Deconstructing Beam Rays
Incorporated Searching
For The AMA
By Shawn Montgomery
3-30-7

In the interview with Professor Hubbard and Ben Cullen is revealed a grand conspiracy orchestrated by the American Medical Association to stop the proliferation of Rife's Beam Ray Machines.   The primary villain in Cullen's conspiracy is Morris Fishbein, the founder of America's corrupt medical status quo. Fishbein spent his entire tenure as Chairman of the AMA (1925-1949) obsessively and ruthlessly attacking anything he could successfully label as "quackery." He has written massive volumes on the topic. Morris Fishbein also has a recorded history of corruption. He was infamous for using his sway as the powerful AMA Chief to "buy into" or "buy out" any legitimate medical device, drug or process that crossed his path. "Buy into" for profit, or, if it competes with already profitable enterprises, "buy out" to suppress - this was Fishbein's "modus operandi." It is difficult to find any information on Morris Fishbein that does not condemn him. Most writing on him is authored by people who are outraged by him, his activities, and his very existence as head of the AMA. There is one glowing report on his life that is over a thousand pages long, but that is his self-written autobiography, which reads like a study in self-aggrandisement. By all other accounts Fishbein was a shameless self-promoter, a propagandist, a salesman - his greed and arrogance knew no bounds. He was never a doctor but he dispensed general medical advice to the nation as if he were God (and of course obfuscated the fact that he never practised medicine, nor could). He soaked doctors, patients and manufacturers of medical devices (and drugs) across the nation for every penny he could squeeze out of them through fees and kickback schemes, fines, dues, options, advertisement gimmicks, racketeering and misuse of the Association Journal - the list of Fishbein scams is endless. In short, for the AMA at large, he was a complete embarrassment. He was considered by nearly all to be an unfortunate barnacle that had somehow affixed itself to leadership in the Association and who was now running the organisation as if its only purpose was to support him making piles of money for himself while basking in his own glory. They finally figured out a way to get rid of him in 1949. It must be really embarrassing for the AMA today. They have a website containing a "History of the American Medical Association Archive." If you go clicking through it you will find that their great leader for 27 years is given hardly a mention.   Also hardly mentioned is the fellow who Fishbein replaced in 1925, one George Simmons. Look for George Simmons in the AMA history archive. He was their leader for 25 years between 1899 and 1925. You won't find much on him either. Not the juicy stuff. You won't find details of his shameless huckstering, snake-oil salesmanship and outright sexual and criminal misconduct. That stuff was all printed up in the scandal sheets of the day (and the major newspapers), but for some reason escapes AMA archives. He printed flyers saying he was a "specialist in women's problems" and that "...a limited number of lady patients could be accommodated" at his office. George Simmons printed a lot of flyers, making a lot of claims. As head of the AMA he specialised in using his position to aid in his selling of many "snake-oil" type products. The noose finally came for Simmons when he was caught secretly dosing his wife's food with psychotic drugs and then trying to make her think she was crazy so she'd be committed to a mental asylum (presumably leaving him free to "treat" his "lady patients.") His wife luckily figured out that what was happening to her was not sudden-onset insanity, but that she was married to the sleazy George Simmons, head of the American Medical Association for 25 years, who was poisoning her with "medicine." It was a huge scandal. The newspapers ate it up.   Simmons protégé was Morris Fishbein. When the heat of the scandal became too intense, Simmons quietly stepped out of the spotlight and allowed his student to take over the post as Chairman and President of the Association (and Chief Editor of the Journal). This position Fishbein quickly consolidated and he soon found that he had the power of a Czar and such means at his disposal to reap enormous profits through just about any confidence scheme he could cook up. Again, you won't find that information on the AMA website - but the colourful activities of Fishbein (and Simmons) did not go unnoticed and are well-documented. Or, you could read Fishbein's autobiography for the opposite of what happened.   Now, as far as I have been able to find (and I've looked) Morris Fishbein has never mentioned Rife in print, nor is he quoted mentioning Rife, acknowledging Rife, condemning Rife, meeting Rife, or in any way communicating with or about Rife. The only connection between Fishbein and Rife comes from Cullen's conspiracy allegations: an octogenarian with a cancer tumor on his cheek was healed by the Rife Ray in San Diego and then later encountered Fishbein in Chicago. Through this man, Fishbein not only discovered Rife, but saw verification as to the reality and efficacy of this procedure. According to Cullen, Fishbein then dispatched two agents from Los Angeles, the mysterious Kahn Brothers, to approach Beam Rays Incorporated and "attempt to buy into the company." Beam Rays Inc., it is said, declined their offer. So the Kahn brothers then bribed one of Rife's partners, Philip Hoyland, with $10,000 to compel him to proceed as their agent, or as Cullen calls it: "their stooge." Suddenly Hoyland had a high-priced, famous lawyer at his side, one Aaron Sapiro, who Cullen says was "paid by the AMA." Together they attempted a hostile take-over of Beam Rays Inc. through a contrived lawsuit aimed at replacing the Board of Directors (and positioning Hoyland and his gang as the replacements). It is said that concurrent to these activities, the AMA was also "visiting" doctors who were using Beam Ray Machines in their practice in Southern California and warning them to stop it lest they lose their license - to wit they stopped. An epilogue to the story is added concerning Rife's reaction to these events: So shaken and disturbed by what was going on, he became a neurotic. Doctors prescribed Brandy as a relaxant. Rife took their advice to the extreme and became a life-long drinking alcoholic.   Cullen told virtually this same story, on tape, to Hubbard in 1976, and to John Crane in 1959. John Crane has repeated it to anyone who will listen. Much of what we hear today about the Beam Rays trial and the AMA comes from Crane and Cullen. Crane got most of his info from Rife and Cullen. Most everyone that knew and loved Rife, hated John Crane, except Ben Cullen. Rife is on tape alluding to AMA involvement in his professional demise, but there are no specifics. He is certainly on record condemning the AMA in general. Rife says that, "there isn't any AMA... there's an American Drug Syndicate... they're the ones..." (and then goes on to name few Big Pharma companies).   Henry Siner (in an upcoming interview in this series) an associate of Rife's and quasi-witness to the events, tells virtually the same story as Cullen, but in a very general way, without detail.   Bert Comparet, Beam Rays Inc.'s attorney for trial, gives a detailed (but incomplete) account of the proceedings. He doesn't mention the AMA, Morris Fishbein, the Kahn brothers, a bribe, or attorney Aaron Sapiro's alleged connection to the AMA. Though Comparet does describe a conspiracy engineered by Philip Hoyland and a man named C. R. Hutchinson - he doesn't mention any AMA connection. He does describe the Beam Rays trial as simply a lawsuit - a squabble for control of a corporation that seemed to have a cure for cancer.   So the extent of the testimony that alleges the AMA was involved in Rife's downfall is limited to Rife, Siner, Crane and Cullen. John Crane met Rife in 1950, ten years after the salient events took place, so any information he contributes must be considered hearsay. Henry Siner was in England in 1938-39 and his statements as to AMA culpability amount to the generalities one would expect from someone reporting events not directly witnessed. Siner repeats the accusation as statements of assumed fact. For example, statements like this: (Siner) "Well that was the beginning of the downfall of the whole thing: his drinking problem. And that started out, I believe, when the AMA locked horns with him. He just wasn't emotionally up to taking it."   Rife, the ultimate witness to the events, fares no better than Siner in providing us with verifiable information that would shed light on this matter. Broad accusations and wide generalities abound in Rife's surviving testimony. For example, this from Rife's obituary in the Daily Californian (newspaper) "He accused the American Medical Association of rejecting his electronic therapy discoveries and implied the organization had "brainwashed and intimidated" his colleagues as well as "feloniously censored" the publication of his work. "I certify that the AMA and the Department of Public Health have declared war on Rife's Virus Microscope Institute" said the affidavit signed Feb. 7, 1967." This, and a few other statements like it, are all we get from Rife. This leaves us with Ben Cullen's account, which details this alleged conspiracy like no other available indictment. Cullen was informed through admissions made to him by actual conspirators and through his own eye-witness recollections of events. John Hubbard is adamant about Ben Cullen's credibility.   While in San Diego in 1976, Professor Hubbard visited the court records room and obtained microfilm of all the trial proceedings: affidavits, depositions, subpoena orders, court motions, demurs - most of the trial's paperwork - including all counter-proceeding documents. In an attempt to verify Cullen's account of AMA involvement in the demise of Rife's enterprise, a thorough examination of that "enterprise" is in order We will look for any corroborative or circumstantial evidence that supports Cullen's assertions.   A History Of The Company Called Beam Rays Incorporated. (As gleaned from Hubbard's 1939 Beam Rays trial microfilm, a transcript of the trial, a variety of letters and other documents that have survived, and testimony from various recorded conversations)   Rife had a big, hulking "contraption" that filled one wall of his laboratory. It was his "Frequency Instrument" - a souped-up, variable-frequency oscillator that delivered it's power to a helium-filled glass tube which served to re-radiate the signal coming from the contraption into a "ray." It was found that this ray could destroy any microbe colony within range, depending on the frequency of energy put out by the device (thus the "variable" part). Over the years, through painstaking experimentation, Rife had accumulated a long list of frequencies that, when applied through his Frequency Instrument, were found to kill many different germs responsible for diseases like leprosy, influenza, strep, tuberculosis... even cancer.   After perfecting the technique and learning many frequencies that were mortal to microbes, it came time for Rife and a bunch of big-time doctors to set up an experimental clinic to try this method on people suffering from the diseases caused by the bugs on Rife's list. Rife had made some new machines that were more compact than the original contraption. Though still quite bulky, one of these was sufficiently portable to allow for its relocation from Rife's lab to the clinic where the initial trials would be conducted. In the end, it was found that the "ray machine" was one hundred percent effective. Many terminal patients with cancer and tuberculosis were cured. This was in 1934.   