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H. N. Marvin, Direct Examination. 1437
At that time it owed the licensed producers of motion pictures between five and six thousand dollars. The exchange for some time had been leasing less than the required quantity of film. Many complaints had been made by exhibitors that the exchange did not fulfill its contracts with exhibitors for service.
Q. You say that the petition for the receivership of the K. T. Film Exchange was made by creditors. Were any of those creditors licensed manufacturers who joined in the petition? A. No.
Q. As far as you know? A. No.
Q. What is the history of the Seattle branch of the Kleine Optical Company? A. This branch was sold to a licensed exchange, known as the Morton Film Exchange, of Portland, Oregon, and in April, 1909, this exchange subsequently consolidated with the Edison Display Company, of Portland, and Seattle, and the combined exchanges operated thereafter under the name of the Amalgamated Film Exchange.
Q. So that the Seattle branch disappeared because of the consolidation with the Edison Display Company, which subsequently was absorbed by the Amalgamated Film Exchange? A. Well, it was consolidated originally with the Morton Film Exchange of Portland, and that exchange consolidated with the Edison Display Company of Portland.
Q. Was that office ever closed? A. No.
Q. With respect to the St. Louis branch of the Kleine Optical Company, what changes occurred there? A. That was sold to the Western Film Exchange, a licensed exchange of St. Louis, in April, 1909.
Q. Were there licensed rental exchanges known as Laemmle Film Service, located at Chicago, Illinois; Evansville, Indiana; Minneapolis, Minnesota; Omaha, Nebraska; Portland, Oregon; Salt Lake City, Utah, and Memphis, Tennessee? A. There were.
Q. Were these various exchanges licensed early in 1909? A. They were.
Q. What change occurred, if any, in regard to the Laemmle Film Service Exchange at Memphis, Tennessee? A. This office was voluntarily closed on the 6th of March, 1909, as we understand, because it was unprofitable.
Q. What changes, if any, took place in the Laemmle