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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Samuel Long, Direct Examination. 1909 in which we would have the benefit of using these patents, but I had been given to understand that we could have a license under those patents. Q. What connection, if any, did you have with the organization of the General Film Company? A. I was one of the incorporators, and one of the first Directors. Q. When was the first time that you heard any discussion among any of the licensed producers as to the organization by the licensed producers of a rental agency to be conducted by them? A. Some months prior to its organization, probably in January prior to its organization. Q. Were you at first in favor of the project? A. I was indifferent. I had had no experience in the exchange business, and I was not able to form any opinion regarding it. Q. In stating that you were "indifferent'' to the project, do you mean bv that to sav that vou were unwilling to go into it, or that you wanted to go into it? A. I was timid about such a move, not having had any experience in the exchange business. We were selling to the exchanges. Q. Were there any reasons which finally influenced you to give your consent to go into it? A. The manner in which the exchanges were conducted led me to believe that there should be a change for the benefit of the business. Many exchanges were conducted in a wTay in which they were able to pay promptly, and others were not ; and others treated their customers unfairly, which made me believe that there should be some change in the business for the benefit of the business as a whole, and in order that Ave would have a market for our films, and could distribute them freely among the exhibitors. But, even with that, I was timid in regard to organizing such a company. Q. You have stated that the exchanges conducted business unfairly towards the exhibitors. Did you ever have any complaints from any of the exhibitors about the way in which the exchanges conducted their business? A. Those complaints came to our office from the exhibitors. The exhibitors felt that as they were using pictures produced by us that we ought to see that they could have the films for exhibition when they could exhibit them. Q. Were those complaints many and frequent, or were they few and far between? A. They were frequent.