To get it into more experimental clinics and further analyse these effects they needed more machines. They also needed the device to be smaller and more compact to maximise portability. This is where Philip Hoyland came in. One of Rife's most eminent colleagues, Dr, Milbank Johnson, a man spearheading this push to get the ray device into clinics, knew a radio repair man in Pasadena (Hoyland) who might be up to the job of engineering the contraption into a portable device that could perform the same as the over-sized original. Thus was born the Beam Ray Machine: a Hoyland-built miniaturised-copy of a Rife-built prototype. So off to the clinics the Beam Ray Machine went - and it was a smash success. Cures right up and down the line. The thing was a bonafide cure-all - provided you tuned it to the correct prescribed pathogenic frequency using a precise methodology. This was 1935-36.   This is where the Rife story becomes a bit of a maze. There were many things happening at the same time, on several different fronts, with many "situations' overlapping each other. There were the original clinical trials conducted by the so-called "Special Medical Research Committee." That work was being carried on by Dr. Johnson, and a Dr. Couche at "the Scripp's Ranch" in La Jolla (where the clinical trials were first conducted in 1934). Also, Dr. Johnson had started another clinic in Pasadena using the first compact model of the instrument constructed by Philip Hoyland. While this was taking place, Johnson was also trying to introduce Rife's work in cancer to other research facilities so they might take up and verify their new discoveries. Using super-microscopes of his own invention, Rife had discovered a cancer virus that had a very complex life-cycle. Attempting to understand these complexities was a task that consumed Rife and other associated scientists (including Johnson) for several years.   Meanwhile, Rife was having a new laboratory built, Philip Hoyland was making more Beam Ray Machines, and Ben Cullen was trying to start a business of his own that had nothing to do with Beam Ray Machines. Cullen was still working with Rife, helping out wherever he could - but he was also branching out. Cullen was dreaming about turning his know-how in aviation (which was considerable) into a business. He conceived of a correspondence school in aeronautics - a scholastic course for the aerospace industry that Cullen himself would write. To this end he approached a corporate promoter named C.R. Hutchinson for help. Of his association with Cullen, Hutchinson says this:   "About October of 1935, Mr. Cullen came to me with a contract for the organisation of a correspondence school of aeronautics and asked me to either join his or advise him how he could put over and operate this school. At that time I was associated with Roscoe Turner in connection with an Aero device. I was also associated with Amelia Earhardt. I discussed this with them after many meetings. Mr. Fickerson stated that he was willing to go along as our legal advisor if I would accept the active management. We closed a contract for five western states for sales rights. We formed a California Corporation through Fickerson of Los Angeles. He was our attorney and handled the legal details. The organisation consisted of Olmstead, Cullen and myself. That corporation was known as Aero Reserve School Western Division. The necessary permits were taken out and I made a trip east and contacted the then Virginia Corporation Aero Reserve School officers. I secured for Cullen, an additional contract showing and advising the Virginia corporation officials that it was to the best interest of all that the sales organisation from the west coast if divided up would be better if the six additional western states were included. They gave such a contract. A new company was formed called United Polytechnical Institute."   So in 1935-1937, Cullen, Hutchinson, and John Olmstead, were developing an Aeronautics School and subsidiary corporations (U.P.I.); Rife was working with various doctors on his cancer etiology, and building a lab; Hoyland was further developing the Beam Ray Machine, making refinements and modifications; Johnson was working with Dr. Couche at the clinic in La Jolla and at his own clinic in Pasadena (also with Philip Hoyland). Dr. Johnson was also helping Rife get his new lab operational.   1938 was the year that the tangled knot known as Beam Rays Inc. was formed. The "knot" began as a series of relationships concerning the Beam Ray Machine. It started with a vacation. Dr. Couche took a break from his clinical work with the Rife Ray at La Jolla and travelled on vacation to his homeland: England. While there, Couche met some doctors who became very interested in his exhilarating accounts of the work with Rife back in San Diego. The apparent "leader" of these British doctors, and the most impressive, was Dr. Winter Gonin, the very wealthy and renowned personal physician to King George. Among his cadre of associates were physician Dr. Blewitt and a specialist in electro-medicine, one Dr. Parsons. Dr. Couche wooed these men with tales of advanced microscopes, a cancer virus, and ray machines that kill bugs and cure disease. Soon Gonin and his associates were making plans for a trip to America to meet Rife and to hopefully negotiate a purchase and/or licensing agreement to take some of his stuff back to England with them. Couche returned to San Diego with news of this impending visit by wealthy British doctors seeking a contract.   Now, as we well know, Rife was an inventive genius. He could do just about anything he wanted to when it came to tinkering, building, conceptualising, formulating or configuring. But when it came to "the art of people" - Rife was a bit of a dummy. Rife was the first one to admit that he was "not a business person." It appears that he not only disliked and was inept at it, but he seems to have had a sort of psychological aversion to the worlds of finance, selling and promotion - "business" in general made Rife shudder. So imagine his trepidation at having among his inventory of inventions a little box that demonstrably cures cancer and any infectious disease - a thing that not only needs to be marketed, but demands it. So what did Rife do? He started giving away ownership and control of his invention in order to pass this "business responsibility" onto others. He signed over 55 percent ownership of the Beam Ray device to Philip Hoyland. Rife gave him a controlling interest because he felt that would provide just enough incentive to make it work. Rife's attorney, Gordon Gray, the man responsible for notarising the agreement, thought this was insanity and counselled Rife to substantially reduce Hoyland's percentage. But Rife was adamant. Hoyland had designed and built the version of the machine in question while working for Rife over the last few years for very little pay. It was fair. The deal was struck (but not yet drawn up and signed).   Then, Dr. Couche's news arrived. They needed to act fast as the British doctors were due in a matter of weeks. Hoyland and Rife knew they'd need a structured corporation to perform any business, purchase orders or licensing agreements the British had in mind. Neither knew how to deal with the problem of making the necessary arrangements with not enough time. Caught with their pants down, the word was put out: Help! Re-enter Ben Cullen who introduced his business associate C.R. Hutchinson to Rife and Hoyland. They asked for Hutchinson's help as corporate advisor and promoter. Hutchinson declined their offer. The plea was repeated several times in a week. Clearly Hutchinson could see exactly what was going on: the potential for huge earnings and a chance to be in on the dispensation of "the cure for cancer." He was holding out for a better deal - which, several meetings later, he got. The pending ownership deal between Rife and Hoyland was then suddenly revamped. Ownership of the Beam Ray Machine (and all the inherent rights therein) was split into roughly thirds: Rife 30%; Hoyland 36 and 2/3%; Hutchinson 33 and 1/3%. Rife would oversee science operations; Hoyland would be the chief technician, engineer and mechanic with regards to manufacturing the machines; Hutchinson would set-up, manage and promote the business.   This agreement was mitigated by an atmosphere of confusion brought on by a spontaneous "side-deal" that Rife had made in a remunerative moment of generosity. Recall it was Ben Cullen who was presenting Hutchinson to Rife as a possible answer to their organisational problems. One evening in Rife's laboratory while they were trying to interest Hutchinson in joining the enterprise, Rife suddenly conferred onto Cullen certain rights to the Beam Ray Machine. Maybe this was done to impress Hutchinson, maybe it was done because Rife felt Cullen should have a stake in a project that he had helped with from its inception. Whatever the reason for it, Cullen was given an option on the Beam Ray Machine - the right to arrange for its manufacture and distribution with the stipulation that any deals he made should provide the Owners with a royalty.   By this time Dr. Gonin and his associates were embarking on their trip across the Atlantic to meet and deal with them. Haste was essential - so Hutchinson proposed a plan. It was a bit complicated, but perfectly legal. Everyone signed on and off they went.   The problems they had to surmount were twofold: one) Get their business identity status in order so that they'd have an actual position to present to the British doctors; and two) Raise some capitol so they could build more machines and cover costs. All of this had to be done yesterday. Hutchinson's suggested course of action was this: Take Cullen, Olmstead and Hutchinson's pre-existing corporation, "United Polytechnical Institute," and simply convert it to house the Beam Rays venture as a "holding." U.P.I. absorbs Beam Rays (which hadn't actually been named yet). The plan was to later change the name to "Beam Rays Inc." and forget about developing a correspondence school for aviation in favour of manufacturing and marketing an actual device that cures disease. Of course, Hutchinson, Cullen, Olmstead (and others) had stock in this now-converted company so they, as a result, had an interest in this new configuration. Cullen, therefore, suddenly owned a large amount of stock in (what was soon to become) Beam Rays Inc., by virtue of Hutchinson's corporate absorption manoeuvre. So did Olmstead... and many other people who were shareholders and board members of the soon-to-be-former U.P.I. Also, Cullen's "option" was "folded" into the deal and in consideration of this he was awarded another giant chunk of stock.   So, the set up of Beam Rays Inc. was implemented through a series of contracts:   a) Rife made a deal with Hoyland for a 55/45 split in ownership of the Rife-conceived -Hoyland-built ray device.   b) That deal was then revamped to include Hutchinson in a rough three way split for ownership of the device.   c) Then a "side-deal" between Cullen and Rife where Cullen was given an "option."   