these notes were a first mortgage on his patents. Now, the fact is once Robinson lost title to the patents in 1912, all of those notes dating from 1890, and so forth, they are a personal obligation, I am sure, but they could not possibly be a mortgage, and then, of course, there is outside of that that the mortgage was not recorded Mr. EDELSTEIN. We will not go into that. I have been a practicing attorney for 29 years, and the other members of the committee are attorneys, and they know the legal effect of it. Dr. ŘADAU. Yes. Are there any further questions? If there are, I will gladly answer them. Mr. EDELSTEIN. You have made your position very clear. Dr. RADAU. Thank you. Mr. EDELSTEIN. Do you want to be heard, Congressman Maciejewski? Mr. MACIEJEWSKI. Yes, I want to be heard, but I thought you would let him finish his case first. Dr. RADAU. In conclusion I would like to make a little correction of the bill, H. R. 7685. On page 2, line 5, make it read "Patent Number 886541" instead of "866541." Thank you. Mr. EDELSTEIN. Mr. Kalisz. STATEMENT OF STEVE KALISZ, CHICAGO, ILL. Mr. REED. Now, Mr. Kalisz, you are one of the owners? Mr. KALISZ. Yes; I am part owner. Mrs. Lakomski owned half, and I got half. We bought together any rights left in the patents from Mr. Hoffman, deceased, from the estate, his wife was left and four daughters. We paid our own money in cash for those patents. They were noteholders like ourselves. So, we figured with Mr. Hanisch and Mr. Kulesza and Mr. Crotty, he was collecting money from the people. Mr. Kulesza especially went to the circuit court and to the Federal court for trial for so many years, and he had a few thousand people. I can't say for sure, but I remember 3,000 noteholders, and eventually Mr. Congressman Hamilton Lewis was in this case, and he was in this matter. He was again many times in court and nobody found out who really the title was in. Mr. EDELSTEIN. Well, the records in the court are available to the committee and for the information of the House, and we can examine the records and the reports in the courts; we do not have to touch on that. Mr. KALISZ. We bought the title and organized ourselves by the law of the State of Illinois. We could not assign anything to the people on account of the little title we got. So, we organized for the noteholders, not for profit for ourselves. I got bylaws recorded in the city hall of the city of Chicago that 49 percent we are willing that myself and Mrs. Lakomski give to the noteholders 49 percent of any sums that may be recovered through the graciousness of this committee and the Congress and the Senate in the renewal of these patents. So, we get the people now to pay $1.50 a month dues. I am president, Mrs. Lakomski is vice president, and others are directors. Mr. EDELSTEIN. How much have they paid in so far? Mr. EDELSTEIN. No; how much have they paid? Mr. KALISZ. To now, maybe about $1,200 or $1,300. We organized last year on March 27. Mr. EDELSTEIN. Of course, the association represented to them that they would try to revive the patents? Mr. KALISZ. Yes, Mr. Congressman. Mr. EDELSTEIN. With that hope in mind these people are paying every month. Dr. RADAU. No; we would not say with that hope. Mr. EDELSTEIN. That is my conclusion. "Hope springs eternal in the human breast.” Dr. RADAU. Yes, always. Mr. KALISZ. Mrs. Lakomski and myself, we paid money of our own, not the people's money to buy them rights. So, we each took a chance, and they are all takng a chance. The corporation, the American Car & Foundry Co., and others are making their car wheels, still making under the same process. Mr. HARTLEY. When did you buy those patents? Mr. KALISZ. In 1937, in October. As soon as we find out that the title was in the hands of Mr. Hoffman we went right after it to get that title, and we succeeded. We had some litigation in probate court with Mr. Kulesza and Mr. Hitzman was representing him at that time. So, we defend others with our own money, Mrs. Lakomski and myself. We had not organized the people yet. We had to organize the people. Mr. EDELSTEIN. You charge an initiation fee also of $3 for each member; do you not? Mr. KALISZ. Yes; an initiation charge of $3 a member. Mr. KALISZ. Yes. So we organized in 1938-organized-and we collected up to $300, and I said to Mrs. Lakomski let us quit and pay the people out, then we will organize again, and then we will let you know, because we do not want you people to spend any money. We did win at the probate court and the estate was closed. Dr. RADAU. At the time when they found out who had title Mr. Kalisz and Mr. Kulesza, represented by Mr. Hitzman got together, and they both wanted to buy up this title, so that Hitzman came into the Federal court to say his people had title and thereby to be enabled to sue, but it seems that they could not agree upon the price. The price was too high for Hitzman and his crowd, so they backed out and Kalisz went and bought it. Instead of working together, as they ought to have done, Hitzman went into probate court and opened the estate of E. A. Hoffman, stating that in his petition that E. A. Hoffman is indebted to his people in large sums of money and asking that Mr. Kulesza be appointed administrator of that estate. We had all these patents, so we finally went in the probate court and asked for proof of the amount of