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

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CONCENTRATION OF ~E<X)NOMIC POWER 85 is the arbitrator empowered to impose a fine on a distributor violating the decree, and this fine in either case is not to exceed the sum of $500. Fines may be imposed where a distributor has made the sale of features contingent upon the sale of short subjects or foreigns or other features, and where the buying power of a circuit in more than one exchange area has been considered by the distributor in film negotiations. In only one case can the arbitrator award damages to an exhibitor and then only to the extent that the exhibitor can prove financial loss during a 60-day period by reason of the distributor's failure to comply with the previous award. In most cases, then, the distributor in continuing a practicfe in violation of the decree has only to fear finan- cial loss to the extent of the expenses of an arbitration hearing. In no case can he be faced by contempt proceedings in a Federal court. On the other hand, the contempt procedure method of enforcement of a consent decree is time-consuming and sometimes awkward and expensive. The application of this method to the enforcement of a decree affecting many thousands of transactions occurring in every part of the United States each year might prove wholly unsatisfac- tory. The limited resources and personnel available to the Depart- ment of Justice for work of this character is not to be ignored. More- over, the record of the contempt procedure method as a device for securing enforcement of a consent decree is not wholly impressive.* There is thus room for argument that as between enforcement of the decree by contempt procedure or by arbitration, the latter, while it leaves much to be desired, is to be preferred. ' Cf. Temporary National Economic Committee, Monograph 16, pp. 88-97. 286782—41—No. 43-