d) Then the three "owners" of the device signed another contract with a company called U.P.I., (formally named United Aero Schools and slated to become Beam Rays Inc.). This was a contract of the "invention owners" conferring rights to "Beam Rays Inc." to manufacture, sell, lease, license and otherwise control the device.   e) Then, this company (Aero Schools/U.P.I./Beam Rays Inc.), signed yet another contract with the British group of doctors conferring to them exclusive territorial rights to manufacture and sell the device in the U.K. This agreement included the delivery to the British of four Beam Ray Machines for their use in developing their new license - prototypes for their R&D and manufacturing departments.   f) Several deals were made with various "investors" for the purpose of acquiring capitol to conduct the business of Beam Rays Inc. These deals were mostly quasi-legal stock transfers made by Hutchinson to other people. Some of these "investors" became Directors on the board of the corporation as well as Shareholders.   g) Several individual deals between Beam Rays Inc. and various doctors in the Western United States concerning the sale or lease of Beam Ray Machines for use in their clinics.   h) And finally, a completely separate deal between Rife and Dr. Gonin regarding the commissioned manufacture of a virus microscope that had nothing to do with Beam Rays Inc.   By the time the British doctors arrived in San Diego for their first meeting with Rife and this new company, there was ample evidence that Beam Rays Inc. had been busy. A flurry of extensive, detailed articles suddenly appeared in the local newspapers: the San Diego Tribune, the San Diego Union and the Evening Tribune. Coinciding with the arrival of the British doctors, and through the first week of their stay, the headlines read:   "Dread Disease Germs Killed By Radio Waves San Diegan Claims; Specific Destroyer of all Deadly Microbes, Hope; Cancer Organism Isolated"   and   "San Diego Doctors Await Rife Ray Medical Tests; New Principle in Microscope of San Diegan Inventor"   and   "San Diegan's Microscope Magnifies 30,000 Times; Fly Would Look Like Monster Under Local Scientist's Instrument"   and   "Dread Disease Germs Destroyed By Rays: Cancer Blow Seen After 18 Year Toil By Rife; Apparatus Seen As Boon To Medical World."   Rife himself had embarked on a local lecture tour. He visited Men's Clubs, High-Society meetings, Business Association dinners and various other community groups regaling these respective gatherings with tales of his "works-in-progress." Rife was dazzling when he was on stage, in charge, and the centre of attention. If this was "promotion" then it was of the sort that Rife could handle.   The Rife/Beam Ray/Super-Microscope paradigm was about to "break out of the box." The whole operation was "almost famous." When Dr. Gonin and company arrived from England they found that the act of having dinner in public with these people garnered their own headline: "Visiting Doctors Honor Point Loma Scientist at Dinner."   The Gonins (the doctor and his wife) stayed with the Hendersons while in San Diego. The Hendersons were an elderly couple that figure into this story as more than just hosts to the Gonins. Benjamin Henderson was a retired military man, possibly moderately wealthy, and a shareholder in the (former) U.P.I corporation. As a result, Mr. Henderson was a shareholder in the current Beam Rays Inc. incarnation and thus had an interest in the forthcoming Gonin/Beam Rays deal. Henderson would be called as a witness in the ensuing Beam Rays trial. Mrs. Henderson's part in this is much less mundane. She had developed breast cancer. She was refusing treatment because that meant a mastectomy and she couldn't deal with permanently disfiguring surgery. Apparently Mrs. Henderson, even for a woman her age, had a "stunning figure." The idea of parting with her "robust curves," even if to save her life, was not something she was prepared to do. It didn't look good for her. She was being eaten by cancer and she was dying. Her subsequent disfigurement was apparently well advanced when Ben Cullen heard about their plight and brought her to see Rife. Then, in a matter of months, Rife (with Dr. Couche) essentially "cured" her of breast cancer. Mrs. Henderson's breasts were almost fully restored to their former glory - she was still taking the last of her treatments with the Beam Ray Machine when the Doctor and Mrs.Gonin arrived as guests from England. Mrs. Henderson also became a shareholder in Beam Rays Inc. and was also called as a witness in the Beam Rays trial.   For the wealthy Dr.Gonin, this trip to San Diego to visit the mad-scientist/genius Royal R. Rife would turn out to be the wind that filled his sails for the rest of his life. Unlike many other doctors and scientists who had visited Rife's laboratory and, for various reasons of their own, "refused to see what was right in front of their eyes," Gonin saw. What Gonin saw was that everything in this wonderland-of-analytical-science known as "The Rife Research Laboratory" was integral to the whole. If you wanted to take "the work" out of this lab and put it into another lab you could not do it simply by duplicating the technology in another place. There is an implicit exacting methodology by which the technology must be employed. The "work" or "the hard part" of any "Rife research" resides in the "levels of exactitude" one must employ in the application of this technology to obtain the desired results. This is true for every element of the "Rife paradigm" - the optical light path in his microscope must be precisely aligned to within mere microns, or it won't work; the Mortal Oscillatory Rate of a microorganism is of an exact frequency and the generation thereof must be from stable electronics, or it won't work; The pH level of a culture media must be adjusted to a defined parts-per-million-ratio, or it won't work; to look at the cancer virus the illuminator of the Rife microscope must be aligned to 12.and 3/10 degrees, or it won't work... and on and on. Gonin saw all of this and knew what to do.   After his return to England he would ready a laboratory designed and built to Rife's suggested specifications. Rife would be commissioned to build a microscope for Gonin; personally transport it to England; and stay at the new laboratory for as long as it would take to teach the British Team the "ins and outs" of Rife's cancer research and bacteriology studies - a spare-no-expense effort to red-carpet Rife into the heady (and highly influential) spectrum of Gonin's ilk: the British high-science Glitterati. And that was the plan for the microscopes, the cancer work, the bacteriology studies and for Rife himself... but when it came to the subject of "that Ray Machine over there..." Gonin was met with, "Well, you'll have to talk to Beam Rays Inc. about that." And so, somewhat perturbed by the sudden "corporate" edge that emerged when the Beam Ray Machine came up, Gonin and his compatriots went to deal with "a Mister Hoyland and a Mister Hutchinson," over the matter of obtaining some machines to take home.   The deal Gonin settled on with Beam Rays Inc. was this:   For $51,000 Gonin would receive delivery of four Beam Ray Machines. Two of them would be the bulkier research models for laboratory research and development, and the other two would be the smaller, sleeker treatment models designed for clinical use - all with specific instructions for calibration, troubleshooting and other service requirements (including MOR frequencies). As well, an exclusive license and territorial rights for the U.K. to manufacture and sell Beam Ray Machines. The details of royalties and other financial considerations would be worked out upon delivery of the last operational machine. Gonin gave Beam Rays Inc. $15,000 to get the deal rolling and construction of the machines started. He returned to England to ready his laboratory and await their arrival.   Meanwhile, the summer of 1938 was one of expansion for Beam Rays Inc. Perhaps it was the publicity from the recent articles in the newspaper and Rife's lecture circuit, word of mouth from doctor to doctor, or maybe it was the promotion work of Hutchinson paying off - whatever the cause, Beam Rays Inc. started to get orders for machines. Reports vary as to the number of frequency machines manufactured and made available to area clinics - the numbers cited range between six and fourteen. Hoyland got busy constructing them (he employed a team of men to do the actual work), and Hutchinson got busy finding "investors" to help pay manufacturing costs. The Board of Directors and Executive Officers of Beam Rays Inc. - Cullen, Olmstead, Hutchinson and others - worked out ways of providing equity to those with interest in the company. Within its bizarrely complex corporate structure, the titles of Stockholder, Director, Executive Officer and Owner were often all shared by one person - Hutchinson for example was all of these. Hoyland was an Owner and a Shareholder at first and would become a Director later in the fall of that year. Rife was an Owner and a Shareholder. Many of the Directors were elected because they owned some stock. Not all of these transfers of stock and title were as formal as they ought to have been. The issue of the legality of these manoeuvres would later become one of the premises for the lawsuit against the company.   During the summer of 1938 Rife travelled to Philadelphia to visit an eye doctor who was treating him for advancing blindness brought on by the cumulative thousands of hours he spent over the last ten years focusing into his microscope eyepiece. While in the east, Rife also conferred with several colleagues and tried to get his official documentation, passport and birth certificate in order in preparation for his upcoming trip to England. While Rife was away things began to unravel in San Diego.   The manufacture of the four British Beam Ray Machines was finished in August. They were crated and shipped to England. Significantly, this was done without Rife's final inspection and approval. This would come back to haunt them. It was Hoyland who packed and shipped the machines to England. Later, when the crates finally arrived in London, there would be trouble for Hoyland. However, by the time that problem arrived Hoyland would be immersed in other troubles. It seems that Beam Rays Inc. started to have problems with the machines that were already sold and being used in clinics. It wasn't long before it became apparent that Hoyland's revamped design for the Beam Ray Machine was unstable. Hoyland was constantly called upon to go to the doctor's office and "fix the machine"- recalibrate dial settings; service a leaky tube; solve over-heating issues; solve "frequency drift" problems... etc. As the summer of 1938 waned Beam Rays Inc. started to become unglued.   In reading the letters, transcripts, depositions and such, there is a sense that a stark realisation was slowly dawning upon them - both collectively and as individuals - that this hastily arranged business venture might be as inherently unstable as Hoyland's machines were turning out to be. Everyone started fighting. Arguments surfaced regarding issues of propriety; "consideration;" the odd stock transfer arrangements that Hutchinson was setting up to acquire funds; what to do about machine instability; who should, and how to, deal with the British... etc. The driving force behind the tension was the realisation that the centrepiece of their burgeoning empire - the "invention" - was practically worthless. The Beam Ray Machine was unpatentable. It was a variable frequency generator hooked up to a helium tube - it couldn't do anything different enough or distinct from already existing equipment to be eligible for patent consideration. It was obvious to all that the only things of value in the process they were endorsing (or selling) were the MOR frequencies. And they only had value if they were secret. So secret were the frequencies that nobody knew them except Hoyland, (Rife of course) and a few others. The Board of Directors, the Executive Officers and the Shareholders of Beam Rays Inc., did not, and were not allowed to know the frequencies. There was a panicked sense among them that it was only a matter of time before this whole thing spun out of their control.   