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Harry N. Marvin, Direct Examination. 187
Q. And "During the period of organization of this respondent and prior to the organization of the General Film Company, the rental agencies had conducted their business in a manner utterly unsatisfactory not only to the manufacturers and importers of the films, but also to their own customers, the exhibitors, and theatre owners, that is to say: (a) rental exchanges were financially irresponsible. " Do you mean to say that these 116 odd rental exchanges were all financially irresponsible? A. No, I don't think all of them were financially irresponsible, but I think some of them were financially irresponsible.
Q. You would modify that allegation of the answer and say that some rental exchanges were irresponsible? A. I think it would be more accurate to so modify it.
Q. What per cent, of those 116 were irresponsible? A. I could not say that offhand.
Q. In April, 1910, the nine licensed manufacturers organized the General Film Company, did they not? A. Yes.
Q. That company thereupon engaged in the rental exchange business, did it not? A. Yes.
Q. And thereafter it acquired the business of a large number of these 116 rental exchanges, it bought their property, their place of business and took on the business they were doing? A. I believe they bought the property from about fifty-seven of them.
Q. And of the other exchanges going to make the 116 the Patents Company cancelled a large number, either under the 14 days clause which you have referred to, or under the clause permtting immediate cancellation for violation, is that correct? A. According to my recollection 30 of those original licenses had been cancelled prior to the organization of the General Film Company.
Q. Out of the 116 rental exchanges, you say that the General Film Company bought 57? A. Yes, that is my recollection.
Q. Of the others how many had their licenses cancelled by the Patents Company? A. Up to what time?
Q. Well, up to, say, January 1, 1912, from December 18, 1908, to January 1, 1912?' A. I think forty-two of them had been cancelled up to that time. Some of them had voluntarily gone out of business before that time, and some of them had combined with others.