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 (1914)

Record Details:

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Leland B. Kent, Direct Examination. 2657 Q. You favored the provision? A. Yes, sir. Q. Did you believe it a desirable thing for the business that the film should be returned after it had been for six months in active use? A. Yes, sir. Q. When you began to return film to the various licensed producers of motion pictures under the exchange license agreement, what film did you return, that is, what kind of film? A. Worn out film. Q. Did you have a considerable supply on hand at the time you executed the license agreement with the Motion Picture Patents Company? A. I had what I would call a considerable amount. Q. How much would that be? A. It was the purchases of ten to fourteen reels a week for the past two or three years, that is, worn out, and not worn out. Q. Do you recall that at the beginning of the license arrangement that the Patents Company collected the royalties directly from the exhibitors? A. Yes, sir. Q. Did you have any confusion or difficulty in the management of your business because of that fact? A. I never knew when my exhibitor had paid. Q. Did you find that the situation was improved in this respect when the collections were made direct through the rental exchanges? A. Yes. Q. Did you favor that change? A. Yes, sir. Q. Who conducted the negotiations on behalf of your exchange for the sale of its stock and property to the General 'Film Company? A. I did. Q. With whom did you transact the business of selling your exchange to the General Film Company? A. You mean who did I first write to? Q. Well, with whom did you have the negotiations which led up to the sale of your film exchange to the General Film Company? A. My first letter was addressed to the General Film Company, and my second letter to Mr. Kennedy. Q. Mr. J. J. Kennedy? A. Yes, sir. Q. Were you making any money in the business at that time? A. Well, some. Q. Had you been making some money for some time at it? A. Well, not a great amount of money. Q. Would you call it a profitable or just an average business? A. Just an average business.