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This Day In History

U.S. Supreme Court decides Paramount antitrust case

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On this day in 1948, the U.S. Supreme Court issues a decision in U.S. v. Paramount Pictures, et al., the government’s long-running antitrust lawsuit against Paramount Pictures and seven other major Hollywood movie studios.The forerunner of the case was a 1928 antitrust lawsuit brought by the Federal Trade Commission against the Famous Players-Lasky Corporation (the forerunner to Paramount) and nine other major film studios. Declared guilty of violating antitrust law in 1930, the studios were nonetheless able to resume functioning as normal after concluding a controversial deal with the government of President Franklin D. Roosevelt during the Great Depression, under the auspices of the National Industrial Recovery Act. In July 1938, the government reversed its stance toward Hollywood and filed its lawsuit against seven major studios: Paramount, Universal, MGM, Twentieth Century-Fox, Warner Bros., Columbia and RKO.

The government’s case accused the studios of violating the Sherman Antitrust Act in their total control over movie distribution and exhibition. At the time, the seven studios controlled almost all the country’s movie theaters, either through ownership of their own theater chains or through a process known as “block booking,” in which independent theater owners signed contracts with the studios that required them to show a given number (or “block”) of films. In their antitrust case, the government was demanding that the studios end block booking and get rid of either their distribution arms or theaters.

The case first went to trial in federal court in New York in June 1940, but was called off after two weeks when the government and studio attorneys worked out a compromise deal in which the studios would retain their movie theaters but limit block booking. Dissatisfaction with this so-called consent decree led to the formation of the Society of Independent Motion Picture Producers (SIMPP) by some of the leading independent movie producers of the day, including Charlie Chaplin, Walt Disney, Samuel Goldwyn, David O. Selznick, Mary Pickford and Orson Welles. The efforts by independent producers helped get the government’s antitrust case back into court in the fall of 1945. After a New York District Court handed down a guilty ruling (the terms of which nonetheless failed to satisfy the government and the independent producers), both sides submitted appeals that would eventually take the case all the way to the U.S. Supreme Court.

The trial proceeded quickly once it reached the Supreme Court in February 1948. On May 3, the court issued its ruling, which affirmed the earlier verdicts and declared the studios guilty of violating antitrust law. By the terms of the verdict, the studios were made to sign consent decrees that would end the practice of block booking by requiring that all films be sold on an individual basis. They were also required to divest themselves of their own theater chains. With this decision, independent producers could finally begin to compete with the major studios for audiences and actors, marking the beginning of the end for the Hollywood studio system.

– History.com Staff

This Day In History

Truman announces development of H-bomb

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U.S. President Harry S. Truman publicly announces his decision to support the development of the hydrogen bomb, a weapon theorized to be hundreds of times more powerful than the atomic bombs dropped on Japan during World War II.

Five months earlier, the United States had lost its nuclear supremacy when the Soviet Union successfully detonated an atomic bomb at their test site in Kazakhstan. Then, several weeks after that, British and U.S. intelligence came to the staggering conclusion that German-born Klaus Fuchs, a top-ranking scientist in the U.S. nuclear program, was a spy for the Soviet Union. These two events, and the fact that the Soviets now knew everything that the Americans did about how to build a hydrogen bomb, led Truman to approve massive funding for the superpower race to complete the world’s first “superbomb,” as he described it in his public announcement on January 31.

On November 1, 1952, the United States successfully detonated “Mike,” the world’s first hydrogen bomb, on the Eniwetok Atoll in the Pacific Marshall Islands. The 10.4-megaton thermonuclear device, built upon the Teller-Ulam principles of staged radiation implosion, instantly vaporized an entire island and left behind a crater more than a mile wide. The incredible explosive force of Mike was also apparent from the sheer magnitude of its mushroom cloud–within 90 seconds the mushroom cloud climbed to 57,000 feet and entered the stratosphere. One minute later, it reached 108,000 feet, eventually stabilizing at a ceiling of 120,000 feet. Half an hour after the test, the mushroom stretched 60 miles across, with the base of the head joining the stem at 45,000 feet.

