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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William Pelzer, Dibect Examination. 555 ably find me in frequent conferences with persons who are not in entire sympathy with the General Film Com pany. Mr. MACDONALD: T wish to state on the record that I came into these hearings for the first time on Tuesday of this week, and had my appearance entered on behalf of Richard A. Rowland, a preferred stockholder who with his partner owns about one-eighth of the entire preferred stock of the General Film Company; and I came into these hearings for the distinct and only purpose of gaining such information as I could legitimately gain, and acquire for the benefit and for the protection of the preferred stockholders whom I represent at the present time, or may hereafter represent ; and I have been conferring with counsel for the Government and I have been examining the record here and I shall continue to do so as long as I am permitted on behalf of the people whom I represent. I did state to Mr. Pelzer, as he stated here on the record, that I was here for the purpose of gaining information on behalf of the preferred stockholders, and I stated to Mr. Pelzer if his company had not refused me the information which I demanded formally from them, before I came here, it would not have been necessary for me to come to these hearings and to get information in the way that I am now getting it ; I shall continue to demand from his company, both at these hearings, and in such other way as I may have of demanding, any information that I think the preferred stockholders are entitled to have regarding the affairs of the General Film Company. Mr. GROSVENOE: The purpose of this examination is in part as follows. The Government in this case is asking for the dissolution of the General Film Company. It is obvious that if it is shown that the common stockholders who are also directors, have distributed practically the entire net earnings among themselves, the position of the preferred stockholders may be precarious when the dissolution takes place in accordance with the prayer of the petition, and therefore any evidence of this character is necessary in the record in order to accomplish by the Court an equit