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J. C. Graham, Direct Examination. 1237
and discussed the situation regarding the recent cancel * lations. It was my effort to show Mr. Kennedy that the two corporations were companies legally organized under the State laws of Missouri, and contained stockholders, the personnel of which was apparently not familiar to Mr. Kennedy, or his associates. He admitted that, after I gave him an outline of the business of the two companies.
Q. Was anything said about whether the cancellation had been rightful or wrongful?
Mr. Kingsley: Objected to as leading.
The Witness : In our conversation I called Mr. Kennedy's attention to the fact that the two companies had been operated, as far as we knew, strictly in accordance with the rules and regulations of the Patents Company. He asked me questions as to whether certain films had been transferred from one office to the other, and I stated that it had not, it absolutely had not. He stated that in his opinion it was a grievious mistake that these exchanges had been cancelled, and he admitted that innocent people had been affected through the lack of their knowledge of the conditions. He g told me that two individuals of our respective companies had been in the mind of the Patents Company, and that they proposed to teach those two individuals a lesson, claiming that there had been too much talk, and various carrying of rumors, and individual actions, which I showed Mr. Kennedy had no effect whatever on the Missouri companies as corporations, and which he admitted. He stated to me that it was too bad that they could not undo things that had been done.
Q. Had you had, or either of these companies had, any hearings on this question of whether you had violated the 4 terms of the license? A. Absolutely none.
Q. After this conversation with Mr. Kennedy which you have testified to, in which he said the cancellation had been wrongfully made? A. Absolutely none. No effort was made to listen to our case in any other way than I have stated.
Q. After this conversation which you had with Mr. Kennedy was the cancellation revoked and were these two companies allowed to obtain films from the various manufacturers? A. The cancellations were not revoked, but the