In the District Court of the United States, for the Eastern District of Pennsylvania, the United States of America, petitioner, vs. Motion Picture Patents Company, et al., defendants (1913)

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II. N. Marvin, Direct Examination. 1393 Defendants' Exhibit No. 78. Motion Picture Patent Co., N. Y. City. Gentlemen : We have three store front 5c theatres, two of us running high class service. The Theatre Film Service has undertaken to supply an outsider who has taken a lease on a spite theatre newly furnished, 800 seating capacity, which has proved a failure for Vaudeville, with Moving Picture Service, and are giving for 5c one reel 2nd run, one reel 2nd to 5th run and one reel 8 to 10th run, three reels daily change of practically new film, practically the entire output. Before they came we have been running two reels to a showT daily change one to two week old film for our first reel. Now, gentlemen, such competition is unfair. No money for us, and their' s is a game of freeze out. Now which is better for the manufacturers, to have three of us using copies, or only one using them, as we understand Mr. Skates of the Theatre Film Service holds stock of this Company that has butted in and none of us are able to get an Exchange who can spare film to equal the service, except at an exorbitant rental. It seems unfair, and we need protection. Cannot prices be so regulated that three new reels cannot be shown for 5c except under a penalty. Yours very truly, W. CLARKE. By Mr. Kingslby : Q. During the period that you were Vice-President of the Motion Picture Patents Company, did you keep in touch with the correspondence with exhibitors, rental exchanges, and licensees? A. I did. I read almost all of it. Q. And did you endeavor to keep posted regarding the course of business and the changes that wxere going on from week to wreek and month to month in the art? A. I did. Q. Do you recall all the letters which I have just offered in evidence? A. I do. Q. And you read them at the time they were received, did you not? A. I did.