Reasoning of the Court

There were many different rationales behind the decision of the court. The Court found that price fixing conspiracies existed between all defendants. It found that there was a conspiracy to restrain trade by imposing "unreasonable clearances". They found that exhibitor defendants had "pooling agreements" with the studios. The profits were being shared by exhibitors and the studios. These agreements eliminated competition. It found that the defendants had discriminated against small independent exhibitor and favored larger affiliated exhibitors. The court found that on the subject of monopoly that the need for divestiture are set aside in the light of the principal stated in the Unites States v. Griffith and in Schine Chain Theaters v. the united States.