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)

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SlEGMUND LUBIN, DIRECT EXAMINATION. 3040 tion Picture Patents Company did you have any talk with James J. Lodge in which you said the manufacturers were going to have a rental exchange? A. That I said it? Q. Yes. A. Not to my knowledge. Q. Did you hear anybody else say anything of that sort that day? A. Never, never make any such remark. Q. Did you hear anybody else talk with Lodge on that day? A. Not to my knowledge. Q. Do you remember when the General Film Company was formed? A. Yes, sir. Q. Who first suggested the idea to you? A. The Edison Company. Edison, somebody from the Edison made the proposition that they would have to pay so much per foot, or pay every year for royalties so high, fifty or sixty thousand dollars. Q. You are thinking of the Patents Company, are you not? A. Yes, sir; I paid to Edison too, before that thing started. Q. Now, I am asking you about the General Film Company. Do you remember when that was formed? A. When it was formed? Q. Yes. A. I don't remember the date% I must look it up. I suppose you gentlemen have got it here. Q. Who first talked to you about the forming of the General Film Company? A. Well, business was in such bad condition. The people didn't pay their bills, and it was impossible to keep the performances from conflicting, the programs would conflict witli others. Sometimes on the same street they all had the same performance, the same films, and the people could not make it out; the theatre business couldn't make it pay, and the renter could not make it pay, and they all broke, or the majority of them did. One or two, maybe, was getting along, but the balance was not able to pay their bills, and you cannot manufacture without getting the money. Q. Your concern had some trouble in collecting its bills, did it not? A. Oh, just a whole lot. We had a whole lot of losses, thousands. Q. Did your company own a rental exchange at the time the General Film Company was formed? A. We did. Q. Did you have more than one rental exchange? A.