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230
PART IX.
(Aug. 21, 1909, I, 72-73.)
We have canceled the licenses of the following exchanges :
Southern Film Exchange, Cincinnati, Ohio.
Superior Film Supply Co., Toledo, Ohio.
Exchanges were duly notified that we would require them to report new customers to us without delay.
They were also notified that we would require them to collect the exhibitor's royalty of two dollars a week from ever}^ exhibitor that they served, and to forward all such royalties to us every week.
The attention of exchanges is called to the fact that failure to comply with these requirements, regardless of excuses and explanations, will result in prompt action on our part, similar to our action in the cases of the exchanges named above.
Any exchange that is in arrears for the royalty pajrments of any customers as the result of errors or negligence of employees or other cause should promptly send us the amount due.
Exchanges will also be held strictly accountable for subrenting or other unauthorized use of films that are intrusted to them.
(Dec. 4, 1909, I, 75-76.)
So far as concerns th(ยป matter of establishing new exchanges, we reiterate our policy that where the business in a particular locality is being satisfactorily handled by the exchange or the exchanges located there, we will not appoint a new exchange in that locality. We consider the appointing of new exchanges only when the existing exchange fails to secure the business that the location war