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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1546 Frank L. Dyer, Direct Examination. Q. So if a picture is idle on the second day after its release, that is to say, is not exhibited anywhere, will a theatre give as much for that picture on the third day following its release as it would the second day, it not having been shown but once before? A. No. The theatre is not interested in our troubles. He does not care whether we rent it on the second day or not. Q. What would represent a fair average of the cost to the exhibitor of a first-day picture? Mr. Grosvenor: Are you talking about here in New York City or in some small country town? Mr. Caldwell : I will say in New York City. The Witness : The cost in New York at the present time is about seven dollars per day. By Mr. Caldwell: Q. And for the second day run? A. I think, about five dollars, but I do not keep those figures in memory. It is all subject to competitive conditions. Q. Then, in New York City a theatre taking a picture which was idle on the second day would not be willing to pay i\\e dollars for it? A. Not the second day price. He pays the price he agreed to pay. He does not make his agreement for a third-run picture with any knowledge of whether the picture will be shown for the second time, or whether it will be shown at all on the second day. Q. Then the periods of idleness of any given picture represent an absolute loss to the exchange? A. Exactly; the same as when a day laborer is incapacitated by rheumatism, he does not earn anything the day he is not working. Q. What relation is there, if any, between the number of customers served by an exchange, and the cost of the service to a customer? A. It is, of course, desirable that there should be as many customers as can be handled with the available supply of films, so there will be minimum periods of idleness, because in this way the service is handled at its maximum efficiency, and the price of the service may therefore be low. If there are few customers, and considerable periods of idleness of the films, the expense of the service is