Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-04-30
ROBBED, HE SAYS,
OF TRADE SECRETS
BIanch Accuses Murphy Var
nish Co. of Falsely Obtain
ing His Processes.


Declaring that the Murphy Varnish
Company of this city through three
of its officers inveigled him into dis
closing his secret processes for paint
and enamel manufacture and gained
from him valuable stock by misrepre-
sentation, Joseph = i3laach, former
president of the Blanchite Company,
brought suit before Vice Chancellor
Stevens today.
In his bill of complaint, filed by
Merit Lane, of Jersey City he de-
clares the company he is now suing
set out with the ayowed intention of
getting his secrets for thei' own use
and painted a rosy picture OF COM
pany of which he was to be president.
He was made president, he says,
but instead of the company being
successful it ran into debt owing, TO
what he termed. the wilful misman-
agement of the Murphy company.
Then, when they had no more use for
him, he says, they discharged him
and refused to give him a $4,000
interest he claimed, or to return his
secret processes.
Blanch. who lives in Weehawken,
sets ND in his bill that he organized
the Blanchite Paint Company in New
York in 1907, with capital stock of
100000 which was principally divided
among three stockholders, William
Tilt. $4,000 preferred and $4,000
common; Edward Close. the same
amount. and himself, $4,000 common.
He was president of the concern at
$50 a week and 5 per cent. of all
profits over 100000, under five-year
contract.
The company, he declares, did a
good business until 1909, when the
Murphy Varnish Company. through
Clarence Bissell and former Governor
Franklin Murphy, jr., made overtures
for some stock and in March, 1910,
purchased 80 per cent. If it. Blanch
at the same time bough. cat Close 8
interest paying $4,000 in cash.
The Murphy Company, he declares,
sought a controlling interest and to
get II had to buy some of Blanch's
and Tits stock, and took over all
his common and $4,000 of his pre-
ferred stock for $1,000 in cash, with
the agreement, he says, that they
would continue him as president and
use other money to improve the bust
ness. Tilt sold the same amount of
stock for the same price.
/ The following August. Blanch says,
he was told more capital was needed.
| The Blanchite Company was already
! indebted to the Murphy concern Tor
| 800 900 on a note. The Murphy COM
pany suggested disseminating the
| Blanchite Company in New York and
! incorporating in New Jersey. and, to
| make this possible. he says he voted
his stock with that held by the Muir
| ply Company.
| The Murphy Varnish Company.
| Blanch declares, was to invest 100000
| in the new corporation, providing the
! old concern. about to be dissolved,
would sell to the Murphy plant all
the assets at cost and out of the sale
pay the 500. 900 loan. The other debts,
Blanch says. were less than $4,000,
and the balance from the sale was to
| be divided among the preferred share
| holders to the extent of 100000 of
which his share would be $4,000. Then
| he was to receive either $4,000 in
cash or one-fifth of the stock for his
| inventions. This looked good to him,
he says. so he voted for dissolution.
| Then. he declares, he began to see
| things In a new light. He got moth
ing, he says. except one share of
stock to qualify him as a director
| so he could serve as president, which
| he did at $50 a week The Blanchite
| paints were made on a separate floor
in the Murphy factory in Chestnut
street, this city, but they were sold
! under the Murphy label at more than
| 300 per cent. profit, he says. and all
the while the Murphy Company
sought to get his process secrets.
Finally, Bland declares, he was dis
! charged
! Now he seeks to collect the 10000,
or the 20 per cent. of stock the re-
turn Of the processes and an account
! ing from accrued benefits. the specific
performance of the Murphy company S
alleged agreement to push the bust
ness, his reinstatement under the old
contract, and to enjoin the com
pany from using his secrets or max
ing them known to anyone else.
John r. Hardin, of Pitney. Hardin
| & Skinner, defended the suit for the
Murphy Varnish Company. He de-
clared the processes are no longer the
/ property of Blanch, having been
turned over to the company under the
contract. Blanch. on the stand, adj
mitted he had no title to them The
defense declares Blanch was not dis
charged as president. but that he omit
! OF his own accord