Brief for the United States (1914)

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4 PART I. (5) Penalties were imposed and enforced. Xo theater, under penalty of instant cutting off of the necessary daily supply of films, may display a picture not made by one of the manufacturers in the combination and distributed through an exchange on the list. No exchange, under like penalty of being cut off, may distribute any films other than those made by the combined manufacturers. (6) Circulars and bulletins were regularly distributed by the agency of the manufacturers among exchanges and exhibitors, giving the names of exchanges and exhibitors cut off. These lists operate as blacklists and thereafter no manufacturer may distril)ute his film to any exchange so blacklisted, nor allow his film to be shown in any blacklisted theater. (7) Under guise of royalties the manufacturers compelled the payment by the exhibitors of $2 a week on all projecting machines, many of which had IxH'n sold by the manufacturers to the exhibitors long before the combination was formed. These machines had been sold without conditions attaclicd thereto. A^Mtll()ut the payment of these so-called royalties the 1 heater can not obtain films. It is a tribute which can be and is exacted from the theaters because the defendants command the source of supply. (8) AVhen the comhinal ion was fonncd the manufacturers entered into an agrecnuMit with East