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 (1914)

Record Details:

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James B. Clark, Direct Examination. 2589 programs on the part of exhibitors served by your exchange? A. Yes, sir. Q. Will you tell us something about that? A. Well, if we gave a man a date on a picture, we did not try to schedule the films like we do now, because it was impossible. We gave a man a date on a certain picture, and he advertised it, and the opposition theatre would telephone in to the exchange that was supplying him and get the film a few days ahead of him in order to spoil his program, and he would naturally then have to substitute something else for it, after having advertised it. Sometimes they would show ~ it on the same day. Q. What was your experience with respect to two competitors who were running conflicting programs, coming to you and trying to get better service, or newer service? A. Well, of course, they would try to get newer service in order to show films before their opposition. Q. And would they sometimes do that? A. They would. Then he got his exchange to do the same thing. Q. Would the two of them sometimes advance their program? A. Yes, sir. Q. Would they pay more money for it? A. Yes, sir. 3 Q. And would they sometimes, after having advanced their programs and having paid more money, find themselves in the same relative position? A. Yes, sir. Q. Do you remember when royalties were first collected from the exhibitors by the Patents Company? A. Yes, sir. Q. Did the Patents Company at that time collect these royalties direct from the exhibitors? A. Yes, sir. Q. Do you recall whether or not this practice created any difficulties? A. It did. Q. Did you make any protest or suggestion to the Patents Company regarding it? A. Yes, sir. 4 Q. What were the difficulties connected with collecting the royalties direct from the exhibitors? Mr. Grosvenor: You are referring to the two dollar a week royalty, I take it? The Witness : Yes, sir.