Appeals from the District Court of the United States for the Southern District of New York.[ U.S. v. Paramount Pictures, Inc. 334 U.S. 131 (1948)
[334 U.S. 131 , 138] Messrs. Tom C. Clark, Atty. Gen., Robert L. Wright, of Washington, D. C., and John F. Sonnett, Asst. Atty. Gen., for the United States.
Mr. Thurman Arnold, of Washington, D.C., for American Theatres Ass'n and others.
Messrs. John G. Jackson, of New York City, and Robert T. Barton, of Richmond, Va., for W. C. Allred and others.
Mr. John W. Davis, of New York City, for Loew's Inc.
Mr. William J. Donovan, of Washington, D.C., for Radio-Keith-Orpheum Corporation and others.
Mr. Joseph M. Proskauer, of New York City, for Warner Bros. Pictures, Inc., and others.
Mr. James F. Byrnes, of Washington, D.C., for Twentieth Century-Fox and others. [334 U.S. 131 , 139] Mr. Whitney North Seymour, of New York City, for Paramount Pictures, Inc., and another.
Mr. Louis D. Frohlich, of New York City, for Columbia Pictures Corporation and another.
Mr. Thomas Turner Cooke, of New York City, for Universal Pictures Co. and others Mr. George A. Raftery, of New York City, for United Artists Corporation.
Mr. Justice DOUGLAS delivered the opinion of the Court.
These cases are here on appeal1 from a judgment of a three-judge District Court2 holding that the defendants had violated 1 and 2 of the Sherman Act, 26 Stat. 209, as amended, 50 Stat. 693, 15 U.S.C. 1, 2, 15 U.S.C.A. 1, 2, and granting an injunction and other relief. D.C., 66 F.Supp. 323; Id., D.C., 70 F.Supp. 53.
The suit was instituted by the United States under 4 of the Sherman Act, 15 U.S.C.A. 4, to prevent and restrain violations of it. The defendants fall into three groups: (1) Paramount Pictures, Inc., Loew's, Incorporated, Radio-Keith-Orpheum Corporation, Warner Bros. Pictures, Inc., Twentieth Century-Fox Film Corporation, which produce motion pictures, and their respective subsidiaries or affiliates which distribute and exhibit films. These are known as the five major defendants or exhibitor- defendants. (2) Columbia Pictures Corporation and Universal Corporation, which produce motion pictures, and their subsidiaries which distribute films. (3) United Artists Corporation, which is engaged only in the distribution of motion pictures. The five majors, through their subsidiaries or affiliates, own or control theatres; the other defendants do not.
The complaint charged that the producer defendants had attempted to monopolize and had monopolized the production of motion pictures. The District Court found to the contrary and that finding is not challenged here. The complaint charged that all the defendants, as distributors, had conspired to restrain and monopolize and [334 U.S. 131 , 141] had restrained and monopolized interstate trade in the distribution and exhibition of films by specific practices which we will shortly relate. It also charged that the five major defendants had engaged in a conspiracy to restrain and nonopolize, and had restrained and monopolized, interstate trade in the exhibition of motion pictures in most of the larger cities of the country. It charged that the vertical combination of producing, distributing, and exhibiting motion pictures by each of the five major defendants violated 1 and 2 of the Act. It charged that each distributor-defendant had entered into various contracts with exhibitors which unreasonably restrained trade. Issue was joined; and a trial was had.