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William H. Swanson, Cross Examination. ~~>(.>
let it stay on the record like that. It is good enough 1 for me.
Q. When did the amount of unlicensed film become sufficient to meet the requirements of the independent theatres and managers? A. It has not altogether reached it yet.
Q. Didn't you swear in the suit of the Greater New York Film Rental Company against the Biograph Company and the General Film Company that it had reached that proportion last May? A. I think I qualified it by stating that it met the generalities of the demand but not all of it. The demand in New York is six or seven reels a day. We cannot meet that.
Q. In May of last year how many exchanges were there in the United States that were dealing in unlicensed film? A. About 30.
Q. They were not handling Biograph film, were they? A. No.
Q. All of it was purely unlicensed film, the thirty that you refer to ? A. All of it unlicensed, yes.
Q. Now, Mr. Swanson. in the case of the Greater New York Film Rental Company against the Biograph Company r> and the General Film Company, were you asked to make a general statement relative to the business of the rental exchanges and exhibitors, and the general progress of the motion picture business in the United States? A. I was.
Q. And did you on that occasion make this statement: "A. The licensed film exchange would receive requests, either by telegraph, telephone, letter or verbally from an exhibitor for service of the licensed film. The licensed film exchange manager thereupon would furnish that film, providing he was satisfied of the character of the man he was doing business with, temporarily until such time as 4 he could report the taking on of that client to the New York office of the Motion Picture Patents Company. The Patents Company had a rule permitting the licensed exchanges to furnish any applicant that seemed satisfactory to the local exchange manager, with service for a certain number of days, until such time as this exhibitor would be enabled to send in a request for a licensed theatre to the Patents Company. The Patents Company then reserved the right to either furnish a license to the exhibitor or reject his application for it. In the event that the theatre did