The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-01-06
TELEGRApHIc NEWS AS PROPERTY.

main point involved being the proprietary rght OF tee
graphic news the facts Of which were fully published
in the HERALD during the progress OF the trial John
J. Herman arranged with the Gold and Stock Telegraph
Company 70 take charge othe business OF furnishing
foreign news received over its wires to their
below Canal street. and he also arranged with the Asso
caed Press receive their foreign financial dispatches
thirty minutes before general distribution. Nearly
simultaneously with these arrangements one made
by Abbott with the Manhattan Quotation Company
TO obtain similar for distribution among the Gus
TONERS OF the latter company Il charged by Kier
nan that Abbott took tho news from the tapes and
bulletin boards OF the Gold and Stock Tee-
graph Company, and before the expiration OF the
specified time distributed the among his custom
ers and thus destroyed the worth OF Kiernans to
his customers The suit for injunction to re-
strain the Manhattan Quotation Telegraph Company
from such alleged Illegal appropriation Of the foreign
financial news Of the Gold aud Stock Telegraph Com
pany. The following Is the opinion
In his written opinion which is lengthy and an
elaborate one Judge Van runt begins by stating that
the questions TO be determined the decision OF this
case are three ia number FIRST had.the plaintiff had
tanned by him from the Associated Press and trans
mitted by him to his customers? second had the de-
PENDANT the Manhattan Quotation Telegraph Company.
made Of this news by transmitting IL over its wires
10 its customersS and third, the plaintiff had right
OF property in the news received by him from the
he transmitted such news to his customersf Tho
Associated Press Is corporation which has for its
by its agents. and which is transmitted TO tho city OF
New York for the use Of It's members
Among the many classes of intelligence
called "ioregn financial news" consisting OF quota
tions consols rentes. United States bonds, railroad
stocks the rates of and increase aud decrease
Of specie in the Banks OF England and France. Tho
Gold and Stock Telegraph Company Is a corporation
formed for the purpose Of transmitting to ITS
by telegraph stforcign financial news' and also "do-
mestio financial news including the quotations OF
the Stock Exchange The plaintiff was engaged IN fur
financial news" Tho defendant, 1.-The Manhattan
Quotation Telegraph Company" was also engaged in
and domestic financial news and the
defendant Abbott was its agent for tho
procuring Of the same The Gold and stock
which It had the exclusive of all "foreign financial
news for tho space OF thirty minutes after its receipt
by the Associated Press in this CITY, On the 10th OF
January, 1872, the Cold and Stock Telegraph Com
pany made q contract with the plaintiff, by which
they gave TO him the exclusive use or all foreign
financial COWS" received from the Associated Press for
tho space Of fifteen minutes after its receipt by them.
The manner in which this business is conducted is
follows ANY news collected by the agents Of the
Associated Press abroad teegraphed by cable TO tho
Associated Press the message being In cypher. The
message is then translated by an employ6 OF the AS
ISOLATED Press and such part comes under the head
OF financial news handed over to the Gold and Stock
Telegraph Company, who sends 1t at once by Morse
wire TO the Office OF Mr.. Kiernan; It is then sent
back by Mr. Herman 10 the Gold and Stock Telegraph
Company with instructions To- transmit il to his sub
scribers, which Is Immediately done The mes
ssges thus sent received by Mr. Kier-
mans subscribers in from one TO three min
utos after their receipt by the Gold and Stock
Quotation Company from the Associated Press II the
Associated Press has any rights OF property in the
transmitted to II by telegraph by its agents
abroad then already the plaintiff has succeeded TO
such rights far as-relates TO 'ioregn financial
news for the space OF at least fifteen minutes after its
receipt from the Associated Press by the Gold and
Stock Telegraph Company. 1t is claimed by the de-
fendantg such right of exists
upon the ground that before this intelligence
gathered together by the agents Of the Associated
Press In Europe IL public property and open to all
the world and that II was not made the exclusive
property Of the Associated Press because 1t had boon
