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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Frederick A. Anthony, Direct Examination. 2073 Q. Did you continue as a stockholder? A. Yes, sir. Q. After your resignation? A. Yes, sir. Q. And did you keep in touch with the financial affairs of the company after you ceased to be a director? A. I attended the annual meetings, and at the annual meeting after I resigned, in 1907, the company was in the same financial condition as it had been, or was when I left it. And in the Summer of that year the secretary of the company, Mr. Lamoute, came to my office and asked me if I could not raise the capital to take over the control of the company. I told him that I might, but that I did not care to make the proposition, that he could sound the people that controlled the company, and see if they were disposed to consider it. He did so, and subsequently advised me that they would not consider any turning over of control to me. Then, in 1907, the Fall of 1907, I think, in October, the Ansco Company was organized, and they took over the assets of the Anthony & Scoville Company. Q. Including the Latham loop patent? A. Including the stock of the E. & H. T. Anthony Company. The stock of the E. & H. T. Anthony Company really controlled the Latham patent, because the title was in the Anthony Company's name, but the whole thing went over at the time of consolidation as an asset. Q. Do you recall that at that annual stockholders' meeting in 1907, a financial statement was read to the stockholders, showing the financial condition of the company then? A. Yes, sir. Q. What did that statement show with respect to the resources of the company? A. It was in the same financial condition. Q. How much of a balance do you recall they had at that time in cash? A. They were owing the banks — Q. But how much cash balance did they have at that time in the treasury? A. Very little, but in L908, when I attended the first meeting of the Ansco Company, the successor of the Anthony & Scoville Company, a financial statement was submitted there, and the cash balance was less than a thousand dollars. Q. Did the committee of bankers permit your company to institute suits to enforce its rights under the Latham loop patent? A. No.