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William H. Swanson, Direct Examination. 303
initiating any of the agreements except for cause? Do you 1 recall whether anything was said about that?
Mr. Caldwell: Objected to as incompetent, immaterial and irrelevant.
A. He stated that so far as that paragraph was con cerned, they had not any intention of changing it in a single iota, as it was absolutely necessary that they should have positive control of the exchanges that they were selling to, in that respect, meaning cancellation control, but that he would assure us on his word that so long as 2 there were no violations of the contract, that it would remain in existence during the life of the patents held by the Motion Picture Patents Company.
Q. When you went back and reported to the exchanges, what was done, what action was taken? A. They demanded that another committee be appointed to wait on the Patents Company representatives the following day for the same purpose, to see if by perseverance, the matter could not be adjusted.
Q. Was the appointment of that committee unanimous? A. Yes, sir, the appointing of the committee was done by ** the chair.
Q. There was not any objection to that? A. None whatever.
Q. And had there been any objection to the appointment of the earlier committee? A. No, sir.
Q. The action was unanimous? A. Yes, sir.
Q. Who comprised this second committee? A. Mr. Swanson, Mr. Laemmle and Mr. Clark of Pittsburgh. Mr. Aiken of Chicago. I do not recall the fifth man.
Q. Did you see the manufacturers the next day in accordance with your instructions? A. I saw Mr. Dyer only, and Mr. Scull.
Q. State to the best of your recollection, what was said? A. Mr. Dyer stated that there was not any use of our wasting any more of our time in that respect —
Mr. Caldwell (Interrupting) : The question is objected to on the same grounds as I have stated.
A. (Continuing) : That they had fully determined that