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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Jeremiah J. Kennedy, Direct Examination. 3195 of a rental exchange, that it might be put out of business and that the General Film Company might be able to purchase its motion pictures, stock and equipment more readily? Mr. Grosvenor: Objected to as leading in form. By Mr. Kingsley: Q. You may answer. A. I did not. We always had more exchange property offered to us than we were fitted to handle. Q. Did you at any time at a meeting of the producers of motion pictures, vote to recommend the cancellation of a rental exchange that it might be put out of business or that the General 'Film Company might thereby purchase its motion pictures, stock and equipment, more readily? A. I never voted for the cancellation of an exchange after the formation of the General Film Company. Q. In purchasing the motion pictures, stock and equipment of the rental exchange, while acting for the General Film Company, did you pay anything for its license? A. No. Q. Was it necessary for a rental exchange, purchased by the General Film Company, to have a license at the time of the purchase? A. No. We purchased exchange property from an exchange that wras unlicensed. Q. Did you, at any time, while aicting for the General Film Company, pay a large price for the motion pictures, stock and equipment of a rental exchange, which was not making money, and which was doing an unprofitable business at the time? A. We never paid for any property that we purchased from any exchange, a higher price than the property was worth to us, in the conduct of our ordinary business affairs. Q. At the time of the organization of the General Film Company, was it your intention or was it the intention of your associates, so far as you know, to acquire all the rental exchanges throughout the United States? A. It was not. And the growth of the business was something that we were entirely unprepared for.