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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Harry Schwalbe, Cross Examination. 2151 Q. Was his license cancelled after the other three had been acquired by the General Film Company? A. Yes, sir. Q. Yon stated on direct examination that your company, the Electric Theatre Supply Company, was a member of the Film Service Association? A. Yes, sir. Q. Did you attend the meetings of that association? A. Yes, sir. Q. At what place? A. I attended them at Pittsburgh and Buffalo. Q. What were the objects of the association? A. The principal object appeared to be, or it was stated to us, at least, that the object was to strengthen the market, and to stop the unfair competition of exchanges who were importing film and bringing it in ahead of films released in the regular way by the then representatives of the foreign concerns here. One of the objects appeared to be, to stop this. We would buy films and find that someone had imported that film before we got it and put it on the market, and therefore it was valueless to us. Q. And by "strengthening the market" you mean to improve the business conditions? A. Yes, sir, so that a man had some reasonable certainty of getting films that were not released here before, and to improve business conditions in other ways by placing standing orders, and also there was some talk of license litigation — patent litigation, on account of the then licensees. Q. Were there any manufacturers present in the meeting? A. In Pittsburgh, I don't remember that there were. In Buffalo, yes. Q. Who was present at Buffalo? A. Mr. Rock and Mr. Lubin were two that I know of, or recollect, were present. I don't remember any others. Q. On direct examination you testified there was in 1906 competition between the licensed manufacturers in your territory. Now, isn't it a fact that after the license agreements were entered into, the prices at which the licensed manufacturers distributed their films were the same for all of them? Mr. Caldwell: Objected to, on the ground that the contract itself is in evidence and shows merely that a minimum price was established.