The British doctors finally received their four Beam Ray Machines in mid-September after an inexplicably long transit time in shipping. To further frustrate them, the crates were held in British customs for several weeks awaiting clearances. While the crates were in transit, prior to their delivery, Gonin and his associates were communicating with Hoyland and Beam Rays Inc. (via Hutchinson) by way of constant Western Union telegraph messages. Hoyland was being "difficult" with regard to delivery of promised circuit and design information as stipulated in the British contract. This "promised" information included a list of the "Rife frequencies" or the numerical MORs that were at the heart (and the secret) of the system. After much delay Hoyland finally sent the requested schematics, including the frequencies. To the British doctors, the delivered frequency information was unintelligible. They repeatedly asked for clarification. Hoyland replied repeatedly that the frequency information had been delivered to them but was unintelligible because it was "in code." He insisted that they should be able to use the machines to figure out the code to determine the actual numerical frequency values. The British replied, saying essentially, "That's ridiculous, we don't have the machines yet - give us the damn frequencies like you agreed!" This went on for weeks until the Beam Ray Machines finally arrived in London. Then a new, even bigger Hoyland-wrinkle was revealed. The British doctors found the machines didn't work as specified. Two of them weren't even wired together properly - with open connections, loose, hanging wires and components not even hooked up. Two other machines bore obvious physical damage. The two that at least turned on when plugged-in operated sporadically, both putting out radically different signals. The British found themselves with four unreliable machines that could not even be used to help "decode" Hoyland's bizarre frequency encryption.   Needless to say, Gonin and associates were quite perturbed and demanded immediate action by Beam Rays Inc. to help correct the situation. But Hoyland's response to the British was to adopt a posture of stubbornness and intransigence. So the British tried to do an "end run" around him and contact other members of the Board of Beam Rays Inc. to find out what was going on. This of course brought the Board of Directors down on Hoyland with loud inquiries echoing the British as to what in hell was going on. The whole episode brought the question of the "Frequency List" to a head within Beam Rays Inc. Hoyland's position was this:   (Paraphrasing Hoyland) "Using my oscilloscope I determined what the frequencies were from Rife's old machine and then transferred them to my new machine. The original correct frequencies (that Rife had) were derived from the dial settings on Rife's old machines. This is an inaccurate way to ascertain what the exact final output frequency will be. Better to read the applied frequency directly from my oscilloscope, like I have done. I therefore have an updated list of these new, more accurate frequencies. We all agree that this information must be kept secret, it being the only component of value from an unpatentable product. Because it is through my labour that we have this list, and because I am a majority owner of the invention, then I will be the bearer of the secret. It will be dispensed on a "need-to-know" basis only. The Board of Beam Rays Inc. does not need to know what the frequencies are."   The effect here was that Hoyland was subtly discrediting Rife's frequency list while saying his newly derived list contained not only the "real" frequencies, but that they belonged to him alone. The Board argued that maybe all of this was so, but the contract they have with the British clearly puts Gonin in a need-to-know position, so, "why do you not send them the frequencies?" Hoyland's repeated answer was, "I already have sent them the frequencies, in code." The Board further inquired as to what they were supposed to do about the frequencies in the event of Hoyland's untimely death. Hoyland said (disingenuously) that they could of course get the frequencies from Rife - but to protect against all-out catastrophe he enclosed copies of the "new" frequencies in two sealed envelopes. One he gave to his attorney and the other he gave to Board Director George Edwards to be opened only in the event of his death.   Where was Rife in all of this? He was keeping as far away from Beam Rays Inc. as possible. His distance from the proceedings was aided by the fact that Hoyland and Hutchinson were not revealing important details of their contact with the British, either as individuals, or collectively as Board members of Beam Rays Inc. and co-Owners of the invention. In fact they were shielding from Rife most of the company's business. Gonin was in constant contact with Rife, but his dealings were concerned solely with the microscope and Gonin's new laboratory. Gonin, who knew of Rife's aversion to "business," did not discuss with him (via-mail) their trouble with Beam Rays Inc. (and Hoyland) until months later when the situation became dire. By then it was too late.   Meanwhile, Rife was having little progress building Gonin's commissioned microscope due to his recent trip east and other distractions - and Gonin was "champing at the bit" for a Rife microscope to begin work in his lab. Gonin made an offer to speed things up. There was a young microscope assistant in Rife's employ, 22 year-old Henry Siner. Well-versed in Rife's laboratory techniques, microscope operation and bacteriological theory, Siner, a "quick study," had been involved with Rife for only a few months prior to Gonin's first visit. Gonin proposed that Siner make preparations to leave for England as soon as possible. He would come to Gonin's lab in Kent and bring with him Rife's Number Four Microscope. Gonin would return this borrowed microscope when Rife finished construction and delivery of his own (Gonin's Number Five Rife Microscope). In the meantime, with the loaned Number Four Microscope and his new wife in hand, Siner was to move to England to work in Gonin's lab in preparation for Rife's forthcoming visit. Siner was completely enthusiastic about the proposition and they began preparations for his departure.   By this time Philip Hoyland had deeply immersed himself into Beam Rays Inc.'s affairs. He had always attended their Board meetings as a Shareholder, Owner and technical Chief, but on September 6, 1938 he was elected a Director of the Board (with a little help from Hutchinson). The timing of this was perfect. Hoyland was to be on hand (in a power position) when his packaged crates filled with broken Beam Ray Machines arrived in England. As one of the Directors, Hoyland was in a much more privileged position within the company for the ensuing months of heated negotiations (or non-negotiations as it were) with the British regarding coded frequencies and inoperable machines. It would seem that at this point, in September and October when both Hoyland and Hutchinson sat on the Board of Directors together, that certain conspiratorial activities began in earnest involving a confederacy between the two. Most of the other people involved with Beam Rays Inc. (including Rife) were "frozen out" of the British deal as Hoyland and Hutchinson dominated. All negotiations (amendments, adjustments and such) concerning the British contract and most overseas communications with them were filtered by Hoyland and Hutchinson.   Now, a new and very complicated element came into play. Hoyland sent a letter to the British as soon as he became a Director which stated that the "first party" of their agreement appeared to be wrongly assumed (by the Brits) to be Beam Rays Inc. when in fact it was the Owners. On the face of it, this assertion seems to be upside-down and illogical - the reason Beam Rays Inc. had been formed in the first place was to create a "first party" to manage, manufacture, sell, lease and license the Beam Ray Machine so that the technology could be conveyed to various "second parties" (the British among them). This letter Hoyland sent to Gonin seemed to deny this. The position Hoyland was taking (or had begun taking) was that Beam Rays Inc. was merely an intermediary between the two parties in the deal: the Owners (first party) and the British (second party). Because of this, all monies paid by the British respective to the contract should be made payable to Philip Hoyland or other "first party" Owners and not to Beam Rays Inc.   In a literal way, Hoyland was right. But he was correct only in fact, not in principle. It appears that nowhere in the contract between Beam Rays Inc. and the Owners do the Owners confer exclusive licensing rights to Beam Rays Inc. or any right to sub-license the invention to other companies. It was, however, the intention of everyone involved with the contract to do this, indeed it was the reason the contract was created in the first place, but somehow it wasn't included in the actual final wording. Therefore, according to Hoyland, Beam Rays Inc. signing a contract with the British that conferred licensing powers was clearly a case of a corporation selling rights that it did not itself possess. The contract between Beam Rays Inc. and the British seemed to be inapplicable to the deal they were trying to make because the contract between Beam Rays Inc. and the Owners did not actually specify the conveyance of powers that would make such an contract legitimate. The oddity of this situation lies in the fact that the matter of the conveyance of licensing rights from the Owners to Beam Rays Inc. was fully hashed out between all involved parties. Indeed it was one of the most discussed elements of the whole contract negotiation - that and the question of dividing interests and powers within the group. Later, the absence of specific wording about "licensing" in the written contract was explained by confusion brought about by the numerous manifest drafts of the agreement and the "unskilled labour" that was employed in the legal offices where they were typed out. Also, several other related agreements were being drawn up simultaneously - a tangle of interrelated contracts - so this added to the confusion.   