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2518 Petitioner's Exhibit No. 20>3.
as my observation extends, it is demonstrated that for every small store show that closes, a large moving picture theater is opened.
"I need only mention the use of Keith's theaters, in New York city, exclusively for moving picture shows, replacing vaudeville; also, the Garrick at St. Louis, the Lyric at Cleveland, the Orpheum at Chicago, and the Hopkins at Louisville,— all of them pretentious houses, many involving the payment of enormous rentals.
YYill Improve Exhibitions.
"The introduction of moving pictures into theaters of this character must undoubtedly tend to improve the character of the exhibitions, as well as enlist the patronage of a class of people who have heretofore known nothing of that branch of entertainment, having been inclined to consider this class of amusement beneath them.
"In Paris, France, the Hippodrome is to be devoted exclusively to moving pictures. This seats some 7,000 people, and will have an orchestra of 60 pieces. The films for this resort will be supplied in the main by the European manufacturers whose product will be marketed in this country under the Biograph license, and the same subjects will be available for the most humble nickelodion in the smallest country town.
"It appears to be inevitable, much as I regret it, that there will be two factions in the motion picture field for some time to come; and that circumstances force me and the Kleine Optical company, with which I have been identified since its inception, into a position of business opposition to many personal friends engaged in this business, for whom I have the highest regard. I can only say in conclusion that if competition becomes bitter, the conflict will be conducted, as far as we are concerned, along clean and wholesome lines, without personalities, and while our campaign may be aggressive1 it is unavoidable, and has been forced upon us by conditions. "
By Mr. Grosvenor:
Q. I show you an article in the Show World of March 21st, 190S, at page 1, entitled, "Film Magnates in Chicago