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 (1913)

Record Details:

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Harry N. Marvin, Direct Examination. 21 Q. Was it read paragraph by paragraph? A. Yes. Q. And there had been previous meetings at which the terms of these agreements had been agreed upon so that at the meeting of December 18, nothing remained except to execute the agreements, is that not correct? A. I don't know anything about such meetings — some of the Edison people ma}r have discussed matters with other licensees, and we discussed matters some with George Kleine, but I have no knowledge of former meetings. Q. Had you not had a conference with Mr. Dyer preceding the meeting of December 18th, as to what should be the terms of these license agreements? A. Yes, wre have had conferences with Mr. Dyer, but not with the other licensees. Q. And who had been present at those conferences with Mr. Dyer — Mr. Dyer and yourself, and Mr. Kennedy, had he been with you? A. Yes, I think Mr. Kennedy was sometimes present and sometimes Mr. Scull, and some of these meetings took place in the office of Mr. Phillip, counsel for the Pathe Freres. Mr. Berst may have been present at some meetings when the terms of the agreements were being settled. Q. What is the capital stock of the Patents Company? A. $100,000. Q. And one-half of it was taken by the Biograph Company and one-half by the Edison Company? A. Yes, sir. Q. Now, what was the purpose of this provision in the preliminary agreement relating to the transfer of the patents: "The Edison Company further covenants and agrees not to pledge, sell, or otherwise dispose of its capital stock in the Patents Company, except a minimum number of shares sufficient to qualiy one-half of the total number of Directors which the Patents Company may have, with out the consent of the Biograph Company and the Armar Company, and the Edison Company further agrees to deposit its certificates of stock in the Patents Company, except such as represents the said qualifying shares for Directors with a responsible trust company named by the Patents Company as trustee, and to instruct the said trustee not to release, transfer or return the said certificates so deposited without the consent of the Biograph