all manner of subjects. Much of the accumulation is handed to Miss Normand who dictates the replies. Some of the letters, such as requests for photographs are handled by the ordinary routine. Last month one letter was received from a wealthy but eccentric lady residing in South Carolina who expressed her desire to adopt Miss Normand. In part the letter follows: "One of my amusements in this little Southern town is visiting the moving picture theatre. I thought it was a very sinful sort of pleasure for several years until I was induced to make a visit with a friend, but I have found that it is really innocent of evil consequences. I have seen you in many pictures and am full of sympathy for the rough treatment that you receive in some of them. How much better it would be if you could live in a quiet, restful place such as this?" Mabel replied, thanking the dear old lady for her sincere kindness but assuring her that rest and quiet were as foreign to her nature as the Swanee River is to icebergs. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * June 24, 1915 PHOTOPLAYERS WEEKLY Mabel Normand has engaged a cottage at Venice and spends much time there. Her town house is not closed for the summer, however, as she motors from beach to city and back daily. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * June 24, 1915 PHOTOPLAYERS WEEKLY ...Mabel Normand recently paid $45 for hospital service when her blue- ribbon cat became ill. After the cat was discharged as cured it was brought home and died the following day. Henceforth Miss Normand will purchase nothing but stuffed cats. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * June 24, 1915 PHOTOPLAYERS WEEKLY The huge concrete tank which serves as an artificial lake in the making of Keystone comedies, is a popular spot during the warm summer days. As soon as the light begins to go in the afternoon the greater portion of the Keystoners don bathing suits, and as much rivalry exists among the many expert swimmers, the impromptu competitions are of interest to the crowd that surrounds the tank. Mabel Normand leads in swimming skill and is really a wonderful mistress of aquatic sports. She excels in high diving, long and short distance swimming and duration under water. One day last week Fred Fishback, a powerful young man who acts as assistant director for Walter Wright, was stunned by contact with the side of the tank through a misjudged dive. Although an excellent swimmer, he was rendered temporarily helpless and would have been in great danger of drowning had not Miss Normand plunged in and rescued him. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * July 8, 1915 PHOTOPLAYERS WEEKLY No medals have ever been pinned on Raymond Hitchcock's manly breast for proficiency in equestrian sports, but since he became a member of Mack Sennett's Keystone comedy forces he has not refused to take a chance at anything that has been suggested when the value of a picture has been at stake. So when he was requested to ride an emotional horse in the high with no emergency brake, he bravely mounted and exhibited all the nonchalance of old Colonel Cody himself. But the horse knew the difference, and, taking the bit in his teeth, he set out to shatter a few records. "Hitchy" did a Todd Sloan crouch and he and his mount disappeared in a cloud of dust. Miss Mabel Normand, who rides as if she had been born in the saddle, saw the getaway and leaped onto her mount, following in the wake of the runaway. After a half mile chase, she caught up and grasped "Hitchy's" bridle, pulling up his steed and rescuing a panting star from what might have been a serious fall. After changing horses Mr. Hitchcock resumed the scene and all was well. The picture, one of Mr. Sennett's latest two reel features, will soon be released. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * July 8, 1915 PHOTOPLAYERS WEEKLY Mabel Normand, featured Keystone star, owns a summer home in Bear Valley, and one of the greatest delights of her life is to take parties of friends on weekend parties. This summer, however, the important parts she is playing in two reel features make it impossible to get away from the studio long enough to make the trip up into the hills, so Miss Normand has engaged a cottage at Santa Monica and motors to and from the beach daily. Merry gatherings at this seaside residence take the place of the hunting and fishing trips that had been planned for the Bear Valley visits but the "Queen of the Movies" contemplates enjoying a week or two at her mountain home later in the season. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * July 22, 1915 PHOTOPLAYERS WEEKLY Mabel Normand, featured star with the Keystone Film Company, had three whole days vacation and she took advantage of her rest. Last winter Miss Normand purchased a sixty-foot yacht and hat it thoroughly overhauled and refurnished throughout. When it was completed it was a thing of beauty--but since the rainy season the "Queen of the Movies" has been too busy helping Mack Sennett take advantage of the sunny weather in making of Keystone two- reel features to find time for yachting. When the three-day vacation came along Mabel stocked up the craft and took a party of friends to Catalina, cruising around the island and enjoying the breezes, fishing and quiet of the Pacific in its most pacific condition. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * July 29, 1915 PHOTOPLAYERS WEEKLY Mabel Normand killed a five foot rattler last week. As she was motoring through a canyon south of Los Angeles she caught sight of some flowers and stepped from her car to pick them. While walking through a clump of sage brush she heard the ominous sound of a rattler and jumped to one side just in time to escape its strike. Seizing a stick which lay nearby she struck at the reptile and quite by accident she admits, caught it fairly on the head, stunning it. Picking up a heavy stone she crushed its head. In order to prove her story was not of the fish variety she threw the snake into her car and brought it to the studio. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * July 29, 1915 PHOTOPLAYERS WEEKLY Mack Sennett, managing director of the Keystone Film company, took a group of Keystone players to San Francisco to attend the ball which marked the closing of the Exhibitors' Convention last week. With Mr. Sennett were Mabel Normand, Fred Mace, Owen Moore, Charlie Murray and others. The party remained in San Francisco three days, visiting the Fair and returning on Tuesday, July 20th, with the exception of Mr. Sennett, who went to Denver and up into the San Juan country of Colorado, where he will spend a short vacation in the mountains, fishing and resting before returning to Los Angeles a week later. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * July 29, 1915 PHOTOPLAYERS WEEKLY Mabel Normand Routs Burglar Mabel Normand, Keystone star, put a burglar to rout in an unrehearsed comedy scene at the Keystone studio one afternoon last week. It was late and nearly everyone had left for home. Miss Normand motored to the studio from her cottage at the beach, having forgotten a suitcase which she had left in her dressing room. A daylight burglar had walked through the studio entrance while the watchman was not looking and had gone up to the second tier of dressing rooms. When Miss Normand arrived she entered her room and found the roughly clad man bending over her trunk. Thinking him to be the janitor she was not frightened while the intruder immediately became panic stricken. As he backed out of the room Miss Normand picked up a heavy medicine ball which was lying in her room, and flung it at the man, striking him on the chest. "Take that old thing out and put it in the property room," she exclaimed. "It's too hot to exercise except at the beach." The man was taken by surprise--the force of the ball overbalanced him and he fell over the railing on the balcony and to the floor below. Before Miss Normand could rush to his aid he had picked himself up and the last seen of him he was running toward the hills at top speed. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * August 5, 1915 PHOTOPLAYERS WEEKLY Mack Sennett, Fred Mace, Mabel Normand, Raymond Hitchcock and others have been working at the beaches during the past hot week. It is strange how readily a director may switch his story so that the beach scenes are absolutely indispensable when the weather gets too hot to be comfortable at the studio. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * August 5, 1915 PHOTOPLAYERS WEEKLY Mabel Normand, Keystone star, took exception to the statement of a Los Angeles "reformer" to the effect that no girl can work in motion pictures and retain her respectability. She wrote an article in reply which was immediately purchased by a national newspaper syndicate and it will be widely published at once. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * August 19, 1915 PHOTOPLAYERS WEEKLY Mabel Normand, the favorite Keystone star, has written a song which will be published in the near future. Miss Normand is an accomplished musician and frequently entertains her friends with her vocal and instrumental accomplishments, but this is her first attempt at really publishing a song. She sang the ditty to her own piano accompaniment while Harry Williams and Jean Schwartz were present at her home one night this week and they enthused over the beauty of the thing, have urged her to take immediate action toward having it published. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * August 26, 1915 PHOTOPLAYERS WEEKLY Mabel Normand, star of the Keystone Film company, got word one day recently that one of the seven Foy children was celebrating a birthday at the Foy bungalow down at Santa Monica. Mr. Foy was out with his director and supporting company working on a scene which was being made several miles from Los Angeles. Mabel was anxious to send a birthday present to the Foylet in question but not knowing whether it was one of the boys or one of the girls she was unable to decide on anything appropriate. So she called her car, drove to town and bought a gift for each of the seven and had her chauffeur hasten to the Foy party and deliver the goods. "I'm glad I never worked in the same company with Brigham Young," was Miss Normand's conclusion. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * September 4, 1915 PHOTOPLAYERS WEEKLY Octopus Seizes Mabel Normand In making My Valet, Mack Sennett wrote in some scenes in which Mabel Normand and Fred Mace have a struggle in the surf. The scenes were taken at the beach at Santa Monica, where the surf is high at full tide and Mabel, being an excellent swimmer, did some astonishing work in the swirling waters. In one scene she is tied to a rock and the waves dash over her, completely submerging her at times. In this scene Miss Normand struggled frantically and Sennett and the other members of the company applauded her for her cleverness. When the scenes were over the struggles and cries of Miss Normand continued and Sennett swam out to where she was tied. Immediately he called for help and a half dozen men swam to him. It was found that a middle- sized devil fish had hold of Miss Normand's ankles and she had been held throughout the scene by the monster. She was released after a fight with the fish and it was soon killed. Miss Normand was almost hysterical for a few minutes but soon recovered her nerve and continued work. To those who see My Valet, it will be interesting to know that in the scene in which she is tied to the rock the sea terror has a firm hold on her feet and ankles. