Brief for the United States (1914)

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PAiir I. 3 com j);iiiy the P.-itciits ( '( mij >;m y in the iiiaiiiici" t(» he later (Icscrihcd. I'rior tn tlic rnniial ioii dl* the (•( >nil)i nat i< (mhiipctitioii had Ix'cn free and nni'cst rained ; by niean^ of the (Munhinat ion the (hdVnd.i nl s ini|)ose(l npon connneree the i'ol lowi n<;-, aininii;' othei", icst riet ions, all ot* which were in force at the time this suit was brought and most of wliicli arc now being observed: (1) 'V\w combined nianufactui'ers, constituting at that time practically all the manufacturers in the United States, agreed to distribute their product only to such exchanges or middlemen as they should all ag]"ee upon. A list of the exchanges with whom they would do business was prepared, and thev made and enforced a rule that no manufacturer should do business with any exchange whose name did not appear on the list. Thereafter no one could establish a rental exchange to handle the product of any one of the manufacturers without the consent of all the manufacturers. (2) In the same w^ay a list of theaters was prepared. Xo exchange was allowed to distribute films to any theaters except those named on the list. (3) Uniform prices w^re agreed upon so that all prices from all manufacturers to all exchanges w^re the same. (4) A rule was adopted that no other manufacturer entering the field thereafter should be allow^ed to distribute his product to the exchangemen and the theaters so listed without the consent of the manufacturers forming the combination.