Brief for the United States (1914)

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I'Ain i\. (MUidit ions ol' tlic cxchani^c ;i;;r('('iii('nl (II, lUliii, fol. :\). I nmicdinlcly .•il'tcr t lie cniKM'IL-il ion of 1 lie licenses til" l^'ihn MxclinnLic ( 'o., ;i licensed exchange of Kansas ('ity, estahlislied a hr.-mcli office at St. lionis, and at once ci renin rized .-Ml llie foi-niei' cnistonicrs of the two other cxchtiiigt's stating* th;it it had been api)(.)int(Ml tlie sole licensee of the indents Co. for St. Louis and adjacent territory. (II, 1232, fol. 2; 1229-1234.) Tlie witness testified that the Western Film Exchange and the Crawfoi'd Film Exchange had received no earlier announcement than that contained in the telegrams that their licenses would be canceled. (II, 1231, fol. 3.) He described the effect on the business as f ollow^s : The eff(H't was to practically put us out of business as far as the handling of any further licensed films w^re concerned. Our customers began to leave us the next day after the cancellation, in accordance with the age of the film that we were required to serve them. The new exchange liegan r(^ceiving new reels of the various manufacturers of the Patents Co., and consequently were able to take on the top-run business of the various theaters that our two exchanges had been serving, because we couldn't give them film of the makes and ages required. This continued to a point where we had practically no customers left. The only custom 64717—14 14