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Hoyland:
“I don’t think it was.”
Comperet then read further quoting the English in the effect
that in spite of having spent thousands of dollars they still
didn’t get the frequencies and the machines still did not
operate properly. Hoyland dodged the issue by going on rambling
monologue in which he said that they had discussed royalties and
had lowered the figures to about ten dollars a machine as the
British guaranteed to do the mass production of them.
Noon recess called.
Afternoon session June 28. Dr. Rife called to the stand.
Comperet interrogating. Witness identified as one of the owners
of the Rife Ray invention and one of the shareholders in Beam
Ray.
Comperet:
“Has the Plaintiff ever informed you that the machines that he
designed and built for the Beam Ray were not operating on the
same frequencies as your own?”
Rife:
“They were supposed to be operating on the same…with
harmonics.”
Comperet:
“Did he ever tell you that there was a fundamental
difference?”
Rife:
“He said on one or two occasions that there was a difference
in harmonics. At the time the deal was pending for an agreement
by which the owners were to license Beam Ray to manufacture and
lease Rife Ray machines.
Comperet:
“Did you take part in some of these talks as to what the terms
of the agreement were to be?”
Comperet:
“Who took part in these discussions?”
Rife:
“Mr. Hoyland, Mr. Hutchinson, I think Mr. Henderson and
possibly one of two others whom I recall.”
Comperet:
“Was anything said about other companies being granted
licenses later?”
Rife:
“I do not recall anything.”
Comperet:
“What was your understanding of the license given to Beam Ray?
Were many other companies to licensed or was Beam Ray to get an
exclusive?”
Rife:
“I don’t recall that any other company was to get it except
the British.”
Judge
Kelly: “Did you understand that the Beam Ray was to
get an exclusive license?”
Rife:
“That was my understanding.”
Comperet:
“You understood that Beam Ray was going to give a sub-license
to the British having already a license from the owners?”
Rife:
“Yes.”
Comperet:
“Was it your understanding that he license given to Beam Ray
by the owners was a world wide exclusive license?”
Rife: “I
can not recall that there was any actual statement made to that
effect but I understood it to be so.”
Comperet:
“Was that understanding based on conversations had with others
concerning the granting of the license?”
Rife: “Yes
it was.”
Sapiro then took the witness.
Sapiro:
“Do you recall when you first started negotiations with
anybody representing Beam Ray?”
Rife:
“I think about April or May of last year.”
Sapiro:
“Did you ever give an option to Mr. Cullen?”
Rife:
“I did not.”
Sapiro:
“I show you a signed copy of an agreement made in New York on
November 17th when Hutchinson and Hoyland went east
to deal with the British. You will see that it is signed by
Hutchinson for Hoyland and Rife. Was this document ever
presented to you for your approval since November 17th?”
Rife:
“After reading it through carefully, it seems as though I have
seen it before. The only time I can recall that I might have
seen it is when they came back from New York after the dealings
with Dr. Gonin.”
Sapiro:
“Do you recall giving written approval to that document?”
Rife:
“I do not.”
Sapiro:
“You say that the devices that were being built in the early
part of 1938, the one that went to Dr. Couche and two that were
in the lab were built on new harmonics?”
Rife: “They
were built on a different principle, we have a given wave length
and it can be produced in different ways, but it should be the
same no matter how it is produced.”
Sapiro:
“You knew that these three machines were being built with that
machine?”
Rife:
“Yes.”
Judge Kelly:
“What is your profession?”
Rife:
“I am a scientist engaged in research work, pathological and
bacteriological science.”
Dr. Rife then gave a history of his studies and work.
Judge Kelly:
“Have you had any business experience at all?”
Rife:
“No.”
Judge
Kelly: “What is the difference in frequency and
harmonics?”
Rife:
“Frequency is an actual wavelength…” (said something about
harmonics that I didn’t get, B.R.).”
Judge
Kelly: “When you constructed this Beam Ray machine you
had a dial representing the frequencies or harmonics?”
Rife: “We
had many dials on the original machine.”
