International projectionist (Oct 1931-Sept 1933)

June 1933 INTERNATIONAL PROJECTIONIST 29 same. Western Electric Company, Inc., is a manufacturer as above defined. American Telephone and Telegraph Company is a defendant holding 95% of the capital stock of Western. Electrical Research Products, Inc., herein called "Products," supplements the business of Western by licensing under patAv ents and leasing producing and repro>* ducing equipment and also furnishing services relating to the upkeep of the equipment. Clayton Act Applies Section 3 of the Clayton Act provides : "It shall be unlawful for any person engaged in commerce, in the course of such commerce, to lease or make a sale or contract for sale of goods, wares, merchandise, machinery, supplies or other commodities, whether patented or unpatented, for use, consumption or resale within the United States or any territory thereof or the District of Columbia or any insular possession or other place under the jurisdiction of the United States, or fix a price charged therefor, or discount from, or rebate upon, such price, on the condition, agreement or understanding that the lessee or purchaser thereof shall not use or deal in the goods, wares, machinery, merchandise, supplies or other commodities of a competitor or competitors of the lessor or fk seller, where the effect of such lease, " sale, or contract for sale or such condition, agreement or understanding may be to substantially lessen competition or tend to create a monopoly in any line of commerce." An examination of the numerous affidavits and voluminous exhibits filed on this motion shows that certain restrictive agreements contained in the licenses or leases made by Products are inherently illegal, — the import of which could not be changed by testimony. These restrictive agreements are: (1) The Tying Agreements in the licenses or leases of Products to exhibitors, whereby exhibitors agree to pur Made in France STN ARC CARBOI^S Best by Test Used in Radio City by the World's largest theatres — RKO Music HaU RKO Roxy Carbon savers for Hilow and High Intensity carbons — Free of Charge'. Samples on Request CARBON PRODUCTS, Inc. 324 West 42nd Street New York, N. Y. chase from Products all repair and replacement parts for the reproducing apparatus and equipment leased by Products. (2) The Exclusive Agreements in the contractual letters accompanying the leases of Products to producers whereby producers agree to distribute films produced on the producing apparatus only to exhibitors supplied with Products' reproducing apparatus and equipm.ent. Replacement Demand Illegal The Tying Agreements on the part of exhibitors to purchase repair and replacement parts from Products are found in all the licenses or leases made by Products of reproducing apparatus or equipment to exhibitors. For example, in the license or lease dated July 29, 1931, from Products to Stanley Company of America (Plaintiffs' Exhibit Vol. Ill, Exhibit-J) we find the following agreements. Section 2 (b) " * * * * it is agreed that all additional and renewal parts and assembled parts for the Equipment shall be obtained from Products and that all repairs to the Equipment shall be made as specified by Products. Products may from time to time at the expense of the Exhibitor, supply and install such spare and renewal parts as may, in its opinion, be necessary to the satisfactory operation and maintenance of the Equipment." These tying ag-reements found in the licenses or leases of reproducing apparatus and equipment made by Products to exhibitors are rendered more effective and burdensome by additional sections of the Licenses: Section 7 — "The Exhibitor agrees to pay to Products upon rendition of invoices therefore its standard charges as from time to time established for any repairs to the equipment and for any additional equipment or spare or renewal parts, furnished or supplied by Products and to pay the transportation charges thereon. * * * " Servicing Facilities Section 11— "The Exhibitor shall provide access for Products' representatives, engineers and mechanics to the Theatre and to all parts thereof where any of the Equipment may be, at all reasonable hours, for the purpose of supervising the installation and Wilson's Hi-Heat Lubricant The Perfect Lubricant for All Types of Projection Arc Lamps HI-HEAT LUBRICANT can be applied on any and all moving parts of arc lamps. It will not burn, gum, or build-up in the highest intensity lamp. It is of great value in removing burnt screws, scored shafts, tight bushings, etc. It cools quickly an overheated bearing. A little Hi-Heat on a cloth will keep commutators dark, smooth and shiny. Hi-Heat is warranted not to contain any graphite, acid, abrasive or any harmful ingredient. It is recommended by all leading projectionists and by many manufacturers. Hi-Heat is also highly effective in lubricating parts that are not easily accessible. It works equally well with either a hot or cold lamp. The only practical lamp lubricant. Now giving splendid service in more than 200 theatres Price: 50c a bottle, prepaid R. M. WILSON 230 Jones St. San Francisco, Calif. Hoi^ Many? Was this copy dog-eared when it came to you? How many men read it ahead of you? You would receive a clean, fresh copy if you had a personal subscription — and you wouldn't have to wait — you would be first to read it. INTERNATIONAL PROJECTIONIST, 1 West 47th Street, New York, N. Y. Enter my subscription for Name Address City Local Q 1 year —12 issues— $2.00 Q 2 years24 issues— $3.00 State..