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214 Harry N. Marvin, Direct Examination.
Q. The next paragraph: "The rental exchanges would establish theatres or acquire an interest in existing theatres." Now, is that statement accurate, or should that be modified so as to read : "Some of the rental exchanges would establish theatres?" A. Miany rental exchanges became interested in theatres.
Q. But it is not true as it reads — A. (Interrupting.) 1 do not understand that it says "all."
Q. It says: "The rental exchanges would establish theatres or acquire an interest in existing theatres." You do not mean that that applies to all theatres? A. To all exchanges?
Q. To all exchanges. Yes. A. Not to every one.
Q. (Reading) : "The large majority of rental agencies thus acquired little circuits of theatres" etc. Is that an accurate statement? "The large majority," or should it be "some of the rental exchanges?" A. I think that condition applied to the majority.
Q. You are able to give definite information on that point, are you? A. As definite as that statement is.
Q, Now, can you furnish a list of some of those exchanges? A. I can.
Q. The next paragraph : "Exchanges would make contracts with exhibitors for service of a certain class based usually on the age of the film supplied. Such contracts were almost invariably broken." Now, upon what do you base that statement : "Such contracts were almost invariably broken?" A. Upon an enormous mass of complaints directed to the Motion Picture Patents Company by exhibitors from all over the country, making those statements. A great many of which, upon investigation, proved to be well founded.
Q. Have you preserved a record of those complaints? A. Wo have not preserved a classified record, but a multitude of them can be abstracted from the files of the company.
Q. There were about 110 rental exchanges, ranging down to when the Film Company was formed, to about 80 or 90? A. T do not think there were as many as that at the time of the organization of the General Film Company. I think there were between 50 and GO exchanges licensed at that time.
Q. And these were doing business with how many thousands of theatres? A. With upwards of 5,000 theatres.