Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1917-06-30
Firestone Saves Millions
For Car Owners in Court

The full significance of the victory
won last week by Firestone in the
Perlman Rim patent case is Begin
ming to be appreciated by the motor
ing public as well as by the car man
ufacturer.
+ The congratulations pouring into
III. S. Firestone indicate that not
since Ford's fight against the Selden
claims has the industry or the pub
lie been so Interested in a patent
suit and so pleased at the outcome.
Through this fight made by the
Firestone Tire and Rubber Company
the makers and buyers of automobiles
are relieved of an unlocked for and
unjust royalty tax amounting to be-
tween $1,500.000.00 and $4,000, 100000
annually.
With this. principle to fight for
with it's far-reaching consequences,
Fl. S. FIrestone, president. took per-
sonal charge of the case for the COM
pany.
1t was in February. 1916. that L. H.
| Perlman in a suit against the Stand
ard Welding Company. had his patent
sustained. Up to that time anyone
| had made demountable rims without
restrictions. The Firestone Company,
for instance, have been making de-
| mountable rims since 1908.
The Perlman patent, not issued
until 1913, was made operative by
Perlman swearing that his invention
| dated back to 1903
With the SUSTAINING or that claim
| the automobile industry faced the sit
| uation of Perlman having a practical
| monopoly on all forms of demount-
able rims. The factory of the stand.
ard WeldingsrCompany was closed a>d
| all rim manufacturers notified to dis
| continue making rims.
Then the Perlman Rim Corporation
| was organized with capital of $1O,-
| 000,000.00, and 1T was understood that
l.. II. Perlman received between $3,-
600, 100000 and $4,000, 10000 for his in
| vention.
The entire automobile industry was
disturbed and their output seriously
threatened. The automobile manu-
facturers who were receiving their
! rims from the Standard Welding
Company made arrangements with
the Perlman Rim Corporation to re-
| lease sufficient rims for them so they
| could make deliveries, for which they
| paid thousands and thousands of dol
| lars. The first check from one COM
pany was for S40,000.00. Most of the
rim manufacturers submitted and
turned their rim plants over to the
Perlman Rim. Corporation.
Being firmly convinced that this
| patent and the evidence that won this
decision was a travesty on justice
and a serious. menace to the entire
motoring R1blic. Mr.. Firestone re-
| fused to recognize the Perlman claims
! in an way. He realized that the
Court of Appeals decision given Peril
man formerly meant in the ordinary
course of things, an injunction
against his company 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
| evidence showing that the decision in
| the former suit had been obtained
! through false testimony and aslSed
that they be given an opportunity to
| present these facts in trial in open
court. On this showing. an injunc-
tion was denied 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. introducing exhibits and docu-
mentS alleged to substantiate his
| claims. During the cross examination
| of Perlman, he was led into contra
dictions and evasions and after sew
eral hours questioning very inter-
| esting facts were brought out as to
Perlmans business activities which
| finally eliminated in the disclosure
of the arrest of Periman in England
| for fraud and deceit, a Jail term and
flight from England while on bail.
Perlman would not admit or deny
| the facts presented to him, but took
refuge in repeated lapse of memory
on these points.