During the upcoming trial, everyone, including Hutchinson, testified that in the early summer of 1938, after protracted and detailed discussion on the matter, Beam Rays Inc. signed a contract with the Owners of the Beam Ray Machine that conferred exclusive, world-wide licensing rights onto the corporation including the right to sub-license - or at least this was the intention of everyone involved. The omission of that stipulation in the wording of the contract was inadvertent. The only person who disagreed with this position (in court) was Philip Hoyland. He firmly held the position that there were no talks about exclusive licensing rights being given to Beam Rays Inc. during the course of contract negotiations and such language is absent from the contract because such rights have never been discussed or conferred. Hutchinson of course (in court) denied any knowledge of this situation prior to Hoyland having brought it up. He had to take the position (the same as everyone else) that the license situation was based on an unintentional contractual error. To admit to believing that Beam Rays Inc. didn't have valid licensing rights was to admit to being in a conspiracy with Hoyland to exploit said situation - not something that Hutchinson was prepared to do on a witness stand. As it stood in the fall, it appears as if Hutchinson did know about this and conspired with Hoyland to marshal the British deal into this new interpretation of the situation - without informing Beam Rays Inc. In other words, Hutchinson and Hoyland went behind the back of their own corporation (in which they were both sitting on the Board) to steal the contract out from under the company in favour of the Owners.   Rife, the third Owner, was oblivious to these machinations. He put his complete trust in Hutchinson and Hoyland as managers and facilitators of their shared ownership of the invention and was not in the least suspicious of anything they told him of their affairs with Beam Rays Inc. or anything they asked him to sign pertaining to those affairs. Thus, a pliable, vulnerable and somewhat inept Dr. Rife allowed himself to be manipulated by people he trusted. By the time he caught on to what was happening, it was too late. With greed being the apparent motivating factor for Hoyland and Hutchinson, it seems as if they were both of the belief that two Owners are better than three - if the two are they.   Deceitful action was not limited to marginalizing Rife's involvement in the enterprise by keeping him in the dark and using him as a document-signing puppet. As time went on and different versions of the Beam Ray Machine came out of Hoyland's workshop - it started to become something that was so technically far removed from Rife's original approach that it was (from Hoyland's perspective) debatable whether or not Rife had a stake in it anymore. Rife's old device was a big, clunky, modular "contraption." Hoyland's new machines were smaller, sleeker, and portable. Hoyland combined recent advances in electronics with sophisticated circuit design - more advanced than the "old school" circuitry Rife had employed. Further, on Rife's old device the dial settings indicated the frequency of the output signal and the device itself was simply a large, modular frequency generator that provided particularly high power ratings in certain high-frequency band-widths where the MORs resided. Hoyland's new machines took the MOR frequencies and hid them within the circuitry of the machines so that the dial settings would not give the true output frequency but an encoded numeric equivalent. The output signal on Hoyland's machines was generated by an indirect means within the machine, unlike Rife's original device (whose output signal was generated directly). In other words, Rife's old machines were designed to mainly present the frequency in question and Hoyland's new machines were designed to mainly hide the frequency in question. This is what was behind the "code" confabulation with the British. Hoyland's machines were indeed coded to mask the frequencies while delivering them. And this brings us to the final point of difference in the two machine camps. Rife's original machines were high-frequency devices. He found that the MORs for most bugs were in the radio range of frequencies - very high. So Rife's "frequency instruments" were designed to provide maximum power at these higher ranges. Hoyland changed all of that and in doing so he messed with the frequencies. Hoyland's idea was to convert Rife's discovered MOR frequencies by mathematically translating them down to a lower harmonic - like playing the same note on a piano but several octaves lower. Hoyland's machines used these "harmonics" to do the work of hiding the frequency. The result was a whole new set of numbers - a whole new set of frequencies - a whole new set of MORs - a whole new electronic encryption method to scramble these new numbers - a whole new waveform - a whole new power signature (fundamentally different than the old one) - a whole new bandwidth - a whole new approach - a whole new machine. This, from Hoyland's point of view, was what they were dealing with now. This was his invention, and the only thing left to do was to get everyone else to see it this way.   So, Hoyland was not only conspiring with Hutchinson in this power gambit against Beam Rays Inc. using license irregularities in the Owner/company deal, but he was also (simultaneously) conspiring with Hutchinson to slowly freeze Rife out of their shared ownership deal. This, at least, is what attorney Bert Comparet believed - as evidenced by a close examination of their behaviour at this time.   It is amazing that Hutchinson didn't see it coming, but unbeknownst to him, Hoyland had another bit of underhandedness that he was preparing to unleash - this time on Hutchinson. Apparently Hoyland never told Hutchinson that he believed there was a better proposition than "two Owners are better than three." It seemed Hoyland's new inspiration was "one Owner is better than two (or three)." Hutchinson was about to be eliminated. In order to pull this off, Hoyland would need a patsy. He found one in the person of George Edwards, a Director of the Board for Beam Rays Inc. Hoyland laid the groundwork for his move against Hutchinson by protracted manipulation of George Edwards. Hoyland and Edwards had "many meetings" - at Edwards' house, at restaurants, at the Courthouse where Edwards worked as a clerk - all alone and all secretly (until of course later when they both had to speak to it at the trial). The topic of their discussion was the horrible disarray in the affairs of Beam Rays Inc. and what to do about it. Edwards was alarmed by Hoyland's arguments that Hutchinson was to blame for all the problems in the company - that Hutchinson had entangled the corporation in a labyrinth of weird stock transfers that nobody really understood and that were probably illegal - that Hutchinson is a disaster and must be dealt with. It should be noted here that Edwards was not a bright man. "He is not a suspicious man, his mind works slowly," is one of the ways Judge Kelly (from the Beam Rays trial) phrased his condition. This is important only because it shows that it was likely that Hoyland dominated their conversations. It appears that Hoyland was using Edwards for several things: 1) to subvert Hutchinson's position within the Board of Beam Rays Inc., 2) to set the stage for the presentation of a "solution" to the problems, 3) to supply rhetoric to Edwards (by convincing him of things) so that "a Board member of the company" would back up Hoyland's (soon to be announced) ownership claims on the contract, 4) to help smooth over the strained relations Hoyland was having with the Board and Stockholders of Beam Rays Inc. as a result of the trouble his unstable machines were causing the company as well as the trouble caused by his stalling on the British deal.   The Brits had stopped payment on several checks as a result of the "train wreck" they received in the mail (busted Beam Ray Machines) and Hoyland's dodgy behaviour in response to it. Meanwhile, Hoyland was secretly preparing a legal challenge to Hutchinson in a document that renounced all contracts made with him and all right or title that Hutchinson may have in the Beam Ray Machine as an Owner, and in Beam Rays Inc. as a manager and shareholder (based on various grounds to be examined later). Preparations were being made to kick out Hutchinson by buying him out. Hutchinson suspected nothing. Hoyland's conversations with Edwards were apparently meant to lubricate passage of this motion within the company (Hutchinson's company) when it was finally presented.   But then, on Halloween, just before Hutchinson was to be approached and challenged, Dr. Gonin made a move. A cablegram arrived from England stating this: "Distressed no reply to our recent cable. Can you send representative authorised to act to meet Gonin, New York. November 17? Reply." When this got no response, like many cables leading up to it, the British then sent this cable on November 3rd: "All convinced you do not get our cables or letters. Could you meet me New York, November 17th with power of attorney to discuss situation? Fear losing funds offered us. Signed Gonin."   From Gonin's perspective, he was getting "the run around" from Beam Rays Inc. He was funding the microscope deal and his arrangement with Rife out of his own pocket, but for the Beam Rays deal there were "investors." Gonin was having trouble stalling these men - unable to show them a working investment and afraid they would feel he had led them (and their money) into a con - he wanted a meeting with Beam Rays Inc. to resolve all the troubles and uncertainties. There were amendments to their contract with Beam Rays Inc that Gonin wanted to discuss (and to sign). He also wanted answers to the technical questions that plagued them ever since receiving the broken Beam Ray Machines.   When retrospectively observing the machinations of Philip Hoyland during this time (like we are doing here) it is difficult to determine exactly what Hoyland's "end game" was with respect to his activities with the British. Did he wait for a situation to develop, or did he engineer the situation's development? Did he, by being unresponsive to important cables at a critical time, force Gonin to call a meeting in New York - or did Gonin's call for a meeting in New York upset plans that he already had in motion? It is difficult to say. As it was, Hoyland and Hutchinson would meet Gonin in New York as Owners and convince him to make all checks payable to them as individuals (and Owners) instead of Beam Rays Inc. the company. The malfunctioning Owners/Beam Rays deal was basically a contract that Hutchinson signed with himself. His interpretation of what was truly represented in the arrangement would be the most credible. With Hutchinson at his side, Hoyland had someone with him who was sympathetic to the idea of sneakily reinterpreting the British deal in light of his hitherto reinterpretation of the Owner/Company deal. Together, Hoyland and Hutchinson would carry the argument better than any one of them singly. They would tell Gonin he is making incorrect assumptions regarding the nature of the Beam Rays/Owner contract and is therefore confused about who gets the checks in the Beam Rays/British contract. It appears their plan was to baffle Gonin with blarney. It was perfect for Hoyland to have Hutchinson there in New York and a simple matter to forestall his planned blindside attack on him until a more opportune time.   