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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686 William Fox, Direct Examination. wanted to have the business — the license reinstated, with the Greater New York Film Kental Company, so that the General Film Company then could buy the Greater New York Film Rental Co. He said, "Of course, if you have that license reinstated, then you might keep on doing business the same as before until all the papers are signed, are signed up, and that will take care of the film service for your theatres that you are worrying about." He said, "Now, just a minute, and I will arrange that." He called up Mr. Marvin. He said, "I have got Fox, of the Greater New York, here, and I am arranging to buy his plant for the General Film Company." He said, "You know Mr. Marvin is the Vice-President of the Motion Picture Patents Company. He is the man that signed the cancellation of your license, didn't he?" I said, "I think he did." He said, "I am negotiating to purchase Fox's plant; in fact, we have agreed on the terms, and the price and everything, but," he said, "I find that I do not want to buy the plant without the license is reinstated." He said, "You know, Marvin, I don't want this same condition to exist in this case as it did in the Marcus Loew case, as it did in the People's Vaudeville — the People's Exchange, where, instead of reinstating the license, you just extended the cancellation notice for a few days longer and in signing the papers that were necessary for the sale of that plant, you had to write several of those letters, and," he said, "it was quite a complicated affair. In this case I want the license reinstated, so that the General Film Company can purchase the business of the Greater New York Rental Company." I wished the gentleman many happy returns of the day. He said he would send the papers to my office, and I left the gentleman. Q. Was anything said by Mr. Kennedy at that meeting as to the method of payment for your bussiness? That is, whether it was to be in part preferred stock, and part deferred payments, and in part cash. What, if anything, was said about that? A. Why, he said, "You know, Fox, the details of this, I took up with you the last time." We had discussed when he had offered me his original price at 200 Fifth Avenue, he there told me the amount of cash, the amount of deferred payments, and the amount of stock. I think it was preferred stock, or common stock. I don't