WAR THREATENED ON TALKING FILMS.

Dunstan Times, Issue 3355, 3 January 1927, Page 7

WAR THREATENED ON TALKING FILMS.

A remarkable situation has arisen over “Phonofilms,” the famous ‘ talk-ing-films” invention. There are two “Phonohlm companies, a British one, with a capita, of ,£50,000. headed by Sir George Hamilton, and an American concern, headed by Dr Lee do Forest, the actual inventor of the process. The British company owns the whole of the British Empire rights, excluding Canada, and the American company owns the rights for all the rest of the world. ' , The success of the London demonstration of the invention has been so great that Mr William Fox, one ol the “Big Five” American cinema magnates, has offered the American ami British companies £250,000 each or sale outright of the process, coupled with a suggestion that if they do not accept the offer he will compete against them with an invention called the mErgon,” which Is understood to approximate in principle to the do forest invention. , The British company has re used tne Fox offer, despite the fact that it is equivalent to £5 per £1 share and the American company, it is understood, has adopted the same attitude. Ihe next move is with Mr Fox.