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)

Record Details:

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James J. Lodge, Cross Examination. 1185 turers to furnish film to all licensed film rental agencies was just as distinct and well understood as their written obligation in their license agreements not to furnish their film to any rental agency that was not licensed by the Patents Company. Immediately after, as I understood, my company had been licensed by the Patents Company, it received from the Patents Company a list of licensed rental agencies, with instructions to supply film to no other agencies, and from time to time thereafter received revised lists showing changes in the licensed rental agencies, some of the licensed agencies having been eliminated, and our instructions were not to supply any film to such agency whose license had been cancelled. For a considerable time before the formation of the General Film Company, the project of organizing such a company for the purpose of controlling the business of supplying films to licensed exhibitors was discussed at meetings of the licensed manufacturers and the Patents Company, and it was agreed that such a corporation should be formed for that purpose, and that the licensed film rental agencies throughout the United States should be absorbed by the new corporation to be composed of or controlled by the licensed manufacturers. The General Film Company was accordingly organized under the laws of the State of Maine in the spring of 1910, and my information is that it has absorbed or eliminated every film rental agency in the United States, except the Greater New York Film Rental Company. At meetings of the licensed manufacturers and the Patents Company preceding the formation of the General Film Company, it was stated that every licensed manufacturer would have the privilege of becoming a subscriber for stock of the General Film Company, and my understanding is that every one of the licensed manufacturers, except perhaps the Melies Manufacturing Company, did acquire stock in the General Film Company, either in its own name or in the name of some officer. The understanding was that the licensed manufacturers were to share equally in the stock of the General Film Company. The officers and directors of the General Film Company, since its organization, have been made up of officers or directors or representatives of the licensed manufacturers, and the General