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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William H. Swanson, Direct Examination. 290 lation, and that at both times he got broke fighting in court, and he advised everyone present, owing to the fact that it created litigation that was expensive, to join with his ideas and thoughts and coincide and connect up with the Motion Picture Patents Company, which would undoubtedly prove a boon and benefit to the business, and to the individuals in particular who were granted licenses. Q. Do you recall anything else that was stated by Mr. MacDonald or Mr. Lubin; was anything stated about Independents or competition on the outside? Mr. Caldwell: Objected to because irrelevant, incompetent and immaterial. A. In a general way Mr. MacDonald went over the matter of the independents' position, and the former licensees, the Edison licensees, and pointed out that the formation of the Patents Company would unquestionably have the effect of eliminating that competition and bring about harmony, and inasmuch as the Biograph Company and George Kleine, had been taken into the Motion Picture Patents Company that that of course removed independent competition and that therefore it looked like the respective licensees under the Motion Picture Patents Company would have the entire field to themselves, as had been stated before, that it was a 95 per cent, business proposition and a five per cent, legal. There was nothing further said by Mr. Lubin that I can recall, except in his rambling way referring to his litigation expenses and to how glad he now was that the thing was now settled and that everything was going to be made harmonious for the benefit of all. Q. Did you leave the room shortlv after this for a while? A. I did. Q. And who did you find outside, if anyone, outside the room in the hallway? A. I found Mr. Selig and Mr. Spoor, Mr. Lubin and Mr. Dyer and Mr. George Kleine, and Mr. Long of the Kalem Company, I believe; I am not certain about Mr. Long. Q. State whether or not any of the manufacturers came out of the meeting of the exchanges and said anything to the other manufacturers as to the action of the rental exchanges? A. Yes, Mi-. Rock came out and talked to them. 1