Brief for appellees motion picture patents company and Edison manufacturing company (1913)

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1 Lincoln J. Carter of Chicago, who, according to Lodge's representations, was a very wealthy man; that neither he nor Carter were interested in the motion picture business in any of its branches, that there would be no outside interest in the business, and that the only persons who would be interested in the business in addition to himself was said Carter and said Gaston and George Melies. They asked that the consent of the Edison Manufacturing Company be given to the transfer of the two license agreements (Schedules "A" and "B")to such proposed corporation, which they stated would be known as the "George Melies Company." Mr. Dyer replied that under these circumstances he saw no reason why the Edison Company would oppose a transfer of the license agreement to the Melies Company, but that it would be necessary to obtain the consents of the other Edison licensees, or a majority thereof, and further that it would be necessary for Gaston Melies to make a formal written application for such transfer. This he did on August 14th, 1908 (Deft.'s Ex. 1, p 709; Dyer, pp 331334; Melies, pp. 409-412). On the faith of these lepresentations Mr. Dyer proceeded to obtain and did obtain the consent of the requisite number of licensees to a transfer of the license. On or about September loth, 1908, and pending the preparation of the papers necessary to transfer the licenses, Mr. Dyer received a telegram from Ml'. William N. Selig, President of the Selig Polyscope Company of Chicago, Illinois, and George K. Spoor, President of the Essanay Film Manufacturing Company, of Chicago, Illinois, (each of which companies was an Edison licensee under agreements substantially the same in form as Schedule "A", protesting against the sale of the stock of the George Melies Company to persons engaged in the exchange oi film renting business. Mr. Dyei at once called the attention of Mr. Melies to this telegram, who stated that he knew nothing whatever ai)Out it (Dyer, pp. 335-7; Melies, pp. 413-415; Selig, p. 294; Spoor, p. 274). At Mr. Dyer's suggestion Mr. Melies wired for either Mr. Carter or Mr. Lodge to come on from Chicago. Lodge was the VicePresident of the George Melies Company and Carter was