as stated above, and apparently, the booker, after our booker having placed the dates had left, altered the play dates, noting on the bottom of the confirmation that the exra day is reserved, clearly esablishing that there was knowledge of the playing of the pictures a third day.

Our method of payment is by check, and when paying for these features, our check clearly states the playing time. the feature, and amount of payment. In this case, every check states that the picture is intended to play for the time as booked.

Another claim for violation is with first division pictures on a picture, Ships of Hate, which was played for three days at the Cameo Theater, Newark, N. J.. on a 2-day contract, instead of another picture arranged to be played three days, and with the consent of the booker was changed, so that the 3-day picture was played two days, and the 2-day picture was played three days.

PRICES

Contract price on Smart Money for two days at the Cameo Theater is $50. Contract price on Night Nurse for two days at the Cameo Theater is $50. Contract price on Chances for two days at the American Theater is $25. Contract price on Ships of Hate for two days at the Cameo Theater is $20. The first intimation we had of any violation was some time in the month of October, 1931, when I was called to the Film Board of Trade and advised of this fact and asked to pay $500, as otherwise they would take me to court and it would cost me several thousands of dollars. I took this matter up with the exchanges involved, who advised me that they were fully aware of the situations, but it was beyond their control to interfere in any way with the workings of the film board on any copyright violations.

There was no intent to hold any picture over, as in my 18 years of theater operation there has never been any blemish on our method and ethics of doing business. Were it not for the manager's suggestion of using this method of adjusting moneys due us, we would have arranged for a third day at a price of not more than $10 each for the day.

In addition, Mr. Nizer told me that unless I paid the $500 the penalty for taking me into court would be $250 for each violation, which would run into several thousands of dollars, and, in any event, it would cost me more to defend the action and defeat the claim than to pay the amount demanded.

I call the attention of the committee to the fact that this confirmation of the bookings has been very plainly altered, as you can see on this photostat, from August 4 to August 3; and that the man that put this on the bottom tried to alter the real booking of that day. Will you inspect that please, Mr. Chairman?

The CHAIRMAN (inspecting photostat). There is no doubt that there was a "four (4)" there and that it was crossed out by the substitution of "three (3)." I also take note of the check with the indorsement on the back showing what he was paying for the number of days.

Mr. SAMUELSON. I call particular attention, Mr. Chairman, to this part of the statement which I have just read:

The first intimation we had of any violation was some time in the month of October, 1931, when I was called to the Film Board of Trade and advised of this fact and asked to pay $500, as otherwise they would take me to court and it would cost me several thousands of dollars. I took this matter up with the exchanges involved, who advised me that they were fully aware of the situation, but that it was beyond their control to interfere in any way with the workings of the film board on any copyright violations.

That is the point the committee should take cognizance of.

Gentlemen, I say, in closing, that when the laws of the United States are abused in such a fashion against honest business men trying to serve the public, you should take such steps as will be adequate to make such practices impossible to continue.

Mr. DIES. Is this exchange outfit the parent of all these little organizations throughout the country?

Mr. SAMUELSON. That is the chain throughout the country; yes, sir.

Mr. DIES. Are you sure that practice is carried on throughout the country?

Mr. SAMUELSON. I have no positive, direct evidence. We have been pushed so hard in New Jersey that my attention was occupied there fully.

The photostat copies I now introduce are of checks, a series of them made payable in installments falling due monthly. One series of eight checks, the other three checks:

No. 10471. Drawn by Lee W. Newbury, secretary-treasurer of the Arcadia Theater Co., Belmar, N. J., at Spring Lake, N. J., on November 6, 1930, in the sum of $100, made payable to New York Film Board of Trade. This check was indorsed by the New York Film Board of Trade, trust fund account and was stamped with the following cancellations: Prudential Bank-The Midtown Bank of New York, November 13, 1930; Hanover National Bank, New York, November 14, 1930; and Federal Reserve Bank of New York, November 14, 1930.

No. 10472. Drawn by Lee W. Newbury, secretary-treasurer of the Arcadia Theater Co., Belmar, N. J., at Spring Lake, N. J., on March 6, 1931, in the sum of $50, made payable to New York Film Board of Trade. This check was indorsed by the New York Film Board of Trade, trust fund account, and was stamped with the following cancellations: Prudential Bank-The Midtown Bank of New York, March 7, 1931; Hanover National Bank of New York, March 9, 1931; and Federal Reserve Bank of New York, March 9, 1931.

No. 10473. Drawn by Lee W. Newbury, secretary-treasurer of the Arcadia Theater Co., Belmar, N. J., at Spring Lake, N. J., on December 6, 1930, in the sum of $50, made payable to New York Film Board of Trade. This check was indorsed by the New York Film Board of Trade, and was stamped with the following cancellations: Prudential Bank of New York, December 6, 1930; Hanover National Bank of New York, December 6, 1930; and Federal Resesrve Bank of New York, December 6, 1930.

No. 10474. Drawn by Lee W. Newbury, secretary-treasurer of the Arcadia Theater Co., Belmar, N. J., at Spring Lake, N. J., on May 6, 1931, in the sum of $50, made payable to New York Film Board of Trade. This check was indorsed by the New York Film Board of Trade, trust fund account, and was stamped with the following cancellations: Hanover National Bank of New York, May 8, 1931; Prudential Bank of New York, May 7, 1931; and Federal Reserve Bank of New York, May 8, 1931.

