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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Albert E. Smith, Direct Examination. 1725 numberless others, whose names I do not recall at this moment. Q. Have you recently made any large expenditure in connection with the production of motion picture specialties, or a motion picture specialty? A. We are all the time expending large sums of money. For one picture, we purchased two engines from the Pennsylvania Railroad on Long Island, transported them with cars, on a flat car, to a disused railroad, which we leased over in Jersey, and smashed the engines together, merely to get a single effect, which takes thirty or forty 2 seconds in the picture, and which cost us from twenty to thirty thousand dollars. We smashed two yachts together to get a collision effect. We smashed two aeroplanes together in the making of a war story, showing the usages of aeroplanes, and other things, in war times. Mr. Grosvenor: Was there anybody in the aeroplanes? The Witness: Yes, sir. There was a dummy in the aeroplane. The man who played the star part for us, 3 offered to stay in the aeroplane when it dropped, but we were afraid to take a chance. He was not. By Mr. Kingsley: Q. Has it been your experience since entering into the Edison license agreement, and since becoming a licensee of the Motion Picture Patents Company, that the license agreement tended to any limitation of output? A. No, sir. Q. Has it been your experience since that time, that the license agreement tended to a restriction of prices? A. T think the license agreement specified the prices at which the films should be leased. Q. And was that a minimum price? A. A minimum, yes. I think it was a minimum. Q. Was there any restriction against the higher price than that set out in the license agreement? A. Oh, no. But we have received higher prices. Q. Has it been your experience that since that time, the license agreement tended to prevent or eliminate com