Brief for the United States (1914)

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210 PART IX. income out of it, and had been doing so ever since he had been in the rental business. At the time he sold out to the General Film Co. he knew that it had already entered into competition with his company, and that all the licensed manufacturers were interested in the General Film Co. He realized that there would be severe competition and that the advantage would be entirely with the General Film Co. That was one of the causes that induced him to sell his exchange. (V, 2562, fol. 2.) He felt that the competition would be so keen that it might threaten the very existence of his exchange. (V, 2562, fol. 3.) 2. Exhibitors who were cut off. A number of exhibitors gave concrete testimony as to how they were cut off from supplies. PETER ADAMS, Paterson, N. J., in September, 1912, contracted to show unlicensed films of an automobile race. The IVIotion Picture Patents Co. telephoned him that if he exhibited those films his license would be taken away, so they were not exhibited. (II, 859, fol. 3.) GEORGE W. BENNETHUM, Reading, Pa, had an interest in eight or nine theaters (II, 900, fol. 4) ; each received in November, 1911, a curt Your license has been canceled." (II, 901, fol. 2.) The reason was he was renting imli censed films. (II, 903, fol. 4.)