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Arbitration <^^>^o<^^o^> 2b7
but was not applied when the distributors introduced such evidence in connection with claims against exhibitors. Here, again, there was no justification for discrimination between the two parties, and it should have been condemned if and whenever such discrimination was allowed to exist. It is only fair to say that the Hays Organization was endeavoring constantly to secure a consistent interpretation of the contract. The problem here seemed to be one of attempting to secure uniform adherence to the provisions of the contract, while at the same time allowing the local boards as much freedom in their actions as was consistent with the contract and with fair dealing.35
The government concluded from the evidence submitted and the argument developed that compulsory arbitration as operative was illegal, since it constituted an unreasonable restraint on the freedom of the exhibitor to contract for motion picture films. It argued that since a state had no right to impose compulsory arbitration upon industrial groups,36 neither could any voluntary association of individuals impose that which the state could not impose. If it was contended that the action was purely defensive and essential to the continued prosperity of the industry, it was replied that this did not render it legal, that the motive or necessity which induced a compact did not render it valid. It argued further that the enforcement system effectively prevented appeals to the courts because "service under any contract will not be continued without security, even pending appeal, and because the average subsequent-run exhibitor is unable to put up the security indicated by the Arbitration Board under enough contracts to enable him to operate his theater during such appeal, and both the Federal Arbitra
35 The legal counsel for the Film Boards of Trade had consistently taken the position in every case that a decision once rendered was final and that the case could not be reopened. This had at times proved most embarrassing, especially where the awards, according to the New York office, were not based on a proper interpretation of the contract.
™Dorchy v. Kansas, 264 U. S. 286.