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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1730 Albert E. Smith, Direct Examination. Thereupon ALBERT E. SMITH resumed the stand. Examination continued by Mr. Kingsley: Q. Did you tell us Friday what was the average life of a motion picture in actual use? A. I don't think I did. Q. What is the average life of such a picture? A, Around six months. Q. Is it necessary in the motion picture art to have rental exchanges? A. I think so. Q. Have you had occasion to notice how the motion picture business is advertised by various producers? A. Well, I think, without exception, they advertise in all the trade papers that are going. Q. W7hat else do they do? A. And they circularize the exchanges and the exhibitors in booklets, pamphlets, and sheets giving descriptions and explanations of the productions they are releasing. Q. Do they prepare posters for the exchanges? A. Yes, all sizes of posters from a four sheet up to twenty-four sheet stand. Q. Is it your judgment that there is active and vigorous competition among the licensed producers of motion pictures? A. Very keen and very vigorous competition at all times, each one doing his utmost to beat out his competitor in every sense of the word. Q. Now the question I asked you related only to the present time. Has this competition been vigorous and active for several years past? A. As long as I have been interested in the art. Q. At the time of the existence of the Edison license agreement, was there active competition among the Edison licensees? A. Yes, sir. Q. And, after the signing of the agreement with the Motion Picture Patents Company, did this competition continue? A. The competition continued without diminishing at all times. Q. After the formation of the General Film Company was there any cessation of this competition? A. No, sir. Q. Friday, if I recall correctly, you stated that the Vitagraph Company, in spite of the fact that it had been receiving and had been credited with some dividends by the General Film Company, was not making any more money