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * September 25, 1915 PHOTOPLAYERS WEEKLY Mabel Normand Held Up Mabel Normand, Keystone star, was the victim of footpads one night last week. Returning from the home of a friend located a block and a half from her own residence, Miss Normand refused to depend upon an escort and, merrily bidding her hostess and other friends goodnight, started homeward. She had not gone more than a block when a masked man stepped out from behind a tree and commanded her to put her hands up. "I never obeyed an order quicker in my life," said Miss Normand the next day in telling of her experience, "and I kept them up until the brut was convinced I had really left my purse at home and then I kept them up until I reached home. For once in my life I was scared out of my wits." The would-be thief escaped. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * October 16, 1915 PHOTOPLAYERS WEEKLY While Miss Mabel Normand, Keystone Film Company star, is still confined to her home as a result of the nearly fatal injuries which recently resulted from an accident at the studios, she is out of danger and well on the road to complete recovery. During her illness bulletins were read in cafes, theaters and other public places not only in Los Angeles, but in many other parts of the country. Miss Normand has probably made more people laugh than any other screen comedienne and the millions who have admired her beauty and * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * October 16, 1915 PHOTOPLAYERS WEEKLY Mabel Normand has completely recovered from her recent serious illness and has gone to San Francisco, where she will spend several weeks taking a complete rest visiting the Exposition. Miss Normand was in San Francisco with Roscoe Arbuckle and a company early in the year, and while there made a number of comedies, but was unable to spend much time at the Exposition. She is now taking advantage of the opportunity, and as soon as she has sufficiently rested, will return to Los Angeles. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * November 20, 1915 PHOTOPLAYERS WEEKLY Appearing in her first picture since the accident which nearly resulted in her death some weeks ago, Mabel Normand, the Keystone star, was injured Wednesday when a runaway monoplane got beyond control of its amateur driver, comedian Chester Conklin. The movie queen was dragged along the rough ground for nearly 100 yards. She was given immediate medical attention and rushed to her home, where she is reported as recuperating rapidly. Conklin was in the driver's seat and before he could extricate himself was severely burned on the legs and arms by gasoline which caught fire from the hot motor. The machine, completely demolished, was a military monoplane and was being used in the filming of a comedy. Conklin was instructed to cut off the power after he had rolled a short distance down the field. Becoming confused, he opened the throttle and the increase in power caused the machine to shoot into the air. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * March 11, 1916 PHOTOPLAYERS WEEKLY Although Miss Mabel Normand has been away from her friends and associates of many years making comedies in the snow and ice in the east, her Keystone friends at the Edendale studio receive an almost daily letter from the popular leading woman. Miss Normand writes the east is wonderful. She says she has been fascinated by Broadway, but in between the lines the letters all sound as if the young woman would not be sorry when the director general, Mack Sennett, issued orders for Miss Normand to bring her company back to California. Roscoe Arbuckle is directing Miss Normand while she is in the east, but is due to leave for the west with his company in about a month. On the way home they will stop and make comedies at nearly every important city. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * April 22, 1916 PHOTOPLAYERS WEEKLY Mabel Normand, erstwhile Keystone comedienne, but now an aspiring dramatic star, arrived in Los Angeles this week to begin her new duties as an artiste under the supervision of Thomas H. Ince. She went immediately to her home in Hollywood, and is now awaiting word from Ince to start work before the camera in her first vehicle for the Triangle. What is particularly important in connection with Miss Normand's new venture is the fact that she will not do her work at either the Culver City or Inceville plant of the New York Motion Picture Corporation, but will have a studio of her own. This is a four-acre tract midway between Los Angeles and Hollywood, on which property a studio is now in course of erection. Here Miss Normand will preside as queen over a large company of players, who will be used as her permanent supporting cast in each of the plays in which she will appear. She will have her own director, who, although not yet named, will have immediate charge of the directorial end of her work. Each play will be made under the personal supervision of Ince and be released as a Triangle-Kay Bee subject. What story in which Miss Normand will make her first appearance as an Ince luminary has not been announced, but rumors are to the effect that the scenario is being prepared by J. G. Hawks of the Ince staff writers. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * May 20, 1916 PHOTOPLAYERS WEEKLY With a story just as attractive as the little star herself, Miss Mabel Normand and her own company of players began rehearsals last week. Although Miss Normand has her own studio, her relations with the Keystone Film Company, where she was featured for so many years, are very close, the rehearsals being held on the old stage where Miss Mabel once upon a time worked with hose, bomb, and pie. Mack Sennett and Hampton Del Ruth lent their aid at the first rehearsals, just as in the past. "I am more than delighted with everything," Miss Normand said when asked if she would say a word about her future plans. "I am sure I have the best equipped studio for its size in the country. I am more than satisfied with the first story selected. I feel sure I have regained my old good health again, and now I am anxious to hear Mr. Young say 'camera' and begin work again." ***************************************************************************** ***************************************************************************** Fragments from Official 1922 Statements: Fellows, Dumas, Maigne The following newspaper article published in 1937 purports to contain extracts from the official 1922 statements made by Howard Fellows, Vern Dumas, and Charles Maigne. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * June 10, 1937 LOS ANGELES EXAMINER Coterie of Dead Central Figures in Slaying Case Like phantom characters who have left the stage forever, yet play important parts in the gripping development of a drama, are many of the central figures in the William Desmond Taylor case. They are dead--but ever present in this amazing murder mystery. Their spoken lines have echoed through the years--now to play important roles in the untangling of the steel web which heretofore has enmeshed the truth of the sensational slaying and have aided in promise of final solution of the puzzle that defied investigation for fifteen years. Mabel Normand, the whimsical Peter Pan of the silent screen; Mrs. Julia Miles, "mama" to Margaret Fillmore and her sister, Mary Miles Minter the beautiful; Henry Peavey, Taylor's eccentric servant; District Attorneys Thomas Lee Woolwine, dashing, fiery Southerner, and his successor, Asa Keyes; Detective Sergt. Tom Ziegler; Charles Maigne, motion picture director and friend of Taylor--they are among the coterie of dead. They are gone, but the words or deeds of many of them have been carefully preserved through the years and now are vital links in a chain of evidence that authorities feel cannot be broken. In musty files and worn transcripts these links are recorded as part of the file in the present case. Most of them were taken by Woolwine in 1922. Strange were the stories told in the documents--but no stranger than the destiny that was Taylor's. Hundreds of questions filled the minds of the investigators as they pored over the yellow pages-- MOTIVE--that was one question. What part, if any, did Taylor's friendship with Mabel Normand play in the tragic ending of his life. What possible hidden knowledge did the Negro servant possess to have exhibited the fear he did? What was behind the tense moment a few weeks before his murder when a gay party he had attended with Miss Normand was punctuated by a sobbing statement from the director that was strange and pathetic? Howard Fellows, youthful chauffeur for Taylor, related to the authorities the unusual incident of the last New Year's Eve party Taylor was destined to attend at the Alexandria Hotel with Miss Normand. They had known each other for several years--had worked together-- played together--their friendship ostensibly was a happy one. Possibly it was even love. Yet, according to Fellows, as he drove Miss Normand and the director home from the celebration, the latter, in a voice tinged by a sob, leaned close to his companion, and said: "Little girl, you are breaking my heart." Did this outburst play any part in the tragedy, that followed? Taylor had his secret sorrows--what they were has been hidden by a veil never penetrated--he was "never happy"--"never sad." Again Fellows, through his statement, speaks after these many years: "Mr. Taylor to me seemed the same way all the time--never happy; never real sad, except once. Was that way all the time." What mystery could Henry Peavey, the loyal servant who died in an institution, have unraveled, had not his master's murder sent him into paroxysms of fear? "I have been scared ever since my master was murdered," Peavey scrawled on a note just before he died. On the morning of February 2, 1922, the man he served and liked was lying on the floor of his bungalow when Peavey unlocked the front door. He called neighbors. One of them was Vern Dumas, oil man--a Southerner. "He was wringing his hands. He was rolling over like a ball," Dumas told District Attorney Woolwine. He was scared to death and tears rolled down his cheeks. "I really felt sorry, felt like wiping away the tears myself." Charles Maigne, the director, told what he knew. In his business Maigne had to have a mind for detail--for the fine points that make great photoplays--to his practiced eye the death scene of his fellow director was full of intrigue. "The thing that struck me the hardest of all, after I got over the shock of Bill's death," he told questioners, "was wondering how on earth Bill could have fallen the way he did. The position that Bill was in stumped me for two solid days. I couldn't figure out how he had fallen that way. If he had been sitting in his chair and had been shot, or if had been shot in the back with his back to the door, he was lying stretched out with his feet towards the door, hands by his side--" These are but a few of the characters whom death has claimed as the years rolled by while investigators grimly plodded on to the complete solution. Any of these points, authorities say, may suddenly become the vital connecting link through which disjointed, unrelated facts will suddenly assume importance. There also was Mrs. Miles, grandmother of Mary Miles Minter, star of the silent screen, whom Taylor had directed and whom the star had loved. She solaced Mary in the dark hours of grief--Mrs. Miles is dead and no known statement of hers remains. ***************************************************************************** ***************************************************************************** The Federal Trade Commission vs. Famous Players-Lasky From 1916 to 1922, William Desmond directed films for Famous Players- Lasky (or one of its component companies). In 1921 the Federal Trade Commission charged Famous Players-Lasky with "conspiracy and restraint of trade." The complaint and subsequent hearings give background details into the business practices of the organization which employed Taylor. