The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1903-03-02
Stockholders Recover From
Alarm Caused by RumOrS
Regarding the Planeograph
te as a Type Machine.
What the New Device Ac-
comPlishes in Printing
Art-Lesson Taught by
Recession nMergenthaler.

RED the price OF the stock down below
$50. in, the middle Of last month. seems
Ter the present 70 be over. and the alarm
OF the holders of this security aIIayed
until further rumors regarding COMPETE
i've. mechanisms. worries them into a
desire to sell. There remains. however.
strong bear sentiment in regard TO
Mergenthaler. and certain interests are
SIN disposed 90 smash its price. Wheth-
er for purposes OF speculation or through
genuine apprehension concerning the
superiority OF other device or devices is
not absolutely ascertainabIe
MerGcnthaler continued last week to
have an especial interest with the pub
lie. and made a satisfactory rally from
l79k 10 1S4. despite professional at
tempts at further raidings.
Since February -. the sales OF Mer-
genthaler. AZ the exchang> foot up some
100 shares. out of which good judges
of the market estimate that only about
500 shares were really investment stock
the greater part Of the balance being ex-
changes at fractional differences.
r..E..-- A Lesson Taught
The recession of MergenthaIer has
taught holders OF the stock one les
son, which by now. through repeated
precedent, should be an axiom in in
vestment primers on patented devices
namely. that all patented devices are
liable to be superseded at any moment
by a later idea. performing the same
work, better. cheaper. or at less orig
inal cost
Stockholders Of such devices may buy
up all improvements. or any new idea
which threatens in whole to supplant
the original device. improvements may
strengthen the value OF the original
Aeyiee, although they are bought up at
much expense. When the idea is not
an auxiliary. however but an entirely
new and complete device. offering finan-
cial advantages in cheapness of manu-
facture or in results of the process. the
situation is uncomfortable for stock
holders OF the original device.
To buy up the patents means a ire
mendous unusual expenditure, and a
consequent reduction OF dividends. II
the new device is TO be exploited In the
stead Of the old. II means the abandon
ment, at the price Of old metal. Of costly
machinery, and the purchase of new, for
the manufacture OF the later device. and
the loss of the obsolete machines al
ready manufactured.
1t is true that MprgenthaIer has pre-
pared itself with an immense surplus
which it is probably intended shall be
lsed in just such an emergency as is
Iere referred 10. II may be true that
he dividends can be paid out Of the cur
'ent earnings. which would not be drawn
ipon for such extraordinary expense. But
f- h. %
.ivaI patents would mean practically the
absolute notification of either the one
)r the other idea as a market com
modify. and the payment Of an immense
5urai for fthe acquisition OF someJhing
that VIII either prove valueless in a
producing sense, or which will render
valueless the original device Added to
this is the probability that similar ideas
have not been exhausted and a new rival
will appear which a depleted surplus
cannot provide for.
What the Planeograph Is.
The planeograph is the device which
those disposed to bear MergenthaIer
stocks have kept before the investor as
a bugaboo. This machine is unques- |
tiOnabiy a wonderful idea, and proposes
TO do things that the MergenthaIer does
not contemplate. in serving the general
requirements Of the art OF printing.
Those who believe in MergenthaIer.
while they have little to say against the 1
new idea. assert that the planeograph
will not be perfected within five years. I
While this may be So and Il might be 1
hazardous 10 say otherwise without a |
most intimate knowledge of the me 4
ehanical apparatus. fl is equally certain 1
that the device is producing results. /
submitted as samples "a possible in 4
yestors. OF what Il can do hat appear to /
be a thoroughly adequate product
There are practically three parts 10
thc planeograph device. The first ana
second processes. while they do not sirnu-
late in am regard the process Of tho
Nergenthaler. nor attain the same finish
I'd result. parallel 10 a certain degree
tie work OF the Mergenthaler. The third
process is a long step beyond what the
Mergenthalcr accomplishes.
The first part consists OF a special
keyboard which produces specially de-
signed perforations on a strip Of paper. /
tee from a roll, and about two inches
wide These perforations are much like
the perforaIions on sheets for mechani-
cal musical instruments Each letter.
OF course. has its equivalent perfora-
ticn sign. mode by the striking Of a key
On the keyboard.
Perforating keyboard.
The copy TO be printed is struck of
On the keyboard as on a typewriter or
The Mergenthaler itself. The result is
The perforated strip Of paper OF the
length required 10 complete the arti-
Gle. An advantage is found in the fact
hat this strip OF paper can be mailed
Al little expense 10 any part OF the world
where desired, and is ready to be fed into
p cevice which constitutes the second
section Of the apparatus.
The perforated strip. fed into this /
icvice. results I'm the actual printing. I
rom the face or metal book type. or it's {
Equivalent. Of the article originally spell q
ID out on the keyboard. reproduced from 6
he perforated sheet. The printing is q