New-York tribune., 1909-01-17
THE TRUTH ABOUT
THE OLDSMOBlLt
VERSUS
The Association of Licensed Auto
mobile Manufacturers and the
SO-CalIed SeIden Patent.
BY GENERAL JOHN T. CUTTING (ordsmobae ).


John T Cutting has given some very inter
esting facts from his point Of view in answer
70 an inquiry why the Oidsmobile which he
has represented for period Of years in New
York City, has ceased to refer to its affiliation
with the Association OF Licensed Automobile
Manufacturers. General Cutting does not speak
for the Olds Motor Works, since they continue
their policy Of giving out nothing for pub
location in regard TO their inside matters. but
from his own knowledge it appears that the
Generals sze-up of the situation is about as
follows.
The Association, which was formed around
the Selden patent early in 1909 had reason TO
believe that the whole industry would be i'm
proved by testing the validity Of the Selden
Patent which formed the nucleus of their
organization by pushing it through the courts
at high speed if possible To the trade gen.
orally" says General Cutting lit became evi-
dent that for some reason other the suit
did not appear to make any great progress.
and the recent decision of Judge Holt. which
was Published in the newspapers and also in
the trade papers. seemed To bear out the idea
that to say the least. the suit has been pushed
with lack Of vigor that presupposed a lack
of desire on somebody's part have it ter
minated by a court decision Meanwhile, judg
ing from the volume Of business that was done
extremely large royalties. and the alleged
values that were to he given in exchange for
the money paid in did not seem to be forth
coming. It common talk among the trade
that the Mechanical Department. which was
maintained at g very high cost and vas for
the benefit of all the members, was disCon-
tinued by vote Of the members as apparently
not being worth while. 1t appears to be com
mon knowledge also that more than one Of the
companies protested against the dissipation OF
the Association funds. figuring that after a
million and a half had been paid in in royalties
the two-fifths that were turned back TO the
Association ought to be represented ol nor
than attorneys bills, expenses in meetings and
the general expenses that seemed to eat up the
excess no matter how large it was Figures
which were tahulated The time the AsSo-
citation was organized and for possibly a year
afterwards. showing that between so and 80
per cent of the volume Of business in auto
mobiles done in America done by the
members Of this Association. the natural sup
position being that the percentage would not
fall off very largely the industry progressed:
but as II now appears the business done by
free and unrestricted manufacturers outside
the Association has equaled and in all prob
ability this year Will pass the volume OF bust
ness done ,by the Association members" Cen
erat Cutting draws his own inference from tn"
fact that the pioneer members Of the Associa-
lion ten in number counted the Olds Motor
Works amCng its number and the representa-
tives OF that company were known 10 be IN
strumental in forming the Association orlgi-
naily.
The inference to be drawn IS that If per-
haps The first member Of the Association Is
entirely out of harmony with the practice ana
actions Of the association that its purpose
must have failed 10 some great extent For
the first time with what might he called a rea
test has been made in the courts the ruling
was that the injunction which was prayed Tor
by the Electric Vehicle Company. ostensihy
owning the SeIden Patent. was denied in no
uncertain terms, and the court itself took oc-
casion TO call attention to the extreme delay in
bringing the original suit against the Ford
Company to a hearing Nearly two years have
elapsed since the Association was formed; the
patent itself has but three years more 10 run
and the obvious inference is that the parties.
to whom the cash benefit more than the
establishment of the validity of the patent
were able 10 iuggle and delay the thing in spite
Of the possible desires of the Association mem
bers themselves
The General states that he himself is unable
to discover that the presence or absence Of 2
license tag on automobiles sold in New York
City has anything to do with the success Of
the car, and that the public has ceased 70 have
even a passing interest in the A l.. A NJ II is
pretty generally talked in trade circles and
automobile circles that the other manufacturers
who are paying still large sums or money are
arriving at the conclusion that the unlicensed
manufacturers have an advantage Of at least
one per cent over them, and the vast sum
paid in the past six years in the way Of royal
ties are matters Of keen regret to n verv large
number without doubt One Of the very largest
manufacturers now a member Of the Associa-
fior has withheld its royalty payment for what
they consider good and sufficient reason, and IL
will not he a matter Of surprise to the trade
generally II the ranks OF those who are weary
Of contributing to the once famous so-Called
Selden Patent are largely increased within the
next three, six and twelve months The Cen
era estimates that the saving to the company
whose goods he is selling allows them TO
mend a very considerable amount in the better
ment and the last detail Of their cars. and
proudly shows the limit to which this par
ticuar car has been pushed in equipping with
the latest and most improved devices of every
sort ANY percentage saved when it is esti-
mated total business running into millions
means betterments on the car, as General Cut
ting points out which is a point appreciated by
the prospective customer. The best of material,
the last thing in radiators, pumps. and unre-
stricted use Of the best Of everything is more
appreciated by the buyer than the brass license
tag with the representation Of the dilapidated
and discredited Selden buggy denoting the
membership in the A L A. N.
Taking all these facts into consideration. Gen
eral Cutting has, after mature and careful de-
liberation arrived at the conclusion that the
interests Of his company demand a separate
show
The entire Oldsmobie line for 1909 Will be
view during this Show which Will be open day
and evening. It will be held at the Company's