Brief for the United States (1914)

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196 PART IX. In September, 1909, the Standard Film Exchange was fined $1,000 by the Patents Co., acting through the western committee, on the ground that it was conducting an unauthorized rental exchange at Sioux Falls, S. Dak. (II, 1065, fol. 3-1068.) The witness produced a number of typical letters written by the Patents Co. illustrating the manner in which that compam^ spread broadcast information regarding the cancellations of theaters and exchanges. (II, 1070-1076.) In the latter part of August, 1910, influenced by the fact that all the licensed exchanges in Chicago except two had been acquired by the General Film Co., the Standard Film Exchange offered to seU its business to the General Film Co. (II, 1062, fol. 2; 1077, fol. 4.) The Standard, however, was not purchased, the defendants preferring to put it out of business through the cancellation of its license instead of by the acquisition of its property. LOUIS KARSON, of the Philadelphia Film Exchange, Philadelphia, Pa. (II, 1093 et seq.) This witness told a pathetic story. He took a license early in 1909, and thereafter did, to the best of his ability, observe the terms and conditions laid down in the exchange agreement. (II, 1093, fol . 3. ) They canceled it on March 15, 1909. After that, the witness said, We could not get one foot of film in the United States for any money." (II, 1093, fol. 4.) The witness invoked successively.