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Jeremiah J. Kennedy, Cross Examination. 3233
duces three regular short subjects every week, and in addition, it produces one or more, sometimes only a fraction of one long subject of unusual expense and merit.
Q. Is there any competition as to price in the distribution of these regular releases of which you say you produce three a week, between yourself, that is, the Biograph Company, and the other licensed producers? A. Not that I know of. We all sell at the lowest price we can.
Q. And the lowest price at whicli you can sell them to the General Film Company is fixed by your license? A. Yes.
Q. So you don't mean to say, in saying that you sell at the lowest price you can, that there is competition between the ten different licensed producers in the fixing of that lowest price? A. I mean to say if we sold at the higher price, we would have no business. We have a perfect right to sell at any price we please. The present prices frequently involve very serious loss. But we have to stand that or go out of the business, so in that way there is competition.
Q. The price at which you distribute these reels to the General Film Company, that is, the regular releases, is the same as the price at which the other nine licensed producers distribute their regular releases to the General Film Company? A. Yes. It is the highest price the General Film Company will pay.
Q. When did you ever purchase exchange property from an exchange that was unlicensed? A. I don't know the exact time. I think I can get it from the record.
Q. Look at page 3195 of your testimony. A. I understood your question to refer to the date.
Q. "Q. Was it necessary for a rental exchange, purchased by the General Film Company, to have a license at the time of the purchase? A. No. We purchased exchange property from an exchange that was unlicensed.'' A. We did.
Q. In what cases? A. We purchased the exchange property formerly owned by the S. Nye Bass Film Exchange in New Orleans.
Q Do you know of any other case? A. No.
Q. Had that S. Nye Bass Company been a licensed exchange? A. Yes.