INSURING A FILM.

Press, Volume LX, Issue 18194, 3 October 1924, Page 13

INSURING A FILM.

I ANNETTE KELLERMAN | PICTURE. CASE BEFORE COURT. The picture, "Venus of tn« Southern Seas," starring: Annette Xellermaa, the filmin? of -which was carried out in New Zealand, and which was recently shown in Chris tchurcb, was the subject of a. civil action in tho Magistrate's Court, yesterday before Mr H. Y. Widdowaon, S.M. Tha Yorkshire Insurance Company, Ltd., claimed from the New Zealand Productions, Ltd., agents, Benjamin Moore, St. Albans, and W. S. Mitche", Redcliffs, tho sum of £33, insuranco premium, being marine insurance premium due by the defendants lo tho plaintiff company' under a. policy isauod to- S C Tf 4 1 " 1 Productions, Ltd., with j ~* l an d B. Moore, mortgagees of the defendant company, stamp duty and insurance duo in respect of an arc lamp. Sajgcnt appeared for the plaintiff company, and M r C. S. Thomas for tho defendants. Mr Sargent, in opening, said that tae policy was for £IO,OOO. Mitchell *nd Mooru were debenture-holders of tho defendant companys assets, and were therefore mortgagees. They were also directors, Mr Mitchell Dein£ chairman. Reginald T, Watkins, manager and attorney. for the Yorkshire Insurance Comoany, Christchurch, said he received a, proposal March, J923, signed by Mr W. S. Mitchell, on oehalf of lie company. Subsequently he agreed to add tho names of the mortgagees as well. The proposal was signed m Mr C. W. Hervey's office. A policy was then issued and sent to Mr Hetrcy as subagent of the Insurance Company. He had D £ V ?i r rCC -fr an ? word from either Mit- | chcil or Moore complaining "that the policy i was in name. In April, witness culled m at Mr Hervey's offi.ee with respect to the payment of the premium. Measi-a G. P. Payne, Mitchell and Hervey subsequently called at witness's office aud stated that tho picture had not been sold, but the premium would lie paid by the company and they themselves would personally guarantee payment. Accounts were regularly font in to the company demanding payment. At a later date, Messrs Mitchell and Hen-ey called in at tho office and said they had been disappointed with the picture, but they expected to release it soon in New Zealand. \\ hen they did so, they would sec that the premium was paid. They said, "Don't force us now; otherwise we will so into liquidation." Witness waited until February, and wrote to Messrs Moore and Mitchell ag-ain with respect to the matter. Mr Moore camo into witness's office the next day and said he had reccivcd the best legal advice in respect of the case, a.nd he was not liable. TFitoe*M said that Moot© had left tho matter too late and that the money must be collected. Moore said that if the matter was forced tho company might go into liquidation, in which event the Insurance .Company would probably get nothing. He also said that money for certaiu rights of the picture was expected shortly and the premium would be paid out of it. To Mr Thomas: He would deny that only one debit note had been sent out to Ux>re and Mitchell prior to the present proceedings. He gave credit to tho company on tho names of Moore and Mitchell. He would deny that tho claim against Moore and Mitchell was an afterthought of his that the company was on the point of liquidation, in. consequcjice of which he thought his company might get nothing Charles W. Hervey, sub-agent of the Insurance Company and secretary of the defendant company, said he could not remember whether or not he had given instructions for tho policy to bo made out in tho names of the mortgagees. He com id not remember Mr Mitchell saying- that he would pay the premium out of liis own poclilit. To Mr Thomas: The first time witnens knew that Mitchell and Moore were held personally responsible for the premium was when the former received a. letter from the company with respect to the matter. 'Mr Thomas applied for a, nonsuit on the ground that thero was no contract nor relation between Moore and Mitchell and the plaintifE company, which was necessary before the case could succeed. Tho Magistrate i-eserved his dociaion with regard to the nonsuit point raised. "William Chilman, chief cleric of the plaintiff company, also gave evidence. Mr Thomas, for the defence, said that the company had been formed to exploit the Annette Kellerman picture. Mcore and Mitchell had taken a debenture over the whole of tho assets of the company, which had decided to insure in the ordinary way. It was questionable at the time whether the company could pay many shillings in the £ to creditors outside shareholders, and Moore and Mitchell had a demand debenture but did not want to take action. They decided to soe iho company go ahead. Mitchell undertook to pay the premium out of moneys coming to the company through returns from the picture. • William Stewart Mitchell, chairman oi directors of tho New Zealand Picture Productions, Ltd., said that at the conference with Hervey and Watkins m July last he explained the whole matter to both, ot ""liter healing further argument, the Magistrate reserved, his decision on the question of Mitchell's liability.