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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2392 Philip J. Scheck, Direct Examination. Virginia, the District of Columbia, Baltimore, and Maryland, and the surrounding country. Q. Did that company become a so-called Edison licensee in the year 1908? A. Yes, sir. Q. And was it a member of the Film Service Association? A. Yes, sir. Q. Did it subsequently take out a license from the Motion Picture Patents Company? A. Yes, sir. Q. And how long did it continue in business as a Patents Company licensed exchange? A. To the year of 1910. Q. Up to what time or about what time in 1910? A. About October. Some time in October. Q. Xow, during the years 1907 and 1908, and up to the time your company became a licensee of the Motion Picture Patents Company, did you have any trouble in your territory on the score of sub-renting? A. Yes, sir. Q. Was that quite general in your territory? A. Yes, sir. It was not so much generally in the cities as it was in the counties and in the smaller towns. There is where we had the most trouble. In the city we could call after our film, and, as far as we were concerned, we generally would have to go after our films. The customer would not bring them in to us, even in our own city, and whenever they got out of the city, we would have to just whistle half of the time and wait for them. Q. How many reels a week was your exchange taking in December 1908, just prior to the time when you became a Patents Company licensee? A. About seven. Six or seven. Q. And that cost you about how much per week? A. About seven hundred dollars. Q. Did you consider that at that time an exchange could do business if it leased less than twenty-five hundred dollars worth of film per month? A. No, sir. Q. Was your exchange regarded, at that time, as a large one, or a small one? A. A small one. Q. You are familiar with the requirements in the Motion Picture Patents Company license, that films shall be returned after the expiration of seven months? A. Yes, sir. Q. At the time yon signed that license, about how many reels did you have on hand? A. About five hundred. Q. Between that time and September, 1909, had you added considerably to vour stock of films? A. Only to the extent