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William Fox, Direct Examination. 659
out a license from the Motion Picture Patents Company about January, 1909? A. Yes, sir.
Q. Had you been doing business prior to January, 1908, with the different manufacturers of films and projecting machines? A. Yes, sir.
Q. And when I say "you," of course, I refer to your Film Rental Company and not to your theatres? A. Yes, I understand.
Q. And in buying these films from the different manufacturers prior to, or during the time, I mean, that is, prior to January, 1908, were the different manufacturers in competition? A. In keen competition with one another.
Q. And as to prices and terms of sale? A. Yes.
Q. Then prior to January, 1908, there had been this competition? A. There had been keen competition.
Q. Now, in the year 1908, and about January or February of that year, this so-called association of Edison Licensees was formed? A. Yes, sir.
Q. And which a number of the manufacturers joined? A. The majority of those who are in the Motion Picture Patents Company joined the association.
Q. And who were the ones on the outside? A. The ones that remained on the outside were the Biograph Company and Kleine, of Chicago.
Q. George Kleine? A. Yes.
Q. And prior to and during the year 1908, up to the formation of the Patents Company, was there keen competition as to prices and terms of sale between these two factions, the Biograph faction and the Edison faction? A. I could answer that there was.
Q. Sort of a warfare, was there not?
Mr. Kingsley: I object to the question as calling for a conclusion of the witness.
The Witness : There was.
By Mr. Grosvenor:
Q. Now, were you present at a meeting of the rental exchanges in January, 1909, which was held at the Hotel Imperial in New York City? A. I was; yes, sir.
Q. Had you seen this so-called license agreement be