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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Harry N. Marvin, Direct Examination. 3253 Q. Are these the same throughout the United States? A. They are. Q. Have any attempts been made, either by the Motion Picture Patents Company or the licensed producers, or both, to regulate the subleasing prices of the rental exchanges to exhibitors? A. None whatever. Q. Did the Motion Picture Patents Company refuse to license any established manufacturer or any importer of desirable motion pictures at the time of its organization? A. It did not. Q. It is charged in the petition in this action that defendants, through the Patents Company, were enabled to, and did determine whether new motion picture theatres should or should not be opened, and whether old ones should be closed, although defendants had no proprietary interest in such theatres, Is it a fact that defendants exercised any such power? A. No. The defendants never interfered nor attempted to interfere in any manner with the opening or closing of any theatre. Q. Did the defendants set out to monopolize the business of all of the licensed rental exchanges in the United States? A. They did not. Q. At what time was the Biograph Company doing business under a bond that compelled it to deposit the entire proceeds of its projecting machine business with a Trustee from week to week? A. During the period immediately following the decision of Judge Wheeler, sustaining the validity of the Edison patent, and holding that the Biograph Company's apparatus infringed the Edison patent, and continuing until the decision of Judge Wheeler was reversed by the Court of Appeals, the Biograph Company operated under a bond on condition that the entire profits resulting from this projecting machine business, which consisted in giving motion picture exhibitions in theatres and similar places, should be deposited with a Trustee. Mr. Grosvenor: That was back in 1901 and 1902, wasn't it? The Witness: Well, I cannot remember the exact dates but it was during the period between the decision of Judge Wheeler and the decision of the Court of Appeals.