The Washington herald., 1922-06-13
MANY MILLIONS
WILL BE LOST IN
RADIO, HE SAYS
National Chamber Head
Warns Investors of
Pseudo Experts.
PREDICTS FAILURES
Host of Patent Infringements
Charged by Alexander
Eisemann.

Millions were lost in oil. but
there will be many millions more
lost in radio" predicts Alexander
Eisemann. president of the National
Radio Chamber of Commerce.
The radio situation Is we'll on
the way to parallel the oil boom.
and in the wake of the tremendous
enthusiasm generated, unscrupulous
promoters and so-called experts"
are relieving small investors OF
their savings. Several cases have
come to my attention within the
last few months" continued Mr..
Eisemann, "and in the interests of
fair play urge the widest possible
publicity to this warning.
TT is estimated that within the
last three months, at least 1880 new
corporations have been organized
to manufacture radio apparatus.
Obviously. all these cannot have
technical skill of requisite standard
back of them. And certainly, in
all this mass OF Ignorance and
lack of expert knowledge. many OF
these new corporations must fail.
Many Peculiar Schemes.
"A personal friend. despite advice
to the contrary. invested and lost
$4,000 in backing a radio receiv-
ing set, the design of which con-
fiicted with another manufacturers
patents.
"A young man approached me re-
Gently and wanted to know whether
would consider backing an auto
matte antenna erector," which op-
Grated like a jack-in-the-box and was
to be erected instantaneously on all
roofs anywhere! This self-styled
radio expert" was formerly a floor
walker in a department store and
tinkered around with batteries when
the electric buzzers were out of order!
Yet. with all this pathetic lack OF
radio engineering experience and
dearth OF business knowledge, 1t IS
not improbable that he has found
some one to sponsor his queer project
with real cash!
In addition to the basic engineer
ing and financing problems" con-
ways the manufacturing and market
ing problems which must be solved
before the investments can pay back
one penny on their principal.
Patent InfrinEements.
"A jeweler decided to 60 into the
radio business and backed a young
friends radio invention to the ex-
tent of $4,000 on the strength Of his
statement that he could make a good
radio set for SO that could retail for
SIS with a dealers discount of 33 Ia
per cent. OF course. the young man
made up a demonstration set with
a cost sheet. which proved conclusive
ly that the set could be made for less
than 50. However. a kind friend
showed this merchant that while the
set apparently cost So to make, neces-
sary inspection at each stage OF the
operation brought the cost to SO.
Further. that when large quantities
were built. experience had shown that
37h per cent OF the sets would be
rejected before the final inspection.
and would have to be either repaired,
or in some cases. rebuilt. This mer-
chant also learned at the cost of much
money, that of every hundred pounds
OF galena crystal he tested for his
sets. 93h pounds had to be carefully
tested and rejected as useless, while
only 81 pounds OF the tested crystal
could be used.
Materials were advancing in price,
and this merchant also learned that
deliveries and manufacture Of neces
sary materials were being delayed for
weeks and months, and that in order
to get price concessions and early
deliveries, he had to buy large guam
titles Of materials. much OF which
lay on his hands for months. some
never to be used! The case of this
manufacturer is typical. Thirty seven
radio apparatus manufacturers at
present are infringing upon each
others patents. and at least 1000
other manufacturers are infringing
upon the patents OF several older radio
concerns. OF course. the man who
invests his money ir these businesses
must sufferV'