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * September 1, 1921 NEW YORK WORLD Acts to Dissolve Big Lasky Concern as "Movie Trust" Washington, Aug. 31--Describing it as the "largest concern in the motion picture industry and the biggest theatre owner in the world," the Federal Trade Commission has formally charged the Famous Players-Lasky Corporation and eleven other corespondents with "conspiracy and restraint of trade" in violation of the anti-trust laws. Those named with the Lasky Corporation are the Stanley Company of America, the Stanley Booking Corporation, Black New England Theatres, Inc., Southern Enterprises, Inc., Sanger Amusement Company, Adolph Zukor, Jesse L. Lasky, Jules Mastenbaum, Alfred S. Black, Stephen A. Lynch and Ernest V. Richards Jr. The respondents, a formal announcement of the commission asserts, are given thirty days to answer the specific allegations in the complaint, after which the date of the trial of the charges will be set. The complaint, as made public today, alleges that "as a result of the conspiracies and combinations set out and the acquisitions and affiliations made in pursuance of said conspiracies and combinations, the respondent, the Famous Players-Lasky Corporation, now owns more than four hundred theatres in the United States and Canada, and has numerous others affiliated with it. "It has formed producing companies in Great Britain, France, Belgium, Spain, Scandinavian countries, Poland, Czecho-Slovakia and a $3,000,000 corporation for the production and distribution of motion pictures in India." The complaint declares that "in furtherance of the conspiracy charged, the Famous Players-Lasky Corporation acquired the New York Theatre Building, containing the Criterion, the New York Theatre and the New York Roof, at a cost of $3,200,000; that the respondents acquired the Rivoli and Rialto, in the same district of New York, as well as the property on which the Putnam Building is located, where it proposed in the near future to erect a thirty- story building to cost $8,000,000 and to contain a motion picture theatre." "The Famous Players-Lasky Corporation," it is stated, "also acquired the stock of Charles Frohman, Inc., which leases the Empire Theatre and has an interest in the Lyceum Theatre. It is charged by the commission that the producing and distribution of more than 30,000 films every week by the respondent, from its studios in California and New York principally and the transportation of great quantities of unexposed films and large quantities of scenery, paraphernalia, costumes and similar stage properties give the commission jurisdiction. In the calendar year, it is asserted, approximately 18,000 theatres exhibited motion pictures in the United States and 20,000,000 people every day spend $4,000,000 to see pictures. In 1916 the motion picture industry was in the hands of three different units, none of which was affiliated with each other--producers, distributors and exhibitors. "The Famous Players-Lasky Corporation, Adolph Zukor and Jesse L. Lasky, combined and conspired to secure control and monopolize the motion picture industry, and restrain, restrict and suppress competition in interstate commerce in motion picture films," said the announcement of the commission today. "In pursuance of this conspiracy and combination, the complaint charges that the respondents acquired in 1916 Bosworth, Inc.; Jesse L. Lasky Feature and Play Company and the Famous Players' Film Company, and that since the time of such acquisition the Famous Players-Lasky Corporation has and still owns the whole of the stock of the firms mentioned, and that the effect of such acquisition has eliminated competition between such corporations and tends to create a monopoly in such commerce in the motion picture industry." It is charged that "prior to the incorporation of the Famous Players- Lasky Corporation in July, 1916, the three concerns mentioned released and distributed all of their pictures films through Paramount Pictures Corporation, New York, the only organization of the kind that had facilities for nationwide distribution." Paramount Pictures were well known to exhibitors and the public. The Paramount concern had a "closed booking" policy. Its pictures were leased on the condition that the entire lot of 104 would be taken and the person using them would not exhibit pictures of any competitor." This arrangement applied to the first run. "Under this plan," the commission says, "no exhibitor could lease a single first run, but as to the second and third runs, a different policy was pursued. While there was no competition among Bosworth, Inc., Jesse L. Lasky Feature and Play Company and the Famous Players Film Company for the leasing of films for first runs, there was free and open competition for the second and third runs or repeats." In furtherance of its conspiracy, the commission asserts, the Famous Players-Lasky Company, through its President, Mr. Zukor, sought to acquire the Paramount Pictures Corporation. "Failing to do so, and to avoid former contracts," the announcement says, "Zukor incorporated the Artcraft Picture Corporation in 1916, which corporation engaged in competition with the Paramount Corporation in leasing and distributing motion picture films. "At the time of its organization the Famous Players-Lasky Corporation employed many popular film stars, and as the contracts with certain of these expired they were not re-engaged by the respondent. Instead the respondent and Adolph Zukor organized certain new corporations and induced the stars to make service contracts with these newly formed corporations, which corporations the respondent and Zukor caused to contract with the Artcraft Pictures Corporation, whereby all films depicting the stars were exclusively leased and distributed through the Artcraft Pictures Corporation instead of the through the Paramount Pictures Corporation. "Shortly thereafter the Paramount Corporation, because of the threatened impairment of the value of their holdings through the loss of pictures depicting these stars, became desirous of disposing of their holdings, and in 1916 the Famous Players-Lasky Corporation acquired the whole of the stock and share of the capital of the Paramount, the concern which had been in competition with the Artcraft Pictures Corporation." The complaint declares that "the effect of this acquisition of the Paramount Corporation by the Famous Players-Lasky Corporation has been and is to eliminate competition in interstate commerce, and that it tends to create a monopoly, and that after the acquisition mentioned both the Paramount Corporation and the Artcraft Pictures Corporation ceased to function and were dissolved, and that thereafter the Famous Players-Lasky Corporation, in addition to producing films, entered the business of leasing and distributing such films directly to distributors without employing the medium of any distributing agency, and advertised to the trade and public film as Paramount Artcraft Pictures and Paramount Pictures." The commission then described the extension of the "alleged conspiracy" to the producers. It is set out that "after the respondent had acquired the concerns mentioned, and pursued the conspiracy and combination to control the motion picture industry, it inaugurated a policy of affiliating with it certain independent producers whose productions were of such quality and popularity that they were in great demand." It further declares that "such independent producers" by contract "Leased and distributed their films through the respondent corporation" and in the same manner as the respondent's films, and that these independent productions are advertised and displayed as Paramount-Artcraft Pictures and Paramount Pictures. "These independents are Thomas H. Ince, Mack Sennett, Cosmopolitan Productions, Mayflower Productions, George Fitzmaurice Productions, Sydney Chaplin Productions, Lois Weber Productions, William D. Taylor Productions, George Milford Productions, William A. Brady Productions. "The commission charges that "In May, 1919, in accordance with the conspiracy the respondents incorporated the Realart Pictures Corporation and caused the Realart Pictures Corporation to maintain offices, exchanges and a selling organization separate from that of the Famous Players-Lasky Corporation, and concealed the respondent's ownership of the Realart Pictures Corporation, holding the latter out to the trade and public to be wholly independent and not affiliated or connected in any way with the respondents; and that many exhibitors who did not desire to lease Famous Players-Lasky films, did lease Realart Pictures Corporation films in the belief that they were not made or produced by the Famous Players-Lasky Corporation." Acquisition of motion picture theatres through coercion and intimidation of owners into selling their theatres after threats of erecting competing houses and of interfering with their film service as a furtherance of the conspiracy alleged is charged. It is declared that in 1919 "the respondents entered into a comprehensive plan of extending the corporation's activities by the acquisition of theatres, particularly in the key cities. In pursuance of this programme, the respondents conspired, the complaint alleges, with the Black New England Theatres, Inc., of which Alfred S. Black is President, to secure control of the distribution and exhibition of motion pictures in Maine, New Hampshire, Vermont and Massachusetts, and that by acquisition of 50 per cent of the stock of the Black New England Theatres, Inc., the respondent controls more than sixty theatres in the states mentioned." The complaint declares that further pursing this programme the respondents "conspired with the Stanley Company of America, which owned or controlled more than fifty-seven theatres in Pennsylvania, Western New Jersey and Delaware; and with the Stanley Booking Corporation, owned by the Stanley Company of America, to secure control of the motion picture industry in this territory, and that as a result of this conspiracy the Paramount Pictures and Paramount-Artcraft Pictures are either shown exclusively or are given preference over others in the territory, and that well-known independent producers are either entirely excluded or are only able to lease their films at a loss or under undesirable conditions." The same programme was followed, the complaint charges, as regards the Stephen A. Lynch Enterprises Corporation, which owns and operates theatres in the Atlantic and Gulf States from North Carolina to Texas and in Tennessee, Arkansas and Oklahoma. