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William H. Swanson, Direct Examination. 311
been cancelled. He said lie was not at liberty to give' me any reason, in fact, he did not know except that they did not want to do any business with me any further, and I spent perhaps an hour or an hour and a half with Mr. MacDonald, and that was about the only response that I could get from Mr. MacDonald on the matter.
Q. What effect upon your rental exchange business did this cancellation by the Patents Company have? A. In view of the fact that simultaneously with their notifying me by telegraph of my cancellation, they likewise notified all of my customers (having had a rule, as they did, that each exchange was compelled to give them a list of its customers supplied by them) and they likewise telegraphed my customers that I had been shut off from supply, and it finally had the effect of putting me out of business entirely.
Q. Had you complied with the condition of the license agreement, and sent to the Patents Company a list of your customers? A. I had. Also, sent them all the |2.00 I collected.
Q. Did you try to continue the rental exchange business for a while? A. I did, yes, sir. The difficulty of continuing at that time was the fear on the part of exhibitors. While I had a great many of them who were personal friends, they stated to me that they could not any longer do business with me —
Mr. Willis (Interrupting) : I object to that as hearsay.
A. (Continued) : Notwithstanding the fact of their friendship, because they were in fear of litigation with the Patents Company, and they could not afford a lawsuit just to patronize me. That it would be cheaper for them to pay their royalty and do business with the Patents Company.
Mr. Caldwell: I move to strike out the entire statement of the witness on the ground that it is not responsive to any question that has been asked.
Q. How soon after this did you give up your Chicago branch? A. In the Fall of 1911, if I am not mistaken. I think it was that day.
Q. And your Omaha and St. Louis and Philadelphia