Pages 31-40

that time you knew the actual frequencies for the various diseases which could be treated with this instrument?”

  Hoyland: “I did not know all of them as they were only on the dial of the master oscillator.”

  Comperet: “Let me see if I understand you, at the time you did not know all the frequencies?”

  Hoyland: “I say that I did not know the numerical frequencies, they were all on the dial.”

  Comperet: “Who prepared these dials and calibrations?”

  Hoyland: “I did.”

  Comperet: “Who did you get the information from in order to calibrate these dials?”

  Hoyland: “They were taken off the last machine that was built by Dr. Rife. I transferred them from one machine to another.”

  Comperet: “You didn’t write them down?”

  Hoyland: “No.”

  Comperet: “Prior to shipping these frequencies to the British you made some notes on these frequencies?”

  Hoyland: “We had two machines here, one was my own personal property and I own most of the material in the other. They were in the shop.”

  Comperet: “Therefore, by just going to the dials of the machine in the shop you could have procured the actual frequencies needed by the English. (pointing to Parson’s letter) Did you ever reply to this?”

  Hoyland: “Without looking at all the letters I wrote, I couldn’t say.”

  Comperet: “I call your attention to another document produced from your custody, being a cablegram from Blewett in London, addressed to Hutchinson. It says, ‘Refer your letter July 18, no letter received, require circuit diagrams and frequencies and parts.’ Message continued to effect that this delay was holding things up and making it very difficult for the English group. How did you get this cablegram?”

  Hoyland: “It was turned over to me by the office.”

  Comperet: “By whom in the office?”

  Hoyland: “By Hutchinson.”

  Comperet: “There is a date written on this, who wrote it?”

  Hoyland: “I did, it is the date of the cablegram.”

  Comperet: “In reply to this did you send them the circuit diagrams and the list of frequencies?”

  Hoyland: “I sent them the diagrams.”

  Comperet: “When?”

  Hoyland: “I would have to look at my letters again.”

  Comperet: “Will you do so please.”

  Hoyland found a letter and showed it to Comperet.

  Comperet: “You have produced here a carbon copy of a letter addressed to Mr. Blewett. Is it a carbon copy of the original written by yourself?”

  Hoyland: “I don’t remember if I typed it or if Mr. Lyle did.”

  Comperet: “Was it typed at your dictation and was the original letter sent by you to Mr. Blewett?”

  Hutchinson being out of town at the time I opened it presuming it to be company business’. (The letter also states)…’regarding frequencies of the machine, you will remember me telling you that the frequencies used are not the same ones on the Rife machine. They were in the upper bands. I am sending you schematics etc. (N.B. – The rest of the letter was read so rapidly that I could not take it down, but it referred to the code and there were vague and secretive references to what I told you etc.).

  Comperet: “That letter contained all the information you ever sent to the British and when you state that you sent them certain information concerning the frequencies you were referring to this letter, weren’t you?”

  Hoyland: “Yes.”

  Comperet: “During this period of the later summer and the fall of 1938, were you devoting your full time to your work as technical advisor to the company?”

  Hoyland: “During that period I was supervising the building of the machines. I was taking care of the buying of the parts and helping to sell the machines.”

  Comperet: “You were on duty with the company for your whole time?”

  Hoyland: “Yes, it was a full time job.”

  Comperet: “That work was done here in San Diego, except for a few trips to Los Angeles?”

  Hoyland: “Yes, and except for a trip or two to Loma Linda.”

  Comperet: “I call your attention to another letter which you produced in court this morning dated October 25, 1938, addressed to Beam Ray signed H.S. Parsons. I will quote you a few bits from this, ‘Referring to my letter to you of last week, I have not been able to do much more in Straightening out various items I covered in that letter. I have been expecting a letter from Hoyland which would help us to use the one lab machine which seems to work, but we need further information before I can get the treatment machine operating. There follows a reference to a short circuit and that the original lab machine was quite useless’, it continues, ‘How many we hope to duplicate these machines unless we have the specifications? It looks as though Mr. Hoyland is the only one to write from Beam Ray and he seems to be away so much it is hard to get answers to letters or cablegrams.’ Did you reply to that letter, Mr. Hoyland?”