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Testimony of W. W. Hodkinson, Al Lichtman, Harris Connick, Walter Greene, Samuel Goldwyn, W. L. Sherry, Walter Irwin, Joseph Boss, J. S. Burnham, Benjamin Knobel The following excerpted testimony is reprinted from the NEW YORK TELEGRAPH, and was originally published on the dates indicated. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * April 24, 1923: The first gun of the Federal Trade Commission's investigation as to whether the Famous Players-Lasky Corporation, in conjunction with a number of subsidiaries and individuals, constitutes a trust under the Federal law, was fired yesterday at 29 West Thirty-ninth street, with W. W. Hodkinson in the witness chair... The complaint alleges that the Famous Players-Lasky Corporation, by progressive expansion, now dominates the exhibition field, through its ownership of production, distribution agencies and theatre holdings, and because of this combination of effort stifles competition, inasmuch as its competitors are unable to secure first run showings of their pictures. The complaint also charges that the corporation is the largest theatre owner in the world, and controls showings of the pictures through its ownership of Paramount Pictures, the distribution corporation... Mr. Hodkinson was questioned at length concerning the early days of the Paramount Pictures Corporation, when he was its president, and described the first steps in the expansion and merging of the various groups of producers and distributors into the present organization. Under examination of Mr. Fuller he declared that upon various occasions, as early as 1915, he had held conversations with Adolph Zukor relative to the advisability of combining the producing and distributing divisions of the industry. Mr. Hodkinson said that he had always been against such a combination and was of the same opinion yet, but that Mr. Zukor held different views. He also said that he and Mr. Zukor had on one or two occasions held meetings with exhibitors at which the possibilities of combining producing and exhibition were discussed. Mr. Hodkinson was then asked to name the "first class, first run" motion picture houses in New York City. He named six, and stated that three of these, the Rialto, Rivoli and Criterion theatres, were controlled by the Famous Players-Lasky Corporation. He was further asked to describe the effect of New York and "key city" picture presentation upon the success of a given picture, and replied that such presentation was considered as essential in the industry as an advertising point in the explanation of a production throughout the rest of the country...The witness said that the independents had no opportunity to show at the Rialto, Rivoli and Criterion... * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * April 25, 1923: ...Hodkinson said the practices by large producers and owners of a number of first-class theatres were detrimental to the industry. "The history of the business has shown that the most successful pictures have been developed by individual efforts rather than by mass production, where there is no competition and no necessity to have special regard to quality," he said. "The independent producer being denied the patronage of the larger theatre does not receive compensation sufficient to successfully compete with other independent producers and this stands to lower the quality of the pictures."... * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * April 26, 1923: Al Lichtman, president of Preferred Pictures, yesterday told how W. W. Hodkinson, president of the Paramount Pictures Corporation in 1916, was forced out of office by the board of directors after Adolph Zukor, head of Famous Players, had complained that he could not get along with them... The witness traced the development of the Paramount organization from its start as a group of distributors to the present time, when it is interwoven closely with the Famous Players-Lasky forces and financial backing. Lichtman, who was field manager for Famous Players in 1912, declared the company entered into a distributing agreement with the then newly organized Paramount Corporation for twenty-five years. Early in 1916, the witness said, Mr. Zukor had become dissatisfied because he said that under the arrangement with the Paramount he was not receiving money enough to produce the kind of pictures he wanted and that he was threatened with the loss of some of his great stars, especially Mary Pickford. Zukor had told him, the witness said, that Mutual had offered Mary Pickford $10,000 a week. The witness said it was at about this time, after a visit of Zukor to California, that he got in touch with Hiram Abrams, a director of the Paramount company. He repeated to Abrams that Zukor had expressed himself dissatisfied with the contract with Paramount. Zukor said, according to the witness, that if he stayed with Paramount he would be unable to keep his stars and maintain the quality of the pictures he was making. The witness said that Abrams went with the latter's partner, Walter Green, and himself to see Zukor at his home. They had a conference, he said, in the course of which Zukor declared he found it impossible to get along with Hodkinson, and it was agreed among them that Abrams and Green were to see if they could not get two of the other four directors to vote with Abrams in deposing Hodkinson. Ten days later, Lichtman said, he learned that a meeting had been held and Abrams, Steele and Sherry, three of the five directors of the company, had voted to put Hodkinson out of the presidency, had elected Abrams president in his place, and elected Steele treasurer. Lichtman was asked about his own pictures. He said he was producing and distributing Preferred Pictures at this time and has twelve a year, all feature pictures. He spoke of the difficulty he has in some cities in placing his films in first run theatres owing to the fact that most of the first class houses are owned or controlled by the big producers. He got along all right in San Francisco, he said, but characterized conditions in Atlanta as "terrible," saying Southern Enterprises, a subsidiary of the Famous Players-Lasky Corporation, controls three of the five theatres in the city... As to New York, Mr. Lichtman said, he had only succeeded in placing on Broadway four pictures in the last two years out of twenty-four pictures... The witness said that, generally speaking, a producer expects about 25 per cent of the gross earning of a picture from first run theatres. Mr. Lichtman told of a number of places where the Famous Players-Lasky Corporation or some other large producer owning first run theatres would reject pictures offered by an independent producer on the plea that they had no open time. He mentioned theatres in various cities which, while not owned by one of the large producing companies, would use all the pictures made by one of those companies, leaving only a small amount of time available to all the others... He was asked if he knew H. E. H. Conick, and said he had met him in 1919 when the latter had come to the office of the Famous Players-Lasky Corporation to investigated the corporation in the interest of a group of bankers who were considering underwriting a stock issue of $10,000,000. He said Mr. Conick was shown every consideration, allowed to examine the records; that later the sale of stock was made, and, still later, Conick became chairman of the finance committee of the Famous Players-Lasky Corporation, and was still holding that position when he left the corporation in 1921. The witness said the intention of the corporation when it secured the $10,000,000 was to use the money to build or purchase a theatre in "key" cities of the country, where it was impossible to get advantageous contracts... He said there are thirty "key" cities in the country and approximately 120 first-class first-run theatres in those cities. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * April 27, 1923: Mr. Lichtman said there are approximately 14,000 moving picture theatres in the United States, seating about 8,000,000 persons, and he estimated that about 10,000,000 persons attended performances daily as conditions are now. He said conditions now are only fairly prosperous: that in 1920 and also in part of 1918 more persons witnessed the pictures daily... Asked to state the condition confronting the independent producer and distributor as compared with the producer and distributor who owns or controls a number of theatres, the witness said: "The small producer is at a disadvantage, for the producer who owns theatres can figure fairly well on what his receipts at first will be."... * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * April 28, 1923: ...Harris D. H. Connick, of 511 Fifth Avenue, who made an investigation in 1919 for Kuhn, Loeb & Co., into the motion picture industry, with special reference to the Famous Players-Lasky Corporation, was the first witness. He said he was a graduate of Stanford University and was director of works of the Panama Pacific Exposition. The witness said he came to New York in 1916 and was vice president of the American International Corporation. He told of having made the survey in the Fall of 1919 for Kuhn, Loeb & Co., who, he said, wanted the information in connection with underwriting a $10,000,000 stock issue of the Famous Players-Lasky Corporation. He said the Famous-Players got the $10,000,000 with a view to investing it in theatres. In December, 1919, he said he joined the Famous Players-Lasky Corporation. Asked his duties, he said: "I went in as chairman of the finance committee and also as a sort of manager under Mr. Zukor. I had all the duties of a general manager." He said he and Mr. Zukor had innumerable conferences over the plan to secure theatres. "Mr. Zukor's plan was to acquire a number of modern theatres in 'key' cities, so he could get his pictures without fail in first-run theatres in those cities." The witness said that he left the Famous Players-Lasky Corporation in December, 1921. He said in 1920 Mr. Zukor feared only the competition of the First National Corporation, and said there were negotiations looking to an arrangement between the two organizations for increasing the sale of pictures. "The primary object of these conferences," said Mr. Connick, "was to get a working agreement with the First National, or, its component parts. They wanted to make some arrangement which would do away with competition between the companies in employing stars, buying stories, and in every way."