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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662 William Fox, Direct Examination. on the agreement for the exhibitors as Secretary of the Film Service Association, when the Edison agreement was given to us, one of the important reasons, or one of the urgent things, that you persuaded us and showed us why we should accept that particular agreement as our Secretary was on account of the fact that it did not chauge the relationship of doing business in any shape, manner or form, that we were purchasing films at the same prices, and, in fact, for less money, under the agreement than without the agreement." By Mr. Grosvenor: Q. You mean the Edison agreement? A. Yes, sir. Q. Of 1908? A. Yes, sir. And I said, "You showed us or told us that we would have all kinds of advantages in buying under the Edison agreement, and to-day you are here representing the manufacturers with an agreement that is absolutely different from the original Edison agreement, which is now taking away the right of the ownership of the film, and that is compelling us to do business under certain conditions, and you are putting rules and regulations on us that are going to be the hardest in the world to live up to, and before I will consent for my company to sign that agreement you will have to tell me for what length of time the agreement is for, as the date is in blank, giving you the arbitrary right of cancellation, and does not state for what period you are supplying this motion picture film." Q. You refer now to what is known as the "14-day clause'' in the agreement? A. Yes, sir. Q. You may state whether or not after this discussion at the meeting, a committee from the rental exchanges was appointed to interview the manufacturers. A. During the course of that meeting and a few minutes later there was a committee appointed to wait on the manufacturers, and to find out from them for what period the license agreement was intended for, in view of the fact that it did not specify a specific date. Q. Do you recall who was appointed to that committee, any of the names? A. If I had a list of the names — I mean of who were members of that organization at the time, I could pick them out, probably.