  Hoyland: “I replied to parts of it.”

  Comperet: “How did you get this letter?”

  Hoyland: “It was among the letters I got before I went to New York to represent the company in a meeting with Dr. Gonin.”

  Comperet: “You never returned them to the company later?”

  Hoyland: “I put them away in my file and they remained there.”

  Judge Kelly: “Do you know if any other members of the organization saw this letter from Mr. Parsons?”

  Hoyland: “Yes, it was given to me by the secretary of the corporation.”

  Comperet: “You said you believed you had a copy of your letter in reply to certain portions of this letter of Mr. Parsons, will you produce it?”

  Hoyland was not able to find the letter.

  Comperet: “Here is another cablegram addressed to Beam Ray which was also in your possession dated January 16, 1939, it states in effect, ‘confirm letters and cables// you broke agreements outright.’ How did this cable come into your possession?”

  Hoyland: “It was turned over to me by Mr. Edwards.”

  Comperet: “At that time did Mr. Edwards say to you that all the directors wished to sign the pending agreements with the English?”

  Hoyland: “It had been talked over between Mr. Edwards, Mr. Sapiro, and myself. We looked over the new amended contract and decided that it should not be signed. MR. Sapiro talked it over with us and suggested it best that it be brought up at the directors meeting, which it was.”

  Comperet: “Didn’t you say to Mr. Edwards that you would not permit the signing of this agreement by the company?”

  Hoyland: “Yes.”

  Comperet: “Until you made this statement to Mr. Edwards he had stated that he was in favor of signing it up to that time.”

  Hoyland: “I don’t think that he ever said that he was willing to sign it, there was quite a lot of talk between us regarding that contract.”

  Comperet: “Didn’t you state definitely that the contract should be signed?

  Hoyland: “No, I pointed out some points that I didn’t thing were right.”

  Comperet: “Didn’t he still think it should be signed?”

  Hoyland: “No.”

  Comperet: “Are you positive?”

  Hoyland: “As positive as I can be.”

  Comperet: “Your refusal to sign was on advice from Mr. Sapiro?”

  Hoyland: “Yes.”

  Comperet: “I’ll show you another cable among those produced by yourself, this is dated November 24^th, 1938, addresses Hutchinson, Beam Ray signed by Gonin: ‘Without prejudice must not pay checks since payment under original contract is to company not individuals'’ How did this come into your possession?"”

  Hoyland: “Mr. Hutchinson gave it to me in his office.”

  Comperet: “This opening statement about checks, were these checks referred to given to you at the time the amendment was negotiated in New York?”

  Hoyland: “Yes.”

  Comperet: “An additional payment was made at the time of the new agreement, and certain of these checks were made payable to yourself and to each of the other owners?”

  Hoyland: “One to Mr. Hutchinson, one to myself, and the balance to the company.”

  Comperet: “Payment was later stopped on these checks and a new payment was made for the same total amount through the company?”

  Hoyland: “Yes.”

  Recess until 2 P.M.

  Afternoon session June 27^th, 1939. Judge Kelly asked to have Olmstead on the stand for cross-examination by Sapiro.

  Sapiro: “I show the minutes of the meeting of stockholders of August 28, 1938. When did you sign these?”

  Olmstead: “I signed them in the P.M. and left Fresno about 6 P.M..”

  Sapiro: “According to these minutes there were two transfers to be made out of your stock, 447 shares to Beth Willman and 53 shares to Charles Winter. What consideration did you receive from Beth Willman?”

  Olmstead: “None.”

  Sapiro: “Did Mr. Hutchinson speak to you about this transfer?”

