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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Warren R, Palmer, Direct Examination. 2945 Q. How long did you continue your business after April, 1910? A. Until the General Film Company purchased the exchange. Q. When was that? A. The first negotiations were entered into on June 19th. Q. When was the sale made? A. I believe it was consummated by our giving over our stock and offices on July 1st. Q. Did you conduct the negotiations on the part of your company? A. I did. Jointly with Mr. Mock. Q. At what price did you sell? A. Approximately $20,000. Q. Payable part in stock? A. Part in preferred stock, part in cash, and part in deferred payments over a term of five years. Q. Was that sale voluntary? A. It was. Q. With whom did you conduct the negotiations on the part of the General Film Company? A. To my best recollection, with Mr. Waters and Mr. Kennedy. Q. Did either Mr. Waters or Mr. Kennedy or anyone else make any threat to you, direct or indirect, that if you did not sell, your license might be cancelled? A. No one did. Q. Did you know that there was a clause in your exchange license agreement permitting the Patents Company to cancel that license without cause on fourteen days' notice? A. I did. (>. Did that operate on your mind in any way to induce you to make the sale? A. No, I cannot say that it did. Q. At that time, had the General Film Company gone into business, established a branch in your territory? A. No. Q. Or near your territory? A. Not that I know of. Q. Well, did the fact that the General Film Company might thereafter be a strong competitor of yours have any inducement in your mind in making the sale? A. No. Q. Assuming that your license had been cancelled by the Patents Company, was there enough unlicensed motion pictures available in the market to enable you to conduct your business at that time? A. I believe there was. Q. Did you make any agreement with the General Film Company not to engage in business in future, in the film business? A. No.