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 (1914)

Record Details:

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2880 Charles O. Baumann, Direct Examination. 3 By Mr. Kingsley : Q. Going back to the time when the Motion Picture Distributing & Sales Company was supplying unlicensed exchanges throughout the country, did you have any rule with regard to shipment of motion pictures to exchanges? A. Yes. Q. What was that rule? A. C. O. D. Q. Did you enforce that rule consistently? A. Yes. Mr. Grosvenor: I make the same objection to all this line of examination. By Mr. Kingsley: Q. What was the reason of this rule of shipping motion pictures C. O. D. to the exchanges? Mr. Grosvenor: Of what period are you speaking? The Witness : 1910, up to the present time. Up to 1912. By Mr. Kingsley: Q. By that you mean, during the whole life of the Motion Picture Distributing & Sales Company — A. Yes. Q, This rule of shipping C. O. D. to the exchanges was enforced? A. Yes. Q, What was the reason for that rule? A. Because it was only a five thousand dollar corporation, organized for the purpose of protection of manufacturers' accounts, together with the taking care of the litigation, collected from all of the different manufacturers, and the reason for the C. O. D's was to reimburse all of the manufacturers, as well as taking care of the litigation, patent litigation, and if it were not for the fact that if was sent out C. O. D., they probably never could have collected their money, or half of it. Q. Why couldn't they? A. Irresponsible people in buying. Concerns, T should say. Q. So that one of the reasons, and probably the principal reason, for your enforcing the rule of shipping motion pictures C. O. D. to the exchanges was the fact that you