Brief for the United States (1914)

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170 PART IX. In 1909 there was not any adequate supply of films in the United States outside of the source of supply from the so-called licensed manufacturers. (II, 834, fol. 1.) In the spring of 1910 the Imperial Film Exchange was doing the largest business in New York City— close to $6,000 a week. (II, 834, fol. 3.) The witness first heard in February, 1910, that the manufacturers were going to start a rental exchange business under the name of (general Film Co. (II, 835, fol. 2.) The license of the Imperial Film Exchange was canceled April 15, 1910 (II, 837, fol. 2), although up to that time the company, to the best of its ability, had lived up to the requirements of the exchange license agreement at all of its offices (II, 835, fol. 3). The company was not offered any opportunity for a hearing on the question whether or not it had violated any of the terms of its exchange agreement with the Patents Co. (II, 855, fols. 1, 2.) The cancellation became effective at once and applied also to the branch offices in Washington and Troy. (II, 837, fol. 2.) Every exchange in New York was notified of the cancellation, and each of them given a list of all the customers on the books of the Imperial Exchange. (II, 837, fol. 3.) The witness said (II, 839, fol. 2) : I know that the Patents Co. sent around agents to every customer we had, telling them that our license was canceled and that we