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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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Louis Rosenbluh, Direct Examination. 447 has that reference to? Does that refresh your recollection? Read the letter please (handing paper to witness). A. This exhibitor discontinued doing business with us for a period and when he again made application, Ave found in our files that a cancellation card had been sent out. We notified him that we could not take up his service unless he made application to the Motion Picture Patents Company to have his license reinstated. He did go there, and came back and stated that the Patents Company exacted from him to pay six months' royalties in advance, which he refused to do, and stated that his company which was an association composed of membership of Bohemians, they would not consent to any such arrangement at all, and that if we wanted to get him to use licensed service again, we would have to make some other arrangement. I believe the matter was then taken up again across the 'phone, and we were advised that if the exhibitor instead of giving six months' royalty in advance, would give a written statement that he would remain a licensee for at least six months, that that would be sufficient at that time, to reinstate him — and such a letter was sent to them to confirm the telephone conversation, and I believe we did reinstate the service for that exhibitor on such an arrangement. Mr. Caldwell: The question and answer is objected to on the ground that it is obviously hearsay, and further, on the ground that it purports to state the contents of letters, and I move to strike it out, Mr. Grosvenor : The evidence is all introduced for the purpose of showing the general difficulties of conducting a business under the license agreements. Mr. Melville : I ask that the latter portion of the answer be stricken out on the ground that it is not testimony to a fact, but simply to a belief. Mr. Grosvenor: This letter which I will offer in evidence, states : "We will grant a new license to this place on condition that they furnish a written agreement to use only licensed film for a period of six months." By Mr. Grosvenor : Q. That is the agreement to which you refer? A. Yes, sir.