MEAN FRAUD

Sun (Auckland), Volume II, Issue 608, 9 March 1929, Page 25

MEAN FRAUD

[ BRITISH FILM COMPANY ! LOSES U.S. SCREEN ROYALTIES I The history of an ill-fated Boy Scout I film was told recently in a High Court j action between a well known Ameri-1 can and a British film company. The American company sued the j Transatlantic Film Co., Ltd., of Shaftesbury Avenue, London, and its chairman, Mr. Morris Greenhill. The defendant company was formed to exploit films, supplied by plaintiff, in Great Britain and on the Continent. Sir Patrick Hastings, K.C., for the English company, said the American, company had been guilty of one of j the meanest commercial frauds ever ! heard of in connection with the production of a Boy Scouts film. This film, he explained, was pro- j duced for the Transatlantic Company on condition that half the profits should go to the Boy Scouts movement. The American company wanted to exploit it in America, and to enable them to register it in that country they paid the English company the nominal sum of £lO. When Mr. Greenhill demanded an account of the profits, so that he might hand them over to the Boy Scouts, this great American company,. said Sir Patrick, had the audacity to j claim that for this paltry payment! of £lO they had acquired the whole of the rights m the picture, and were not under an‘obligation to render an i account. | Owing to the loss of certain corresi pondence, Mr, Greenhill could not as-

; sert his rights, and in consequence tejS been subjected to criticism and sSjpicion on the part of those connected with the Boy Scout moyement. Mr. Barrington Ward, K.C., for the American Company, said that they now realised their liability to render an* account. He believed that the expenses of the film had exceeded tha receipts, but rather than have any cussion about it the American c on» pany was willing to give £I,OOO M [ the Boy Scouts’ Association. ; Sir Patrick said that from informs--5 tion in his possession as to the protfljl j on this film, Mr. Greenhill regarded i the offer of £I,OOO as ridiculous. The Official Tleferee ordered that ag the relative documents should be dtS j closed, and judgment was reserved.