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Circulars to Film Rental Exchanges. >l\)
Q. And it was upon those machines under this new arrangement that the license of two dollars per week was now imposed by the Patents Company? A. Yes.
(2. Had your company sold any machines? A. No.
Q. What other manufacturers of projecting machines were there in the United States at that time? A. Nicholas Power Company, Enterprise Optical Company and Eberhardt-Snyder ; I don't recall any others.
Q. Had those companies sold machines outright, I refer to projecting machines? A. I believe they had.
Q. And upon their machines, also, acquired by the exhibitors, this license fee was imposed? A. Yes, if they wanted a license.
Q. Now, this paper marked "Defendants' Exhibit No. 7," states: "Established Exhibitors will be protected as much as possible by the Patents Company, which will carefully scrutinize each application for a license from any new exhibitor. No license will be granted for a new theatre in any district already well provided for." What officer of the Patents Company had in charge the consideration of the matters referred to in that paragraph which I just read? A. Principally myself.
Mr. Grosvenor: I now offer in evidence the paper marked Petitioner's Exhibit No. 7.
Petitioner's Exhibit No. 7.
To the Film Rental Exchanges:
The Motion Picture Patents Company has been incorporated for the purpose of taking over, and has acquired, the ownership of the Edison, Biograph, Armat, and Vitagraph patents, which, we are assured by counsel, cover all modern moving picture films and all existing commercial types of projecting machines. The Patents Company proposes to control the business in such a way that the honest and legitimate exchange, whether a member of the F. S. A., or not, shall be protected from the unfair and ruinous competition of the dishonest exchange. This can only be done by insisting that all exchanges who may desire protection under the above patents shall conform rigidly to