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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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Louis Rosenbluh, Direct Examination. 371 Q. Mr. Waters was the General Manager of the Gen era! Film Company? A. Yes, sir. Q. And the conversation was at the offices of the General Film Company? A. At the offices of the General Film Company. I told him that we had received a letter which no doubt, he knew about, and was supposed to be the cancellation of the license of the Greater New York Film Rental Company. He said he did know something about it. He had heard that such a license was sent out — such a cancellation was sent out. I asked him what was the next step in the procedure. What it meant. Whether we could continue to do business under the arrangement, as my understanding was that with the cancellation of the license, the}' would discontinue the supply of the films, unless some other arrangement was entered into, and asked him — no doubt similar arrangements were carried out at some other exchanges — what the next step was to be, whether our license could not in some way be reinstated. He said, "Well, I told you that sometime ago when you asked me what was the best thing to do, I advised you, and I advised you right. You did not seem to take my advice, and I don't know what else I can do for you now. However, Mr. Fox is a better man to handle the situation. You tell Fox to come over and have a talk with me, and I think we can somehow arrange this matter." I went back to the office and told Mr. Fox of the conversation I had with Mr. Waters, and he said, "All right, I will take the matter up from now on,-' and he did. Q. Was anything said at your second interview with Mr. Waters about this other exchange which you have stated was mentioned as being in the West, and was still licensed? A. Yes, he did say that that exchange was no longer doing business independently. That it had been absorbed by the General Film Company. Q. Thereafter, did your company take up with the General Film Company, the matter of the selling out and accepting the proposition of sale to the General Film Company? A. Mr. Fox Mas acting in that capacity, and he came back after he had spoken with Mr. Kennedy, and he told me that he had practically agreed to certain conditions, and those conditions were being prepared, and that they would reach the office within a few days.