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10
Melies, J. J. Lodge and L. J. Carter, on the Brd day of August, 1908.
Vours very ti uly, (Signed) Frank L. Dyek,
Vice-President, Edison Manufacturing Company.
GFS/MJL
'Vhe above named license is accepted by the George Mehes Company under the conditions expressed above.
J. J. Lodge,
Vice-President, Geoi-ge Mehes Company."
The action of Lodge in accepting the assignment of the licenses under the conditions expressed above" was unanimously ratified by the Board of Directors of the George Melies Company at a meeting held Nov. 2, 1908 (Deft.'s Ex. 12, p. 744, lines 9-27).
The facts evidencing the fraud of the complainant in procuring the transfer of these license agreements and also the breach of the condition contained in the collateral and concurrent agreement, dated September 18th, 1908, were not discovered by the defendants until the 18th day of December, 1908, at a meeting of the manufacturing licensees held at No. 10 Fifth Avenue, New York City, on that date (Dyer, pp. 339-343). Messrs. Selig and Spoor of Chicago (above referred to), who were in attendance as representatives of the Selig Polyscope Company and the Essanay Film Manufacturing Company, manufacturing licensees, called Mr. Dyer (ihe President of the Patents Company and Vice-President of the Edison Company) into an adjoining room, and informed him that they were informed that one Max Lewis, of Chicago, who was the principal owner of the Chicago Film Exchange, a corporation engaged in the exchange or renting business, owned or controlled a majority of the stock of the George Melies Company. Mr. Dyer requested Mr. Lodge, who was present as Vice-President of and representing the George Melies Company at the said meeting, to come into the room, and this statement was repeated in the presence of Mr. Lodge.
Mr. Dyer then stated that the sale of this stock to