Document: 348 U.S. 222 75 S.Ct. 277 99 L.Ed. 279 UNITED STATES of America, Appellant,v.Lee SHUBERT, et al. No. 36. Argued Nov. 9 and 10, 1954. Decided Jan. 31, 1955. Mr. Philip Elman, Washington, D.C., for appellant. Alfred McCormack, New York City, appellees. Chief Justice WARREN delivered the opinion Court. 1 This is a civil antitrust action brought by Government in United States District Court Southern York. Named as defendants are Lee Shubert,1 Jacob J. Shubert, Marcus Heiman, three corporations controlled them.2 The principally engaged business producing legitimate theatrical attractions,3 booking attractions theatres throughout States,4 operating approximately 40 eight states presentation attractions.5 Government's complaint charges that defendants, course this business, have violated §§ 2 Sherman Act.6 On defendants' motion, after Court's decision Toolson v. Yankees, 346 356, 74 78, 98 64; Court, 120 F.Supp. 15, dismissed on authority decision, Federal Baseball Club Baltimore National League Professional Clubs, 259 200, 42 465, 66 898.7 case here direct appeal under Expediting Act, 15 U.S.C. § 29, U.S.C.A. 29. complaint, which summarized an appendix to opinion, describes interstate phases considerable detail. It concludes producing, booking, presenting requires 3 'a constant, continuous stream trade commerce between States, consisting assemblage personnel property rehearsals, transportation said various cities making performing contracts routed presented transmission applications, letters, memoranda, communications, commitments, contracts, money, checks, drafts other media exchange across State lines.' 4 alleges restrained commerce, monopolized certain it, through conspiracy (a) compel producers book their exclusively (b) exclude others from attractions, (c) prevent competition (d) discriminate favor own productions with respect presentation, (e) combine power order maintain strengthen domination each these fields. main relief sought divorcement branches business. 5 allegations motion dismiss, must be taken true. And do not deny state cause if subject Act. question thus narrow one: whether multistate basis constitutes 'trade or commerce' 'among several States' within meaning those terms 6 Both been interpreted broadly decisions '(T) rade has held include production, distribution, exhibition pictures, Paramount Pictures, 334 131, 68 915, 92 1260; Schine Chain Theatres 110, 947, 1245; Griffith, 100, 941, 1236; Crescent Amusement Co., 323 173, 65 254, 89 160; Interstate Circuit 306 208, 59 467, 83 610; Binderup Pathe Exchange, 263 291, 44 96, 308; real estate brokerage, Association Real Estate Boards, 339 485, 70 711, 94 1007; gathering distribution news, Associated Press 326 1, 1416, 2013; medical services members health cooperative, american Medical 317 519, 63 326, 87 434; insurance underwriting, South-Eastern Underwriters Association, 322 533, 64 1162, 88 1440. A similarly liberal construction given requirement States.' Thus, (322 1167), was satisfied 'continuous indivisible intercourse among states' involving large sums money communications mail, telephone, telegraph. Cf. Electric Bond & Share Co. Securities Exchange Commission, 303 419, 432—433, 58 678, 681—682, 82 936; North American 327 686, 694—695, 785, 791, 91 945. In case, dissemination news. See also Lorain Journal 342 143, 72 181, 96 162. picture cases, films, supra, even though actual 'showing pictures local affair.' at page 183, 259, 160. Hart B. F. Keith Vaudeville 262 271,8 43 540, 67 977. 7 These decisions, apart Base Ball Toolson, make it clear beyond bring scope performance stage attraction 'is contend, however, already established immunity While conceding, they must, industry laws, insist all businesses built around exhibitions exempt.9 We believe afford no such conclusion. 8 Ball, speaking Holmes, dealing baseball nothing else. considered nature game, its history league organization, necessity arranging games different states, resulting travel lines. travel, concluded, mere incident, essential thing.' basis, 'the restrictions contract prevented plaintiff getting players break bargains conduct charged against were interference (259 209, 466.) At very next Term, 271, 977, directly concerned effect status much like review, alleged control vaudeville acts country. district court, court instant Ball. again unanimously reversed.10 took note plaintiff's argument (263 541) 'that apparatus sometimes more important than performers' concluded least extent, sufficiently violation Act permit go trial. distinguished ground 'what general incidental, some instances may rise magnitude independently.' established, contrary here, did automatically immunize laws. 10 where issue same confronted unique combination circumstances. For over 30 years there had stood specifically fixing laws particularly validity so-called 'reserve clause.' During period, reliance precedent, grown developed. Compare Helvering Hallock, 309 106, 60 444, 446, 84 604. Congress, although actively ruling, seen fit reject amendatory legislation. Against background, asked overrule out step subsequent reflecting presentday concepts commerce. view circumstances declined so. But neither necessarily reaffirm Instead, '(w)ithout re-examination underlying issues,' adhered 'so far determines Congress intention including federal laws.' (346 79) short, application rule stare decisis. 11 would us convert into sweeping grant every based live exhibitions, regardless how extensive be. cannot If holding expanded—or contracted—the appropriate remedy lies Congress. South Eastern 561, 1178, Moreover, none considerations led present here. never contrary, less year put notice could relied upon exemption decisis undoubtedly embodies policy basic importance, but help applied, cases—not Toolson—are controlling decisions. 12 yet called determine fact what appropriate. hold only entitled opportunity prove allegations. judgment below reversed. 