Judge
Kelly: “Is that the machine Mr. Hoyland got the
frequencies from?”
Rife:
“Yes, he took them off that old machine.”
(Notes
because Marion could not follow in detail)
Some
questioning by Judge Kelly concerned with the scientific side of
the case. Dr. Rife explained how the machine changed in design
from the original to the most recent type. Kelly wanted to know
whether Hoyland told Dr. Rife about the changes he was making
and Rife said that he did. Kelly then asked about the
frequencies and Dr. Rife explained.
Judge
Kelly: “Did you examine the machines built by Hoyland
for the British?”
Rife:
“No.”
Judge
Kelly: “You didn’t know if they differed from the
earlier machine?”
Rife: “I
did not.”
Judge Kelly:
“When you perfected this instrument you thought about an
organization to manufacture and distribute these machines?”
Rife:
“I wanted to get them out to the public, as many as I
could.”
Judge Kelly:
“How did you happen to get in touch with Mr. Hutchinson?”
Rife:
“Mr. Cullen had his over at the laboratory just on a social
call.”
Judge Kelly:
“Hutchinson was introduced to you by Mr. Cullen then?”
Rife:
“Yes.”
Judge
Kelly: “Is Mr. Cullen a business man?”
Rife:
“Dr. Milbank Johnson brought his to the laboratory as an
electrical engineer.”
Judge
Kelly: “Did you discuss the production of this
instrument with Hutchinson and Hoyland, together I mean?”
Rife:
“To some extent.”
Judge
Kelly: “You had confidence in them?”
Rife:
“Yes.”
Judge
Kelly: “You assigned certain of your interests to
others?”
Rife:
“To Hutchinson and Hoyland for the purpose f carrying on the
work.”
Judge
Kelly: “Did they outline their plans for distributing
the instrument?”
Rife: “Yes,
to some extent.”
Judge
Kelly: “What was their plan?”
Rife:
“To start on a small scale and increase production, and that
the British would take it over for England, that is, that
British Empire.”
Judge Kelly:
“When you assigned your interests to these gentlemen were
there any others concerned with the machine?”
Rife:
“No.”
Judge
Kelly: “You associated yourself with them to save
yourself the fatigue of the business end of the work?”
Rife:
“Yes.”
Judge
Kelly: “Did you ever receive any information from
anybody as to the British instruments being defective in
manner?”
Rife:
“I had one letter from Mr. Blewett saying the instruments were
not working and that he did not know if it was because they had
been damaged in transit.”
Judge
Kelly: “When you got this letter did you discuss this
matter with anyone?”
Rife:
“Yes, with Mr. Hoyland, and he said that he had checked the
machine carefully.”
Judge
Kelly: “Did he tell you of any changes made in the
machines before he shipped them?”
Rife:
“He did not.”
Judge
Kelly: “Would these machines be easily injured in
shipment?”
Rife:
“They might be.”
Judge
Kelly: “Did you supervise the packing or shipping of
these instruments?”
Rife:
“No.”
Judge
Kelly: “Who did?”
Rife:
“I think Mr. Hoyland did.”
Judge
Kelly: “Who advised about making an organization?”
Rife:
“I think that was when Hutchinson and Henderson came into the
discussions.”
Judge
Kelly: “What was said about exclusive rights to the
machines?”
Rife:
“As I understand it the three owners, Hutchinson, Hoyland and
myself gave to this organization the rights to manufacture these
machines and I thought that was an exclusive right.”
Judge
Kelly: “Was anything ever said about the owners
reserving any rights to be given to any other corporation?”
Rife:
“I don’t think so.”
Judge Kelly:
“What about foreign countries?”
Rife:
“I don’t know what arrangements were to be made in that
respect.”
Judge
Kelly: “Did you understand that this license was to be
given by Beam Ray or by the owners?”
Rife: “By Beam Ray.”
Judge Kelly:
“You understood that Beam Ray had exclusive rights to give a
license and that the owners had reserved nothing except
royalties?”
