1939 Beam Ray Trial Transcript

 

Pages 51-60

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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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