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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64 Circulars to Rental Exchanges. Q. It was the general rule? A. It was common practice Mr. Grosvenor: I offer in evidence this paper, to be marked Petitioner's Exhibit No. 17, which is as follows: Petitioner's Exhibit No. 17. Exchange Bulletin — No. 3. MOTION PICTURE PATENTS COMPANY 80 Fifth Avenue New York City March 20, 1909. ROYALTIES FROM EXHIBITORS. The attention of all licensed Exchanges is called to Ex hibitors' Bulletin No. 3, a copy of which is enclosed with this Bulletin. On and after April 12th licensed Exchanges must not supply service to any exhibitor unless they then have in their possession a duplicate copy of a receipt from the Patents Company for the license fee of the exhibitor for the period ending May 1, 1909. No statement, explanation or excuse on the part of the exhibitor may be accepted by a licensed Exchange as authority for the supply of film to an exhibitor whose duplicate receipt the Exchange does not hold, except the surrender to the Exchange by the exhibitor of the original receipt which must in that case be immediately forwarded to the Patents Company. This exception is made only to guard against the possible loss of receipt in transmission through the mails. If neither the exhibitor nor the Exchange has received a receipt on April 12th, the service must be discontinued on that date. Licensed Exchanges found to supply films to unlicensed exhibition place or places in arrears for license fees will be subject to a fine, or cancellation of license, at the discretion of the Patents Company.