Harvard business reports (1930)

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MOTION PICTURE EXHIBITORS' ASSOCIATION 627 It would appear from the case that the primary purpose in organizing this association was to secure an adjustment in run. Like the Exhibitor's Co-Operative, Limited, of Toronto, it was unable to make any headway in this direction. The association in the present case had certain elements of strength in the form of organization which did not appear in the organization in Toronto. Legally, its control over affiliated members was stronger. Protection against the intrusion of competitive interests was provided for. In both cases all buying of film was distinctly restricted to the association. It appears, however, that there was a distinct lack of common interest among the affiliated members in this particular association. It also appears that in spite of legal restraint, this organization was not able to hold the exhibitors together. A number of the members expressed a desire to be freed from their agreements in order that they might buy directly. The evidence is clear that they lacked confidence in the ability of the association to deal with the problems confronting it. It is altogether probable that in certain instances the precarious financial status of some of the exhibitors made it necessary that they obtain aid by selling their theaters, which were thus permitted to pass within the control of established chains. Clearly, the association was not able to render any worth while assistance to financially weak exhibitors. The strength of the various chain organizations in New York also made the competitive problem much more serious than it had been in Toronto. While the decision of the Supreme Court undoubtedly weakened the position of the association very materially, it would appear evident that the association could not prove a success in any event considering the seriousness and far-reaching character of the problems by which it was confronted. November, 1929 H. T. L.