ADMINISTRATION OF TRUST MONEYS ASKED

Horowhenua Chronicle, 15 June 1927, Page 2

ADMINISTRATION OF TRUST MONEYS ASKED

WELLINGTON, Last Night

An action arising out of ao invention for coloured photography came before the Chief Justice, Sir Charles Ske.rrutt, in the Supreme Court today. *

The plaintiffs, Frank Broomfield, civil engineer, and four others claimed that defendants, Edward Nicol Sutherland, merchant, and three others were trustees for a process invented by William Reed for the purpose of reproducing the natural colours of objects in cinematography and as trustees had received £15,820 for the purpose of exploiting the invention. It was alleged that while acting as trustees defendants had failed to file a complete patent specifications; had sold shares, had charged brokerage, and had remitted moneys to the inventor and another, for 12 months after they knew the venture had failed: and had otherwise failed to exercise proper diligence as trustees. The plaintiffs therefore claimed to have the trust administered by the Court.

Defence filed a statement that patent protection for the process was allowed to lapse in New Zealand on the joint advice of the patent agents and their solicitors for the reason that new protections were being taken out in England; They ‘said that no interests had been sold or brokerage charged on the sale of shares for fully six months before the date of the alleged failure of the invention, and that all other transactions had been carried out and recorded in a reasonably and practical manner. Defendants further claimed that they wanted to wind-up the affairs of the trust at the wish of most of the interest holders in order to facilitate the formation of a .Limited. Liability Company of the beneficiaries who desired to proceed with the venture. Defendants further claimed that there were only a few minor matters remaining to be concluded in connection with the trust and that the taking or accounts by the Court would entail considerable expense and delay, which the majority of the interest holders were anxious te avoid. The Court was engaged to-day with the opening of plaintiff’s case.