La competitividad empresarial

It becomes a philosophical matter as to whether one should blame any one individual for a misunderstanding or whether one should consider human weaknesses and frailties. It is often possible to simply be in the wrong place in order to be criticized for the actions of others, even though one had no part in the actions that merit criticism.

Recently, for example, I found myself disengaging from a partnership that had become very distasteful. I am sure the other two partners believe they did what was correct. I do not doubt that justice considers well-meaning intentions and extenuating circumstances. Nevertheless, through neglect or ignorance, a person may deliberately avoid facing the implications of what he sees happening, and thus become a party to crime or serious mishap.

Our American philosophy, in a way, has become backwards. We have, in my estimation, lost the proper perspectives. What good does it do to tell a child that he has the right of way and then send him out on a busy street to walk blissfully in front of an oncoming automobile? In the Orient, a mother teaches her child that it is his responsibility not to be hit by an automobile.

I have the option in this chapter of lambasting the many promoters, lawyers and Indian Chiefs who came to Henry Moray, professing to want to help develop Radiant Energy for "mankind", proposing to try to help Henry Moray in his efforts to bring about his marvelous discovery. However, it is not my place to judge any of these men or cast aspersions on them. I am sure that in their own view they did what they thought should be done.

Recently, I had a call from Provo, Utah, from a person whom I would categorize as another crackpot. He certainly had no knowledge of my background or of the work on Radiant Energy, because his first statement was, "Can you substantiate claims that your father had an energy device?" I said, "Well, come and see," and I have heard nothing from the gentleman since. Does anyone seriously think a family spends two generations working on a scientific project just to perpetuate an illusion?

But let me develop some of the background of the business entanglements Henry became involved in. In 1929-30, Henry Moray was offered $50,000 to sell out certain power interests, and he refused. He was approached by Yakovlev of Russia, and Yakovlev and his people insisted that Moray bring his work to Russia. Henry considered what happened to the Czar, and again he refused.

Thereafter, Henry Moray began to get threatening phone calls. He was told that there was "a contract out on him" and that he was to be killed. Is it any wonder that he did not know whom to trust?

Three men, the founders of the Moray Products Co., came to him and offered to put up a large amount of property in Mexico as a security, to sell millions of dollars worth of stock, and to help Henry Moray organize a manufacturing company, a research company, and a distribution company. Schade, Farnsworth, and Hayes offered to give Henry control of the corporation and to issue to him the largest amount of stock. Whatever he wanted them to do, they stated, they would do. Is it any wonder, then, that Henry thought that he would have control of a bona fide corporate operation in which no others could stop his work or threaten, as had been done previously, to withhold money as a means of forcing him to do what they wanted?

Henry withdrew from the R.L. Judd interests. Judd himself, representing Henry as his attorney, cleared the way to release Henry from his contract, although the other Judd interests took great exception to its dissolution.

Mrs. Gertrude Tracy, representing still another group, wrote Henry a letter on October 16, 1930, protesting that her people had not been given a chance to receive a fair hearing. In her letter, she referred to "your representatives" — apparently speaking of Henry's attorneys, including Judd himself. However, the letter is amusing because of the great virtue she said these people had exhibited. One is reminded of Shakespeare — "Methinks the lady doth protest too much."

"My Dear Dr. Moray:

"I can't understand your attitude in regard to our relations on the `Radiant Energy.'

"Mr. Dustin, and his associate, came here prepared to do business in a large way. He brought to you the four requisites to that end; namely,

Unusual integrity;

Unquestioned ability of no small degree (as per references), Experience of years in this line of organization,

"He was therefore entitled to a fair chance and your time while here. Instead he had nither, but a bogus contract was sprung on him and that was all he had to work with. Even then he worked out a contract (tentative) to present and that was refused reviewal by your representative.

"I don't wish you any bad luck, Dr. Moray, but I wouldn't treat an enemy as you have treated Mr. McKnight and myself and the gentlemen from California. Nor would I expect to succeed, or deserve to, after such a procedure in any undertaking.

"Mr. Todd is an ex-soldier of the World War. He has an inventive turn of mind, like yourself, and did invent something to put on tanks in airplanes (he flies) and out of which he could have made a nice piece of money, but he gave it to the Government. He came back from the War with a shattered body and has been all of these years gettingpatched up to a semblance of health. He has recently inherited several millions of dollars and was willing and eager to put some of to work for you and your inventions if you had given him and Mr. Dustin an even break.