... "While you were discussing these plans, did Mr. Zukor ever say to you that, by working out his plans, he could dominate the motion picture industry?" asked Mr. Farrington. "Mr. Zukor was under the impression that Famous Players could then dominate the situation," replied Mr. Connick, "and that his plan would give permanency to this."... Asked whether he thought the power of the screen was good or evil, the witness said: "As a matter of course the screen has a lot of power and is unquestionably one of the educational influences of the day." Asked what would be the result if large producers should acquire fifty per cent of the theatres in the country, Mr. Connick said that it would be a very profitable thing for the producers, but said that the independent producer would have a difficult time placing his pictures unless the picture was of superlative quality. He said that the owner of the theatre, if he was a producer, would naturally use his own pictures because they would make more money for him, but said they would find time to put on a picture of an independent producer if it was exceptionally good and a sure moneymaker. On cross-examination Mr. Connick said in reply to questions of Mr. Swaine that the motion picture business was "a very boastful business." "When you said this morning that Famous Players dominated the motion picture industry, what did you mean?" asked Mr. Swaine. "I meant that compared in every way they were better than any other concern in the motion picture field," replied the witness. "In the same way, would you say that Caruso dominated the operatic field?" queried Mr. Swaine. "Well, not exactly," said Mr. Connick. "God Almighty had a good deal to do with Caruso and he did not have much to do with the Famous Players Corporation."... Mr. Swaine asked the witness if it was not the growing competition of the First National organization that prompted Mr. Zukor and the other officials of Famous Players to buy theatres. "The idea was to get rid of competition," said Mr. Connick, "trying to clean them right up. It was a case of dog eat dog." The witness said that First National was not as threatening as its thousands of franchise and sub-franchise holders might seem to indicate, pointing out that only a few hundred of the theaters were large ones, the great majority being small houses. He said First National had at least one theatre in every "key" city of the country... * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * May 1, 1923: ...Walter E. Greene, vice president of the American Release Corporation, who was a partner with Hiram Abrams in an independent distributing exchange in 1916, told of the formation of the Paramount Pictures Corporation by a number of distributors from all sections of the country, of which W. W. Hodkinson of California was elected president. Questioned by Mr. Farrington, counsel for the Commission, Mr. Green told how in May, 1916, Adolph Zukor, the president of the Famous Players Corporation, had become dissatisfied with the way its pictures were being handled by the Paramount Pictures Corporation and the witness said he had been told by his partners, Abrams and Alexander Lichtman, that Mr. Zukor had threatened to leave the Paramount Pictures Corporation, although he had a 25- year contract with it, unless some changes were made in its policy. The witness said that following Mr. Zukor's return from a visit to California in May, 1916, that he, Abrams, Lichtman and Mr. Zukor had a conference at the home of the latter, at which Mr. Zukor said that he found it hard to get along with Hodkinson, and suggested that Hodkinson be removed as president and that Abrams be substituted in his place. He said they came to an agreement while at Zukor's home that if possible they would have Hodkinson deposed, and also the treasurer of Paramount Picture Corporation, a man named Pawley, removed. It was also agreed that Zukor should have 50 per cent of the stock of the Paramount Corporation... Mr. Greene told of the organization of Artcraft Pictures about July, 1916, of which he was elected president. He said the object of the Artcraft Pictures was to distribute pictures by Mary Pickford and other high-class stars. He said the Famous Players Corporation furnished the funds to organize the Artcraft Pictures, but the latter was advertised as an independent company. Mr. Greene said the Famous Players Corporation took over the Paramount Pictures Corporation in May or June, 1917, and that the Artcraft and Paramount were merged. He said it was in the Summer of 1917 that he first heard of the plan to acquire first run theatres. At first it was planned to make contractual arrangements with certain first run theatres by which the Famous Players pictures would be given to these theatres provided they took a majority of the corporation's pictures. But this plan fell through, he said, and then they decided upon buying or leasing theatres... The witness was asked about Mr. Zukor's connection with Lewis J. Selznick in the Summer of 1917. He said they formed the Select Pictures Corporation in which Famous Players had a half interest. He said the business policy of the Select Pictures Corporation was discussed by the executive committee of Famous Players Corporation, but that practically all the transactions connected with the production of pictures were carried on by Mr. Zukor and Mr. Selznick. This arrangement lasted only a year, he said, Famous Players selling its half interest to Mr. Selznick. Soon after this the Realart Corporation was organized with the financial help of Famous Players Corporation. he said the organization of this corporation was to provide an outlet for a secondary list of pictures, which it was thought could be released to better advantage through another organization. He said at first it was not generally known that the Realart Corporation was a subsidiary of Famous Players, but it became known within a few weeks... Mr. McDonald asked Mr. Green if the organization of Artcraft Corporation had not been made at the special request of Mary Pickford and because she insisted her pictures should not be distributed with other pictures, and the witness said he understood such was the case... * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * May 2, 1923: ...Samuel Goldwyn, formerly head of the Goldwyn Pictures Corporation, testified that after the formation of that company in 1917, great difficulty was experienced by the company in getting its pictures shown in important cities, due to control of theatres by the Paramount-Famous Players interests and the franchises of the Associated First National. Mr. Goldwyn said he entered the motion picture business in 1923 [sic] when, in partnership with Jesse L. Lasky, he formed the Jesse L. Lasky Feature Play Company. Cecil B. DeMille was also associated with them, he said. This company produced its first picture in the Spring of 1914, he testified, and at this time the Paramount Company was organized to distribute films and films of Famous Players. The output of these two concerns did not furnish continuous programs throughout the year, and so the Paramount Company itself became a producer, Mr. Goldwyn said. This arrangement was unsatisfactory to the Company, and negotiations were begun for the consolidation of the Lasky Company with Famous Players, with the expectation that Paramount could be induced to join, making one big company. The Famous Players Lasky combination was effected and then a $25,000,000 corporation was planned to include the Paramount and some other interests. The deal was not consummated due to inability of all parties to agree as to the time. The proposal, however, served to influence the Paramount Company to make better terms. This consolidation of Famous Players and Lasky took place in 1917 [sic], and following this, in connection with other proposed measures, Goldwyn said, he went to California. While he was away from New York, Adolph Zukor, who represented the Famous Players interests, wrote a letter to the board of directors saying that either he or Goldwyn must leave the organization, the witness testified. Upon his return to New York, Lasky, who had been his partner in the beginning and is his brother-in-law, came to him and told him of the Zukor letter, Goldwyn said, and announced his intention of voting for Zukor. Goldwyn said he was thus forced to resign. After he left the Famous Players Company, Mr. Goldwyn said, he formed the Goldwyn Pictures Corporation, and it was then that he found it very difficult to obtain a showing for his pictures, due to the control of theatres by the Paramount-Famous Players interests and the Associated First National... About 1917 the contract which the Famous Players Company had with Mary Pickford expired, Mr. Goldwyn said, and Miss Pickford, having learned that Charlie Chaplin had made a contract with First National for eight pictures at $1,075,000, insisted on $10,000 a week. This made it necessary for the Famous Players-Lasky Company to get more for her pictures than could be obtained under their contract with Paramount. Thus came into being the Artcraft Company, which later added several other stars... * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * May 3, 1923: W. L. Sherry, vice president of the Paramount Pictures Corporation, owner of a motion picture exchange in New York City, told yesterday ...how after the Famous Players secured 51 per cent of the stock of Paramount Pictures by giving Famous Players stock in return for the Paramount picture stock, he had lost though his connection with the Famous Players Corporation stock estimated to be worth $800,000... Mr. Sherry said that the Paramount Pictures Corporation stock was selling at 80 at the time the deal was made with the Famous Players. That he was the largest stockholder in Paramount, and that at this price this stock was worth $800,000. He was given stock in the Famous Players Corporation, he said, and it was agreed that he was to have a contract to distribute the Famous Players pictures. He said some of the others connected with Paramount did get contracts for various territory. He mentioned one who received $1,000 a week and 2 per cent of the gross. Mr. Sherry said he never got his contract. The Paramount was taken over by Famous Players in 1915. Mr. Sherry said that several weeks following that he received no compensation, but afterwards was allowed a drawing account of $250 a week. He said he was called to the home office and was there for a few weeks at the head of the purchasing department. He said he told Mr. Zukor that he did not like this, and Mr. Zukor had told him that he was glad to have a man like