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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Jeremiah J. Kennedy, Direct Examination. 3159 Q. Did anyone .stale in your hearing that a portion of the royalties collected by the Motion Picture Patents Company would be used to form a gigantic fund for litigation? A. Xo one ever made such a suggestion. 8uch an idea was never considered. Q. Were yon, subsequent to December 18th, 1908, and during the early months of 1909, present ai any meeting or gathering of producers of licensed motion pictures at which the witness Lodge was also present? A. I was not, according to the best of my recollection. I have no record of being present at such meeting, either. Q. Were you present at any meeting of the licensed producers of motion pictures after the 1st of January, 1009, at which the witness Lodge was present, where there was any discussion whatever, relative to the possibility of forming a rental exchange which should be owned by the licensed producers, and operated by them? A. I was not, and I never heard the idea advanced, until I suggested it myself, about a year after December 18th, 1908. Q. About what time was it that you made this suggestion or discussed the proposition? A. I told the guests who were present at a dinner on or about December 18th, 1909, that in my opinion, they would eventually provide a reliable and impartially conducted source of supply for the exhibitors. Q. What were the reasons that caused you to believe that such an exchange should be organized? A. The many abuses and evils that existed in the business at that time, and during the whole time, prior to that time that I was connected with the business, and which evils and abuses were the subject of many complaints to the Biograph Company, and to the Motion Picture Patents Company, by exhibitors and exchanges. Q. Did the Motion Picture Patents Company own any interest whatever in the General Film Company? A. It never had any interest, and no provision was ever made for its having any interest. The relations of the two companies were solely those of licensor and licensee. In fact, the management of the General Film Company was always more or less hostile to the Patents Company. By management, in this case, 1 am referring to the Board of Directors. Q. Will you specify what, in your judgment, were the