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)

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Jeremiah J. Kennedy, Direct Examination. 3199 lanta and that section of the country, the number of motion pictures which the business justified an exchange In leasing was very small. At the same time, there were a number of very important houses which required a very much higher class of service than could be supplied with the fewer number of motion pictures or the small number of motion pictures which the exchanges were able to supply, and exist. The General 'Film Company was able to remedy those conditions, and, if necessary, stand a loss while the business in such sections was being developed. By Mr. Kingsley: Q. You have told us of the experience of the Biograph Company in the curtailment of its production because of the more efficient distribution of the General Film Company. Do you know whether other producers had a similar experience or not? A. They all complained to me about this reduction, and stated their reductions to be substantially the same as the reductions sustained by the Biograph Company. Q. Do you know, Mr. Kennedy, whether or not the profits which the Biograph Company has received from the General Film Company, have made good the curtailment of production which was caused by the more efficient distribution of the General Film Company? Mr. Grosvenor: I object to the use ot the term "more efficient distribution," the same being a con elusion of the counsel addressing the question to the witness. The Witness: The profits paid to the Biograph Company, together with profits earned and not paid, amount to less than two-thirds of the shrinkage sustained by the Biograph Company. Mr. Grosvenor: You mean by "the profits earned but not paid," the Biograph Company's pro rata share of the earnings of the General Film Company? The Witness: I do. A