FILMS IN COLOUR

Evening Post, Volume CXIII, Issue 139, 16 June 1927, Page 12

FILMS IN COLOUR

INVENTION CLAIMED

OPINIONS DIFFER

ON COMMERCIAL VALUE

Tho hearing of the action for accounts in the coloured film case was continued beforo his Honour tho Chief Justice (Sir Charles Skorrett) to-day.

Tho plaintiffs were Frank Broomfield, civil engineer; Frederick John Goodcr, company director; Donald Ferguson M'Arthur, company director; William Fraser, law accountant; and Edward Olson, salesman.

The defendants wcro Edward Nicol Sutherland, merchant; William John Horan, Michael John O'Halloran, and Bupert Lancelot Banks Sproiile, salesman.

Tho case for the defence was opened by Mr. Mazengarb, who read a report on Beid's process made by Mr. M'Kay manager of the Kodak Company, Wellington. The report stated that there was a true rendition of colour) and the process was a marked improvement on the old system Further, Beid's method waß a commercial practicability. As regards the camera, it was stated that he: regarded Beid's claims as perfectly logical and practical. Counsel submitted that he could show that the trustees had a reasonable and wellfounded belief in Beid's claims. "A MERE FIGMENT." Mr. Mazengarb said that the trustees never received advice from Jteid that the venture had failed. A new company had been formed to exploit Keid's claim.

His Honour: "What has he now to sell?"

Mr. Mazengarb: "He became entitled to the return of the formula?'

His Honour: ''A mere figment. You tell me that it is proposed to sell that property—heaven save the work—to a new company?"

Mr. Mazengarb: "I don't know anything of the details between Beid and the new company." Counsel said that the formula in the hands of the trustees was worth nothing. .

His Honour: "In whose hands is it worth mors than that?" ■

Counsel stated that it was the knowledge of turning the .formula into account that mattered.

Evidence was given by Edward Nicol Sutherland, a storekeeper, and chairman ot the trustees. He said he and his family held interests totalling about £600. When he accepted office, he had no doubt about Eoid's claims. They all thought that Reid was to. be able to develop the wh,ole concern into a successful moving picture one, but before anything was to be done regarding a sale, the trustees had to be notified. All sorts of prices were mentioned, the figures going as high as from one million to ten million pounds. On 16th December, 1924, he. moved for the formation of a limited liability company, but the motion was defeated. A large number of meetings was held before it was decided to wind up. One week five meetings were held. They all worked hard to sell the shares, practically every night and during the days. Regarding the non-receipt of cables and suspicion caused, he said that it had been arranged between Reid, Mothcs and the trustees that a letter was to bo sent every mail, but while Mothes was abroad no letter was received. Absolute confidence was placed in Broomfield, when he went Home. They closed down receiving money from , investors about a month before Broomfield went and never sent money Home to Reid and Mothes after Broomfield left. An ar- ' rangement was made to pay Reid through Broomfield. They had trust in Broomfield, and acted on his advice W!th judgment. The New Zealand patent was allowed to lapse on 12th February, 1925, on the advice of a patent agent and tho lawyer. Reid was instructed to patent in England. The trustees came to. tho conclusion that the venture had failed when Broomfield advised them, and they decided to recall Reid and Broomfield. No brokorhS\ Wo aA, rC Aeived from anyb°<ly after , ' 'Jt tll i pri'' 1926- R bunderstood that tho first quota of £6250 had to be sold on behalf of the trust, which then had ample cash in hand, and did not think it would require any more ho they opened the parcel o£ shares belonging to Reid and let them go His Honour: "Why should all this money have been taken out of the pubic s pocket, when you might have been buying a 'pig in a poke'?" "LIKE PLIES BOUND SUGAR." Witness: "You couldn't keep them away; they came round like flies rouud sugar." t Witness said that none of the trustees over asked, orally, ono person to take a share. Ho described the procedure as: Como and see our pictures. If you don't hko it, leave it." , Regarding the settlement of the action with Reid, the witness said that he was inundated with shareholders who wanted the action settled out of court because they said the lawyers would ect the money, whereas they wanted it themselves. A large deputation waited on the witness one Sunday morning, and uHimately tho action was settled for !

(Proceeding.)