Nick v. United States

122 F.2d 660, 8 L.R.R.M. (BNA) 475, 138 A.L.R. 791, 1941 U.S. App. LEXIS 3042
CourtCourt of Appeals for the Eighth Circuit
DecidedAugust 30, 1941
Docket11861
StatusPublished
Cited by87 cases

This text of 122 F.2d 660 (Nick v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nick v. United States, 122 F.2d 660, 8 L.R.R.M. (BNA) 475, 138 A.L.R. 791, 1941 U.S. App. LEXIS 3042 (8th Cir. 1941).

Opinion

STONE, Circuit Judge.

Appellants were jointly indicted on twelve counts, the first eleven of which were laid under the Anti-Racketeering Act, 48 Stat. 979, 18 U.S.C.A. §§ 420a-420e, and the twelfth count being under the Sherman Anti-Trust Act, 26 Stat. 209, IS U.S.C.A. § 1. Verdict of not guilty was returned on the twelfth count and of guilty on each of the other eleven counts. The respective sentences were five years imprisonment upon each count to rim concurrently and a fine of $10,000 upon the first count. From such judgments and sentences this appeal is brought.

Statement.

Appellants were labor officials in control of a local union of operators of moving picture machines in the St. Louis area (composed of St. Louis County and the *665 City of St. Louis). This area was so completely unionized, as to dominate operation therein. About one-fourth of the picture houses in the area were owned by the St. Louis Amusement Company and the Fan-chon and Marco Service Corporation. The remainder were separately owned by persons who controlled one or more theatres and are spoken of as “independent exhibitors”. The independent exhibitors were organized into an association, known as “Motion Picture Theatre Owners of St. Louis, Eastern Missouri and Southern Illinois”, which acted for the owners in matters of common interest through a committee. This committee acted in arranging contracts with the union covering wages and working conditions. Such contracts were made annually for terms beginning September first. The Co-operative Sound Service Supply Company was a corporation organized and controlled by appellant Weston and in which appellant Nick was later interested. This “Co-op” furnished inspection service and maintenance services for sound equipment used in connection with exhibition of moving pictures.

Indictment.

Excluding count twelve where the verdict was not guilty, the offenses covered by the indictment have to do with three matters. The first five counts deal with extortion of money ($6,500) by appellants from the “independent exhibitors” in connection with the wage contract beginning September 1, 1937. The next five counts are concerned with compulsory employment of the services of the Co-op. The eleventh count has to do with extortion, in 1937, of money ($2,000) by appellants from the St. Louis Amusement Company and Fanchon and Marco Service Corporation in connection with the operation of the Orpheum Theatre. Except for a fine under count one, the sentences were identical as to each count and were to be served concurrently. In this situation, we will set forth only the charge in count one confining discussion of other counts to such as is necessary to dispose of particular urged errors.

The essential averments of count one are as follows. The motion picture industry is made up of the production, distribution and exhibition of moving picture films and accompanying sound effects. The production is almost entirely in California and not at all in Missouri. Producers have contractual arrangement with “exchanges” (usually subsidiary corporations) for the distribution of their films. These exchanges have contracts with the exhibitors (motion picture theatre owners) in their respective territories for the use (exhibition) of certain films. The films so contracted for are shipped from California to the exchange which delivers them to the exhibitor. After the films have been exhibited in a theatre, they are returned to the exchange which sends them to other exhibitors or, after final use, they are stored or reduced to their constituent chemical elements to be again made into raw film for future picture production. The ownership of the films does not change from the producers.

The value of the films as physical property is inconsequential. The value is in the use for public exhibition purposes. If exhibition be prevented in a locality, the shipment of films thereto would cease. The distribution “exchanges” located in St. Louis supply exhibitors in Missouri, Illinois, Kentucky, Iowa and Arkansas with films shipped to the exchanges from outside these States.

During the time here involved, appellant Nick was vice-president of the International Alliance of Theatrical Stage Employees and Moving Picture Machine Operators of the United States and Canada — an unincorporated labor organization. Appellant Weston was business manager of the Moving Picture and Projecting Machine Operators Protective Union, Local No. 143 (located at St. Louis), of the above International Alliance.

From on or about July 1, 1936, appellants conspired to acquire control of the above Local and to use such control “to obtain the payment of money and other valuable considerations (not the payment of wages) from exhibitors of motion picture films in the St. Louis area by the use of, attempt to use, and threat to use force, violence, and coercion * * * in violation of” the above Act — such payment of money being “for their personal use and profit.” The plan of conspiracy was to “make excessive, arbitrary, unreasonable, ruinous, and bogus demands for wage increases of operators employed by exhibitors in the St. Louis area, well knowing and intending said demands to be” such “and not with any purpose, intent or object of securing such increases for the said operators but for the purpose and intent and with the object of coercing the *666 said exhibitors to pay money and other valuable considerations to the defendants for their personal use and profit.”

Evidence.

While there was much conflict in the evidence, that introduced by the Government and some of that by defendants may be outlined as follows. All motion picture films and accompanying sound records are produced outside Missouri' — -almost entirely in California. These films are shipped in interstate commerce to various distributing companies (usually subsidiaries of the producers) which are located in various centers with territories which, combined, cover the country. The distributing companies license the use of the films to exhibitors (moving picture theatres) in their respective territories for exhibition purposes only and during prescribed periods. After exhibition, the films and sound records are returned to the distributors which send them to other exhibitors in their territories. Finally, the films and records are returned to the producers where they are “junked” and the material therefrom used to make new blank films and records for future production of picture films and sound records. The value of the films and records is for exhibition license purposes — - the value of the physical material therein being inconsequential. Distributors located at St. Louis, Missouri, serve a territory consisting of Missouri, Kansas, Iowa, Arkansas, Illinois, Kentucky and Tennessee.

The films and records are exhibited in theatres by means of machines which are worked by skilled operators. In the St. Louis area (St. Louis County and St. Louis City), practically all of such operators are members of Local No. 143 which is affiliated with the International Alliance of Theatrical Stage Employees and Moving Picture Machine Operators of the United States and Canada. Appellant Nick was vice-president of the Alliance. Prior to 1937, he had been sent by the Alliance to St. Louis to straighten out an unsatisfactory situation which had developed in Local 143.

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Bluebook (online)
122 F.2d 660, 8 L.R.R.M. (BNA) 475, 138 A.L.R. 791, 1941 U.S. App. LEXIS 3042, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nick-v-united-states-ca8-1941.