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. 221 leaves a reduction in the number of copies leased from each production. That means a very great reduction in the profits of the manufacturer. They have been inspired to do that because of the demand of the public for better motion picture exhibitions, and with the hope that it would so encourage the public who attend motion picture theatres throughout the country, that the entire business would grow to a very much larger extent than would be possible with the kind of motion pictures that were being distributed before. Q. You believe in a control, a single control of this business? My question may not be clear, so I will read from your answer, at page 44 : aTo perfect the business of this art, the control must be single and systematic. If single, it must be lawful. If single, the instrumentality of corporations would be the most useful to systematically perfect the business, and to extend the exclusive use under the patent dominion to its ultimate, lawful and efficient limits. The motion picture business is not a technically public service employment. But that the business needed fair and effective regulation by some kind of single and efficient control, will appear hereinafter. The petitioner could not regulate it. The States would not. This respondent has been attempting to regulate it fairly and conscientiously towards all lawfully engaged in the art, until the petitioner began this suit 'to experiment on its case' against the defendants as hereinafter set forth." That represents your views? A. It does. Q. Where is that quotation from, "to experiment on its case?" A. I do not know where that is from. Q. This whole arrangement, the creation of the Patents Company, the drafting of all these licenses — I refer now to manufacturers' licenses under No. 12,192 and No. 12,037, and the licenses to the projecting machine manufacturers, and the licenses to the exhibitors, and the formation of the General Film Company, and the licenses granted to it by the Patents Company — all this arrangement was devised for the purpose of securing this control which you refer to in this paragraph of your answer which I have read. Is that right? A. No. I would not say that all of those things were devised — Q. (Interrupting.) Well, in part, the creation of the