Brief for the United States (1914)

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304 PAET XV. ing here with a combination of 10 manufacturers acting as one ; this case does not involve the action of one manufacturer acting independently of all others. It is the combination between competing manufacturers or between persons engaged in commerce to act in unison to keep others out of the business which the statute prohibits. A somewhat analogous case is the Dr. Miles Medical Co. case, {supra) . There, through a scheme of so-called agency contracts, the manufacturer attempted to control the wholesale and retail prices and terms of sale in articles manufactured by him. In an exhaustive opinion Mr. Justice Hughes, analyzing the agency contracts, and pointing out that they were devised for the purpose of accomplishing through the agency relation wliat could not be accomplished lawfully by means of sales, condemned the entire arrangement. In the case at bar the defendants employed so-called leases for a similar purpose. Here we are not dealing with one manufacturer leasing his films to exchangemen with the proviso that such exchangemen should sublet the films only to the exhibitors selected by the manufacturer. We are dealing with a combination of manufacturers constituting such a large percentage of the total output in films that they dominate the trade. The combined strength of the 10 mamifacturers is used as an instrument to accomplish the aims of the combination. The l^atents Co. keeps a complete list of motionpicture theaters in the United States. (Matthews, V, 2914, fol. 2.)