  Olmstead: “Yes.”

  Sapiro: “Was there any consideration from anyone?”

  Olmstead: “No.”

  Sapiro: “And you did all this at the request of Mr. Hutchinson?”

  Olmstead: “Yes.”

  Sapiro: You had one hundred and one shares left after the transfer?”

  Olmstead: “Yes.”

  Sapiro: “Were you present at a meeting of the board of directors May 7, 1938?”

  Olmstead: “I am not sure. I would like to refresh my memory. (After checking the minutes) No, I was not present.”

  Sapiro: “When did you sign these minutes?”

  Olmstead: “I can’t tell you that, I made a waiver and then signed them, I can’t remember where I signed them. Possibly in Los Angeles.”

  Sapiro: “Would the color of the ink help you to remember?”

  Olmstead: “No, I used brown ink most of the time in my fountain pen.”

  Sapiro then pointed out that Olmstead used his brown ink to sign all of the minutes. Comperet then took the witness.

  Comperet: “Did you sign the minutes of some of the meetings at the office of Mr. Fickerson in Los Angeles?”

  Olmstead: “Yes.”

  Judge Kelly: “You had six hundred shares Mr. Olmstead and you transferred 499?”

  Olmstead: “I guess so, I have 101 now, I transferred 447 to Beth Willman and the balance to Winters.”

  Judge Kelly: “Did you understand that either of these parties would put up some money in return for the stock?”

  Olmstead: “Not that I recall. I had confidence in Mr. Hutchinson, I was travelling in the northern part of the state and was not in touch with the organization. I had to depend on Hutchinson and Fickerson, then, realizing that I couldn’t be of any service I resigned.”

  Judge Kelly: “Had these people rendered some service to the corporation at the time you made the transfer?”

  Olmstead: “That was my understanding.”

  Judge Kelly: “Did you have conversation with anyone before this transfer took place?”

  Olmstead: “Yes, Mr. Hutchinson told me about what they had been doing.”

  Judge Kelly: “When you received your shares, did you understand that you were receiving them for services rendered?”

  Olmstead: “Yes.”

  Judge Kelly: “Did you know that others had received stock and were then transferring it out to others who were giving services? Was this the plan of the organization?”

  Olmstead: “Yes.”

  Judge Kelly: “Was there any conversation by the members of the board of directors regarding these transfers at any time?”

  Olmstead: “Yes, there were discussions about it.”

  Judge Kelly: “Did you examine the permit from the corporate commissioner at that time?”

  Olmstead: “I don’t believe I did.”

  Judge Kelly: “Was there anything said about Mr. Hutchinson as to the limitations by the corporate commissioner as regards the transfer of stock , was there anything said about the fact that you could not sell the stock but that you could give it away?”

  Olmstead: “That was the understanding at the time.”

  Judge Kelly: “How did you arrive at that conclusion?”

  Olmstead: “I don’t know, I think I just arrived at it.”

  Judge Kelly: “When was the last stockholder’s meeting held?”

  Olmstead: “I’d have to see the books.”

  Judge Kelly: “Well about how long, a year ago or more?”

  Olmstead: “I think it was in August last year.”

  Judge Kelly: “There has been no meeting since then?”

  Olmstead: “Not that I know of.”

  Olmstead was excused by Judge Kelly, and Hoyland took the stand. Comperet questions Hoyland.

  Comperet: “I notice on these cablegrams saying that if these conditions are agreed upon etc., there is a pencilled note saying terms acceptable.”

  Comperet: “When you say ‘we’, who do you mean? Who sent the cable?”

  Hoyland: “Mr. Hutchinson and I.”

  Comperet: “Have you a copy of it?”

  Hoyland: “No.”

  Comperet: “When you built the first Rife Ray machine, were you informed by Dr. Rife of the frequency range that the machine was required to cover?”

  Hoyland: “He talked to me about that and what his machine covered.”