Rife:
“Yes.”
Judge
Kelly: “I suppose you avoided business discussions as
much as possible?”
Rife: “Yes
I did.”
Judge Kelly:
“A very fortunate man.”
Sapiro takes the witness. Sapiro quoted from a document to he
effect that the owners of the Rife machine must approve the
price of the machines and the distributions of profits.
Sapiro:
“Is that correct Mr. Rife?”
Rife: “Yes,
that’s right.”
Sapiro:
“Mr. Hoyland had been working for you for some time before you
met Mr. Hutchinson?”
Rife:
“Yes.”
Sapiro:
“Did Henderson and Hutchinson discuss with you the forming of
a new corporation?”
Rife:
“I understood that there was already a corporation that would
be shifted over into the Beam Ray in order to save expenses.”
Sapiro:
“Did they say they would give you some stock in this
corporation if you made an agreement with them?”
Rife:
“I am not sure that they did.”
Sapiro:
“Did you receive a certificate saying you were the owner of
some stock?”
Rife:
“I received a small paper from Mr. Fickerson.”
Sapiro:
“Was this in return for giving up certain rights to the Beam
Ray machine?”
Rife: “I
don’t think so.”
Sapiro:
“Why do you think you received it?”
Rife:
“It was supposed to be given to me.”
Sapiro:
“Given for what?”
Rife: “That
I don’t remember. It was merely that I was to receive certain
stock. I don’t think I
(missing
words)
Rife:
“It didn’t enter my mind. I never gave it any thought.”
Judge Kelly interrupts…
Judge
Kelly: “I don’t believe there was any thought in the
Doctor’s mind as to money or stock. I don’t think he cared
what hot got, or whether he got anything, he seems to have been
interested only in the production of his machine and of getting
them out where they could do some good.”
Sapiro takes the witness.
Sapiro:
“Was there any arrangement under which someone was to send you
some shares of stock or receipt for some?”
Rife:
“No arrangement, only what might have been said.”
Sapiro:
“By whom?”
Rife:
“By the group, possibly Mr. Hutchinson.”
Sapiro:
“Do you recall what was said, anything at all?”
Rife: “I do
not.”
Sapiro: “I
show you a copy of the application for transfer of shares
subject to escrow, do you recall signing that Dr. Rife?”
Rife:
“Well, I signed several where I had a line up similar to
that.”
Sapiro:” Do
you recall this particular one?”
Rife:
“(After reading it through very deliberately) The only thing
that is at all familiar is this. (Pointing to signatures on
document).”
Sapiro: “Do
you recall anyone bringing such a document to you to sign?”
Rife: “This
I recall was signed in Mr. Hutchinson’s office. I was called
in to sign it and I did.”
Dr. Rife was excused from the stand. Edwards was called to the
stand.
Wednesday, June 28. Afternoon session.
Comperet: “Did Mr. Hoyland tell you at any time in
the fall of last year that the machines he was manufacturing for
Beam Ray corporation operated on a principle fundamentally
different from Dr. Rife’s machine?”
Edwards:
“Mr. Hoyland told me at one time that Dr. Rife thought that he
had the frequencies but he didn’t have them.”
Comperet:
“Do you recall last December when the corporation received
from the solicitors fro the British group a draft for a contract
licensing the British to manufacture the machines?”
Edwards:
“Yes.”
Comperet:
“Did you discuss with Mr. Hoyland the question of whether the
contract should be signed and sent back to the British?”
Edwards:
“Yes, when I received it I called Hutchinson and Hoyland and
told them that it had arrived. They both had access to this
paper. I have a copy to Mr. Hutchinson.”
Comperet:
“Did the executive committee have in their possession a
description of the principles of the Rife Ray machine, or did
they know the frequencies at which the machine should be set?”
Edwards:
“No.”
Comperet:
“You had no way of finding out through Mr. Hoyland?”
Edwards:
“Yes, I asked Mr. Hoyland if we shouldn’t sign this and send
it back, but Mr. Hoyland would not approve of it because the
British owed $5000.00 (five).”