"In my opinion you have let slip through your hands one of the most capable and strongest group of men in every way for your undertaking that you will meet up with in many a day. They measured up in every respect and would have safe-guarded your interests to the last detail. Mr. McKnight and myself brought them here and I ask for an explanation of the treatment you gave them while here.

"I gambled on you and your fairness to the last moment and lost. Mr. McKnight and I are both hurt and justly indignant at such horse play.

"You may ask how I know they are the best men for this great undertaking, a woman's intuition, coupled with Mr. Dustin's list of accomplishments and his very evident inherent integrity. Please let your wife read this and be guided by her."

On the surface, the offer Mrs. Tracy's group had given Dr. Moray was very interesting. They had an interesting idea of raising money. Payment of one million dollars was to go into the corporation. What could be wrong with that proposition? All the funds were to be withheld until three months after Henry completed the device. But if Henry had already perfected his device at that time, we ourselves would not still be trying to do research to be sure of how to standardize the "tubes." It is important for the layman to understand that although through the years various generations of the device were demonstrated, none of these devices was totally new; rather, Henry Moray cannibalized the previous version of the machine to make each new version. Also, it had come to Henry's attention that Mr. Todd was penniless, and not a millionaire as reported.

Finally, Henry's attorneys advised him against doing business with these people, since they promised nothing until three months after the unit was perfected, and then to pay only in small increments. Business cannot be done on woman's intuition or because someone is a war hero; instead, immediate funds are necessary for research, operation, capital investment and supplies.

This type of "rigged offer" seemed typical to Henry of all his negotiations through the years. Just because Henry had a "breadboard" unit that brought in energy, why would anyone knowledgeable about research and development of technical devices think that all research had been completed and that no further engineering needed to be done? Dr. Moray was no more ready to proceed to production than Bell Laboratories were when they first had a transistor device in their own laboratories, or than General Electric was the first time Tracy Hall built a press which made synthetic diamonds. It was almost fifteen years before synthetic diamonds, even of industrial grade, were finally put on the market using Hall's process.

While the era of the individual inventor is not dead, it is extremely difficult for an inventor to take his device from a laboratory conceptual model to a completely engineered, marketable, reproducible device. The complications of producing a consistent product suitable to be manufactured in great quantity have become so gigantic that no one person can possibly comprehend all the ramifications, and few have the capital outlay required for such a massive undertaking. Consequently, for anyone to demand that Henry Moray have completed and produced a device, or that Cosray Research Institute have a finished energy device ready to go on the market today — that is truly pie in the sky.

All of the offers made to Henry had limitations. However, finally three gentlemen seemed to offer him a legitimate deal. They guaranteed to raise a specified amount of money in a certain amount of time, not depending upon Henry's progress, but giving him adequate time to work on the project and ready it for marketing. This offer enticed Henry to form a company call the Moray Products Company, incorporated under the laws of the State of Nevada in the city of Reno, with the eleven original stockholders as the board of directors. A total of two million shares was authorized, of which one hundred shares were held among ten of the men and fifty thousand held by Henry Moray himself. The corporation started out vigorously and everything seemed to be going well until Henry found that a large amount of his personal stock was being sold; neither he nor the company was getting the benefit of the sales. There was some treasury stock being sold, but the millions

of dollars that had been promised from sales in the United States and Mexico were not being generated. Consequently, the company was doing business hand-to-mouth.

As a result, Dr. Murray Hayes found it necessary to look for work elsewhere. He took a job with the Patent Divison of the U.S. Navy, but he agreed to continue to work on the energy patent if Henry Moray would deliver to him some of Moray's own holding in company stock. Many wild and extraneous stories began to circulate, some of which took years to unfold and come back to Henry Moray. About this time, Henry's closest friend, W.H.(Bill) Lovesy of the Utah Oil Refining Company mysteriously killed in a one-car accident. His passenger, a hitch-hiker who has never been identified, got up from the accident and walked away.

At this time Henry Moray prepared and published a booklet called The Patent Situation, which covers the dealings of the Moray Products Company and is included here. It also details much patent information which I will not repeat, but will refer to in the following sections.