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II. M. Nbwsomb, Direct Examination. 3011
Q. You did agree you would not cut prices? A. Yes, * sir.
Q. And the prices which had already been cut below the normal, were they restored to their former level after the consolidation? A. Probably in some cases, not in every case.
Q. Then the only competition between the two companies after the consolidation consisted of the getting of new business? A. Yes, sir, and the independent business.
Q. Was it known, outside of the parties immediately interested, that there had been a consolidation? A. Xo.
Q. Did you make any effort to keep that secret? A. Yes, sir. All we had to do was to keep our mouths shut.
Q. Did you have any competition from any other licensed exchange? A. Yres, sir.
Q. What exchange was that? A. Mitchell of Memphis, and Pierce of New Orleans.
Q. From which one of those two sources was the competition the strongest, Xew Orleans or Memphis? A. I believe Memphis was the strongest, and we also had the independent exchanges to compete with.
Q. What was the name of the Memphis exchange? A. 3 The Mitchell Film Exchange, I believe, is the way he operated it.
Q. And was that exchange owned or operated by a man by the name of Mitchell? A. Yes, sir.
Q. What did that exchange do in your territory either before or after your consolidation in the way of competition with you? A. Before and after, Mitchell cut the prices. He even came into Birmingham, and got business, and put his whole output in one theatre there. He was buying the licensed output, or reels, and he came into Birmingham and got a customer there, and put his whole out 4 put in one theatre.
Q. The Mitchell exchange was subsequently sold to the General Film Company, was it not? A. Yes, sir.
Q. Do you recall about the time of the sale? A. I think it was in August, 1910.
Q. This price cutting that you have just spoken of on the part of the Mitchell Film Exchange, was that before or after the sale to the General Film Company? A. It was before.