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)

Record Details:

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1428 H. N. Marvin, Direct Examination. leasing the required minimum quantity of licensed motion pictures. Q. You mean that it was not leasing licensed motion pictures to the amount of $2,500 per month, as stipulated in the exchange license agreement? A. Yes, sir. Q. Was this cancellation referred to in any bulletin? A. It was. It was referred to in Exchange Bulletin No. 8. Q. Was there a licensed rental exchange known as the S. Nye Bass Film Exchange, located at New Orleans, La.? A. There was. Q. Was the license of the S. Nye Bass Film Exchange cancelled by the Motion Picture Patents Company? A. It was cancelled on February 8, 1910. Q. Do you know when this exchange was licensed? A. It was licensed on the 28th of July, 1909. Q. What was the reason for the cancellation of the S. Nye Bass Film Exchange's license? A. The financial condition of this exchange had been bad from the outset, and it kept getting into debt more and more to the licensed producers of motion pictures; it did not make payments to these producers as called for in its license, and at the time of the cancellation of the license it was indebted to the licensed producers to the extent of about $8,000. The exchange continued to do business after its license was cancelled, and finally, on November 22nd, 1910, its supply of motion pictures was purchased by the General Film Company. Q. Was the license of the S. Nye Bass Film Exchange reinstated or restored before the purchase of its motion pictures by the General Film Company? A. No. Q. Did Eugene Cline own and manage or run licensed rental exchanges at Chicago, 111., and at Salt Lake City, Utah? A. He did. Q. Were his licenses cancelled? A. They were. Q. When were they cancelled, and what was the reason for the cancellations? A. They were cancelled on 20th of March, 1909, on two weeks' notice. They were leasing less than the required quantity of motion pictures, and Cline was making no pretense of observing the conditions of his license. Q. Was there a licensed rental exchange known as the Columbia Film Exchange, located at Pittsburgh, Pa.? A. There was.