No. 10475. Drawn by Lee W. Newbury, secretary-treasurer of the Arcadia Theater Co., Belmar, N. J., at Spring Lake, N. J., on June 6, 1931, in the sum of $50, made payable to New York Film Board of Trade. This check was indorsed by the New York Film Board of Trade, trust fund, and was stamped with the following cancellations: Hanover National Bank of New York, June 8. 1931 Prudential Bank of New York, June 6, 1931; and Federal Reserve Bank of New York, June 8, 1931.

No. 10477. Drawn by Lee W. Newbury, secretary-treasurer of the Arcadia Theater Co., Belmar, N. J., at Spring Lake, N. J., on January 6, 1931, in the sum of $50, made payable to New York Film Board of Trade. This check was indorsed by the New York Film Board of Trade, trust fund account, and was stamped with the following cancellations: Hanover National Bank of New York, January 8, 1931; Prudential Bank of New York, January 7, 1931; and Federal Reserve Bank of New York, January 8, 1931.

No. 10478. Drawn by Lee W. Newbury, secretary-treasurer of the Arcadia Theater Co., Belmar, N. J., at Spring Lake, N. J., on February 6, 1931, in the sum of $50, made payable to New York Film Board of Trade. This check was indorsed by the New York Film Board of Trade, trust fund account, and was stamped with the following cancellations: Hanover National Bank of New York, February 19, 1931; Prudential Bank of New York, February 18, 1931; and the Federal Reserve Bank of New York, February 19, 1931.

No. 10479. Drawn by Lee W. Newbury, secretary-treasurer of the Arcadia Theater Co., Belmar, N. J., at Spring Lake, N. J., on April 6, 1931, in the sum

of $50, made payable to New York Film Board of Trade. This check was indorsed by the New York Film Board of Trade, trust fund account, and was stamped with the following cancellations: Prudential Bank of New York, April 7, 1931; Hanover National Bank, April 8, 1931; and the Federal Reserve Bank of New York, April 8, 1931.

No. 1940. Drawn by A. Gotterman, general manager of the Direct Amusement Co. (Inc.), New York, July 31, 1931, on the Manufacturers Trust Co., New York, in the sum of $210, made payable to Warner Bros. This check was deposited to the account of Vitgraph (Inc.), Warner Bros. (New York), in the Bank of America, New York, and was stamped "paid' on August 3, 1931. On the back of this check appears the following: Cameo-Newark, 8/2-3-4, Smart Money, $57.50; 8/5-6, Man of the Sky, $57.50-$115; American-Newark, 8/2-4, Chances, $32.50; Rex E. Rutherford, 8/5-6, $62.50; total, $210.

No. 1986. Drawn by Direct Amusement Co. (Inc.), Gotteman, general manager, dated August 7, 1931, on the Manufacturers Trust Co., 681 Eighth Avenue, New York, to the order of Warner Bros. Pictures, the amount of $162.50; indorsements, Cameo-Newark, 8-9-11, Night Nurse, $57.50; 8/14-15, Broad Minded, $37.50; total, $95. Rex Rutherford, 8/9-11, Broad Minded, $67.50; grand total, $162.50; with further indorsements, including Bank of America. No. 2016. Drawn by Direct Amusement Co. (Inc.), by Gotterman, general manager, on the Manufacturers Trust Co., 681 Eighth Avenue, New York, dated August 13, 1931, in the amount of $110; indorsements, American Newark, August 16-18, Smart Money, $32.50; Rex E. Rutherford, August 19-20, Public Enemy, $32.50; August 21-22, Children of Deans, $45; total, $77.50; indorsement, Bank of America.

No. 2242. Drawn by the Direct Amusement Co. (Inc.), by Gotterman, general manager, on the Manufacturers Trust Co., 681 Eighth Avenue, New York, dated September 25, 1931, to the order of First Division Pictures, in the amount of $95; indorsements, Cameo, Newark, October 2-3, Mother, $30; American, Newark, September 30, October 1, the Viking, $20; September 27-29, Ships of Hate, $20; October 2 and 3, The First Aid, $25; total $65; bank indorsements, Central Hanover Bank & Trust Co.

I now give to the committee photostats of two confirmations of exhibition dates, both from Warner Bros. Pictures.

American, Newark, date, June 23; contract No. 4250. Release No. 607; subject, Chances; new dates set, August 2 and 3; guarantee, $25; percentage, 50/550. Release No. 607, Score 823, $7.50; reserve print for 8/4.

Cameo, Newark, same form of sheet; date, 7/13; contract No. 4306. Release No. 323, Capital "S" Money; new date set, 8/2-3; guarantee, $50, percentage, 50/975. Release No. 323, Score, August 2 and 3, $7.50. Release No. 301, Night Nurse, August 9 and 10, guarantee, $50; percentage, 50/975. Release No. 301, Score, August 9-10, $7.50. Release No. 601, Men Sky, August 5 and 6, new date set; guarantee, $50, percentage, 50/550. Release No. 601, Score 8/5 and 6, $7.50.

Released 323, reserve 8/4.

Released 301 (?), reserve 8/10th.

STATE OF NEW YORK,

County of New York, 88.

Louis Nizer, being duly sworn, deposes and says: I am the attorney and executive secretary of the New York Film Board of Trade, composed of distributors of motion pictures operating in the metropolitan territory.

I. THE ACTIVITIES OF THE NEW YORK FILM BOARD OF TRADE TO PROTECT ITS MEMBERS AGAINST COPYRIGHT VIOLATIONS

For many years our members have suffered severe losses as a result of the illegitimate use of film. The license fees for the use of motion-picture photoplays varies with the number of days for which the photoplay is licensed. In many instances exhibitors contract for the use of photoplays for two days, and then, having thus obtained possession of the positive print, retain the print and exhibit it for three or four days without authorization from the distributor and without payment therefor. Whenever such infractions and violations