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II. N. Marvin, Direct Examination. 1241)
A. The rental exchanges felt that they were then in a more secure position because they realized that they then had a dependable source of supply, that they could confidently anticipate that each licensed concern would continue to produce and lease to them a supply of films with regularity and certainty. The exhibitors throughout the country, shared this feeling of confidence, since they realized that the source of supply of the dramas that they desired to use in their theatres was now assured. As a result, in very many instances, they commenced to enlarge their places of exhibition — they built new theatres, more costly and convenient than the former ones, and many people on the outside engaged in other occupations, turned their attention to this dramatic field, and erected theatres, and started to exhibit motion pictures, and generally the result was a very immediate and extensive expansion of the entire art.
Q. Has that expansion been steady and continuous since that time? A. It has.
Q. Is it still going on? A. It is.
Q. At the time of the organization of the Motion Picture Patents Company, and prior thereto, did you have occasion to know whether producers of motion pictures were exporting any considerable quantity? A. I was familiar with the general exporting conditions, and I know that no very considerable quantity of motion pictures was being exported at that time by anyone.
Q. Have you kept in touch with the motion picture art since 1908? " A. I have.
Q. Have you noticed any change in this condition relative to exportation of motion pictures? A. I know that the exportation has steadily increased since the time of the organization of the Motion Picture Patents Company, until at the present time a very large portion of the motion picture films produced in the country are exported.
Q. Then your testimony is, there has been marked increase in the foreign business so far as exporting motion pictures is concerned? A. A very marked increase.
Q. Are you able to say whether there has been any change in the character of the product since early in 1908 up to the present time, and by that I mean the character of the motion pictures in respect to topics, and in respect to artistic excellence? A. Well, it is a matter of perfectly general knowledge that there has been an enormous ad