  Comperet: “He informed you about it from high to low?”

  Hoyland: “No, he didn’t.”

  Comperet: “That first machine that you built under your agreement with the University of Southern California was built by you under Rife’s supervision?”

  Hoyland: “That’s the way the contract read.”

  Comperet: “Did you violate the contract?”

  Hoyland: “I was left to build the machine my own way.”

  Comperet: “In June of 1935 was when you made an agreement with the (transcript missing words) medical research to build a Rife Ray machine, you did build it soon after that?”

  Hoyland: “Yes.”

  Comperet: “You had an agreement with them that all work was to be done under Dr. Rife’s direction?”

  Hoyland: “That’s what the contract called for.”

  Comperet: “Did you do this work without getting the frequencies from Dr. Rife?”

  Hoyland: “I calibrated the machine according to the bacteria.”

  Comperet: “What specifically did you do that constituted this recalibration?”

  Hoyland: “I used a standard oscillator against his machine to see what frequencies he was using.”

  Comperet: “He set his machine and you measured his frequencies?”

  Hoyland: “Yes.”

  Comperet: “Did you make any memorandum of these particular frequencies?”

  Hoyland: “Yes, I gave Dr. Johnson and Dr. Rife a list of them.”

  Comperet: “Did you ever furnish a list of any of these frequencies to the Beam Ray corporation or any of its officers?”

  Hoyland: “No.”

  Comperet: “You refused to do this?”

  Hoyland: “Yes, I refused. But Mr. Edwards had a sealed letter containing them for some months.”

  Comperet: “You had not shown Mr. Edwards that the frequencies were in the envelope, you sealed the paper without showing them to him?”

  Hoyland: He asked me to give them to him sealed and I did so.”

  Comperet: “When Edwards was talking to you about signing the redraft of the agreement with the British, I call your attention to the fact that the contract has a place for certain (transcript missing words) to be filled in with frequencies and the design of the machine. When you were discussing this didn’t Mr. Edwards then say that he wanted you to give the corporation the necessary information to send on to the English?”

  Hoyland: “No, he did not.”

  Comperet: “Are you positive of that?”

  Hoyland: “Yes, I am positive.”

  Comperet: “This letter in which you say you have the frequencies was sealed by you without being shown to any of the officers of the company?”

  Hoyland: “Yes.”

  Comperet: “You told Edwards that he was not to open that envelope during your lifetime?”

  Hoyland: “That was the understanding, that if anything happened to me he could open it.”

  Comperet: “Didn’t you tell Edwards that in the event of your death the envelope should be delivered to your attorney and that he would then give him the frequencies?”

  Hoyland: “No, I had two papers.”

  Comperet: “Was your attorney Mr. Sapiro at the time?”

  Hoyland: “No, not at that time.”

  Comperet: “I understood that you say that the frequencies used in the machines put out by the corporation were not set to the same frequencies as Dr. Rife’s machine.”

  Hoyland: “That is correct.”

  Comperet: “Did you inform the board of directors at Beam Ray that the machine you built was not the same as Dr. Rife’s?”

  Hoyland: “I had spoken to them about it.”

  Comperet: “Who did you tell about this?”

  Hoyland: “Mr. Hutchinson, on our way to New York.”

  Comperet: “Who else did you explain it to?”

  Hoyland: “To Mr. Edwards.”

  Comperet: “When and where?”

  Hoyland: “At his house one evening.”

  Comperet: “When, what evening?”

  Hoyland: “I can’t remember when.”

  Comperet: “About that time were you still a member of the board of directors?”

  Hoyland: “Yes.”

  Comperet: “When did you become a director of Beam Ray Inc.?”

  Hoyland: “In September of 1938, I believe.”

  Comperet: “You resigned when?”

(missing words)

  Comperet: “Then it was during the period between September and November that you told Edwards at his home that the machines you were building were not putting out the same frequencies as Dr. Rife’s machines?”

