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)

Record Details:

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Louis Rosenbluh, Direct Examination. 377 with him, and with Mr. Kennedy, to talk with regard to the cancellation of the license. Q. To get that cancellation revoked? A. Yes. And during the time that I tried to get Mr. Fox on the 'phone, after Mr. Berst had consented to see Mr. Fox, whenever I could make a suitable appointment or arrangement, it took me about half an hour to locate Mr. Fox, not knowing where he was at that time, I had to try his house, and then one or two theatres before I could locate him. In the meantime, I sat conversing with Mr. Berst, and some of the points that were touched upon was the reason of the cancellation of the license. I asked him if he knew. He said, while there was not any particular reason, of course, the reason has been given, but he does not ascribe that to have been the actual reason — the main reason was that the Directors had received reports from the managers, through the branch managers — Q. (Interrupting) : Branch managers of whom? A. Of the General Film Company, that it was impossible to in crease the prices of rentals satisfactorily so long as the Greater New York Rental Company was in the field. That when they attempted to increase the price for an exhibitor, invariably the exhibitor would say that if they did, since the Greater New York Film Rental Company has not increased its prices, they would go there to do their business, and rather than drive all the business our way, by which they were afraid the Greater New York Film Rental Company would get too much advantage of them, they decided not to increase the prices as they would otherwise have done if we had not been in the field; and Mr. Berst stated that under those conditions, it was against the interests ot the General Film Company to allow us to be in the field in competition with the General Film Company. I told him then, that I did not make any effort to undercut prices, we were doing business in the same way that we had done heretofore; if the business came to us, we purchased film, for the reason to be able to supply them, and it was only natural that we should take them on, but we did not go out particularly undercutting any prices. He said, "Well, the General Film Company found it was necessary to got you out of the way, and you were offered a chance to come in witli us, which Mr. Fox refused, and I don't know what I can do for him now. I am not a member of the Patents