New-York tribune., 1888-03-23
THE spFcUL1TORs oUT.


The col]apse of the Governments inteven-
tion in the telephone suits is inevitable. Not
only have all the questions at issue been de-
cided by the Supreme bench, but spectators IN
wildcat telephone stocks have also learned to
their dsmay that contests with the Bell Com
pany will be hopeless in future. The validity
OF its patents has been established on the broad
ground that Professor Bell discovered pro-
cess and invented an art. which are and must
be employed by rivals in perfecting his orig
inal apparatus. As the patent is based on tho
essential principle or process, any modihca-
ton of the mechanical device, whether simple
or complex, will remain in the judgment OF the
highest Court an infringement. This feature
of the decision leaves all experimenters in the
electric art of transmitting human speech al
the mercy of the original discoverer. All the
various devices and patents for accomplishing
the same results which Professor Bell achieved
arc deprived of commercial or speculative
value. The bottom has fallen out of wildcat
schemes like the Pan-Electric. Speculative
statesmen will not care to have the Govern
ment suit proceed. when ultimate failure is in
cvitabe. With the pressure from the specIl-
lators removed, the Department OF Justice
will naturally suspend operations at once.
Without that pressure the suit would never
have been instituted, as the following con-
tract attests:
This agreement. made and entered into this day, at
the City OF Washington in the District of Columbia by
and between the National Improved Telephone Com
pany a body corporate, incorporated under the laws
of tho State OF louisiana party of tho first part and
the Pan Electric Telephone Company, body corpo-
rate Incorporated under the laws OF tho State OF Ten
xpifp
That whcrcas each Of said parties is tho owner rc-
spcctvely Of certain valuable telephone inventions and
improvements in respect tn which there are now pend
ing certain suits between tho said parties and tho Amer
lean Bell Telephone Company. in tho United States
Court at New Orleans, In the State OF Louisiana, and
at Memphis, in the State Of Tennessee;
And whereas the parties hereto, the said National
improved Telephone Company and tho said Pan -Elec-
trio Telephone Company propose to begin proceedings
in the Of the United States against tho American
Rell Telephone Company, provided they can OBTAIN
the assent OF the Attorney OF the United states
to do so:
Now, therefore, It is hereby stipulated and agreed
by and bctwcen the parties hereto that In tho further
conduct Of the suits now pending. as Aforesaid they
Will render such mutual aid and assistance as may DO
convenient and necessary to protect and secure their
common interest And It is further stipulated ana
agreed that should they succeed In having SUIT
brought by In tho name Of tho Government tho law
yers of each party shall be entered counsel OF record
in said suit and every possible assistance shall DO
given by the contracting parties to carry t to sue
cessful conclusion. With this further express agree
ment and understandings that there shall DO no sette
ment or compromise OF tho by either party In In
terest without a full discussion thereof by tho mem-
bers of both companies, and agreement upon snch
terms Of settlement or compromise as may seem Just
and fair to both In witness whereof the proper OFF,
ces hereto attach their hands and seals this 4h day
of August, A. d. 1885, ISHAM g. HARRIS,
President Pan Electric Telephone Company, the
President being absent.
THE NATIONAL IMPROVED TELEPHONE COMPANY
OF LOUISIANA,
BY w. VAN BENTHUYsEN President.
The two companies entering into this agree
ment had been sued by the Bell Company for
infringement and were in need OF Government
aid Mr.. Van Benthuysen had asked to have
a suit brought. and his request had been re-
ferred to the Department of the Interior for an
opinion Colonel Young then convinced him
that the companies should pool their issues.
The application was withdrawn from the De
partment of the Interior, at the request OF MIR.
Garland This contract was signed by which
$4,000 worth of testimony accumulated by
the National Improved Company was made the
eouiyalent for the official influence of various
stockholders of the Pan Electric in the Depart
ments of Justice and the Interior. Not long
afterward application was renewed for Gov
ernment Intervention. This time it was not
referred to the Department Of the Interior, as
Mr.. Van Benthuysens had been, but was
promptly and favorably acted upon by Mr.
Garlands official representative. When this
suit was dismissed by order of the President
a second was Immediately initiated by Mr. Gar
lands subordnates, with the approval of Sec
rotary Lamar. The spectators who had
pooled their issues-Mr. Young had testified
that he was also counsel for the Gray interest
were behind the Government in its interven-
tion in a case that was already before the courts
in its length and breadth They are no longer
behind it because they know, in sporting phrase
that "the game is up" With the spectators
out. the "refom'' Government will have no
further motive for suing the Bell Company.