money there was owing to his people by Hoffman. Well, he could not prove anything. So, Judge O'Connor dismissed Kulesza as receiver, and then having come in on a petition from the noteholders Kalisz and Lakomski were appointed administrators, I want to say, of the estate of E. A. Hoffman noteholders. So after the estate was through financially I was asked by Judge O'Connor to close the estate and I did close it. Mr. EDELSTEIN. Speaking for myself, to organize an association and get a $3 initiation fee and a dollar and a half a month from each one of these persons with the hope that a bill might be passed Dr. RADAU (interposing). Pardon me. You see, we were in court against the Kulesza crowd, in the Federal court, because we were made parties defendant. Mr. EDELSTEIN. But I say any organization that has that for its object and charges $3 initiation and charges $1.50 per month, does not appeal to me, and I have been practicing law in New York where we have a large foreign element, and in my opinion it is simply not right. Dr. RADAU. In order to counteract your impression let me say this association was formed at the time when about three or four or five lawsuits were pending against this group here. When they formed that there were two Federal court proceedings against the Chicago Streetcar Association and Blair, the receiver. Mr. EDELSTEIN. Are they still collecting $1.50 per month? Mr. EDELSTEIN. Yes. Dr. RADAU. Yes; the association still exists, but the other group, the Kulesza group that sued us, I do not know whether they are still existing. Mr. EDELSTEIN. But the existence of the association now and the collection of $1.50 a month dues has for its object the application which is sought before Congress? Dr. RADAU. Partly. The CHAIRMAN (Mr. Kramer). Will you find out from the witness who the officers are and their addresses? Mr. EDELSTEIN. Yes, sir. Of course, these were the original officers. Mr. HARTLEY. Was the Kulesza group also an organization such as this? Dr. RADAU. No; this is incorporated under the laws of the State of Illinois. The Kulesza group is merely a banding together, a club without any legal standing, as far as we are concerned. Mr. HARTLEY. Do they collect any dues? Dr. RADAU. Yes, sir; they are fighting us. Mr. EDELSTEIN. May I offer in the record the certificate of incorporation of the Car Wheel Association. (The certificate referred to is as follows:) Book 34895, page 430. PREAMBLE It is hereby understood and agreed that in addition to reasons and purposes of this association as mentioned in charter granted by the State of Illinois, that this association will endeavor to have Letters Patent granted by the United States Patent Commissioners known as Nos. 594,286, 600,890, 866,306, 886,541, and 887,848, renewed in whole or part, and to enter legal proceedings for collection of damages on infringements and other acts of interest legally allowed. BYLAWS OF THE CAR WHEEL ASSOCIATION I A. This association shall be known as Car Wheel Association. B. Its principal office and location shall be in the city of Chicago, county of Cook, and State of Illinois. C. The management of this association shall be vested in five (5) directors, each director to hold office for a period of eight (8) years from date of his election or until such time as his successor is elected. D. The directors shall elect the following officers: president, vice president, recording secretary, and treasurer. II. OFFICERS AND THEIR DUTIES A. The president of the board of directors shall preside at all meetings of directors, committees, and meetings of membership, superintend all transactions, countersign all checks with the treasurer, and act as general manager of all business coming before the association. B. The vice president shall have all of the rights, duties, and powers of the president in the latter's absence. C. The recording secretary shall: (a) keep the minutes of the members' and of the board of directors' meetings in one or more books provided for that purpose; (b) see that all notices are duly given in accordance with the provisions of these bylaws or as required by law; (c) be custodian of the corporate records and of the seal of the corporation, and see that the seal of the corporation is affixed to all documents; (d) keep a record of the post-office address of each member, which shall be furnished to the secretary by such member; (e) in general perform all duties incident to the office of secretary and such other duties as from time to time may be assigned to him by the president or by the board of directors. D. The treasurer shall: (a) give bond for the true and faithful performance of his duties in the amount of one thousand ($1,000) dollars; (b) shall have charge and custody of and be responsible for all funds and securities of the association; receive and give receipts for moneys due and payable to the association from any source whatsoever, and deposit all such moneys in the name of the association in a bank to be designated by the president; (c) all checks drawn on the fund of the association must be signed by the treasurer and countersigned by the president or by the vice president in the absence of the president; (d) all books and records held by the treasurer are to be examined by the board of directors at least once every three (3) months; (e) in general perform