The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-01-30

matter now IL oh hand IN gough rs: Manufacturing
| United States Supreme Court, 1882
Without attempting any minute detail touching the
inventions IN question: am satished-thoroughly
that the difference between them is wider and more
distinct than that recognized by the court in the
| 1O6, u S. Reps, Sup.
The courts hold that Substantial departure from
former invention is patentable without infringing
duff VS.. Sterling Pump Company 107 U. s. Reps.
This in my Judgment is more than enough to in
sure the Pan-electrc telephone from any charge of
infringement of the Bell telephone Very truly, etc.
| u. II. Myers, Esq. A. ii. GARLAND,
| When tae first local company paid its bonus of
$4,000, tho directors proceeded to pay back the
sums expended by themselves in paying for
patents, experiments, etc. This amounted to
S2Io for each of the fve, showing that of the
So 600 600 capital stock there never was paid in
but SI,3io, being a little more than one-fortieth
of l per cent
After this money was paid back the directors
next proceeded to divide the remainder of the
$lO,O QUO as a dividend to the stockholders the
amount received by each holder of one-tenth of
the stock being little less than $780,
The 900 of company stock mad in the
meantime been partially distributed, one hun
dred shares going to Ex-Governor John G. Brown,
OF tennessee, now resident in St Louis, and
principal attorney for what is known as ''the
Gould system of Southwestern railways Other
sums were given or sold to other parties, having
or supposed to have either local or national in
huence, Senators Vest, of Missouri, and Vance.
OF North Carolina, each getting portion.
| Mr.. Rogers for reasons not necessary to ex
plain. was removed from the position of cleo
trician, and Dr. J. E. Harlan was given that
place.
At the beginning of the first session of the
| Forty-eighth Congress- brother of Senator
| Vance. Mr. r. B. Vance, then a Representative
from North Carolina introduced bill In the
| House OF Representatives, giving the Attorney
general power to bring suit upon application to
| DatantS W. n a M
mittee which reported in favor Of its passage.
saying in its report that since 1886 the Attorney
general had not been intrusted with this power
The bill passed the House of Representatives
almost unnoticed. but was never reported from
| the Senate committee on patents
1t might make an interesting newspaper article
| it the names of the parties who went before this
committee on patents to advocate the passage of
this bill could be given.
AT the same time with the bill above spoken
| of there were introduced into the House several
Telegraph bills all of which were referred
to the committee on postoffices and post-roads,
| Of which the Hon. H. D. Money, of Mississippi
| was chairman. These bills created vigorous
| fight, and the result was no legislation. The in
| terest OF the Pan company in this fight can best
be told by DR.. J. Webb Rogers himself In the
| winter of 1888, in conversation with gentle
man whom he was trying to get interested in the
| Pan companies, and who asked why SO many poll
| ticians had been put into the companies instead
| of weil-known business men, DR.. Rogers said
/
| get postal telegraph established, and political
| influence will give US the control of that Then
we will have the grandest monopoly in the
| world"
But to return to the movements of the Pan
directors in business way. Contracts con-
| tinued to be made in the spring of 1884 until
| eight glocal companies, before stated,
| organized. AS these companies paid in the re-
| quired bonus, the money paid out to the
stockholders as dividends, two being declared in
| July of 81 90 per share giving each of the orig
inal promoters, Garland, Johnston, Harris,
| young and Atkins $3.50 at each division, or ST. 500
| in that month. Another dividend of the same
size was declared later. aggregating about So 900
| profit to each of these gentlemen within
| eighteen months upon an investment of $215
| EACH
The Pennsylvania company under the ener
| getic handling of Mr.. Klotz, had got so far
| along that the Bell company interfered and
asked for an injunction, upon the ground that
| the Rogers patents were Infringement upon
the Bell patents Under its contract the Pan
company had to defend this suit, and its attor
| neys commenced preparation to do So
In the meantime an episode had occurred in
| New Orleans. A nephew of Colonel Looney had
gone to that place to promote a local company to
work under the Pan electric A Mr. Van Ben
| thuysen had been suggested as 1.-The most fit and
| proper person to manage the business, but it
seemed that he, in connection with Mr. c. P.
Huntington, of Mississippi, and other parties had
become the owners of the first patents of Rogers,
| sold by him to the Secret Telephone Company"
| and that company organized to work these
| and other patents under the name of the
| National Improved Telephone Company" This
| company claims that 1t owned by prior purchase
| all the inventions Of j. Harris Rogers and that
| the Pan company was using what belonged to
| them There was a bitter fight. which resulted
in driving the Pan company out of New Orleans
! The stopping of the Pennsylvania company by
| legal process acted as damper upon purchasers
and there were more victims coming forward
with their bonuses, so that dividends in the Pan
company ceased When all that could be had
been done towards securing high places for it's
members, the Pan company could once more
look after its local interests. The in Phila-
delphia had been allowed to go by default, and
various efforts had been made to get case at
| ST. Louis or Memphis, but had failed.
| Just at this juncture an occasion was offered
which was eagerly seized upon by the shrewd
! politicians who controlled tho Pan company
| The National Improved Telephone Company had
established itself in Pttsburg, and had been
promptly enjoined by the Bell company. At
| once the Pan company proposed to aid it in de-
| Tending the suit. After some conference this
| proposal was accepted. The terms of compro-
mise between the two companies are not known,
| but the fact is known that instead of fighting
| each other before. these companies had Joined
! forces to fight the Bell company. All the prep
| arations made by the attorneys of the Pan com
| pany were given to the National for its fight at
| Pittsburg Colonel Young. with Col George
| CAN'T, of Memphis one of the leading lawyers
| of that city, came to Washington, and, after a
meeting of the Pan directors went to Pittsburg
to attend the trial the 9th. 7th and Sth of July
Tue decision of the court that it would not hear
arguments, but would follow the precedent estab
| lished by the courts and grant the injunction,
| destroyed the well-laid plans of the two COM
| panies and left them adrift.
| The leading spirits in the Pan-electric Compa-
ny are Senator Isham G. Harris and Col. Casey
| Young, of Tennessee. Both these gentlemen are
bold and fearless. They have a great stake at
interest. and it was doubtless through their ad-
vice that the next card was played. They knew
nothing of the Fabian policy, which, as general,
| the president Of the company understood so
well, but they knew how to make downright
| attack.
DIR. Rogers says that he called on Attorney
general Garland and asked him to commence