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 (1913)

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James J. Lodge, Direct Examination. 1173 pany, and of the Motion Picture Patents Company, who were 1 present at the time. Q. Had you been advised prior to this meeting of December 18, 1908, of the plan of these various manufacturers taking out licenses of a uniform character from one company? A. I received a copy of the prospective amalgamation of the two forces, the Biograph Company and the Edison forces, and an outline of the agreement, I think, to the best of my knowledge, some four weeks or six weeks prior to the meeting, for us to study out and make suggestions if we felt inclined to, as to any matter, or any other suggestions that we wished to make about the matter. * Q. Whom did you receive this from? A. Mr. Frank Dyer. Q. State whether or not anything was said by any of the manufacturers in regard to the two dollars a week royalties to be collected, and the purpose of collecting same, and for what purpose the money so collected was to be used, if anything on that subject was said? A. Well, under the contract that we all signed that evening there were twenty-two per cent, of it stipulated — I think it was that, but I am not positive of it — to be distributed amongst us manufacturers. 3 Mr. Caldwell : I object to the witness stating the contents of the contract ; it is in evidence. By Mr. Grosvenor: Q. Go ahead, Mr. Lodge, and state everything you recollect on that subject, A. And the balance was to form, in the words of some of the members present, a gigantic fund — Mr. Kingsley (interrupting) : I object to the witness' statement, unless he can name the person or manufacturer who made that statement, 4 The Witness (continuing) : — for legal purposes, for litigation, so as to avoid the necessity of the individual manufacturers being called upon to contribute to that end. By Mr. Grosvenor: Q. Do you recall who of those present spoke on that subject of royalties? A. Well, there were only two or three present that I was on actual speaking terms with at the time,