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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Lewis M. Swaab, Direct Examination. 803 and among them I recall that Mr. Swanson and Mr. Fox objected to a number of provisions. Q. Was a committee appointed to see the manufacturers? A. Yes, sir; I believe that Mr. Swanson was chairman of that first committee. Q. Was any change made in the agreement, as a result of this committee meeting the manufacturers? A. Nothing of any importance, no important change was made. Q. Did you finally sign the license agreement? A. Yes, sir. Q. You may state whether or not there was an adequate source of supply of films for your rental exchanges in the country at that time, outside of the manufacturers who had become members of this license association under the Patents Company. A. There was not an adequate supply of good film. Q. In the year 1909, and also in the year 1910, how many other licensed exchanges were there doing business in the City of Philadelphia? A. In the first stages, there were five. One was subsequently cancelled — that was the Philadelphia Film Exchange. That left four remaining, until the General Film Company came into existence. Q. Were these different film exchanges in competition with each other? A. Yes, very much so. Q. Now, you may state whether or not in the years 1909, and 1910, you observed the terms of the license agreement? A. I did. Q. You may state whether or not in May, 1910, you had some correspondence with the Motion Picture Patents Company in connection with a certain rule of that exchange license agreement? A. I did. Q. Were some of your customers located outside the city of Philadelphia? A. Yes, sir. Q. Did you have a customer in Baltimore? A. Yes, sir, I did. Q. What is meant by the "release day?" A. The day on which a film may be rented, a special day set apart by the manufacturers to release, or give out that film. Q. And is there an hour fixed when it becomes released? A. I am not sure, but I believe it says "eight o'clock." Q. Was that one of the rules which you were required to observe by the license exchange agreement? A. So I believe.