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the Secretary. The two together promoted and organized the company. Mr. Lodge came on at once in response to this telegram, and in company with Mr. Gaston Melies called on Mr. Dyer, who exhibited to Lodge a circular (Defendant's Exs. 2 and 3, pp. 710-713), purporting to be sent out by the George Melies Company to persons engaged in the exchange or rental business, soliciting subscriptions to the capital stock of the George Melies Company. Lodge admitted that he had sent out such circulars.
Thereupon, Mr. Dyer protested against the sending outof such circulars or the sale or offering for sale of any stock of the company to persons interested in the exchange or rental business. He told Mr. Lodge that the Edison licensees objected to rental exchanges becoming interested in the manufacturing business; that it was a question which the licensees had often discussed among themselves, and that it was undesirable for a manufacturer to be interested in a rental exchange; that in connection with the phonograph business (Mr. Dyer being President of the National Phonograph Company), which is much lai'ger than the moving picture business, they had found it a very objectionable thing for a manufacturer to be interested in a jobbing business, and that the same was true of the motion picture business. Mr. Lodge then stated that the circulars in question were sent out by him without any knowledge that they would be objected to, but since they were objected to he would do all that he could to recall them and undo what had been done. He stated that only a few subscriptions to the stock of the Melies Company had been received, the amount of such subscriptions being $700, and that he would endeavor, if possible, to have those subscriptions canceled. He admitted that the circulars offering the stock for sale had been sent to various film rental exchanges, and told Mr. Dyer that he would not send out any more of the circulars, that he would not accept any further subscriptions to the stock, and that he would endeavor to cancel those few subscriptions that had already been accepted. Mr. Dyer then stated to Mr. Lodge that in view of the fact that these circulars had