all the duties incident to the office of treasurer and such other duties as from time to time may be assigned to him by the president or by the board of directors. E. All officers of the association shall make a complete report at all regular meetings of the board of directors and membership. III. MEETINGS A. The board of directors shall hold meetings on the third Monday of every month at 7:30 o'clock in the evening in the office of the association and shall hold such special meetings as from time to time may be called upon due and proper notice. B. The President or in his absence the Vice President shall be authorized to call special meetings of the Association stating the object and purpose of the meeting and notifying all members thereof at least ten (10) days prior to the time when such meetings shall be held. No business other than that specified in the call for the special meeting shall be transacted thereat. C. A regular meeting of all the members of the Association shall be held annually on the second day of January. Said meetings to be held at and at time designated by the board of directors. D. A. meeting at which more than 51 percent of all of the members in good standing at the time of the call for such meeting are present, shall be considered valid and any action taken at such meeting shall be binding upon all members of the Association. E. Absolute silence must be observed by members of the Association at each and every meeting: (a) When the presiding officer addresses the meeting or puts a question; (b) When the minutes, communication are read; (c) When a member is speaking. F. No member shall be permitted to enter or leave the meeting during the addressing, reading, or speaking aforesaid. G. A member wishing to speak on the subject that is before the Association must first obtain permission, from the presiding officers to do so, and having obtained permission, confine himself to the subject under discussion and must avoid personalities and objectionable language. H. The presiding officer may order any member out of the meeting if he considers the behavior of the member merits it. I. A member shall not communicate to outsiders anything that has transpired in any of the meetings of the Association. IV A. Only those persons who possess notes issued by Elbert R. Robinson may become members of this Association. B. The genuineness of such notes must first be certified by Steve Kalisz or Stella Lakmoski prior to the time that application for membership can be approved. Upon the refusal of application or certification by above-named persons the holder of note may appeal to the members who shall vote upon application, the applicant will have or must receive not less than ninety percent (90 percent) of votes of members present to be admitted as member. C. All applications for membership in this Association must be accompanied by an initiation fee in the sum of Three ($3.00) Dollars and also register with the Association all notes held by him or her that were issued by Elbert R. Robinson. A monthly due of One Dollar and Fifty Cents ($1.50) will also be paid by each and every member. D. Failure to pay monthly dues within ninety (90) days shall subject the member to expulsion and loss to all rights in the Association. E. Officers and members of the Board of Directors shall be exempt from paying initiation fees and dues. F. Special assessments or increase in monthly dues can be declared or increased by a majority vote of members present at regular or special meetings if notice of intended action has been issued according to bylaws. G. All moneys collected by the association shall be the exclusive property of the association and is to be used for the benefit of the association. V A. These bylaws may be altered, amended or repealed and new bylaws may be adopted at any meeting of the board of directors of the association by a majority vote of the directors present at the meeting, but it is distinctly understood that sections A and B of paragraph IV shall never be changed by the board of directors or this association. B. It is hereby understood and agreed that at the time of renewal of Letters Patent, if possible to obtain same, that an assignment of 49 percent of all rights of interest shall be duly assigned to the association by the holders of titles, which will become legal by such renewal. Said assignment to include a like percentage in all moneys derived from infringements or other source. All note holders to participate pro rata to amount represented in note or notes held by them. Said 49 percent of interest to be assigned to the Car Wheel Association, Inc., and duly recorded in Washington, D. C., in the Patent Commissioners office and in the county recorder's office in Cook County, Ill. The above bylaws having received a majority vote of all members on the 26th day of March 1939 are hereby declared approved and accepted. (Signed) STEVE KALISZ, President. (Signed) ROMAN TARKARZ, Secretary. [SEAL] STATE OF ILLINOIS, County of Cook, ss: Filed for record, March 30, 1939, 10: 20 a. m., and recorded in book 430. page EDWARD J. KIMMELL, Recorder. Mr. EDELSTEIN. Now I note the president is Steve Kalisz. Where does he live, do you know? Dr. RADAU. That is this witness. Mr. KALISZ. 4616 South Albany Avenue. Mr. EDELSTEIN. The other one is Stella Lakomski, where does she live? |