Brief for the United States (1914)

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2 PALT I. Paet I. OUTLINE OF FACTS. The commerce restrained is the commerce in positive motion picture films and, to a less extent, the conmierce in motion-picture appliances and apparatus. Commerce in positive films constitutes between 95 per cent and 99 per cent of the total commerce in appliances relating to the motionpicture art. There are 20,000 or more of these motion-picture films continually in transit, moving from the manufacturers to exchanges and from exchanges to theaters and returning by the same routes. The classes of persons affected by the unlawful restraints are (1) the manufacturers or producers, (2) the so-called rental exchanges or middlemen, and (3) the exhibitors or theaters. Therefore the combination the legality of which is here in question affects every branch of the motion-picture art. It has impressed its unlawful methods of doing business upon the three classes of persons just named. The c(mi])ination was formed in the latter part of 1908 by practically all the manufacturers of motion-picture films at that time doing ])usiness in the United States, and it still continues. Beginning January, 1909, all the manufacturers, after long negotiations with each other, a(l(>pte(l uniform methods of doiim business and uniform and uoucompet it ive prices. This was a(*c<)m])lished by all of them ent(^i'inii into uniform aureements with one