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2996 George K. Spoor, Direct Examination.
By Mr. Caldwell:
Q. State what you know in that respect, what was your experience as an exchange man? A. My experience was that my business in the exchange end of it was becoming less and less. We could not hold our business, and our business was not in good shape. It was not in anything like the shape it had been, some time previous, and before so many exchanges came into the business.
Q. Did you know whether or not many exchanges at that time were owned by, or rather were interested in the theatres that they served? A. That is so, there were a great many exchanges.
Q. Did you regard that as an objectionable thing in the business? A. Yes, sir, very objectionable, because the exchanges owning theatres gave their theatres preference as to films. The other theatres in the neighborhood could not get a look in, and they would expect the exchange that was selling them to hold right up with them, and it was impossible for an exchange to do anything, it could not supply service like that in so many quarters at once.
Q. Confining your answer now to exchanges with which you had business as a producer, and to which you leased your films : as a general rule were they of good financial responsibility or not? A. As a general rule they were not of good financial responsibility. They wrere doubtful.
Q. Did you lose money through the failure of exchanges to pay your bills? A. In a great many instances, yes, sir.
Q. Were there any complaints on the part of exhibitors about that time as to the character of the service they got from the exchanges? A. Yes, there was a good deal of complaint. I have stated that before.
Q. Personally were you in receipt as President of the Essanay Film Manufacturing Company of complaints from exhibitors in your section there? A. Oh, yes, indeed —
Q. — that the service was not satisfactory? A. Yes, sir.
Q. So far as you were concerned, was it your purpose in organizing, or assisting to organize the General Film Company, to acquire all of the licensed exchanges in the United States? A. No, not at all, sir.
Q. Did you hear any of your associates in that organiza