Comperet:
“did you try to get Mr. Hoyland to give the frequencies to the
British.”
Edwards:
“Yes, I did, but he said that they already had them and he
wasn’t going to give them to them again. I said if they have
them what harm is there in giving them to them again?”
Judge
Kelly: “Did you know for a certainty that the British
had the frequencies?”
Edwards:
“Only that Mr. Hoyland told me so.”
Comperet:
“Did you know that there had been considerable correspondence
from the British concerning their wish to have the frequencies
and that Mr. Hoyland had these letters in this possession?”
Edwards:
“Yes.”
Comperet:
“Following that discussion with Hoyland, was there a cable
sent to the British in regards to the proposed contract which
you have there in your hand?”
Edwards:
“Yes.”
Comperet:
“Who drafted that cable?”
Edwards:
“Mr. Sapiro.”
Comperet:
“Have you a copy of it?”
Edwards:
“Yes, I think I have a proposed draft.” (He produced it).”
Comperet:
“You yourself didn’t choose the wording of this?”
Edwards:
“It was drafted following the meeting of the board f directors
which Mr. Sapiro attended. There was a resolution to the effect
that it should be sent in that form.”
Comperet consulted the minutes and found a record of the
resolution in the minutes of January 10th, 1939.
Comperet showed cablegram from Gonin to Beam Ray to the effect
that Hoyland’s cable had been received but that the British
would recognize the corporation only in their dealings. He
quoted from another cable, January 15th, 1939, ‘You
have broken original agreements, refuse to sign the revised
agreement, and have ignored Gonin’s cable.’ It went on to
say that the machines would be returned and that the British
would expect to have their money refunded. Comperet showed a
cable sent in answer to this, one which Edwards said he got from
Hoyland to the effect that it was the British who had broken the
agreement, etc.
Comperet:
“From whom did you get this information?”
Edwards:
“From Mr. Sapiro.”
(missing
words)
Edwards:
“Yes.”
Comperet:
“What reply did he make?”
Edwards:
“We asked several times and he refused. I even asked Mr.
Hutchinson if he would give them to us and put them in trust,
and I asked MR. Hoyland what we would do in the event of his
death.”
Judge
Kelly: “Did you or any of the directors try to get the
frequencies from Dr. Rife?”
Edwards:
“I didn’t think that we could, but since then I have gotten
them from Dr. Rife. When I asked Mr. Hutchinson to resign he
said that he would resign if Mr. Hoyland would give the
corporation the correct frequencies. As soon as I got this
Hutchinson, Mrs. Willman and Mr. Cullen resigned.”
Comperet:
“What finally happened to that sealed envelope?”
Edwards:
“Mr. Hoyland came over to my house with Mr. Kahn and asked me
for the two envelopes. I gave them both to Mr. Hoyland and I
have never seen them since. One was to his lawyer and was to be
delivered in the case of his death. I never saw the contents of
either envelope.”
Comperet:
“After Hoyland was dismissed as technical advisor was the
corporation able to carry on?’
Edwards: “No.”
Comperet:
“Who had been working under Hoyland?”
Edwards:
“Mr. Carson. I asked Mr. Carson to work for us, I told him
that he could get the frequencies from Dr. Rife. He said he
wanted to think it over and later he called me up and said he
could not go along with us.”
Comperet:
“As these machines were built, were they tested by an
oscillograph to see if they were correctly adjusted?”
Edwards:
“Yes.”
Comperet:
“Who paid for the parts that went in to the oscillograph?”
Edwards:
“I understand that Mr. Hoyland supplied the parts and the
corporation paid for the labor.”
Comperet:
“What happened to it after Hoyland left?”
Edwards:
“It went with Hoyland.”
Comperet:
“And the company could not check up on the machines without
it?”
Edwards:
“No.”
Comperet:
“How long was it before the company could get a new one and
train a man to operate it?”
Edwards:
“About two months.”
Comperet:
“And during that time nothing could be done about the
machines?”
