The Washington herald., 1917-06-24
SAVES MILLIONS
FOR CAR OWNERS
Through Victory in Rim Patent
Case.

won last week by Flrestone in the
Perlman rim patent case is beginning
TO be appreciated by the motoring pub
lie as well as by the car manufacturer.
The congratulations pouring into Mr..
H. 8. Firestone indicate that not
since Ford's fighr against the SeIden
claims has the industry or the public
been so interested in a patent SUIT
ana SO pleased at the outcome.
Through this fight made by the Fire
stone Tire and Rubber Company, the
makers and buyers Of automobiles, are
relieved of an unlocked for and un-
just royalty tax amounting to be-
tween H,s0o0o0 and 5000, 600 annually.
With this principle to fight for with
its far-reachlng consequences, Mr.. H.
S. Firestone. president, took personal
charge of the case for the company.
1t was in February, 1915, that L. H.
Periman In a suit against the Stand
ard Welding Company, had his patent
sustained. Up to that time any one
had made demountable rims without
restrictions. The Firestone Company,
for instance, havo been making de-
mountable rims since 1908
The Perlman patent, not issued un-
I'll 1913. was made operative by Perl
back to 1903
With the sustaining Of that claim the
automobile industry faced the situa-
ton Of Perlman having a practical
monopoly on all forms Of demountable
rims; The factory of the Standard
welding Company was closed and all
rim manufacturers notified to discon-
! tinue making rims.
Then the Perlman Rim Corporation
was organized with a capital of $10,-
10000, and 1t was understood that l..
II. Perlmap received between 5000 600
| and 100000 for his invention.
The entire automobile industry was
disturbed and their output seriously
threatened. The automobile manufac-
turers who we're receiving their rims
from the Standard Welding Company
made arrangements with the Perlman n
rims for Them so they could make
deliveries, for which they paid thou
sands and thousands of dollars. The
nrst check from one company was for
$4,000. Most OF the rim manufacturers
submitted and turned their rim plants
over to the Perlnan Rim Corporation.
Being firmly convinced that this pat
ent and the evidence that won this
decision was a travesty on justice and
serious menace to the entire motor
| ing public, Mr.. Firestone refused to
recognize the Perlman claims in any
way. He realized that the Court of
Appeals decision given Perlman FORM
erly meant in the ordinary course Of
| things, an Injunction against his COM
| pany and the closing down of his
| rim plant. but having the courage OF
his convictions he wanted his chance
| at Perlman in the courts.
The injunction was first argued for
in New York before Judge Mayer on
| April 13 last. By that time the Fire
| stone attorneys had gathered new evil
| dence showing that the decision in the
| former suit had been obtained through
| De given an opportunity to present
! these facts in trial In open court. On
this showing. an injunction was de-
| MED Perlman and the case set for
June.
At the trial last week, Perlman was
| put on the stand and testified to a
| completion of his invention in 1903. in
| Producing exhibits and documents al
| legged to substantiate his claims. Dur
| ing the croSs-eNamination of Perlman,
he was led into contradictions and
| evasions and after several hours ques-
| tioning very interesting facts were
| brought out as to Perlman's business
| activities which finally eliminated in
! the disclosure OF the Arrest of Perlman
! in England for fra1d and deceit, n
jail term and flight from England
a while on bail
I Perlman would not admit or deny
the facts presented to him, but took
refuge in repeated lapse OF memory on
these points.
/ At the end of the cross ton
| the attorneys for the Perlman Rim
| Corporation moved to dismiss. thereby
| shutting off further disclosures by the
! Firestone Company. which they stated
| would have been startling. Judge
i Hand allowed ths case to be dismissed
! although he stated that it ives against
his wishes. but he was bound by a
| long line of precedents.
The thing OF Importance to car man.
ufacturers and the public is that the
| Firestone searchlight has exposed a
schemer who had fastened on to the
industry a useless drain of millions
| of dollars.
Needless to say the Firestone Com
| pany is still manufacturing rims un-
trammeled by any patent claims, and
Mr.. Firestone Is delighted at the out
come of the trial as it puts everybody
on an equal footing again where merit
and efficiency are the measures by
which all will be judged.