Exhibitors Herald World (Oct-Dec 1930)

November 22, 1930 Exhibitors Herald-World 55 for goods purchased by a receiver authorized to carry on the business of a corporation. The draft was addressed, "To Receiver, Worcester Manufacturing Company," and when presented, was accepted by writing across the face these words, "Accepted, Frank Smith Sullivan, Receiver; Louis F. Wilson, Attorney." The draft not being paid when due, suit was brought against the receiver personally. In holding the receiver not liable, the court said : "We are therefore of the opinion that the defendant was expressly authorized to make the purchase, and that the Wilmot & Hobbs Manufacturing Company knew it was made by the defendant as receiver, and not individually, and with this knowledge, sold and delivered the merchandise to him and drew the draft in question, intending to give credit to the receivership alone." Also, in another leading case (123 Mass. 148), the court had before it a note beginning, "We as trustees but not individually promise to pay," and signed by three individuals, opposite whose names was written the word, "Trustees." The makers acted as trustees of a business association known as Brookline Avenue Association, and in an action on the note the attempt was made to charge the trustees personally. In holding the trustees not liable this court said : "It is to be borne in mind that this was not a case of agents acting for an undisclosed or unknown principal." Officials' Liability to Creditors Various courts have held that a stockholder or officer of a corporation is no more immune for his false representations, which result in a loss to one who relied upon the representations, than any other individual. In other words, the rules of common honesty and common sense apply alike to all persons, without regard to the capacity in which they act. Therefore, any offiical of a corporation is personally liable where the testimony proves that he used fraud to induce another to give credit to the corporation which later becomes insolvent. So held the higher court in Pacific v. Modern (290 Pac. 859). The facts of this case are that a man named Hansen was president of a corporation. The manager rendered a false financial statement. Later the corporation became insolvent, and the creditors filed suit against both Kuehl, the manager, and Hansen for the amount due. It was shown that Kuehl had overestimated the assets of the corporation many thousands of dollars, and that Hansen, while not actively engaged in the conduct of the business, consulted daily with Kuehl and instructed him about the affairs of the business. The lower court decided that the financial statement was made for the purpose of securing a line of credit; that it was made by and with the knowledge and consent of all the parties, and while it is true that Hansen was not actively par This Track Eliminates Curtain Noise Vallen All-Steel Safety Track is absolutely noiseless and therefore the most suitable track for use with talking pictures. This pioneer steel track has many exclusive features of design and construction that enhance the presentation of any program. Theatre-goers want to hear the "talkies" — not the curtains. Install a Vallen track and have definite assurance of absolute quiet and positive safety. VALLEN ELECTRICAL COMPANY, Inc. Manufacturers of Vallen Automatic Screen Modifier; Vallen Noiseless All-Steel Safety Track ; Vallen Noiseless Curved Track ; Vallen High-Speed Curtain Control ; Vallen Junior Control ; Vallen Flying Control ; Vallen Syncontrol for "Talkies." AKRON, OHIO, U. S. A. Dares to Guarantee Is Your Theatre Up to Date and Ready for the Future? Modern Motion Pictures need, for their most successful presentation, a screen of various picture sizes, automatically adjustable by the operator, to effectively portray the outstanding scenes of the picture. This new type of screen control is an absolute necessity for the showing of Magnascope. Grandeur, Spoor and Real-Life films, and will play an even more important role in the film developments of the future. The PETER CLARK AUTOMATIC SCREEN ADJUSTOR fulfills all the demands of the present Motion Picture and has anticipated the needs of the future. With over 200 successful installations to their credit, Peter Clark, Inc., are prepared to serve any theatre owner or manager who sees the trend of the times and desires to install a screen that will not only serve for the projection of any of the enlarged picture systems, but will also lend itself to almost instantaneous reduction to standard size pictures projected from 35 mm. film. "Stage Equipment with a Reputation" PETER CLARK, INC. Stage Equipment Specialists for Over 25 Years 544 West 30th St. New York City