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)

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Harry N. Marvin, Direct Examination. 219 Q. Each of the others has, does it not? A. I believe it has. Q.The Biograph Company had a representative until May, 1912? A. Yes. Q. Then nine of the Directors of the General Film Company are representatives of the Patents Company licensees? A. Yes. Q. Is it not a fact that all the common stock of the General Film Company is distributed to the Patents Company licensees, or to officers of the Patents Company licensees? A. I think so. As I said before, I have no positive knowledge of that. Q. And you understand that only the common stock has voting power? A. I so understand it. Q. In spite of those facts do you still maintain that it cannot be said that the control of the General Film Company rests with the Patents Company? A. I do not see according to those facts how the Patents Company has any control whatever over the General Film Company. Q. You maintain they are separate and distinct? A. Absolutely. Q. Do you think that the fact that the manufacturers were engaging, through the General Film Company, in this rental exchange business, had any influence upon them, or induced them to reach this attitude, that all the rental exchanges were irresponsible, and that all of these conditions described in your answer were damaging the business? A. Why, no. Because those conditions existed prior to the organization of the General Film Company, and were the reasons which inspired the organization of that company. Q. You think then, that the Patents Company and the General Film Company were acting impartially in cancelling the licenses, and in buying up these exchanges? A. Absolutely. Because it could be of no possible service to the General Film Company, for the Motion Picture Patents Company to cancel the licenses of an exchange, and it could be of no possible interest to the Motion Picture Patents Company that the General Film Company should buy the property of an exchange. Q. To-day, as you have testified, not one of those exchanges is doing business, in other words, your attitude, or your opinion in regard to these rental exchanges is