Memorandum for the the Motion Picture Patents Company and the General Film Company concerning the investigation of their business by the Department of Justice / submitted by M.B. Philip and Francis T. Homer. (1913)

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pany, however, does not get ti" 5 8 cine-r?.lf cent eouivp.lert tc the ro/Rlty, but only gets a part of it, tre. rest soin^j tc the person vho hind lea tVjc business of d latributing this raw film for his trouble in doing so, and for being responsible for the payments for the same. Vo n)!5ko this explanation in vieiy of '-'r. Grosvenor's statement about the Siastnan Company charging n. )iigher price to purchasers otlier thai, tl e liconsoos. The chaiij;,© ir. the agreeraent v/as not nade fcr one of the rca6 3r.s augj^ested ly IJr, ilrosvenor, vi«., because the Departr.ent r.as investigating its lusines;; r.ct).od8 at the time, becauce the Easttupn Con;p«i)iy Y,uJ no knowled^o of any sue;-, investigation 6t thtj t i'HP of tiie ci'iun.'TG. It t/rs , hc-.rover, cranked for the other reason he aui^ests, viz., th;:t the de'T:>nf' nt the independents for film proaised such a large source o' profit that it would have been unbusi ness-like tn rofuno tn tc^ll It to other peroons ?^}io desired it In the h' buo^'neoa. The very fnct thet It ".anted to :! -d d.".d ncdify this rvgrenr-iG r I, , in order tc cupply r:'jc}i laige dcnand iy the indcpondert e , chowfe' Diot tliS ittents Compuni and those with whon it hti nti-ernie r.ts have ff.r I'rm. any monopoly of the moving picture business, ivlthou^h thoy la»f illy have a ri^^ht to such monopoly under its p-itents. -30