Three years later, on November 22, 1955, the Soviet Union detonated its first hydrogen bomb on the same principle of radiation implosion. Both superpowers were now in possession of the “hell bomb,” as it was known by many Americans, and the world lived under the threat of thermonuclear war for the first time in history.

Source: https://www.history.com/this-day-in-history/truman-announces-development-of-h-bomb

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This Day In History

Gandhi assassinated

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Mohandas Karamchand Gandhi, the political and spiritual leader of the Indian independence movement, is assassinated in New Delhi by a Hindu extremist.

Born the son of an Indian official in 1869, Gandhi’s Vaishnava mother was deeply religious and early on exposed her son to Jainism, a morally rigorous Indian religion that advocated nonviolence. Gandhi was an unremarkable student but in 1888 was given an opportunity to study law in England. In 1891, he returned to India, but failing to find regular legal work he accepted in 1893 a one-year contract in South Africa.

Settling in Natal, he was subjected to racism and South African laws that restricted the rights of Indian laborers. Gandhi later recalled one such incident, in which he was removed from a first-class railway compartment and thrown off a train, as his moment of truth. From thereon, he decided to fight injustice and defend his rights as an Indian and a man. When his contract expired, he spontaneously decided to remain in South Africa and launched a campaign against legislation that would deprive Indians of the right to vote. He formed the Natal Indian Congress and drew international attention to the plight of Indians in South Africa. In 1906, the Transvaal government sought to further restrict the rights of Indians, and Gandhi organized his first campaign of satyagraha, or mass civil disobedience. After seven years of protest, he negotiated a compromise agreement with the South African government.

In 1914, Gandhi returned to India and lived a life of abstinence and spirituality on the periphery of Indian politics. He supported Britain in the First World War but in 1919 launched a new satyagraha in protest of Britain’s mandatory military draft of Indians. Hundreds of thousands answered his call to protest, and by 1920 he was leader of the Indian movement for independence. He reorganized the Indian National Congress as a political force and launched a massive boycott of British goods, services, and institutions in India. Then, in 1922, he abruptly called off the satyagraha when violence erupted. One month later, he was arrested by the British authorities for sedition, found guilty, and imprisoned.

Source: https://www.history.com/this-day-in-history/gandhi-assassinated

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U.S. Baseball Hall of Fame elects first members

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On January 29, 1936, the U.S. Baseball Hall of Fame elects its first members in Cooperstown, New York: Ty Cobb, Babe Ruth, Honus Wagner, Christy Matthewson and Walter Johnson.

The Hall of Fame actually had its beginnings in 1935, when plans were made to build a museum devoted to baseball and its 100-year history. A private organization based in Cooperstown called the Clark Foundation thought that establishing the Baseball Hall of Fame in their city would help to reinvigorate the area’s Depression-ravaged economy by attracting tourists. To help sell the idea, the foundation advanced the idea that U.S. Civil War hero Abner Doubleday invented baseball in Cooperstown. The story proved to be phony, but baseball officials, eager to capitalize on the marketing and publicity potential of a museum to honor the game’s greats, gave their support to the project anyway.

In preparation for the dedication of the Hall of Fame in 1939—thought by many to be the centennial of baseball—the Baseball Writers’ Association of America chose the five greatest superstars of the game as the first class to be inducted: Ty Cobb was the most productive hitter in history; Babe Ruth was both an ace pitcher and the greatest home-run hitter to play the game; Honus Wagner was a versatile star shortstop and batting champion; Christy Matthewson had more wins than any pitcher in National League history; and Walter Johnson was considered one of the most powerful pitchers to ever have taken the mound.

Today, with approximately 350,000 visitors per year, the Hall of Fame continues to be the hub of all things baseball. 

Source: https://www.history.com/this-day-in-history/u-s-baseball-hall-of-fame-elects-first-members

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