Both of them resigned from the Board at the beginning of November, just days after receiving Gonin's final plea to meet on the 17th. There is a document signed by the remaining Board that gives Hoyland and Hutchinson the power to speak for the company at the New York meeting in light of their new non-Director status. It is certain that Hoyland leaned on his puppet George Edwards to help sell this very suspicious looking arrangement to the rest of the Board so as to be able to extract a signed Power of Attorney deferral out of them. Having signed such a document implies the Board accepted whatever explanation was provided which justified two Board members quitting just prior to crossing the country to represent the Board they just resigned from. They both testified that at their meeting in New York, Gonin never asked to see the Power of Attorney document which implies they didn't tell him that they were no longer on the Board. This would further enhance their position because Gonin would perceive their interpretation of the contracts as endorsed by Beam Rays Inc.- indeed as originating from the company.   Hoyland and Hutchinson returned from New York having successfully conned Gonin out of several thousand dollars in checks. This was money still owed (from previous stop-payments) - new checks made out to Owners Philip Hoyland and C.R. Hutchinson. However it wasn't long before Gonin, after conference with his "investors" upon his return to England, immediately put a stop-payment order on these new checks and sent this cable: "Without prejudice must not pay checks since payment under original contract is to company not individuals." The reasoning that Hoyland and Hutchinson used to convince Gonin of their rights as Owners regarding the contract between Beam Rays Inc. and the British did not convince Gonin's legal council back in England. The invalid checks to the Owners were stopped. To replace the cancelled checks, Gonin made out corresponding checks to Beam Rays Inc. and immediately sent them.   In light of Gonin's apparent rejection of this attempt to insert the Owners as a "first party" entity into the British contract with Beam Rays Inc., Philip Hoyland reverted back to his former multi-tiered plot: get rid of Hutchinson - get rid of Beam Rays Inc. - marginalise Rife. To do this, it appears that Hoyland had a new element laying in wait. To lubricate the landscape for the introduction of this new element into the affairs of Beam Rays Inc. Hoyland utilised George Edwards. Hoyland's plan for bringing this new element into play was to have it appear as if said introduction was not Hoyland's idea, but Edwards'. (An imagined conversation based on the admitted details and dynamics of the situation):   HOYLAND: George, if there was only something we could do to get this wonderful cure away from the clutches of Hutchinson and safely back to the original plan introduced by dear Dr. Rife: a sympathetic group dedicated to putting the machine into as many clinics as possible and with the know-how and ability to do it.   EDWARDS: I agree. That's what's needed.   HOYLAND: Okay George, since you think we need to find another group that can handle this task, do you happen to know anybody up to the job?   EDWARDS: No. Do you?   HOYLAND: I may know somebody who might be up to this job that you say needs to be done. There are some friends of mine from Los Angeles. This kind of thing might be right up their alley. Do you think I should contact them and see if they are interested in your proposal.   EDWARDS: Absolutely.   And so that (or something like it) is how Philip Hoyland introduced the mysterious Khan brothers into this affair. Recall that these Kahn brothers (or Mr. Khan, or just Khan), are alleged to be, according to Ben Cullen's repeated testimony (in interview, not at the trial), agents of Morris Fishbein, Supreme Dictator of the American Medical Association. Recall also that this is an allegation that stands alone (it has never been alleged by anyone other than Cullen) and has never been proven. Cullen gave eyewitness testimony to Philip Hoyland's admission that he was bribed by Khan with $10,000 to scuttle the whole (Beam Rays) operation. Cullen said this admission took place afterward, when the smoke had cleared from the trial, adding that Hoyland was "very sorry and wished to God he'd never accepted it." It should be noted that even if it is true that Khan bribed Hoyland with $10,000 to scuttle Beam Rays Inc., this in no way proves (or even implies) an AMA connection to Khan - that he (or they) were working as an agency of the AMA. Leaving aside the spectre of the AMA for a moment (we will be back), the question does remain that if Hoyland truly did receive a bribe from Khan - then when did it happen? Did Hoyland meet Khan (like he says) around the same time that he prompted George Edwards to ask for their introduction? Or, was it several months prior, before Hoyland crated and shipped four suspiciously inoperative machines to England? Or, might it have been even before that? What little Hoyland says of Khan appears to be deliberately vague - in early December he indicated to George Edwards that at that time the Kahn's were "friends." On the other hand, Hutchinson indicates (in his deposition) an early acquaintance between Hoyland and Khan going back to the inception of Beam Rays Inc. in the spring. He characterises this acquaintance as a "conspiracy" which culminated when Hoyland sought "an opportunity to make a more favourable agreement with said Kahn and others for the right to manufacture and distribute the Rife Ray Machine." The general testimony among most participants was that Khan was there with $100,000 to inject into the enterprise and a business plan that put Beam Rays Inc. to shame - in effect Khan wanted to buy out Beam Rays Inc. and take over completely with a new contract with whatever Owners were still standing when the dust settled (ie - Philip Hoyland). Khan was Philip Hoyland's attempt at a coup to eliminate all obstacles to maximum profit in one fell swoop - Rife, Hutchinson and Beam Rays Inc.   In mid-December the Khan brothers were presumably waiting in Los Angeles for Philip Hoyland to soften up George Edwards in preparation for their introduction to Beam Rays Inc. Their arrival in San Diego was preceded by the arrival of another character who is identified by Ben Cullen of being yet another agent of the AMA, one Aaron Sapiro, a high-priced and famous Los Angeles attorney. Sapiro came with a colourful bio. At the time he was officially retained by Philip Hoyland on December 20, 1938, Sapiro was languishing in the twilight of his highly controversial career.   Sapiro came to the Beam Rays trial as "the famous lawyer." More than a decade previous he successfully sued Henry Ford (yes, that Henry Ford) on charges of defamation and libel in a widely publicised show trial: Sapiro vs. Ford. Industrialist Henry Ford believed that the infamous tract "The Protocols of the Elders of Zion" was a true statement authored by agents of an "international Zionist conspiracy." He also believed that this conspiracy had infiltrated (and was infiltrating) into the echelons of power in all sectors of society. Ford used his smallholdings in the publishing industry to print long indictments speaking out against this perceived threat, promoting the notion that the "Protocols" speak to an actual conspiracy and group. Detailed within these articles were the activities of one Aaron Sapiro, proclaiming him to be a "change-agent-provocateur" whose work was on behalf of this Jewish conspiracy. Sapiro had been active in many parts of the United States and Canada promoting and organising "farming collectives" to help small farms unify in the face of encroaching governmental regulations. Ford saw this as communism, and he saw communism as merely a political control matrix wielded by the "International Jewish Threat." Ford published his opinions on this matter, or rather, he had his opinions published. This was a big mistake for Ford because Sapiro was not the kind of guy to just let that go. He came back at Henry Ford with a $1,000,000 libel lawsuit. Ford had gone too far and was about to become the world's most famous anti-Semite. "Henry Ford Sued In $1,000,000 Libel Suit" makes an enduring headline. By the time Sapiro was finished with him, Ford was forced to retract all of his "crazy talk" about Jewish conspiracies and apologise in print to all Jews everywhere for being such an offensive fool.   Five years after this affair, Aaron Sapiro was himself indicted on racketeering charges - busted while working for Al Capone in the infamous "Chicago Racket" in 1929. His subsequent connections to Meyer Lansky and the nefarious group known as Murder Inc. of the so-called "Jewish Mafia" finally got him disbarred in New York State and put him on the FBI watch list. He was still under suspicion (and possibly also under surveillance) when Hoyland came knocking. At that time he was languishing in Los Angeles as an entertainment lawyer with clients such as composer Igor Stravinsky and actor John Barrymore. Though not in his prime, Sapiro did not come cheap. Most people, including the Judge in the imminent trial, wondered how Hoyland could afford such an expensive attorney as Aaron Sapiro.   Back to San Diego in December of 1938: Hoyland and Hutchinson returned from their New York meeting with personal checks obtained through the bizarre contractual re-juxtaposition of their "first party" status as Owners within the British/Beam Rays Inc. contract. It is impossible to know what "end game" either of them had in mind with regard to how all of this was going to play out when they returned to San Diego. Wouldn't personal checks instead of company checks raise some questions from the Board of Directors? The whole situation is confused by lies told in the retelling. Hutchinson denies ever talking about, knowing about, or even thinking about the idea that Beam Rays Inc., his company, did not have a world-wide exclusive license on the machine. But Hutchinson, also an Owner of the machine, is the guy who signed a contract with himself containing the significant omission that set up the situation. Hoyland testifies that Hutchinson was constantly talking about his plans to license the machines to other manufacturers to compete with Beam Rays Inc. - thereby implying that he knew and believed that the company didn't have an exclusive license. It is possible that both of them were lying (for their own reasons) and that their lies cancel each other out. Hoyland might be lying about what he knew of Hutchinson's knowledge and Hutchinson might be lying about his own knowledge. In other words, Hoyland may be lying, but that doesn't mean Hutchinson was not doing what Hoyland disingenuously said he did - and himself lying about it. This looks to be the case, with the caveat that Hoyland's lies were probably closer to the truth.   When they returned, there was no inquisition. The Board appears to have been asleep at the wheel. It is unclear what anybody was doing at the time with the exception of George Edwards. Already a Director of the Board, he was also recently elected Secretary. As well as being under Hoyland's influence, Edwards was reportedly also under Hutchinson's domination. The only reason he was there to begin with was because Hutchinson brought him in. Edwards was one of Hutchinson's "investors" who joined the company when he supplied Hutchinson with cash in exchange for stock and title. Since such transfers of stock must be registered with and approved by the Corporate Securities Commissioner and since that process takes time and money he didn't have, Hutchinson found another way around the situation. There was provision in his title that he could give away portions of his own stock as a "gift." So he "gave" Edwards a "gift" in the form of a large chunk of stock in his company. And Edwards gave Hutchinson a "gift" of a roll of bills. Edwards was then elected to the Board of Directors. Then he was elected Secretary. Hutchinson performed this stock-transfer-gift manoeuvre with several people, most of whom were currently sitting on the Board, or had so in the past.   