New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-07-30
COMBINING ELECTRIC LIGHTS.

EFFORTS TO FORM ONE CORPORATION OUT OF ALL
THE ELECTRIC LIGHT COMPANIEs-oNLY A PAR
TIAL sUCCEss-BUYING UP PATENTS
An effort has been making for some time by the
oincers OF some of the electric light companies to
form combination of all such corporations 1t was
argued that if all the patents and privileges
held by the various companies now were combined
tne confederation would be strong enough to hold
the heid against any new corporation III. l. Hoyt,
manager of the Fuller Electric Light COMPANY was
the leading spirit ia the proposed combination. Sew
era o. the electric light companies thought favorably
OF the scheme but the directors of the Edison Elec-
trc Light Company declined TO enter into the
arrangement and so the matter stands at present
Sherburne b. Eaton, vice-president of the Edison
Electric Light Company, when questioned yester-
day by reporter Of Tbs TRIBUNE relative to the
matter, said:
1.-Two years ago patent known as the Gramme
patent. the invention of foreigner was offered to
the Edison Company. II was examined by compe-
tent mon, who reported that the title to it was not
good and that the invention was not of sufii-
cient value to warrant its purchase. 1t was
afterward sold to the Fuller Electric Light
Company. Nothing done with it by the
purchasers for nearly two years This last spring the
fniler company chose new mama er Mr.. Hoyt.
q fundamental idea in electric lighting and endea-
vored TO effect combination of all the companies,
pto be known as the Gramme Combination, to take
IT'S title from the patent purchased by the Fuller
Company.
Mr.. Hoyt wished the Edison Company to take
ne lead III the new organization. The managers of
that company, however, declined to have ANYTHING
to DO with it until after they had sent TO Europe
and again thoroughly Investigated the patent.
Not Wishing to, delay the matter the Fuller
the Edison TO join with it in making the proposed
combination Several of these corporations among
them the United States, the Jablochkoff and the
Weston Companies, agreed to enter the combination
They adopted an agreement that each company
should pay $4,000 into the treasury of the new
nnff 10 mol.
fund to buy the Gramme patent from
the Fuller Company. The remaining companies,
certain length of time IN which to join the combna
ton on the same terms as the others Before the
pany; after full investigation. for second time
OF the Gramne patent, and after care
meetings. e Board of Directors %sf s at
which f.; W. Dickinson, who then the principal
legal adviser of the company on tins sub
Ject, was present and presented his views decided
not to enter the combination. Mr.. Edison
sand that he bad made special study of the
features OF the Gramme patent and not only
thought.t worthless but that features of the inven-
ton themselves were unimporant to the working of
his system of electric lighting.
The combination formed by the other COM
panles, some OF whom were using the Gramme
machine and deemed il indiSpensable Oar positinn
aud still is that the title to the patent is de-
teotive and cannot be sustained ia court; that
there fore any inirnger can use it with impunty
and that the features of the invention not
tial TO our system Of lighting, Mr.. EdSon's own in
yention having rendered the features of the Gramme
|
This combination was intended 10 take title to
this Gramme patent but also possibly subsequently,
TO take title 30 other patents deemed 10 be of general
value applicable all the various systems OF cleo
trio lighting operated by the various members of
! the combination. Our company was especially OPP
posed 10 this feature, because the other companies
! had practically nothing that we desired. whereas
they all wanted much that we have. Consequently,
] III such combination or pooling Of fundamental
patents of general application, they would all re-
! ceiye more than we got. Mr.. Edison's system of
! lighting being an elaborate one, wrought out by
| himself in great detail and thoroughly protected
at every point by his patents, our
company, unhesitatingly reached the conclu-
sion with the unanimous approval of its cleo
tricias and legal advisers that il would weaken
Itself by parting with its valuable monopoly, OF by
taking in partners who would contribute nothing
but take ont everything. We decided, instead, TO
proceed in the work of introducing To the public
system of lighting alone. / told that
the combination is developing its original
plan of buying up any and all patents
that may give IL strength. Probably
every pa,ent in electric Lighting offered for sale
has been first offered Ia company Ii Is seldom
that any of these bear investigation that we almost
never make a purchase. Some of these may have
been purchased by the combination members of
it,"