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Albert J. Gii^igham, Direct Examination. 2207
exchange furnish them with the films, showing the exhibitor, through their advertising matter, that the film was a very desirable subject.
Q. Did you observe in your territory that your customers demanded reels of certain producers in preference to others? A. Yes, sir.
Q. Did that competition between the licensed manufacturers continue after January, 1909? A. Yes, sir; if anything, more pronounced than what it was before.
Q. And does it continue at the present time? A. It even continues to this date. Well, they do not solicit orders from the managers of the General Film Company, but they still circularize the exhibitor, sending out synopses of the story of the film, and in a great many instances send out illustrations from the various scenes, and even send out photographs of their stars, both male and female, that appear in these productions, and try to create a demand for the film through the exhibitor.
Q. Do you find that the popularity of certain brands of films of the licensed manufacturers has varied from time to time in your territory? A. Yes, sir.
Q. And is that still going on? A. Yes, sir.
Q. About when did you sell your exchange, the National Vaudette Film Company, to the General Film Company? A. Arrangements were made in August, 1910, but the exchange was not turned over until November 21st, 1910.
Q. Will you state the circumstances that led up to that sale, with whom you negotiated and how they were instituted? A. Well, we had heard that the General Film Company had been formed, and that they were purchasing exchanges. One of the first that they purchased, I believe, was Mr. Howard's, of Boston, and while in Chicago, George Kleine stated that he had sold his exchanges, and from time to time we were informed, and heard it in bulletins, or rather, through information from various men, exchange men, that their exchanges had been sold. So, Mr. Mandelbaum, who was a stockholder of the National Vaudette Film Company, and who was also interested in the Lake Shore Film Company of Cleveland, called me on the telephone and suggested that we go to New York and receive an offer for our exchange. I wired Mr. J. J. Kennedy, at No. 10 Fifth Avenue, NewYork, asking for an appointment, and Mr. Gleiehman and I came to New York from Detroit, and Mr. Mandelbaum came