In mid-December then - after the return from New York, after the British cancelled their checks to the Owners, and after constant cables from Gonin trying to get straight answers on the situation - Hoyland was again conferring with Edwards to find fault with Hutchinson and blame him for all the current woes of the company. It was suggested that Hoyland should engage the help of some friends in Los Angeles who may be interested in helping to reorganise the company should they successfully oust Hutchinson. In response to this, Hoyland brought Aaron Sapiro to meet George Edwards. Sapiro would drive home the nails that Hoyland had set to prepare the way for the Khan brothers.   They met in an empty courtroom at the courthouse where Edwards worked as a clerk. It may have been the very courtroom where the Beam Rays trial would take place. Edwards, the Secretary of the Board, brought the ledgers and minutes from all past Board meetings of Beam Rays Inc. Sapiro was presented as Hoyland's new attorney. The three of them talked for hours about the problems in the company. Sapiro then sat down with the company's books and for several more hours examined all the previous affairs of Beam Rays Inc. - their contracts, their stock records, the minutes from all meetings going back several years prior to Beam Rays Inc. - back into the history and development of UPI and Cullen's Aero Reserve School, the fledgling companies that gave birth to the present form. After his inspection of the "books" Sapiro reported finding many improprieties, irregularities and what looked like outright illegal manoeuvres within the company's current and previous business affairs. Upon hearing Sapiro's conclusions, Edwards panicked. He said he had no idea the company was doing anything illegal and wished to resign immediately. As mentioned above, Edwards was apparently not a bright man. The wilting putty he became in the hands of these two characters evidences this. Sapiro advised him not to leave but to stay and help put things right in the company. The attorney offered a plan. He would go to the Corporate Commissioners Office in Los Angeles with Philip Hoyland and cross-reference Hutchinson's suspected stock improprieties against the official record. Assuming they would find the expected evidence of illegality, they wanted to formally present "the case against Hutchinson" to the Board of Beam Rays Inc. as soon as possible. Edwards agreed to gather such a meeting. Also, Sapiro wanted to meet Rife and talk with him about his position as an Owner in this situation   The following week they convened an informal meeting at Rife's laboratory. Rife was there of course, as were Ben Cullen and a few shareholders in the company. The only person present from the Board was George Edwards. The rest of the Board of Directors and Hutchinson were conspicuously absent. They didn't know this meeting was taking place and everyone at the meeting knew they didn't know. This was to be a conspiracy against them. Hoyland had brought his attorney (Sapiro) to lay out his position to the others. They had brought the Khan brothers with them. After the litany of problems in the company was revealed, the Khan brothers would be offered as a solution. The meeting began with Sapiro reporting on their findings at the Corporate Commissioners office in Los Angeles. It looked indeed like Hutchinson's stock transfers within the company were illegal. Sapiro laid out the case against Hutchinson. In the end, the message delivered was: "Everybody is in trouble because Hutchinson has involved the company in illegal activities. Now that you are aware of it, if you don't do something about it immediately then you are a criminal."   The case laid before him was news to Rife. Rife trusted Hutchinson to manage the company and he trusted Hoyland to make sure that he did it honestly and with alacrity. Rife didn't want anything to do with "business" so all he had was his faith that he made the right decision when he handed it over to Hutchinson and Hoyland. Hoyland was now saying they both had been conned - that Hutchinson's behaviour in the company was predatory, abusive and criminal. Rife was shocked by this news and immediately sided with Sapiro and Hoyland in condemnation of Hutchinson. As for George Edwards, horrified and embarrassed to hear that his presence in the company was a product of Hutchinson's criminal business practice, he repeated his offer to quit. Again he was assured by Sapiro that the best move was to stay and help with the dissolution of Beam Rays Inc. Sapiro argued that Hutchinson had involved the company in too many improper activities and irreparably problematic contracts. It appeared as if the British group were preparing litigation against Beam Rays Inc. The only way to deal with this, argued Sapiro, was to dissolve all legal association with Hutchinson followed by dissolution of the company. Then, a "New Corporation" would be formed. Contracts with the Owners (minus Hutchinson) and the British would be renegotiated. The spin on this "Plan" as Sapiro presented it was: "If you don't do exactly as I tell you and implement this plan to the letter, then you are a criminal." With that, the Kahn brothers were presented as "the New Corporation" along with a detailed plan for transferring the business of Beam Rays Inc. into their own. Ben Cullen reported in his interview that the President of the Kahn Realty Company tried to "buy into" Beam Rays Inc. That may have been a misinterpretation because, as delineated in the subsequent paperwork (most of which was preserved as "Exhibits" in the trial), clearly, Kahn did not try to "buy into" the company but instead intended to outright "buy" the company. Part of the Kahn restructuring plan included "paying off" Hutchinson as well as settling any "consideration due" on all interests affected by the take-over. To the Kahn Corporation would be deferred all licenses, rights and contracts formally intended for Beam Rays Inc. To this arrangement, they also introduced the sum of $100,000 as the amount they would invest in the new company to "jump start" its stock portfolio.   What did everybody think about this? Rife, bristling from the suggestion that he might be involved in illegal activities was willing to do anything to correct the situation. His position was, "Whatever you think is necessary to fix this, I'll support it," - apparently unaware that he was again making the same mistake that he made with Hutchinson in the first place. It appears that the Kahn brothers were not in this for Hoyland's benefit but for their own. From their perspective, getting rid of Rife was insanity. They didn't want to marginalize him as was Hoyland's approach. It is evident that Kahn saw Rife as a goldmine and sought to exploit him. Sapiro's strategy put Rife right on their side. It appears that nobody wanted to disagree with Rife. Edwards was in an awkward position as the man who would facilitate the demise of his company. His job was to go to the remaining Board of Directors and prepare them for a "special" Board meeting with Sapiro wherein the attorney would inform them of what was expected of them as a response to current events. Sapiro/Hoyland/Rife would draw up a legal document, addressed to Hutchinson, that would be provided to the Board. The Board would deliver the challenge to Hutchinson. The document would serve notice to Hutchinson of the intent to oust him, the reasons for it, and the demands upon him to facilitate his own ouster. It was Edwards' job to make all of this happen smoothly. It was Ben Cullen's job to just stand there with his mouth shut while strangers from Los Angeles invaded Rife's laboratory and quietly explained to everyone (in the most pernicious way) that they were taking over. Cullen wasn't buying it, but he didn't say so at first.   There was the implicate understanding through all of this that Sapiro was acting as Hoyland's attorney. This notion was supported at the end of their initial "laboratory meeting" when Sapiro brought up the question of his compensation. In retrospect this appears like a deliberate ploy by Sapiro to set up the situation where he could act with their sanction as their collective attorney while not being officially named as such. This distinction would be important later. Everyone knew Sapiro was a "high-priced famous Jewish lawyer from Los Angeles" and they were probably all quietly wondering how Hoyland could afford him. They themselves wanted no part of an "invoice" for this meeting or responsibility for the legal paperwork Sapiro proposed to generate on their behalf. It was finally agreed that Sapiro was working as Hoyland's attorney to manage his interests in the machine and in Beam Rays Inc. and as such he was acting as an agent (but not lawyer) for the corporation on Hoyland's behalf. However, the corporation would pay him for his related work on their behalf only if in the end his plan (and all his labours in service of it) came to fruition. In other words, Sapiro got them to agree to pay him to manage the demise of their company but only if they were successfully destroyed in the process and only if he was not considered their lawyer while he was doing it.   The effectiveness of Aaron Sapiro's "shock and awe" performance at that initial meeting in Rife's laboratory was immediate - everybody was ostensibly "on board" for what must happen next: get the Board of Directors behind the plan for a broadside surprise-attack on C. R. Hutchinson. They were at least momentarily convinced by Sapiro's spin that to NOT eviscerate Hutchinson would be illegal. But in the days after the laboratory meeting, doubt began to set in. Cullen was dubious about Hoyland's part in all of this and saw the company's troubles stemming mostly from the engineer's faulty machines and his inexplicable behaviour toward the British. The positioning to demonize Hutchinson looked to Cullen like a diversionary ploy. George Edwards was having trouble with the idea that he was required to deliver to his friend, C. R. Hutchinson, a Shakespearean denunciation and devastating betrayal of loyalty. He had to also convince the remaining Board of Directors that they should take Sapiro's advice and slit their own throats while stabbing their manager in the back. Tempering Edwards' trepidation were the constant assurances by Sapiro that the Secretary/Director was a victim of Hutchinson's greed - that indeed the whole enterprise had been corrupted by their manager's illegal activities. According to Sapiro, they were all victims. Then, as if in a further effort to quell any swelling doubt, Kahn went into action. There was a week of "wining and dining." The benefits of a "New Corporation" were dangled. Cash flowed. There was a lot of "talk." The perils of not going along with "the Plan" were emphasised.   