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H. N. Marvin, Direct Examination. 1301
from other licensed exchanges. We find that under our return proposition many exchanges that have been established a long time, and that have large quantities of old film, are able to make the required return of film from their oldest and most worthless stocks. We have heretofore permitted this to be done, because it has the desired effect of gradually getting old and worthless stock from the market, but at the same time the new exchange, as compared with its longer-established competitor, is placed at an unfair disadvantage. Until February 1st, 1910, we will permit any licensed exchange to purchase from another licensed exchange and return to the manufacturers an amount of film equal to that which the exchange would be required to return under our license agreements. It should, however, be distinctly understood that if any exchange takes advantage of this offer, the film that it purchases for return must have been sold prior to January 1st, 1909, for the reason that since that date all licensed film has been leased, and the title to the same is vested in the manufacturer, and no exchange has the right to sell the same.
Film purchased from one exchange by another exchange, for the purpose of return, must be shipped direct to the manufacturers by the exchange from which the film is purchased. The film and the bills of lading for the film so returned should be distinctly marked, so that the manufacturers will know to which exchange the film is to be credited. Film must not be shipped from one exchange to another exchange.
If any exchange purchases film for return from another exchange, the exchange that makes the purchase and the exchange that sells the film must send to this Company statements showing the amount of film purchased and the date of purchase, together with the names of the purchaser and the seller. If exchanges that desire to sell or purchase old film, for the purpose of return, will notify us, we will endeavor to put such exchanges into communication with each other.
Exchanges are warned that on and after February 1st, 1910, the requirements for the return of film will be strictly in accordance with the provisions of the license agreements.
MOTION PICTURE PATENTS COMPANY