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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Jekemlaii J. Kennedy, Cross Examination. 3213 Q. On page 3195 of the printed record, on your direct examination, you testified : "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." Have you anything you wish to add to that answer? A. Nothing whatever. Q. Let me ask you this question : 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 licensed rental exchanges throughout the United States? A. It was not. Q. What Avas the purpose of making up the estimate which was made up before the General Film Company started in business, of the value of the business of all the licensed rental exchange's? A. I had nothing to do with the making up of any estimate except an estimate that was made very quickly for the purpose of aiding Mr. John Collier some time previously, in preparing a chart to show the magnitude of the motion picture business in this country, and its importance as a factor in modern life, as he put it. More particularly, in connection with a meeting of the Playgrounds Association, which was to be held some months subsequently, and which it was expected would be attended by 1,800 delegates, who were very desirous of considering the motion picture as a new factor to be reckoned with and utilized. Q. I direct your attention to Petitioner's Exhibit 78, printed at Volume 1 of the Record, page 251, being a letter addressed by you to Mr. William Pelzer, dated January 23rd, 1912, in which you say : "Some time before the General Film Company was organized, an estimate of the value of the business of exchanges leasing licensed motion pictures was made by men familiar with the manufacture of motion pictures, and also the business of exchanges. According to this estimate, the value of said business was $3,468,847." Did you make up that estimate? A. Mr. Collier and I made it up together at my office. Q. When was this made up? A. To the best of my recollection, it was about August or September, 1009. Q. Did you keep a copy of it? A. It was made on an ordinary scratch pad.