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Harry N. Miarvin, Direct Examination. 215
Q. Now, from how many of those theatres are you able to state, did you receive complaints? A. I cannot say offhand how many, but it was a very large number.
Q. The next paragraph : "Rental exchanges would resort to grossly unfair practices to other rental exchanges." Now, what do you base that statement upon? A. Upon reports from exhibitors, and reports from rental exchanges.
Q. Well, this refers to exchanges' troubles with exchanges. It says, "rental exchanges would resort to grossly unfair practices with other rental exchanges." Then, as a means of improving the business, you wiped out all the rental exchanges, is that right? A. No, we did not wipe out but very few of a large number.
Q. How many of those 11G rental exchanges whom you licensed in 1909, are today distributing the films of those nine licensed manufacturers? A. None of the rental exchanges that were — with one exception — that were licensed at that time, are iioav engaged in distributing films to exhibitors, but not because they were wiped out or their licenses cancelled, by the Motion Picture Patents Company. Many of them went out of business voluntarily. The one exception to which I refer is the Greater New York Film Rental Exchange, which, while not licensed by the Motion Picture Patents Company, has been permitted to handle licensed films.
Q. And it secured that permission by virtue of suit, hasn't it? A. I would not say by virtue of suit. No.
Q. Now, Mr. Marvin, speaking frankly, wasn't it the intent of the organizers of the General Film Company, when they formed the company, to get all this rental exchange business which was being done by these licensed exchanges? A. No ; I cannot say that it was. The manufacturers who organized the General Film Company, were almost without exception, extremely reluctant to organize the General Film Company, or to have anything to do with the film rental business. They considered that it was a very serious question which might affect seriously their market for film. They were urged to take some steps to improve the rental conditions that were then existing. It was not easy to persuade them of the desirability of doing anything along that line. Finally, after months of solicitation and urging, they were prevailed upon —
Q. (Interrupting) : By whom? A. Principally by myself. They were prevailed upon to start an experimental film rental exchange, to be run along lines that were as nearly