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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552 William Pelzer, Direct Examination. George K. Spoor, William N. Selig, and Vitagraph Company of America. Q. Now, of those names which you have just given, eight are also in this list of ten manufacturers to whom you have testified payments were made as shown on this exhibit (131) out of the undivided net profits for the years 1910 and 1911? A. Eight of them are so named. Are named in that list, is that what you mean? Q. I think I can make it a little clearer. That is to say, eight of those ten manufacturers getting payments, as shown on this Exhibit 131, are also common stockholders in the General Film Company? A. Yes, sir. Q. And the other two common stockholders, namely, Selig and Spoor, are, respectively, the presidents of the Selig Polyscope Company and the Essanay Film Manufacturing Company, the two other manufacturers which also received payments out of the undivided net profits? A. Yes, sir. Q. And these men, Selig and Spoor, are also directors, and were during the years 1911 and 1912 of the General Film Company? A. Yes, sir. Q. Now, you have testified that these payments shown by Exhibit 131, were payments made under contract, and not payments made to them as common stockholders of the General Film Company, is that right? A. Yes, sir. Q. To what contract are you referring? A. The contract referred to as Exhibit 8, on page 116 of the original Petition, that being one of the contracts. Q. And that being the contract l>etween the General Film Company and the Edison Manufacturing Company? A. Yes, sir. Q. And there are nine other practically identical contracts between the General Film Company and each of the other nine manufacturers? A. Yes, sir. Q. And all entered into on the same date, April 21, 1910? A. I believe so. Q. You have produced in this case a statement of the dividends paid on the preferred and common stock of the General Film Company, which appears at page 327 of the record, showing that twelve per cent, has been paid out of the net earnings for the years 1910, 1911 and 1912 oti the common stock. Those payments of twelve per cent. out of the net earnings as shown by that exhibit to which