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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31GG Jeremiah J. Kennedy, Direct Examination Film Company, through Mr. Waters, and stated that in agreeing to accept $50 a week compensation, he had overlooked the fact that he had an automobile, that he did not see how he could live and operate an automobile on a compensation of $50 a week, lie further, after a few days, became very insistent in his demands for his contract. He indicated by the tone of his communications a dissatisfaction, or not a complete satisfaction with the terms of his sale, although I stipulated at the beginning of our negotiations that he must not accept — stipulated that we would conduct our negotiations subject to the condition that he would not agree to accept any price which was not entirely satisfactory. Being in doubt as to whether Mr. Swaab was satisfied or not, prompted me to terminate the negotiations and cancel the entire transaction. I may sajr that Mr. Swaab had no communication with the General Film Company prior to his coming to the office and insisting upon our negotiating with him for the purchase of the exchange property which he had. Q. Do you recall having negotiated on behalf of the General Film Company for the purchase of the motion pictures, stock and equipment of Wig Lake Shore Film & Supply Company's exchange, located at Cleveland, Ohio, with one Emanuel Mandelbaum, a witness in this case? A. Yes, I conducted the negotiations with Mr. Mandelbaum. Q. Will you give us, briefly, the history of those negotiations? A. Mr. Mandelbaum called at the office one afternoon without any appointment having been made in advance, and requested that we consider the purchase of the motion pictures and other exchange property which the Lake Shore Company owned. I explained to Mr. Mandelbaum that we were not very well equipped to take on any more business at that time, but on his insisting, we proceeded with the negotiations, subject to the condition that if they were concluded, Mr. Mandelbaum would remain in charge of the exchange and manage tin1 property for us. The question of price was next discussed, and Mr. Mandelbanm had estimated that lie should receive $75,000 for the entire property. He stated that he computed that on 'lie hasis of his earnings capitalized at ten per cent., or on a ten pei cent, basis. I showed him that that was entirely unreasonable, for the reason that the permanence of the