The film finds its tongue (1929)

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24 THE FILM FINDS ITS TONGUE The Warners had not operated their Newcastle theatre for a year when the situation became obvious to the financially-minded Harry. The real money, the big money, in the motion picture business lay in film distribution. No theatre could begin to show a profit comparable to that gained by dipping into the profits of twenty — thirty — a hundred theatres. So in 1904 the Newcastle house was sold and the four Warner Brothers formed the Duquesne Amusement and Supply Company, a film exchange that shortly served a circuit of nineteen theatres. Those were the days of the motion picture patent wars, when Edison, Biograph, Vitagraph and others were involved in a struggle for the control of the industry through ownership of the basic patents covering cameras, projectors, etc. They were golden days for Exchange men, for competition among producers was rife and film was cheap. Theatres multiplied by the thousands. And while the motion picture spread like a forest fire over the country fortunes were made out of ten cent pieces. Not until December 18, 1908, did the deadlocked producers, led by J. J. Kennedy of Bio