Edwards:
“That’s right.”
Judge
Kelly: “Is this machine patented?”
Edwards:
“No.”
Sapiro:
“Your Honor, the machines can not be patented because the
theory has been known tool long.”
Judge Kelly:
“(to Edwards) Can the frequencies be patented?”
Edwards:
“No.”
Judge
Kelly: “Than anyone could manufacture the machine and
make it work?”
Edwards:
“Yes, if they knew the frequencies.”
Recess called. Afternoon recess. Edwards resumed the stand.
Sapiro cross-examines.
Sapiro:
“I show you Plaintiffs exhibit 25. Have you ever seen it
before?”
Edwards:
“No.”
Sapiro:
“Were you present at the meeting of the board of directors
October 3rd?”
Edwards:
“Yes.”
Sapiro:
“You remember a resolution which required Mr. Hoyland to write
this letter.”
Edwards:
“Yes.”
Sapiro:
“Isn’t that the letter that was submitted to the
directors in accordance with the resolution?”
Edwards:
“I don’t remember reading that letter.”
Sapiro:
“Did you ever inquire as to whether or not that letter had
been written and sent?”
Edwards:
“I don’t remember.”
Sapiro:
“Were the minutes of that meeting read at the next meeting?”
Edwards:
“Yes.”
Sapiro:
“Didn’t you ask if this letter had been written?”
Edwards: “I
presumed that Mr. Hoyland would write it. I honestly do not
remember reading the letter.”
Sapiro:
“Will you read it and see if it refreshes your memory?”
Edwards:
“After reading the letter I still do not remember reading
it.”
Sapiro:
“And you mean that you never inquired about the letter?”
Edwards:
“I don’t think I did. At that time Mr. Hoyland and myself
were on very friendly terms and I had no reason to question him
about it.”
Sapiro:
“Will you look in your records and see if there is not a copy
of that same letter with certain initials on it, including your
own.”
Edwards:
“Shall I look now?”
Sapiro:
“No, later. Didn’t you turn over to Mr. Hoyland the letter
and the cable from the British and ask him to take the matter
up?”
Edwards:
“Yes.”
Sapiro:
“And didn’t you and Mr. Hoyland and I go over the matter in
your court room, and weren’t we all in accord that the British
were trying to stall for time?”
Edwards:
“Most of them were telephone down to me and then Mr. Hoyland
picked them up at the telegraph office.”
Sapiro:
“Didn’t you make copies?”
Edwards:
“Yes, I saw that Mr. Hutchinson got one and I gave one to
you.”
Sapiro:
“Didn’t we have a free and full discussion of matters
regarding the corporation and the British at our meeting, and
didn’t you ask me to draw up the cablegram to the British?”
Edwards:
“Yes, we agreed on that.”
Sapiro:
“Wasn’t there accord on the board to the effect that what we
put in the cablegram was correct and should be sent to the
British?”
Edwards:
“After Mr. Sapiro came down and talked to us about this we
felt that we had complied. We had not had any legal advice until
then.”
Sapiro:
“Didn’t everyone of us feel that the corporation had
complied?”
Edwards:
“Yes, at the time we did.”
Sapiro:
“Didn’t everyone there say that the corporation had complied
up to date?”
Edwards:
“I don’t recall anyone making objection.”
Sapiro:
“Do you remember my asking if anyone present knew of any
breach of contract and that no one said anything?”
Edwards:
“Yes, but there was the matter of frequencies.”
Sapiro:
“That didn’t occur in my presence did it?”
Edwards:
“I don’t know.”
Sapiro:
“You knew that you could get the frequencies from Dr. Rife,
didn’t you?”
Edwards:
“Well, I assumed that Dr. Rife had them, but I never asked
them for them.
Sapiro:
“You knew that he had worked them out for his machine?”
Edwards:
I assumed that he had, and found out since that he did.”
Sapiro:
“You say that you had two envelops from Mr. Hoyland, one for
the lawyer and one for the lawyer and one for the
frequencies?”
Edwards:
“Yes.”
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