him as the head of the purchasing department. "I realized," said Mr. Sherry, "that I had been brought down to the home office to make room for Arthur White, who was then with the Artcraft Company." Mr. Sherry said that while drawing the $250 a week he was distributing pictures in the New York territory. He said in 1918 Mr. Zukor wanted him to buy a motion picture--"Joan the Woman"--for the New York territory. He said he told Mr. Zukor that the picture was not worth that price, but finally at the solicitation of Mr. Zukor, said he bought the picture for $100,000 in cash and gave his note for $25,000, with the understanding that he was not to lose on the picture. "Mr. Zukor gave me his promise in the presence of others," sand Mr. Sherry, "that I should not lose on the picture. He said if the Famous Players did not pay me for any loss I might have he would pay it himself." M. T. Farrington, counsel to the commission, asked the witness how the picture turned out. "The picture never grossed over $5,000, if that," said Mr. Sherry. "I had been obliged to borrow the $100,000 from the Irving National Bank, and put up my Famous Players stock as collateral on it. I was obliged to sell my stock to pay the loan and at this time the Famous Players discontinued playing the dividends and the stock fell so that I had to dispose of it at 22 to 30, at a great loss." After he was brought to the home office he saw that they were trying to get him out of the exchange he had formerly owned and been running, and he resigned from the Famous Players Corporation and opened another exchange, he said. He was asked by Mr. Farrington whether he ever spoke to Mr. Zukor about the contract he had been promised after leaving the Famous Players. "I spoke to Mr. Zukor on several occasions about it," he said, "telling him I had been cheated out of my contract. A few months ago I was entirely without money and I went to Mr. Zukor and told him that I needed money badly and he said he would put it up to the board of directors. They loaned me $15,000, but not until I had signed an agreement waiving all claim on the Famous Players' Corporation, the Cardinal Film Company, which had produced the picture, 'Joan the Woman,' and Adolph Zukor. I had to sign the agreement to get the money. I paid interest on the loan, but I have been unable to do that recently and I still owe them the $15,000. They canceled my note for $25,000 which I gave at the time I purchased the picture." * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * May 8, 1923: Walter W. Irwin, a pioneer in the film industry, who organized the old V. L. S. E. Distributing Corporation and was connected with the Famous Players company from 1916 to 1920, told how he happened to join the concern at the request of Adolph Zukor, the president. The latter had mentioned to him that certain cities in the Middle West, notably St. Louis and Indianapolis, were not turning in an amount of revenue for his product that localities of such size ought to. Accordingly, it was arranged that Mr. Irwin should make a survey of these cities and see what could be done to give the pictures better representation. He became vice president of the company. Investigating conditions in St. Louis, Mr. Irwin found that the best theatre was used by First National, with only an old auditorium left. In order to obtain good showings in the city, he acquired some property opposite to the theatre of the rival circuit and had plans immediately drawn up of a theatre. This was built soon after. In Indianapolis it was also necessary to build a theatre in order to guarantee first run showings that would influence small exhibitors in that district. Questioned further by Daniel Farrington, counsel for the commission, Mr. Irwin declared the sales department had made up a statement on the returns from the so-called "key" cities, and this disclosed bad conditions, not only in St. Louis and Indianapolis, but also in Milwaukee, Toledo, New Haven, Pittsburgh, Boston and Cincinnati. In each of these latter cases no theatre was acquired at the time, except in New Haven. The fight between the Famous Players and First National forces was outlined in detail by Mr. Irwin, who explained why the Paramount organization took drastic steps to face the competition of the new circuit. He said at the time First National was formed it was claimed they were to be the champions of the exhibitors and would rescue them from the Famous Players' alleged trust. He said Zukor told him that Mr. Williams and another member of the twenty-six men who made up the First National firm had sent word to him that they intended to get Mary Pickford away from him, and that no matter how much Zukor bid for her, First National would outbid him. Irwin said Zukor told him he was advised that he might as well stop bidding for Miss Pickford. Zukor, he said, also told him Mary Pickford and her mother notified him they had received the same information. He said Zukor said to him that he did not propose to allow any man or group of men to destroy a business he had built up out of the hollow of his hand, and that he would fight in every possible way to prevent it. Zukor asked him what advice he could give him. He said he advised Zukor to tell the film industry through published affidavits and letters in the advertising column the purpose of the First National and their declared objects. "I advised him," Irwin said, "to point out to the exhibitors that this alleged exhibitors' organization would only result in the increased price of pictures, through the bidding of the Famous Players for stars, result in increasing the prices tremendously, and also the tell the exhibitors that instead of the First National being their friend, it was their commercial enemy." The witness said he advised Zukor that as a matter of self-protection, Famous Players should decline to serve pictures at the time to exhibitors or sub-exhibitors who held franchises of the First National on the ground that they were a part of the declared conspiracy to ruin Famous Players. He said he told Zukor he felt justified that it was the proper action to take in face of the conditions. Irwin, who has been prominently identified with the film industry from 1909 on, and who served for a while as theatre manager for Famous Players, gave a survey of all of the different conditions covering the distributing system, from the first policy of selling the "program," "open booking," and the "rotary star" system. He declared it was next to impossible for men who proposed to produce independent pictures to get financial backing unless the backer was assured he could contract for the distribution of pictures before the picture was made. The witness said that an open market for pictures was the only solution for conditions, and he decried the blocking system whereby groups of theatres have their programs booked months ahead through contracts with big distribution agencies and booking companies... * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * May 11, 1923: Joseph C. Boss, of Washington, D.C., who began his career as motion picture exhibitor in Philadelphia in 1904, was on the witness stand all day yesterday...Briefly, Mr. Boss's story is that S. A. Lynch, who was head of a district agency for Paramount Pictures, told him on the street in Dallas, Tex., that if he, Boss, put in a picture house at McAlester and took all Paramount pictures the company would not put in an opposition house. Acting on that verbal promise, he put in the house. That was in the latter part of 1919. In October of 1920, Mr. Boss testified, the Paramount people established a house across the street from him and about this time he began having trouble about the delivery of his lobby displays and could not get certain films... * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * May 17, 1923: J. S. Burnham, who has operated motion picture theatres at Cortlandt, Auburn and Seneca Falls, N.Y. was placed on the stand yesterday before Commissioner E. C. Alvord of the Federal Trade Commission, inquiring into the operations of Famous Players Corporation to determine whether they act in restraint of trade... Mr. Burnham said that a Mr. Rose, representing the Famous Players distributing office in Buffalo, called on him several times at Cortlandt, N.Y., where he had at that time two theatres. Mr. Rose wanted to sell him pictures. He wouldn't buy because he said the prices were too high and he would have to change admission prices if he bought them. After numerous calls by Rose another representative from the Buffalo office came back with Rose and the conference was heated. Mr. Burnham testified that they threatened him. This was ruled out as a conclusion of the witness. He was asked to repeat what was said. He couldn't recall what was said beyond repeating several times that the conference was very heated and that he, in effect, told them to move on. Shortly after that a series of four advertisements appeared in the Cortlandt Standard, a newspaper, asking the people of Cortlandt to demand of their theatre managers an opportunity to see Paramount Pictures. The advertisements declared that Cortlandt was about the only city in the State which was denied the privilege of seeing Paramount productions. As a result of these advertisements, Mr. Burnham testified, several of his patrons stopped him on the street and asked him why he did not run Paramount Pictures. He told them that he could not afford to do so because they cost too much. On cross-examination he added that he told them the theatre was his and he would run in it the pictures he chose. Two postal cards mailed from Buffalo were also introduced in evidence. These cards asked him why he did not run Paramount Pictures. After the postal card and advertising campaign on behalf of Paramount another theatre, the Novelty, with a seating capacity of 225, changed its name to the Paramount-Novelty and began running Paramount Pictures... * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * May 22, 1923: Benjamin Knobel...is one of the principal stockholders in companies which operate motion picture theatres in the Bronx and farther up....Mr. Knobel said he bought all the Paramount productions because he had been told that their plan of selling was all or none...Asked to be very definite, he said he was told this in the New York Famous Players office about August 18, 1922. The witness complained that some of the pictures for which he had contracted were not released to him but that they appeared on Broadway and was unable to get them... The question of adjustments on prices paid for pictures which did not draw a paying business was discussed at length. The witness said he invited the Paramount distributing office manager in New York to examine his books and discovered that the Paramount office had already had a man at his theatre entrance "clocking" the crowd--that is, counting the people as they entered. He objected to this means of checking business on the ground that a motion-picture theatre has a great many passes. He estimated the number at an average of 150 a day, but said that these