Investigation of concentration of economic power; monograph no. 1[-43] (1940)

76 CONCEJVTRATION OF E'CONOMIC POWER sons interested in the outcome of the Government's suit were per- mitted to express their opinions. Representatives of virtually every important exhibitor association in the industry and of the three non- consehtirtg defendants expressed opposition to the decree. The opposition was so unanimous that one of the Government's attorneys said: "The court seems to have more friends than the decree." ^ Soon after this, the Motion Picture Research Council and various groups interested in improving the moral standards of motion picture entertainment also condemned the decree. The press release in which the Department of Justice originally announced the filing of an antitrust suit against the major motion picture companies stated: Suit may develop need for congressional action. —Until thg evidence is produced, it is too early to state whether the antitrust laws by themselves are sufficiently effective to restore competitive conditions. If it appears from such evidence that further aid is needed, the results of the investigation and trial will be brought to the attention of Congress. The Department desires that this suit result in the clarification of the-antitrust laws with respect to the motion picture industry. The application of the general principles of the antitrust laws to particular industries demands distinctions which cannot be drawn in advance of the produc- tion of actual proof. They can only be staked out with respect to particular industries through the clarifying process of judicial action. This is the purpose of this suit.'* Nevertheless, section I of the consent decree reads in part as follows: The Petitioner not having offered any proof of its allegations that defendants have violated the antitrust laws, and defendants having denied each and every such allegation, this Court has not determined or adjudicated and by this decree does not determine or adjudicate, and this is not a decree to the effect that any of said defendants has violated or is now violating any of such laws, or any other statute; and this decree relates solely to future conduct herein below specified and is not based upon any finding, determination, or adjudication that any right or statute has yet been or is now being violated. The entrance of the consent decree thus insures that any proof which the Department of Justice may have had of evidence of violation of the antitrust laws by the five major companies will not be presented to the court and will not become available to the general public or to the Congress. Moreover, any evidence which might indicate that the problems of the industry cannot be met within the existing framework of the antitrust laws is likewise not disclosed. The efforts of the Department of Justice in gathering and sifting information over a period of years are thus nullified. Neither the Congress nor other interested parties are able to draw on this experience in order to appraise: (a) The extent or validity of complaints of combination in the industry; (b) the extent to which a consent decree will correct these conditions; (c) the extent to which additional or different rem- edies are necessary to restore a healthier competitive situation. A further aspect of the consent decree may be indicated. The provisions of the decree with respect to trade showing and block booking represent a major concession on the part of the five affiliated companies. As stated, however, these provisions are to become inoperative after August 31, 1942, unless prior to that time conditions at least as restrictive have been either consented to or imposed by the court on the three satellite producing companies—Columbia, Universal, and United Artists. The continuation of these concessions is thus in \3 "Variety," November 20, 1940. * Release, Department of Justice, July 20,1938.