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Louis Rosenbluh, Direct Examination. 443
Of the 20 who wished the schedule withdrawn, a number stated that they were in favor of the schedule if it could be enforced, but complained that the schedule had not in all cases been enforced, and therefore had been a hardship on those members who were strictly living up to it.
The Committee investigated all of the complaints which had been sent in to the Secretary's office and came to the conclusion that while in the majority of cases the schedule was being lived up to, there were many instances where members were cutting prices, permitting their films to be sub-rented, and in some cases their films were getting into the hands of Exchanges who were not members of our Association and were renting unlicensed films. The Committee, after careful consideration, was satisfied that, while in some of these cases the action was deliberate, that there were many cases where members through carelessness or failure to properly supervise their business were permitting their employees to break the contracts which the Exchanges have with the manufacturers.
EDISON COMPANY TO ENFORCE CONTRACTS.
The Edison Manufacturing Company, the owners of the patents under which the members of our Association are licensed, assumes the entire responsibility for enforcing the contracts between licensed manufacturers and our members under which we received licensed film. The Committee conferred with the Edison representatives and received every assurance that this Company would co-operate with the Committee in seeing that contracts between the Exchanges and the Manufacturers were uniformly enforced so Hint no exchange would have an advantage over another. Tt was agreed that any evidence which was submitted to the Secretary of the Association should be referred to the Edison Company for action, and that every complaint made should be thoroughly investigated, for which purpose the necessary staff should be retained.
For the present the efforts of the Executive Committee and the Edison Manufacturing Company will be devoted to investigating complaints ami taking action in regard to any cases which will uphold the following propositions