Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-08-10
SUIT OVER PROFITS
OF: GOODW|NF|LM|
Anthony & ScoviIl Co. Charge
Fraud Secured Patent for
Ansoo Company.

NEW YORK. Aug. 1O-A suit
growing out of the recent payment
of Substantial sum" by the East
man Kodak Company for infringing
the patent Aim, invented by the late
Rev. Hannibal Goodwin, of Newark.
whose widow, Mrs. Rebecca Good
win, lives at 116 Montclair avenue,
that city, has just been begun in the
Supreme Court. The PLAINTIFF is
Charles Brock, who is acting on be-
half of himself and other stockhold-
ers of the Anthony & Scoville Com
pany, and the action is directed
against Ruel w. Poor, president of
the Garfield National Bank; Walter
H. Bennett, president and direc-
tor of the Al. can Exchange Bank,
and Thomas W. Stephens, president
Of the Ansco Company, that prose-
cuted the suit against the Eastman
Company for the infringement of the
Goodwin patent.
The complaint says that when the
Anthony & Scovill Company was in
finncial trouble in 1903 review of
the situation was undertaken by
which 1t was shown that the COM
pany had debts of about 100000, and
that as 1t appeared these debts could
not be paid and no more financial
aid procured, 1t was decided to sub
NIT the matter to the heavier credi-
tors of the concern This was done,
and a creditors committee was or
ganized with Mr.. Poor and Mr.. Ben
nett in practical charge Of the bust
ness, because the company owed
their banks the larger amounts
Then. according to the complaint,
Mr.. Poor and Mr.. Bennett laid out
a plan of reorganization which they
said could not be perfected unless
they had control of a majority of the
company's stock. Among the assets
Of the company was an agreement
the company had with Mrs. Goodwin,
widow of the inventor, by which il
held 500 of the 1880 shares of this
stock OF the Goodwin Film and Cam
era Company, which was organized
Tor the manufacture of the Goodwin
film, as well as an agreement to pur-
chase the rest of the stock for $780,
900. In 1902 the Anthony & Scovill
Company began suit against the
Eastman Company for the infringe
ment, and the prospects that the suit
would be successful were very
Z bright.
The complaint says that in accord
ance with the demands of Mr.. Poor
and Mr.. Bennett, all of these rights
were assigned to their banks and to
Mr.. stephens, representing the Ansco
Company. Then the complaint says
the Goodwin agreement was cancelled
and returned to the Goodwin Com
pany. This being done, the defend
ants, says the complaint, organized
the Ansco Company, which bought
the Goodwin rights for 5000 and
began to vigorously press the suit
against the Eastman Company. On
February IA last the suit resulted
favorably for them and the "substan-
tial sum" was paid by the Eastman
Company. 1t Is charged that the
scheme to take from the Anthony s.
Scovill Co. its rights in the Goodwin
Company was the outcome Of con-
spiracy and was undertaken with the
intention of defrauding the stockhold-
ers of the former company
The complaint says that the amount
paid by the Eastman Company, was
Big enough to pay to the stockhold ers
of the Ansco Company 100 per cent.
dividend, and 1t is also alleged that
the three defendants reaped harvest
of s403, 900. The complaint asks the
court to declare that the acts of the
defendants in connection with the
Goodwin patents be declared to have
been made in fraud and to order an
accounting of all the money and stock
they got from the Eastman Company.