13 Reversed. 14 BURTON, retaining views expressed his dissent 357, 64, joins case. REED concurrence. MINTON agrees because, comes pleadings, Whether can now satisfaction courts, F.2d 341, remains seen. APPENDIX TO OPINION OF THE COURT. 16 brief: 'The compaint adequately pages brief.' That portion brief set below: 17 Production involves (1) assembling component elements, script, financial backing, actors, hands, designers, advertising agents, scenery, costumes, lighting, music; (2) rehearsals weld parts suitable presentation; (3) try-out town towns, road-show towns; (4) transporting entire cast scenery towns fulfill bookings arrangements (par. 24, R. 4). time cost play runs $60,000 $100,000, musical $200,000 $300,000 25, Persons producer usually supply necessary financing (ibid.). Frequently production incorporated shares stock sold investors, organizes limited partnership All appellees invest (pars. 3—7, 1—3). 18 After assembled completed, one 'try-out' purpose judging audience reaction correcting observed deficiencies 20, 26, 4, 5). Audience gauging success City road then 27, run successful, sent tour 'roadshow' 'integral part exploitation attraction' source 'substantial part' profits 19 With exception few cities, ordinarily profitably period time, seldom exceeding two weeks. therefore obtain playing dates number arranged so minimize lay-offs engagements. Successful operation theatre scheduling keep continuously occupied possible during season. Playing meet needs both operator. (Par. 5.) 20 UBO middleman operators tryout regarded agent receives, compensation services, five per cent operator's share theatre's gross receipts 28, Each enters renews agreements act 30, negotiation attraction, tentatively schedules covering subsequently executed (id., 5—6). cross-country routing constant 21 individual 37, 7). Apart Select subsidiary thereof, concern country books 5, 2). From 1932 1946, followed entering franchise exclusive 40, 8—9). About discontinued formal adopted lieu thereof system listings which, tacitly understood parties, continued previous 9). 22 operate participate forty 42, They 'virtually all' key 41, 9).* Approximately fifty owned operated Shubert 3, 23 drafts, lines 49, 12). 24 substantial elements appellees' restrain monopolize, attempted monopolization, monopolization appellees, concert action: appellees; attractions; fields 51, 13). 25 means used carrying foregoing included following: 26 Conditioning investments ligitimate produced others, conditioning agreement 52(a), (d), (e), 27 Forcing season 52(c), 28 Coercing who booked pay penalties accept discriminatory terms, condition obtaining them 52(f), 29 Entering whereby agree competing 52(g), (5) Excluding 52(h), 31 (6) intimidating independent relinquish threatening deprive them, virtue access 52(k), 14). 32 Some effects concerted actions forced non-competitive terms; persons denied right engage office; systematically excluded and, many business; theatres, public deprived benefits flow open competition; unreasonably restrained, 53, died prior entry judgment. His executors substituted parties. Booking Office, Inc. ('UBO'), Corporation ('Select'), L.A.B. ('L.A.B.'). Since filing dissolved assets vested Heiman personally. defines 'legitimate attractions' 'stage performed person professional actors' 'plays, musicals, operettas' 'stock company vaudeville, burlesque, bands, dancers, dance groups, concerts, vocal instrumental presentations.' costs $100,000 produce, whereas generally $300,000. As one-third cost, according attributable expenditures props, related items services. 'Booking' defined arrangements, made office, dates.' UBO, States. 'presentation' therein.' virtually 'tryout' (including Boston, Philadelphia, Baltimore), 'road-show' Baltimore, cincinnati, Los Angeles, Philadelphia), almost (Chicago Detroit), half City. 2, 2. sections provide: 1. * Every contract, form trust otherwise, conspiracy, restraint foreign nations, declared illegal *. shall any 1—7 title deemed guilty misdemeanor attempt conspire persons, monopolize *.' Section confers jurisdiction courts 'to violations title' equity proceedings instituted direction Attorney General. issued following order: 'In principle, I see valid distinction facts before Supreme Cases 200 (42 898), decided November 9, 1953. 'Upon adjudications above will dismissed.' 16. once applied 'local' restraints E.g., Mandeville Island Farms Crystal Sugar 219, 996, 1328; Women's Sportwear Mfg. Ass'n, 336 460, 69 714, 93 805; Employing Plasterers' 347 186, 452, 618. Moore Mead's Fine Bread 115, 118—119, 148, 150. seek distinguish cases product 'an article inanimate thing—a reel photographic film metal box—which moves manufactured product'; hand, argument, 'intangible evanescent, experience living people.' 546, 1170, 1440: '* regulate traffic consist intangibles.' segments entertainment besides industry, constitute well established. See, e.g., Radio Commission Nelson Bros. 289 266, 279, 53 627, 633, 77 1166 (radio). remand, trial Holmes authorizing later dismissal evidence failed establish 'incidental.' Appeals affirmed. Cir., 47 A.L.R. 775. certiorari. 273 703, 97, 71 849. But, admit, denial certiorari does expression merits. Brown Allen, 344 443, 489—497, 73 397, 437—441, 97 469. reviewed essentially factual determination. Graver Tank Linde Air Products 274—275, 535, 537, 672. lower Judge Learned Hand Marienelli Offices D.C.S.D.N.Y., 227 165, Charles Clark Ring Spina, 148 647, modified Authors' League, 186 637, 341 935, 854, 95 1363. cf. San Carlo Opera Conley, 825, affirmed, 163 310, personal employment Arbitration seq. six seven nine Chicago, Cincinnati, four Philadelphia 10). interest Detroit E, Haven five-year Select, provides operator 43, 11). rights Toledo, Ohio 45, 'key' (Footnote original.)

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