The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1923-11-23
SEN. WHEELER
ASSISTS IN GRAFT
INVESTIGATION

AAN LA All \ 4VAN
Washington, d. c., Nov. 18.-A ma
ton wide investigation of companies
alleged to be swinding the public
/ and the inventors of thousands of dol
! lars yearly under the guise of selling
( their patents for them, has been
promised the League of American In
ventOrs by the Post Office Department.
The investigation by the Post Office
/ Department follows action taken by
/ Senator Wheeler of Montana, whose
attention was called to this immense
swindle by the headquarters of the |
League of American Inventors in |
Washington, who has compiled evil |
dence in numerous cases wherein COM |
panies asserting their ability to sell |
patents for inventors have not only |
Swindled the inventor out of certain !
fees, but in some instances have muict- |
ed from them sums ranging from $40 !
up to as high as $4,000 in many in
stance.
"The process by which these COM
panies operate" said Alex j. We'd
derbum. Jr., founder of the League,
here today, ''is to send out circular
letter to the inventor indicating to
him that quick sale of his invention
can be made through the promotion
r company, who agrees to make the
sale on a commission basis. This let
ter is followed by a series of come
/ on letters, each of which is designed
= to impress the victim with the idea
E that the sale is consumated but that
! a prospectus is necessary. The in
} ventor to pay for the prospectus.
! This starts a series of fees the VIC
tim is asked to pay which, in the end,
: often runs into hundreds and some
2 times thousands of dollars.
''The public is defrauded in that
the Patent Office itself is designed
: not for the specific use of the invent
1 ors, but TO encourage the inventive
arts and sciences, to promote the in
dustries Of the United States and ul-
= timately benefit the general public.
!, Thus, when the sO-called promotion
companies swindle the inventor out of
I money it usually results in his pat
o ent being tied up for years, ;Old in
e many cases the inventor becomes so
e discouraged that he abandons his in
e vention and it is lost to the public for
, a period of years, if not forever.
/ "The methods used by these COM
panies, while they vary as to small
y details, are substantially the same In
J. every case. The Patent Office pub
Al fishes an Official Gazette in which
is appear the names and addresses of
z. the inventors who have been granted
u patents during the preceding week
i These promotion companies subscribe
le to this publication and through it Sc
e cure their list Of victims whom they
le eircularize. Then follows string q,
p documents including contracts and as
IL surances that the patent has beer
T sold, and the swindlers even go u
le point where they ask the victims K
u name the bank he desires the proceeds
+ of the sale deposited in. Meantime
up to a certain point, these compa
d MES are presumably working on
u commission basis, so that the invent
u or feels that he can lose nothing
en- However after the moment has ar
:, rived that the promotion, companle
Id feel that the victim is ready for pluck
&C. inc. thew notify him that the prOspec
go five purchaser Of his patent wants
prospectus patent abstract, Indus
IL trial Report' or what not, to demon
les strate the patent and its utility
lly which prospectus the company WI
lily suppIv for a sum of money to be PAL
-or bv the ENTHUSIASTICALLY about whs
the company believes the traffic WI
Al bear.
Following this various eMgensfe
coep to arise, expense begins
0p mount and if the company suspec'
-" the victim has any money, they al
~, pretty sure to get 1t.
~ awe have asked the Post Office d.
nar+ment to institute a nation VIC
nd investigation into this swindle and
co have compiled a great deal Of docl
~ noentarv evidence on various comp;
Mos foi. the use of the Post Office al
81 thorities.
ON which did business on a very lars
300 scale in swindling the inventors o.
hef of money amounting to many thou
hot ands of dollars, has recently closed
airy Joore in New York City because
los tbe publicity given it by the Leag
line of American Inventors. Sometim
chen the trial for such concerns b
o;nc tn oct too hot they close the
lose doors and decamp leaving no forwaT
INV ing address and letters sent them a
I rafurned to the sender by the II
tion Office marked: Removed, left no
orr Dress However. as soon as new 81
00O t;onerv can be gotten out they OPP
With up in another place anu . ono+I
ton their nefaIlOus business uiiN'o o,,o,a,i
ears name OIher plOI1io. IL ,,oo,,o[, n
Y 2, after aDsULacC!hs az 'l I'e,lalI11 9ot
here can from tIle lilVeilOOii Joul
lren of him by accusins ILL nI, e,,oda
with dealing ana III I 1 Ny tiaS ,,,onev n
lent spOnslDlllCy' put Keep 'ii0
,ints have collected.
'iii'9 80 'oThe swindle is based on the
time mining and oil stock methods
,lts finely engraved stationery with gre
ulIs. HIleLS - - and CONTRACTS n