In the District Court of the United States, for the Eastern District of Pennsylvania, the United States of America, petitioner, vs. Motion Picture Patents Company, et al., defendants (1913)

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32 Circulars to Film Rental Exchanges. for use in the United States and its territories and will not be permitted to sub-lease them for use in Canada, Mexico and other foreign countries. (c) The same requirement for the return of motion pictures is made in the new agreement as was made in the old one, and it is intended that this clause shall be enforced and in this way prevent the exhibition of worn out and damaged pictures. (d) Hereafter when any motion pictures are destroyed or lost it will be necessary within fourteen (14) days after such destruction or loss, for the exchange to furnish satisfactory proof to the Manufacturer or Importer from which such picture was obtained, in order that the exchange will not have to account for that film when it should be otherwise returned to the Manufacturer or Importer. (e) Under the new agreement no distinction is made between an exchange and a branch. A license agreement will be necessary for each place of business operating as an exchange and no exchange is to establish a branch or any new place of business unless the regular license agreement is first signed for the new exchange and accepted by the Patents Company. By this means all controversy as to what constitutes a branch and who is responsible for it, will be avoided and failure to meet the requirements of the conditions of the license for one exchange will not necessarily jeopardize the license for any other exchange. Each exchange or branch will be required to purchase |2,500 worth of film per month for direct shipment to its office. This change is intended to eliminate insignificant offices which have been used heretofore simply as an outlet for worn out films. (/) If any one wishes to open a new office, it will be necessary to apply to the Motion Picture Patents Company for a license and that Company will determine whether or not the new office would be beneficial to the whole trade and will accordingly grant or refuse the license. (g) Payments on all invoices received during each week