passes do not come in an average way--that on some days they amount to 300. Nearly all of these passes are issued in payment for the privilege of posting window cards... Charles A. Goldreyer, who is a partner with Mr. Knobel in four motion picture theatres and has another of his own, was the next witness. On direct examination he was asked if he bought the complete Paramount output because he had to in order to get any. He said he bought all of Paramount's output because he wanted all of it. He said several pictures for which he had contracts with Paramount were taken away from him and given to a competing theatre. He objected but got no answer... He went over much the same ground as Mr. Knobel on the subject of "clocking" the crowd as a means of checking the business a theatre was doing. On the subject of number of passes, he said the Kinsbridge Theatre issued 500 passes a week, each for two persons, and that these are honored only on Mondays, Tuesday, Wednesdays and Thursdays... "You have had continuous relations with Paramount since 1912, and have had friction over only the few pictures indicated in your testimony?" asked Mr. McDonald. "Yes." "On the picture 'Peter Ibbetson,' for which you paid $2,000 and lost money, you received an adjustment of $500, did you not?" "Yes." "There is nothing in the contract calling for that adjustment or any adjustment is there?" "No." "On the whole don't you think Paramount has dealt fairly well with you?" "In some ways they are fair and in some ways not. If they had given back the whole $2,000 for 'Peter Ibbetson' it would still have been a loss." ***************************************************************************** ***************************************************************************** Rudolph Valentino Characterizes Charles Eyton At the time of William Desmond Taylor's death, Charles Eyton was the studio manager of Famous Players-Lasky (Paramount), and he had worked closely with Taylor for many years. Shortly after Taylor's body was discovered, on the morning of February 2, 1922, Eyton was the senior studio official at the murder scene, and he subsequently testified at the coroner's inquest (See TAYLOROLOGY 61). Eyton was married to actress Kathlyn Williams. Below is an extract from Rudolph Valentino's sworn affidavit filed on September 18, 1922, in the breach of contract lawsuit filed by Famous Players- Lasky against Rudolph Valentino, as reprinted in MOVIE WEEKLY. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * December 2, 1922 Rudolph Valentino MOVIE WEEKLY ...Mr. Lasky referred all matters possible to Mr. Charles Eyton as general manager of the studio and it was only when I went over Mr. Eyton's head to Mr. Lasky that I ever had an opportunity to talk to Mr. Lasky personally. Mr. Charles Eyton was formerly a promoter of prize fights and later became manager of a theatre in Los Angeles in which one of the executives of Famous Players-Lasky Corporation has an interest, and subsequently became general manager of the west coast studio of that company. Mr. Eyton is a man of very dominating manner who believes in bullying first and reasoning later, if at all. I never made a single suggestion to Mr. Eyton during the entire making of "Blood and Sand" that was received agreeably by him, no matter how trivial or how fair it might be. He would always bluster and show fight. Mr. Eyton is extremely unpopular at the west coast studio because of his domineering methods, but is retained there apparently by two of the executives of Famous Players-Lasky having to do with the west coast studios, who deem him useful to them... ***************************************************************************** ***************************************************************************** Below is the sworn affidavit filed by Charles Eyton in the 1922 breach of contract lawsuit filed by Famous Players-Lasky against Rudolph Valentino, as reprinted in MOVIE WEEKLY. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Affidavit filed by Charles Eyton regarding Rudolph Valentino December 9, 1922 MOVIE WEEKLY Charles Eyton says that at all times herein mentioned he was and still is the general manager of the west coast activities of Famous Players-Lasky Corporation, that he knows Rodolph Valentino and has become particularly well acquainted with him since his employment by Famous Players-Lasky Corporation beginning January 1, 1921 and produced for that corporation among pictures entitled "The Sheik," "Moran of the Lady Letty," "Beyond the Rocks," "Blood and Sand" and "The Young Rajah," that his duties as general manager brought him in touch with Mr. Valentino very frequently at the Hollywood studio of the corporation where affiant's office was and is. That affiant acting for Famous Players-Lasky Corporation conducted some of the negotiations with said Valentino which resulted in the contract of employment of January 17, 1922 and under which contract produced "Blood and Sand" and "The Young Rajah"; that negotiations for the said contract of January 17, 1922 began on or prior to November 28, 1921, on which date said Valentino entered into a contract with the corporation for his services to play the leading male role in the production entitled "Beyond the Rocks," at a salary of $1,000.00 per week and in which said agreement said Valentino granted to said contract an option upon his services as an artist in motion picture productions for the period of one year at a salary of $1,250.00 per week beginning upon the day after the completion of "Beyond the Rocks," and also a second option for an additional period of one year at a weekly salary of $2,000 per week and also a third option for an additional period of one year at a weekly salary of $3,000 per week. Without any pursuance of the said agreement of November 28, 1921, said agreement of January 17, 1922 was entered into and executed by the respective parties and the provisions of said agreement of November 28, 1921 were incorporated in the agreement of January 17, 1922, except the provisions with reference to the production of "Blood and Sand" within one year in Europe under the directorship of George Fitzmaurice or John S. Robertson which said provisions would have been inserted in the agreement of January 17, 1922 had not said Valentino consented and agreed that the said "Blood and Sand" should be produced under the directorship of Fred Niblo; that at the request and recommendation of said Valentino and his agent, Clifford Robertson, said corporation employed June Mathis and entered into a contract with her under date of December 19, 1922 to write the continuity of said "Blood and Sand" and also entered into a contract dated February 18, 1922 to scenario writing, adapting, supervising and general handling of stories for the corporation. That a part of the negotiations for both the said contracts of November 28, 1921 and of January 17, 1922 with said Valentino were conducted by Jesse, Lasky that affiant was present during some of these negotiations and heard the conversations between Mr. Lasky and said Valentino and his agent, that at no conference was any representations made by either affiant or Mr. Lasky with reference to the said contract to induce said Valentino to execute the same or for any other parties, nor any agreement or promises made or suggested which was not incorporated in the said agreement of January 17, 1922. Affiant further says that prior to the said contract of November 28, 1922 and during the negotiations therefore, said Valentino upon several occasions said to affiant that he was anxious to become associated with the corporation, that his standing as a motion picture actor was greatly to be enhanced by securing a contract with Famous Players-Lasky Corporation; that he recognized the fact that it was better for him to be associated with this company than any other company, owing to the fact that three or four productions produced on the scale of magnificence that Famous Players-Lasky Corporation had heretofore produced, would advance him further on his way to stardom than any other means he could think of. Affiant further says that it is a custom of this corporation to sign all of its stars for a period of a year with options of four additional years but that Valentino refused to sign for these periods, stating that three years association as a star with Famous Players-Lasky Corporation would make him so popular he would be entitled to a fabulous salary. Affiant further says that he left for the Orient on March 25, 1922 and from the time of signing of Valentino of his said contract, up to that date Valentino had not at any time complained to affiant of any false or fraudulent misrepresentations made by any person during negotiations of the contract, but on the contrary told affiant he was very much elated and pleased with the splendid production and general all around support the corporation was giving him in "Blood and Sand," that the above statements were repeated to affiant by Valentino on several occasions; and that said Valentino told affiant how pleased he was to have Mr. Niblo as his director and June Mathis as his supervisor and scenario writer and the splendid costumes that were being brought from Spain especially for him. Affiant further says that before production was started on "Blood and Sand" the cast was talked over several times with said Valentino and approved by Valentino; that at this time Mr. Lasky stated to affiant specifically that as this was Mr. Valentino's first starring vehicle, time or money was not to be spared to make it a tremendous success in every possible way, that for weeks the corporation represented by Mr. Lasky, Mr. Niblo, Mr. Goodstadt, Miss Mathis and the affiant had frequent conferences regarding the selection of actors and actresses for the various parts in this production and before final selection for any important part was made, Valentino was consulted; that the corporation had great difficulty in finding a suitable type of woman to play the leading feminine role and at least a dozen names of leading artists were submitted for consideration and discussion and finally Miss Nita Naldi was chosen especially for this part and brought to Hollywood from New York to play this part and Valentino repeatedly told affiant she was an ideal type for the part and could not have been bettered. Affiant further says that prior to the employment of Miss Mathis, as aforesaid she had interested herself in said Valentino and had told affiant that she was the one who had chosen Valentino to play Julio Desnoyers in "The Four Horsemen" and succeeded in getting him cast for that part against the opposition of Rex Ingram, the director, and the executive officers of the producing corporation, that upon exhibition of this picture to the public it proved to be the greatest picture of the year and her judgment in regard to Valentino was thus upheld; that she thereupon decided to take a professional interest in him and said Valentino, before and after the employment of Miss Mathis expressed the same admiration for her help and ability as she did for him and