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. 3165 eral Film Company to induce the customers of the Greater New York Film Rental Company to leave it? A. No. We paid no attention whatever to the Greater New York's customers, or to the customers of any other exchange. Q. Do you recall negotiations between the General Film Company and Lewis Swaab, of Philadelphia, relative to the sale of motion pictures, stock and equipment of his exchange? A. Very clearly. Q. How far did those negotiations progress? A. They progressed to the point of having agreed upon a price and time for the delivery of the property, the conditions in that respect being rather unusual. Q. In what respect were they unusual? A. They were unusual in respect of the time of delivery, which was to be not less than two months from the time at which the conference was held. We had no one available to receive or take possession of, or work the property, and part of the conditions under which we agreed to purchase was in view of our not being able to receive or handle the property, but Mr. Swaab should remain in charge of it for two months, until we could find someone to assign to the care and operation of it. Q. Was the negotiation consummated? A. No, I terminated the negotiations as President of the company. Q. Under what conditions? A. I entered into them reluctantly. One of the conditions under which we purchased, was that Mr. Swaab should remain in charge of the property for at least two months at a merely nominal salary, and that such services should be included as a part of what we purchased, and be included in the price we agreed to pay. The compensation was fixed at $50 a week. There was another condition, the other condition being that a number of contracts between the owners of exchanges who sold property to the General Film Company and that company, remained to be drawn, and I refused to give the contract between Mr. Swaab and the General Film Company precedence over the others who had closed their negotiations before he had. Therefore, Mr. Swaab was informed that it might be several weeks before his contract would be ready, but it would be ready before the expiration of the two months. Immediately on Mr. Swaab's return to Philadelphia, he communicated with the General