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MOTION PICTURE EXHIBITORS' ASSOCIATION 621
All exhibitors joining the association, whether at the time of its formation or later, were required to sign an operating agreement which appointed the association their exclusive agent to purchase pictures. The members also agreed that they themselves would not purchase any pictures directly from distributors; a member might, however, buy pictures direct if the Special Committeee on the Purchase of Films gave him permission by an unanimous vote. The members agreed to indicate to the association the pictures they desired and to render to the association reports giving complete information about their past purchases and operating conditions. The operating agreement continued, without right of withdrawal, until January 1, 193 1. Members also agreed to be bound by the by-laws. No initiation fee was prescribed for those members joining prior to March 19, 1928, but for those members joining subsequently a graduated scale of initiation fees was prescribed as follows:
March 19, 1928 to March 25, 1928 $100
March 26, 1928 to March 31, 1928 200
April 1, 1928 to April 7, 1928 300
April 8, 1928 to April 14, 1928 400
Thereafter 500
This graduated scale had been adopted to encourage exhibitors to join at once and to prevent those who joined later from reaping without payment the benefit of the pioneering done by the original members.
No dues were prescribed in the by-laws, but by the terms of the operating agreement each member agreed to pay the association 5% of the cost of all the pictures he purchased, at the time he made payment to the distributor for the use of the films, or at the time such payment was due. The members agreed to make this payment on all pictures shown after February 20, 1928, whether or not they were at that time members of the association and whether or not the pictures had been purchased through the association. By this provision the association avoided penalizing the original members to the benefit of those who joined later. At all meetings and elections each member was to have one vote for each theater operated by him.
The by-laws provided that no member could voluntarily withdraw from membership during any period when he was bound