at various times said to affiant that much of his success on the screen was due to her very great artistic ability and her sympathetic assistance. Affiant further says that many times in discussing various matters in connection with productions, Valentino would say to affiant or request affiant to discuss the matter further with Miss Mathis and told affiant that any decision reached by her would be acceptable to him and that affiant has many times discussed said matters with Miss Mathis and her decision have been acceptable to said Valentino. Affiant further says that he was present upon many occasions and conferences between Mr. Lasky and said Valentino when the negotiations for said contract of November 28, 1922 and January 17, 1922 were being carried on, and that affiant also had negotiations himself with said Valentino, that neither affiant or Mr. Lasky or any other representative of the corporation so far as known by affiant at any time made any representations or statements or held out any inducement to the said Valentino to enter into either of said contracts except the terms and conditions which were incorporated in said respective contracts, that neither affiant nor Mr. Lasky in affiant's presence nor any other representative of the corporation in affiant's presence at any time made any untrue statements or any misrepresentations with reference to any matter in any way connected with the negotiations for said agreements or to induce said Valentino to enter into same. Affiant further says that at no time did said Valentino state to him or mention to him that there were any misstatements or misrepresentations fraudulent or otherwise in any matter connected with the negotiations of these contracts or the execution therefor prior to the 10th day of August, 1922. Affiant further says that the said contracts were freely entered into and executed by the said Valentino after a full discussion of all the terms therefor and Clifford Robertson, who was the agent and representative of said Valentino, in the negotiations of said agreements, and also that W. I. Gilbert, Esquire, who was at all times his attorney at represented him in the negotiations and in execution of said contracts. Affiant further says that so far as known by him at no time has the corporation or any agent or representative thereof refused to discuss with said Valentino the story during any production or the direction therefor or the cast, and that any and all suggestions made by said Valentino have been fully considered and affiant further says that nearly all of the suggestions and requests with reference to such matters made by said Valentino have been accepted and granted. Affiant further says that there was never at any time to his knowledge any conduct on the part of affiant or of any other representative of the corporation which in any way rendered it difficult or at all interfered with the production work of said Valentino, but on the contrary affiant and every other person in the employ of the corporation connected with the productions of said plays had affiant's instructions to take the same care as with other stars to assist and help said Valentino in his work in every possible manner in order to enable him to play his part with the artistic ability of which he was capable and affiant further states that he notified all departments in any way connected with the studio to treat Valentino with the same respect and courtesy that all other stars are accorded. Affiant further says that never at any time during the life of Valentino's contracts with the Famous Players-Lasky Corporation did affiant or any representative of the corporation with the knowledge of affiant, interfere with his personal affairs except at the request of said Valentino who on several occasions came in and asked affiant for the benefit of his advice on personal matters which advice was given him because of friendship on the part of affiant and not because of affiant's official position. Affiant further says that at no particular time during said Valentino's employment did he mention to affiant any specific case in which the corporation or its representatives were interfering with his personal affairs or say that he had been compelled to sign a contract, that at all times from the time Valentino first appeared with the corporation in "The Sheik" to the time that affiant left for the Orient he told affiant he was happy and contented with his support in the way of stories that the corporation gave him and which affiant says the corporation gives to every other actor of equal importance and also said that it was his personal affairs only that interfered with his work and his happiness; that Valentino consulted with affiant frequently in the matter of his divorce, with his wife on him by her attorney for payment of alimony and other moneys and told affiant he had made up his mind no matter where he might get as a star in the motion picture profession he would rather stop work here and go to Europe and give up his career in the United States than to allow his wife to get a cent of the money he thought she was not entitled to.[sic] Affiant further says that during the whole of said Valentino's employment with Famous Players-Lasky Corporation affiant showed Valentino the greatest respect and courtesy and that Valentino confided to affiant many of his most personal affairs; that affiant reciprocated this friendly feeling. Affiant further says that all contracts, including Valentino's executed by Famous Players-Lasky Corporation, provides that all stars, actors and actresses to be bound by and obedient to the rules of the company, that one of the rules in force restricted the admission of visitors into the studio especially where it would tend to hold up a picture still in production; that the rule was made for the reason among others that stars frequently insisted upon the admission of their friends for the purpose of receiving and visiting with them, thus delaying the director and costing the corporation large sums of money in consequence. That this rule was uniformly applied to all employees of the corporation. Affiant says that up to his departure for the orient he had been more than liberal with the requests of said Valentino for permission to bring his friends and acquaintances into the studio, but that on or about July 14, 1922, said Valentino was working on an important set in "The Young Rajah" when affiant refused a request from Valentino to admit three or four of his friends to the studio which request affiant refused and on July 15th received the following letter from Mr. Valentino: "Following our controversy of yesterday, the 14th, I would appreciate it if you would be kind enough to state what privileges and perogatives I am supposed to have in the capacity of a Paramount star in regard to receiving people who may wish to see me on important business so that I may be able to conform myself to the rules of this organization." In answer to Valentino's letter affiant replied by letter on the same day as follows: "Replying to your letter regarding your perogatives as a star, if you will drop in during your spare time I will be glad to discuss this matter with you as I agree with you thoroughly that you ought to know exactly what to do in situations of this kind." To which letter affiant received no reply either in person or otherwise. Affiant further says that in all cases he has endeavored to secure the properties, costumes and other things Valentino wanted and was excepted in the following cases which affiant now recalls and in which Valentino's contention was right and affiant agreed with him; in one case was a horse and saddle in his production of "The Young Rajah"; the various departments had tried to get what they thought was satisfactory to Valentino but on the arrival at the location Mr. Valentino objected most strenuously to the horse, and affiant after hearing his statement told Valentino his contention was right and affiant immediately gave orders to secure a horse suitable to the part Valentino was portraying, that Valentino secured a horse from a friend of his and used the saddle that was prepared for the first horse, that Valentino came back from location that night perfectly satisfied and contented and told affiant so. The other occasion was in the production of "The Young Rajah" where Valentino appeared in a chariot, his contention in regard to this was that it was not built right; that on inspecting the same affiant agreed with him and took the matter over with Miss Mathis and immediately gave orders to reconstruct this chariot so that it would conform to the ideas expressed by Valentino. Affiant does not recall any other specific instances of complaints or objections by Mr. Valentino except trivial everyday occurrences, more or less prevalent in all production work. Affiant further says that Valentino had some time previous to his employment by Famous Players-Lasky Corporation in the production of "The Sheik" had been working for the Universal Film Manufacturing Company at a salary of $150.00 a week and subsequently worked for Metro Corporation in the production of the "Four Horsemen" at a salary of $350.00 per week and later for the same corporation worked in the production of "Camille" at a salary of $400.00 per week and that as affiant is informed and believes up to the time of employment by Famous Players-Lasky for the production of "The Sheik" he had not received a salary in excess of $500.00 per week. Affiant further says that under Mr. Lasky's orders to spare no expense on "Blood and Sand" he secured the best talent available in every department, affiant as representative of the corporation secured from the Cecil B. De Mille productions, Alvin Wyckoff who had the reputation of being one of the best cameramen in the motion picture industry and who for several years had been engaged by Cecil B. De Mille for photographing his productions, and that it was only after several conferences with the said Cecil B. De Mille that the corporation secured his consent to this arrangement, the understanding with Mr. De Mille at this time being that if his next picture started before production was through with "Blood and Sand" he would have to have Alvin Wyckoff back to work with him. That several times previous to affiant's departure for the Orient, Valentino mentioned to affiant that the photography of this production was as good as any he had ever seen. Charles Eyton. ***************************************************************************** ***************************************************************************** Back issues of Taylorology are available on the Web at any of the following: http://www.angelfire.com/az/Taylorology/ http://www.etext.org/Zines/ASCII/Taylorology/ http://www.silent-movies.com/Taylorology/ Full text searches of back issues can be done at http://www.etext.org/Zines/ or at http://www.silent-movies.com/search.html. For more information about Taylor, see WILLIAM DESMOND TAYLOR: A DOSSIER (Scarecrow Press, 1991) *****************************************************************************