Ray Williams, John Ernsting, Ray Reynolds, and Charles Winter, the standing Board of Directors of Beam Rays Inc., were suitably informed by Edwards of the situation so that when they finally sat with Sapiro and Hoyland on Jan. 5, 1939, everybody in the room knew what was going on and why they were there absent their manager. For their benefit Sapiro again laid out "the Plan" with emphasis on the consequences of not following it. It was back to the demonization of Hutchinson in an attempt to get "the Plan" on track and the Board "online" with it. According to Sapiro's audit of the company's books, the entire enterprise was illegal and must be fixed. Then out came the document that the Board was to present to Hutchinson. This was a several page indictment against Hutchinson and a list of demands that included his resignation and the complete reversal of all that he had done in the company. Included was an outline of the "New Corporation" proposed by Khan and a procedural list of all Hutchinson must do to help implement it. The document seems to be an expanded version of what Hoyland was going to present to Hutchinson in early November, before its presentation was postponed by their trip to New York to meet Gonin. It was also clearly a blueprint for the termination of Beam Rays Inc. The Board of Directors, seeing "the Plan" set before them and now fully aware of the extent of Hoyland's intentions and the implications thereof, told Sapiro/Hoyland the obvious: Hutchinson will never agree with, or sign, this document - ever. Sapiro told them that he knew it would be tough. Hutchinson wouldn't just roll over, he needed to be prodded. It was the Board's job, being "victims" of Hutchinson's stock shenanigans, to do the prodding. Four days later the letter to Hutchinson was delivered.   Then, a new development surfaced. Recently, the British doctors declared that they had been forced into the position where they must sue Beam Rays Inc. because of the outright breaches of their deal and the company's steadfast refusal to correct the matter - all incidentally Hoyland's doing. Incredibly, as the overseas deal disintegrated, the company allowed Hoyland to conduct their faltering affairs with the British through Sapiro. Sapiro was directly counselling on the British question and his advice was that if they kept Hutchinson and his company intact then the British had a good chance at successful litigation - however if they all just followed "the Plan" then Dr. Gonin would see reason, forget all about this lawsuit nonsense, and renegotiate a new contract with the "New Corporation" as per "the Plan." The British were saying that Beam Rays Inc. hadn't kept up their end of the bargain. All along Hoyland sought to convince everyone that this was untrue as far as technical matters were concerned. He believed the British were stalling for time so as to delay payments and argued that their company was not in breach on the technical matters that Gonin was complaining about. But now, a new development had arisen from the smoking ruins of the British deal. This development complicated the implementation of Sapiro's plan, indeed it threatened to upset it entirely. Gonin had sent a new contract in a last ditch effort to avoid proceeding with their threatened lawsuit against Beam Ray Inc. Because the company appeared to be unwilling to honour their previous contract and unwilling to coherently discuss why - then a new contract was dispatched addressing all previous concerns in the form of amendments to the old contract. This was to be signed and honoured by Beam Ray Inc. and then they could continue doing business as if all the unpleasantness hadn't happened. Gonin was supremely embarrassed by all of this upset because of the other side of the coin - his microscope deal with Rife. By now, Henry Siner and his wife were settling into life in England. He had arrived with Rife's Number Four Microscope, on loan to Gonin until Rife finished manufacturing his own scope (the Number Five). Gonin and Siner were working together everyday tooling up the British doctor's new lab in preparation for Rife's imminent arrival. Gonin had to juggle his exhilaration with Rife and Siner against his exasperation with Beam Rays Inc. and Philip Hoyland. In sending his new proposal when he did, Gonin probably didn't know how perfect his timing was for upsetting Aaron Sapiro's "plan" to smoothly replace one company with another back in San Diego. Gonin gave those who doubted Hoyland something to latch onto as an alternative to self-destruction. As it was, a new contract had arrived from England that promised to solve most problems in the company. Wouldn't it be better to sign the deal to avoid a lawsuit rather than commit suicide to manage a lawsuit? Sapiro was adamant that they not sign the new British deal. Hoyland was adamant that they not sign the new British deal. Everybody else wanted to sign the new British deal. This was a problem for those supporting "the Plan."   It is difficult to know what Hoyland's true position was on the British deal. Were all the "problems" accidental, or were they by design? Did he, as attorney Bert Comparet describes it, "sabotage" the machines he sent to England, or were the broken machines just an accidental mistake? Was all the confusion about "coded frequencies" a deliberate ploy, or was it Hoyland strictly (and perhaps unfairly) adhering to the letter of the agreement? Was Hoyland deliberately trying to compel the British to sue them so the threatened lawsuit could appear to be the legitimate impetus for his action against Beam Ray Inc. and Hutchinson, or not? It is possible that Hoyland was planning to compel Gonin to sue them for a while - maybe right back to before he shipped the broken machines to England. This might have been Hoyland's "end game" all along. His reasoning behind this alleged "sabotage" may have involved Khan and it may not have. Exactly when they became involved is unknown. We have reason to doubt the accuracy of Hoyland's version of these events (which implies a Hoyland/Khan association just prior to the middle of December), but we also have reason to doubt Hutchinson's version (which specifies a Hoyland/Kahn association as far back as April). They are both demonstrably liars especially on matters of suspected conspiracy. Kahn may have had nothing to do with Hoyland back at the beginning - instead, the engineer's own greed may have been behind the disaster the British deal had become. He may have seen a way he could manipulate the British situation so as to personally get a better deal in the end. As it was in January of 1939, impending British litigation was the perfect catalyst for Hoyland's take-over bid. The scrambled affairs of their company urgently needed to be sorted out to properly deal with the British suit. Now it looked like the British situation might work itself out if everybody behaved reasonably. But Hoyland was having none of that so it was time for a tantrum. He argued: Regardless of the situation with the British contract (not because of it) Hutchinson must be eliminated. Because of his (supposed) illegal stock activity the company's very existence was rooted in confusion, deception and unfairness. Hutchinson must be dealt with and the company restructured. Sapiro, tag-teamed with Hoyland, argued that signing under duress a new (and for them, bad) British deal would solve nothing while remaining embroiled in Hutchinson's other bad business. Hoyland warned that if they didn't act immediately against Hutchinson he was going to sue them. He was going to hit the company hard if Hutchinson didn't sign off on his demands. The company reiterated that Hutchinson would never concede the things outlined in Hoyland's demands and would therefore never sign the document. With that, Sapiro suggested that they all - individually and simultaneously - file lawsuits against Hutchinson. If all shareholders, Executive Officers, Directors, and Owners teamed up for a collective assault, then "Hutchinson would just want to run." Sapiro argued that doing this would compel Hutchinson to sign the document and adhere to the order for his dismissal. Hoyland demanded (and Sapiro advised) that they all get legal council so they may proceed with this strategy.   Then, Cullen and Edwards and others began to denounce the beloved "Plan." None of them were going to follow Sapiro's advice to collectively sue Hutchinson. The whole thing was looking more and more like a naked bid for power by Hoyland. This is when Hoyland, sensing a mounting "stall," decided to stay true to his word. Sapiro drew up documents that Hoyland delivered to the Board of Beam Rays Inc. that essentially said - "If you do not denounce Hutchinson and then dissolve the company so as to allow for its restructuring in the face of this impending British litigation - then, as an Owner of the invention and shareholder in the company, I will sue you for mismanaging my affairs." This document, which also dissolves Hutchinson's Ownership claim on the machine, became known as "Exhibit C" in the trial. This was mailed to the Board on Jan. 13, 1939.   Aaron Sapiro, because he was involved in these events, was required to give a deposition for the upcoming Beam Rays trial. In that deposition he describes what happened immediately after Hoyland's letter was delivered to the Board.   Sapiro's deposition - "That thereafter, about January 16, 1939 Sapiro met with four defendants, as the Board of Defendant corporation after Hoyland had mailed to them on January 13, 1939 the notice attached to the complaint as Exhibit "C" and Sapiro then explained the said notice to the said directors and advised them expressly to retain to counsel because he had been instructed by Hoyland to start legal action against them and the defendant corporation if they failed to act properly thereon; and Sapiro answered many questions from the said defendant directors thereon and told them in detail the kind of action that would be filed against them if they failed to follow in substance the legal demands that had been made upon them, and Sapiro prepared an answer to the threatening cable which had been received from the British lawyers and sent it over to Edwards for his use as Secretary of the corporation, and throughout all the discussions there was not one word to suggest that all the defendants present did not know that Sapiro represented Hoyland and had prepared the very notice which had been sent to them, Exhibit "C" of the complaint."   Beam Ray Inc., who by now were all individually and collectively sick of Hoyland, Sapiro and Khan, decided to ignore them. It was concluded that this was Hoyland's game and if he really wanted to play then it was up to him to make the next move. Hutchinson was also ignoring Hoyland and his gang. They got no response to their demands. Unable to take being ignored for more than a few days, a sanctimonious Philip Hoyland officially filed his lawsuit. Finally then, Beam Rays Inc. engaged its attorney, Eugene Glenn, who prepared to answer Hoyland's litigation. Hoyland gave them about a week before he filed a complaint regarding the company's choice of lawyer. With Sapiro arguing for him, Hoyland charged that attorney Glenn be disqualified as Beam Rays' lawyer. Apparently Glenn had been attorney for Beam Rays Inc. while Hoyland was a Director and was thus subject to a conflict of interest. Hoyland charged that retaining Glenn as council gave the company an unfair advantage in the suit. Judge Mundo of the Superior Court of Southern California agreed. Beam Rays Inc. was ordered to find a different attorney to handle the case for them. This is when trial lawyer Bertrand L. Comparet entered the story.   To be continuedS   Next: Deconstructing The Beam Rays Trial: Searching for the AMA     Copyright 2007   Shawn Montgomery is a freelance writer, researcher and producer. His video documentary series "The Rise and Fall of a Scientific Genius: The Forgotten Story of Royal Raymond Rife" can be found at www.zerozerotwo.org

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