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William Pklzer, Direct Examination.
Q. And this $900,000 is represented by notes running over a period of two and a half years from to-day? A. No notes were issued; payments were provided for by contract.
Q. That is to say, the General Film Company under its contracts on purchases of the exchanges paid so much cash, and then agreed to pay the deferred payments running over a period of several years? A. Yes, sir.
Q. Has the General Film Company been required to borrow money at any time in order to make these payments for the exchanges?
Mr. Caldwell : Objected to as irrelevant and incompetent.
A. I believe not ; in fact I never heard of such a thing.
Q. In other words, the exchanges purchased have been paid for out of the earnings of the General Film Company? A. Yes, sir.
Q. And the $1,200,000 you referred to, which has been paid by the General Film Company as part payment for the exchanges, has all been paid out of the earnings of the General Film Company? A. Yes, sir.
Q. And in the same manner you expect to pay the other $900,000 out of earnings without borrowing money in the period covered by the different payments? A. Yes, sir.
Q. Then under the plan the General Film Company expects to pay for all of these fifty-seven exchanges out of profits within a period of three or four years from the organization of the General Film Company and without borrowing any money? A. Within a period of five years.
Q. Without borrowing any money? A. Yes, sir.
Q. This statement of the net profits of the General Film Company for the year 1911, states that the profits for that year were $1,118,220.42. Does that figure include amounts paid out by the General Film Company on these deferred payments? Do you understand my question? A. Yes, I understand the question. No, it does not.
Q. Then there should be added to that figure — A. (Interrupting) : At least I don't think it does. I am not familiar with the books for that period, and those figures were taken from the books, and I believe it does not include that item.