International projectionist (Oct 1931-Sept 1933)

Record Details:

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30 INTERNATIONAL PROJECTIONIST June 1933 International Photographer — ^is a finely printed and beautifully illustrated monthly magazine owned by the West Coast Cameramen's Union. In all matters concerning the professional motion picture photographers of the country it is the official organ. It is designed to appeal to amateur followers of 16mm. cameras as well as to the most advanced technicians. The columns of the magazine recognize the close relationship between the photographer and sound recorder. If your news or kodak dealer does not carry the magazine on its counters write for a sample copy to INTERNATIONAL PHOTOGRAPHER SILAS E. SNYDER, Editor 1605 North Cahuenga Avenue, Hollywood, Calif. • 25 cents a copy ^3 the year Eastern Representative: James J. Finn, 580 Fifth Ave., New York from time to time for the purpose of examining and inspecting the Equipment, and shall grant to Products full opportunity to make such adjustments therein and repairs thereto as, in the opinion of Products, are necessary or desirable." Section 13 — "This agreement and/or the rights of the Exhibitor hereunder and/or the license hereby granted shall, at the option of Products, terminate and come to an end in the event of any breach or default on the part of the Exhibitor with respect to any of the covenants and conditions herein contained on its part to be performed, * * :{: JJ Section 14 — -"Upon termination or expiration of this license by lapse of time or otherwise, the Exhibitor shall surrender the Equipment to Products in good order and conditions, * * *." Section 18 — "This license shall be for a term of ten (10) years from September 22, 1928." Section 22 — " * * * Exhibitor agrees to pay to Products the charges provided for in the payment plan hereinafter set forth; said payments to be made at the time and in the manner provided herein, which time and manner shall be of the essence of this as^reement." (1) $17,192.43 (2) A "weekly rental charge" of $40.00 per week. The exclusive agreements in the contractual letters accompanying licenses from Products to producers is illustrated in the contractual letter of Products to Paramount Famous Lasky Corporation dated May 11, 1928 (Plaintiffs' Exhibit — 18). Paragraph 5 of this contractual letter provides as follows: "5. In order to promote the use of sound records in connection with motion pictures, and to make an adequate market for your productions and for our (Products') reproducing equipment, you agree that all theatres operated by you or by your associated companies shall install our reproducing equipments (which you agree are hereby adopted as the standard equipment for such purposes), wherever and as rapidly as in your judgment conditions permit, ana we win supply sucn equipments as rapidly as we are able to after receipt oi orders therefor * * *." Similar exclusive agreements are in the contractual letters of Products to otner prooucers and are indorsed "Accepted" by the producers. These letters accompany the licenses (Recording License Agreements) of producing apparatus and equipment of Products to the producers. The licenses are for 16 years. 'ine exclusive agreements in the contractual letters require producers to retrain from distributing the talking motion pictures to theatres and exhibitors who have not acquired reproducing equipment from Products. As the result 01 these exclusive agreements the supply of talking motion pictures would De substantially closed to exhibitors who did not install reproducing apparatus and equipment purchased trom Products. These exclusive agreements are bound to restrain exhibitors from using or dealing in goods, wares, merchandise, machinery, supplies or other commodities of a competitor or competitors of Products. I find from the proof submitted in support of the motions for preliminary injunctions that the tying agreements contained in the licenses of reproducing equipments by Products to exhibitors and the exclusive agreements in the contractual letters of Products to • producers, in fact, have substantially lessened copipetition in interstate commerce and will so continue unless defendants are restrained. Agreement Held Illegal "Today," says Dean Pound, "we seek once more, by limiting freedom of contract, to protect those who are subjected to economic pressure against unfair advantage on the part of those who have greater economic freedom." The Clayton Act expresses this modern trend in legislation. Section 3 of the act prohibits tying agreements and exclusive agreements whose eifect may be to substantially lessen competition. Such agreements are contained in the licenses of reproducing equipments by Products to exhibitors and in the contractual letters of Products to producers. / hold those agreements illegal and void. United Shoe Mach. Co. v. United States, 2-58 U. S. 451. Lord V. Radio Corporation of America, 24 F. (2d) 565; affirmed 28 F. (2d) 257 (C. C. A. 3). I have not listed the particular licenses and contractual letters of Products containing the illegal agreements dealt with in this opinion because they are numerous and substantially alike. The decrees for preliminary injunctions may be so drawn as to cover them. (Sgd.) John P. Nields. June 28, 1933. J.