  Hoyland: “Yes.”

  Comperet: “How did you explain that?”

  Hoyland: “In the summer of 1936 I designed a new machine, or rather I checked it there at the lab, I had designed it in Pasadena, and we tested it out then and the frequencies were not the same as on Dr. Rife’s machine.”

  Comperet: “Did you tell him how great the difference was?”

  Hoyland: “I explained that there was quite a fundamental difference.”

  Comperet: “Who else on the board of directors did you explain this to?”

  Hoyland: “Mr. Henderson, in the late summer of 1938.”

  Comperet: “Anyone else?”

  Hoyland: “I don’t think so.”

  Comperet: “When you were first informed that the members of this British group were coming to San Diego to discuss a contract?”

  Hoyland: “When Dr. Couche returned from England in the spring of 1938, about a month before the British arrived.”

  Comperet: “During the period from that time until the British arrived there was considerable discussion, was there not, regarding the desirability of having a corporation to deal with them?”

  Hoyland: “We were looking for man to manage the affairs.”

  Comperet: “And that lead to Mr. Hutchinson being procured for that purpose?”

  Hoyland: “Yes.”

  Comperet: “Wasn’t there also talk about forming a corporation?”

  Hoyland: Yes.”

  Comperet: “And that manufacturing rights would be given?”

  Hoyland: “They were to be given a license to do that.”

  Comperet: “You were not selling the invention?”

  Hoyland: “No.”

  Comperet: “It was decided that the corporation would make the final deal with the British whereby they would receive the license to manufacture, isn’t that so?”

  Hoyland: “That went through the company, yes. (then he said)…but that is not correct, the company had to have unanimous consent to he owners.”

  Comperet: “Did you read either of the two original contracts with the British, those of June 4^th or 5^th?”

  Hoyland: “No, sir, I did not.”

  Comperet: “You were one of the owners at the time, were you not?”

  Hoyland: “I was.”

  Comperet: “I believe you said that you read the contracts before they were finally executed and you say that these contracts were signed only by the Beam Ray corporation and the British?”

  Hoyland: “Yes.”

  Comperet: “Wasn’t it the understanding that you had prior to that time that the corporation would be the one that would sign the contract after it had been agreed up on finally?"”

  Hoyland: “That they would sing it, yes, but that the owners had to agree to the contract.”

  Comperet: “Did you understand that the corporation could not convey to the British any greater rights than the corporation already had?”

  Hoyland: “That’s right.”

  Comperet: “You said that you realized at the time that the British wanted an exclusive license to manufacture and distribute the machines with certain territorial rights?”

  Hoyland: “Yes.”

  Comperet: “But you yourself signed no contract with the British in June 1938?”

  Hoyland: “No.”

  Comperet: “None of the other owners of the Rife Ray machine signed that, did they?”

  Hoyland: “No.”

  Comperet: “Before the negotiations with the British began, negotiations were under way between the owners and the Beam Ray corporation, regarding what kind of license was to be given to the corporation, weren’t they?”

  Hoyland: “Yes.”

  Comperet: “Who took part in these discussions?”

  Hoyland: “Hutchinson and I and Dr. Rife, sometimes.”

  Comperet: “Anyone else?”

  Hoyland: “I think Mr. Henderson.”

  Comperet: “Didn’t Mrs. Willman, the secretary, type out several agreements?”

  Hoyland: I don’t think several.”

  Comperet: “How many then?”

  Hoyland: I don’t think more that two were made.”

  Comperet: “She typed these?”

  Hoyland: “I couldn’t say whether she did or didn’t.”

  Comperet: “Are you sure there were only two primary drafts before it was signed?”

  Hoyland: “I can’t remember any more.”

  Comperet: “The final one was written in the office of Steiner and after you read this weren’t certain changes made and weren’t these changes rewritten by Mrs. Willman?”

  Hoyland: “I don’t remember.”

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