The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1883-04-19
An Important CONTROVERSY.

An interesting and important suit has
been pending in the United States Circuit
Court at st. Louis, between the Harrison
Steel Company and the .Bessemer Stee
Company. The purpose of the suit was
to restrain the Harrison Steel Company
from using what is known as the Reese o.
basic process of conversion in the proposed
extensive steel works at Harrison, Ill. The
Bessemer Steel Company, composed OF
eleven Bessemer Steel manufacturing
| companies, claim that they own the Reese
patents for the process which the Harri
son Steel Company wish to introduce into
their works this Reese denies and Reese,
having assigned his patent to the latter
company, allowing them to use his process
the former company filed bill some time
since in the Circuit Court of the United
States at st. Louis, praying for an iniunc-
ton restraining the Harrison Company
from the use of the Reese process. In the
case as it was entered Reese was not made
party defendant, and in the demurrer
the defendant, the Harrison Company.
urged that Reese was an indispensable
party, and asked the Court that he be SO
made. During the first part of the month
argument was made on the point before
the Court, Judges McCreery and Treat on
the Bench, and the matter was taken I'M
der advisement and continued until the
September term. The inference to be
drawn from the action of the Court, ac-
cording to the Age of Steel, is that the
Judges see no way in which the case can
proceed without Reese as party, and it is
believed by counsel for the Harrison COM
pany that no final order will ever be en-
tered in the case except dismissal of the
bill without prejudice" Meanwhile the
Harrison Company will proceed to carry
out their plans in the erection of their
works in Jackson county, Ill.
This is important to the holders of iron
properties in Virginia and elsewhere. The
Reese or basic process is that by which
the phosphoretic ores can be used for the
| manufacture of steel. These ores. exactly
suitable for the Reese process of CONVEX
sion, are abundant in this section, and es-
peclally in the South River District, where
MI. Reese has been and examined Them
tie has given it as his opinion that there
is no such body of ores in the country,
| and 1t was with reference to their utiliza-
| ton by the basic process for making steel,
that he recently suggested a railroad from
PlttSburg to Waynesboro. If the 1ge of
Steel is correct in its construction of the
action OF the Court, and the Harrison
company feel SO much confidence in the
final determination Of the contest as to
proceed with the construction of their
works, which will cost half million dol
lars, it will bring into prominence and
great value the Virginia phosphoretic
ores, and induce the establishment of steel
plants where the ores exist. With his
patent emancipated from the ENHANCEMENT
with the Bessemer Steel Company, Mr..
Reese believes and has so expressed HIM
self that Virginia will offer great induce
ments for capital to invest in steel manu-
features, because of the peculiar fitness of
the ores that exist here, their great album
dance and accessibility.
The object of the Bessemer combination
is to perpetuate their monopoly of their
own process, by holding the exclusive right
on the basic process, and preventing COM
petition by means Of this latter from other
parties. This contest has caused the at
tention of Congress to be called to the
patent laws by which a patentee may
create monopoly, and thus impose upon
consumers exhorbitant charges for the use
OF the manufactured article under the
patent. A remedy was suggested and
that was that the general right be
recognized to use any patent, giving to
the patentee a royalty on each article man.
ufactured under his patent, whatever it be.
This could do no injustice to the patentee,
would invite competition, increase indus
tries, and cheaper products.
The attention of the next Congress will
doubtless be called to this important SUBJ
ject, and if properly explained we believe,
will be favorably acted on. There is no
justice or public policy in giving a patentee
the exclusive right to the use of his pat
ent to create monopoly and impose upon
community exhorbitant charges. He
would be amply paid for his invention
by means OF a royalty on each article
manufactured, and this royalty could be
fixed by act of Congress. The contest
over the Reese patent illustrates how
much harm could be done under the pres
ent law. If the Bessemer Company should
win, the Reese process would be practi-
cally dead until such time as the Bessemer
Company might deem proper to use it, and
the phosphoretic ores of this country be
comparatively worthless in the manufac-
ture of steel, while the ores of Africa,
Spain and Cuba would be imported for the
use OF the BssSemer furnaces