collected and elegraphed 10 them by agents. that be-
fore 1t gathered the first conner had perfect right
this and publish IT, IL may be perfectly true
that person could be restrained from the publication
this Europe, but it is difficult TO see how such
q right can be extended so far as TO authorize
the publication OF news which has been
collected by tho agents OF she Associated Press
would be atrocious doctrine to bold that dispatches
the result OF the diligence and expenditure OF one man
could with immunity be pered and published by an
other IL is undoubtedly true that In respect to news
it's publication cannot be interered with where the
party procures the intelligence by tho diligence OF his
agents. but II he seeks TO profit by the superior
diligence OF his rivals II is unjust that he should be al
lowed TO do so until the right OF property has been
abandoned by publication II has been held The
fact that certain class Of information TO all that seek
1t is answer TO claim 10 right OF property In such
Information made by person who at his own expense
and by his own labor has collected it. This
right OF property however does not preclude another
person as the result OF efforts and diligence
from collecting independently and utilizing no may
see o. these same materials Applying this principle
10 tho Of the Associated Press 1t is clear
that II has right ofproperty in all news transmitted
to II by its agents until II abandons that right by pub
LEGATION. The agents Of the Associated Press abroad
II is true only do that which any other person could
do II they felt so disposed but the collection OF
being the result Of their own labor, and its value
being impressed upon 1t by the fact OF such col
lection and by the fact OF being telegraphed by cable
great expense clearly bring such dispatches within
the principle OF the cited To say that the Asso
ciaed Press could not restrain the publication oil It's
dispatches by any person who should surreptitously
obtain them would be to hold that private Individual
could prevent the publication OF his dispatches
they should happen relate TO public II
TO me clear therefore, that there right OF property
which will be protected by the Court in the news
collected by the Associated Press abroad and
telegraphed to II by its agents. so long that
right is not abandoned by publication, and as Mr..
Herman has succeeded TO the rights OF the Associated
Press as relates to "foreign financial news" he
Ia entitled TO protection the OF that news unless
he aban toned Il by publication
The next question TO be considered is, Has the de-
fendank tho Manhattan Quotation Telegraph Company,
made Of belonging to the plaintiff by trans
hitting II It's wires to us cusomersf II appears
by the undsputed evidence in the that at up
to the time OF the commencement Of this action the
Manhat tan Quotation Telegraph Company obtained all
It's foreign financial news through the defendant,
Francs A. Abbott, who was its agent There was no
evidence produced before me that Abbott had any
means OF information whatever, except be de-
rived from inspection OF the tapes and those OF the
Gold and stock Telegraph Company and OF the mani
fold slips OF Mr.. Herman in the Offices OF their
TONERS. II afnrmative.y shown by the plaintiff
that in more than one instance Mr. Abbott
had been copying dispatches from Mr.. Kicr-
mans instruments or manifold slips, and which
smos, immediately appeared upon the tapes Of the de-
one occasion the same errors were committed by the
Manhattan company as had been committed by Mr.
Herman out a moment before. In instance find
despatch appearing upon the tapes OF the Manhattan
company purportng TO be special message from Lon
DON which had It's entire origin In the manifold slip
hur nm INV Mr. Herman the Of h0
Board II IL shown by the testimony OF Mr.. Abbott
he did procure his dispatches from the customers
Of Mr. Herman and that although he pretended that
be obtained information through brokers in the city OF
New York. evidence upon the trial OF this
produced that Mr. Abbott had in single instance OBJ
iained particle Of foreign financial news from such
source and the conclusion Is irresistible that the great
bulk OF such Information he obtained from Tho
tapes OF Mr. Kiernan's machines or from bis
manifold slips sent 10 customerH On behalf OF the
Manhattan Quotation Telegraph Company IL Ia claimed
that although Mr.. Abbott may have illegitmaely aud
Mronafnllx nhianed the news which he fnrnished TO