Harvard business reports (1930)

Record Details:

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UNIVERSAL PICTURES CORPORATION 347 d. Threatened and suggested to the said exchanges that the theaters which are represented by the individual members of the defendant corporation would refuse to arbitrate before the Board of Arbitration (as provided in every Standard Exhibition Contract) all disputes to which any of said exchanges serving nontheatrical exhibitors were or should be parties; e. Urged the said exchanges at Oklahoma City, Oklahoma, not to deal with the said nontheatrical exhibitors; and f. Urged the said exchanges at Oklahoma City, Oklahoma, not to deal with the said nontheatrical exhibitors, and attempted to induce and coerce the said distributors to agree not to serve the said nontheatrical exhibitors; and g. Threatened to distribute to members of the defendant corporation the names of all exchanges serving said film to nontheatrical exhibitors. The defendant and certain individuals in the manner and by the means aforesaid have been and are engaged within the Western District of Oklahoma and elsewhere in a combination and conspiracy within the United States in restraint of trade and commerce among the several States in motion picture films in violation of the Act of Congress of July 2, 1890, entitled " An Act To regulate trade and commerce against unlawful restraints and monopolies." Officers, directors, members, and employees of the Oklahoma Exhibitor Unit are restrained from coercing distributors to refuse to deal with or cease to deal with nontheatricals, and from distributing or threatening to distribute to members of the association, lists naming distributors serving nontheatricals, in the consent decree filed in Federal Court at Oklahoma City. The final outcome of this suit is indicated by the following quotations from the Film Daily: The decree disposes of the Department of Justice conspiracy case against the exhibitor association, which charged the organization had entered into the conspiracy to restrain trade through preventing nontheatricals from securing films. The action was brought under the Sherman Antitrust Law. Film Daily, December 28, 1928. Injunction secured by the Department of Justice in the consent decree in Federal Court in Oklahoma City is a permanent order. This ends any activities against nontheatricals so far as the association is concerned and disposes of the government's suit against the organization. Film Daily, January 7, 1929. The Universal Pictures Corporation promptly discontinued selling to all nontheatrical accounts in the Oklahoma territory at the time that the exhibitors' association passed the resolution denouncing nontheatrical competition.