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2206 Albert J. Gilligham, Direct Examination.
months old. I know a great many members of the Film Service Association were in favor of them being returned at five or six months periods, instead of seven. A great many exchange men expressed themselves on it, that they should be returned before that, so as to keep a class of film on the market which would be always desirable.
Q. Did you find, prior to the Patents Company license, that is to say, prior to January, 1909, that it frequently happened that the same exhibitor would be taking his service from two exchanges at the same time? A. Yes, sir.
Q. Did you regard that as beneficial to the business? A. No, sir.
Q. From the standpoint either of an exchange or an exhibitor? A. I considered it a serious detriment.
Q. And why so? A. For the reason that where two exchanges were furnishing one man, one of the other exchanges would be furnishing another exhibitor in the same section, it would lead to endless confusion on the part of the exhibitors, through their receiving the same plays on the same day, and in a great many instances, we had no check-up on each other, whereas the first had a checkup, and I mean by that a list of the films, which had been shown by the other exhibitor. If the exhibitor took enough interest in his business to furnish the exchange so supplying him with a list of films that his competitor had used, it was possible for us to protect him against a repeating program. Otherwise, it was not.
Q. Then, the rule adopted by the Patents Company, prohibiting a continuance of that practice, was one in the interest of the exhibitor? A. We considered it such, yes, sir.
Q. During the year 1908, were the so-called Edison licensees, that is, the manufacturers, and the importers of motion pictures competing — A. Very much so.
Q. Between themselves for the business in your territory? A. Yes, sir.
Q. In what way did you observe that competition? A. They have sent representatives in there, and personally solicited the exchange business where we were not purchasing reels of certain manufacturers. They requested us, through correspondence, and even by personal solicitation, to buy their films. They also circularized the exhibitors, creating a demand for the film, and wrote the exhibitors in every instance requesting them to have their