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1050 A. J. Clapham, Cross Examination.
If you have any knowledge of the whereabouts of these two reels in question, I could probably convince you of the truthfulness of the above report by a willingness to begin replevin suit for the recovery of these reels, as we have been considering them as stolen property.
I would like to take this opportunity of advising you that since I purchased the Theatre Film Service Company interest in June last, there has not been any violation of the license agreement, and in view of the fact that I was fully aware that unscrupulous competition in this city was ever on the alert to register a kick, I have been extraordinarily careful to warn all employes that they must not violate any of the conditions of the Patents Company. If you will search your files during the early part of last year, you will locate letters from me in which I was protesting against certain exchanges here disseminating information throughout the state to the effect that the Theatre Film Service Company's license would be cancelled. The fact that we are the newest comers in the film-renting field here has made them consider us as interlopers, and their reasons for objecting to our presence in the field are plain. I am entirely willing at all times to furnish you any information regarding any alleged violations of our contract, as it is far more gratifying to me to clear up misunderstandings of this kind, than to have them go unexplained.
I would like to call your attention to the following facts, namely : that since I purchased the interest of my associates last June in the Theatre Film Service Company, our film purchases have increased one hundred per cent, in seven months. The fact that we are making such strides is due to the manner in which we are handling our business here, and you can readily understand that we could not afford to make these increases unless our business warranted same, and while last June we were purchasing but six reels of film per week, our standing order now amounts to twelve reels, we having increased it on the first of February. We are not resorting to dishonest methods nor price-cutting to obtain business; in fact, I believe we are obtaining better rates for our service than any exchange in the city. The class of theatres which we are supplying in this city are the leading ones.