The Washington times., 1901-07-20
ECONOMIC POSTAGE SUIT.
An Inventor fnkes steps to Protect
His Interests Involved.


| Suit in equity was Instituted yesterday
by John p. Stout. through ]. Walter
| Wheatley. am attorney, against Richard
j. Kennedy and the United States Eco
nomic Postage Company. II appears that
| M. Stout Is the inventor of device
| known a5 a return postal card. upon
which letters patent were issued to him
and to the defendant Kennedy. After the
| Issuance of the patent the United States
| Economic Postage Association was form
| ed under the laws of the State OF West
| Virginia for the purpose of utilizing the
said invention through the medium of the
United States postal service. Such use
| required the passage of law by Con-
gress.
Mr.. Stout and Mr.. Kennedy assigned
their right in the patent to the associa-
tion, and subsequently assigned to the as
sociation 24940 shares of the capital stock
of the association. to be used for its bene-
fit as treasury stock, upon the agreement
tthat if after the expiration OF five years
the association failed to obtain the re-
quired authority from the Government 1t
would, through its proper officers, convey
to Stout and Kennedy all its right, title,
and interest in the patent The time limit
expired on July %. 1898, and the associa-
ton failed to obtain the required per-
mission to use the postal facilities and has
not yet succeeded in doing SO. The suit
is for the specific performance of the con-
tract to convey back
In reference to the suit Mr.. Wheatley,
counsel for Mr.. Stout, stated yesterday
that he was authorized by Mr.. Stout to
say that ii is his intention to protect the
interest of every bona fide stockholder in
the association, and that the assertion
of his right to have back his patent had
this in view. as well as the protection of
his own right As the affairs of the
association now stand its franchise is la
BILE to forfeiture for non-payment of State
taxation, he says. and the stock trans
ferred to the association to be used in
event of legislation for the betterment
of facilities is no longer in the treasury.
One hundred and twenty thousand shares
thereof have been transferred, he says,
to one man. not an officer of the associa-
ton, with no obligation to account for the
use of the same The parties who are
now in control of the affairs of the as
sociation are said to be actively interest
ed in the furtherance of a scheme antago-
nistic to the interests of the association,
for which an effort was made to obtain
legislation before the last Congress. The
attorney claims that by means of the
manipulation of the treasury stock the
control of the association has passed from
the hands of the original stockholders and
the complainant deems their and his in
terest in jeopardy thereby.
The United States Economic Postage
Company is capitalized at S5,e0D0o0. divid-
ed into 100000 shares. which are very ex-
tenEively owned by citizens of the Dis
trict The proposition to extend to it the
Government postal facilities has twice
passed the Senate, and once. upon a sus-
pension of the rules. obtained nearly a
two-thirds vote in the House. The scheme
would enormously lessen the cost of mail
advertising, and has met with the appro-
baton of a large part of the mercantile
interests of the country, and when adopt
ed by the Government stock in the as
sociation should be of great value. 1t is
to protect the. interest of those who have
embarked their capital in 1t in good faith
that Mr.. Stout says he has instituted this
suit