New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-03-13
A JOINT USE OF PATENTS
.cpEEMENT BETWEEN GENERAL ELEC-
TRIO AND WESTINGHOUSE.
,ovc FIGHT BETWEEN THE COMPANIES AT
AN END-THE ARRANGEMENT FORMALLY
APPROVED BY THE DIRECTORS


cA long Neht between the General Electric
cor,nanv and the Westinghouse Electric and
manufacturing Company has been ended. Mill
tons have been spent by the two companies
- ,awsuits against each other over patents
and millions more have been sacrificed in con-
,es,s 10 secure contracts for supplying eiectri-
al materials These the foremost COM
nanies in America engaged in the manufacture
NJ electrical apparatus. including hgh'us
plants ard railroad equipment.
The Boards of Directors of both companies
met Yesterday to decide upon terms for the set
nement of their differences. At the close of the
meetings the following was issued as 'oint
statement by the companies
Negotiations between the General Electric Com
many and the Westinghouse Electric and Manufac-
iurng Company have resulted in an arrangenent
TWO companies, subject TO existing licenses on
terms which considered mutually advantageous.
II has been agreed that after certain excursions
the General Electric Company has contributed o-i2
ner cent and the Westinghouse Electric ana Manu-
combined patents and each company is licensed 10
use the patents Of the other company. except as "
the matters excluded. each paying royalty Tor
any use of the combined patents in excess of the
value Of its contribution TO the patents. No., -
Control consisting Of five members, two appointed
BY each company. and fifth selected by the four
no appointed. Both companies have acquired dur
ing their existence large number of valuable pat
enis and numerous suits have been Instituted IN
consequence of the infringement OF these patents
BY one party or the other or by their customers;
In the prosecution OF these suits large sums OF
money have been expended. and the general eN-
penses of the companies have in this manner been
greatly SsPy iHsi nd
the two companies and their customers VIII De
The especial incentives which led TO the arrange
ment at this time Were the recent DECISIONS Go1 IN
Dany controlling the overhead system of electric
Railways. the approaching trials on a number OF
other important General Electric patents on eI
and systems and other electrical devices, ana tne
equally strong position OF the Covered by
The patents of Nikola Tesla, and In view OF rs
other patents In active litigation some Oh WHO"
are Of controlling Importance
MR.. COFFIN'S COMMENTS.
President Charles A. Coffin. of the General
Electric Company. said: Although the state
ment which has been given out does not happen
10 say so in so many words. the arrangement
between the two companies has been formally
spproved by the directors of both companies.
The agreement t, as yet in skeleton form 1t
will take several weeks to complete 1t. l should
say it might. perhaps. be perfected and put into
effect by June l. 1t IS the intention that it shall
continue during the life of the patents OF the
.onopanies The patents which are excluded
are foreign patents which cannot be embraced.
and patents on cable and underground railway
ma erlals which are covered by licenses.
The companies will stop fighting each other
In the courts and will join in prosecuting IN
fringements Of their patents. How much VIII
be saved by the termination Of litigation | can
no; say. as all legal expenses are lncluoeo III
one account 1t would be necessary to sepaIate
the items to furnish actual ngureS Inc sdNiis'
however will be large. 80
NO monopoly Of the electrical business VIII
be created by the agreement. There are other
~, shn kIc
fral Electric and Westinghouse companies 40
not consolidate. They retain their entire IN
coincidence and will, In fact, as heretofore, De
Competitors in business Prices VIII douo.es ss
be agreed upon which will benefit customers
IF the companies and the companies themselves
but there is intention Of establishing hieii
g- ces for electrical apparatus and supplies IL
! 5 not yet been figured out how much the
r.vonues Of the companies will be Increased py
the arrangement, nor can II be untll me al
has been put In more perfect ioIli'
The first proposition for an agreement De-
tween the companies was made some hve years
ago but the negotiations which resulted IN 'Ae
agreement were opened recently.
OPPOSITION TO THE PRESIDENT.
President Coffin said he knew nothing Of the
purpose Of an advertisement OF Duer, strong q
Jarvis LAWYERS. at No 80 Wall-st.. asking for
the names and addresses Of stockholders OF the
General Electric Company who were opposed
10 his management. A. Pennington Whitehead
OF the law firm who had charge OF the mater,
said the firm acting for clients ana II was
rot at liberty 10 state the object OF the move
against Mr.. Coin. II was reported In wan
Street that John Dier. the head OF 'he ia ,s
firm was connected 18th or interested In the Ola
Edison General Electric Company. which was
merged in the General Electric Company:
The transactions in the stock Of the Genera
Electric Company on the Stock Exchange yes
terday aggregated over $1,000 shares The com
mon stock opened at 37%. against 37ls. the CLOS,
ing price on Wednesday, 1t advanced to 3sf2 ana
h. ole hat
was a net loss OF one-eighth Of per cent Tor
the day. A few years ago the stock sold at ~
There were no dealings In Westinghouse but
81 was bid for the common and 81 asked Tor the
preferred. 1,,
The authorized capital stock Of the General
Electric Company is $500O00oo, OF which $loooooV9
may De preferred .o ae oo sna Of the
stock s4252 600 Prior to August, 1893. dividends
at the rate Of s per cent a year We're paid on
paid since that date The preferred is entitled
to dividends at the rate OF per cent year ana
these are cumulative. SO that when unpaid tney
become a lien on earnings. The dividends on
the preferred stopped with the one due January
1894 The company has issued >S,ioooc OF per
cent debenture bonds. which are convertible ihto
stock on the basis OF 500 In stock for Sl2o IN
bonds. A., . ~ .ha
The surplus reported ~ the company ior the
wear ended January 81, 1895, after charging OH
se32 5o1 for old losses. depreciation, etc. was
si1l643 The annual meeting takes place May
10 The company's principal works are at Scne-
nectady. n Y 1t has other works at Harrison
n +. and at Lynn. Mass. The company was
orss an in April H. 1892 and acquired all Of
the capital stocks Of the Edison Electric Light
Edison General Electric. Thomson houston Fec
trIc and Thomson Houston international Elec-
trio companies 1t controlled all the Edison pat
ents for electric lighting.
The Westinghouse Company mas outs,anoi ,
stock and 81, ooo. 900 preferred per cent cumu-
iatve stock, 100000 United States Electric Lignf
Company per cent bonds go o9 coiIatef faI
dividends The company holds in its treasury
ss7s5 preferred stock and $ss3.S4s asserting stock
The total net income Of the company tor tne yea.
Of the company is George Westinghouse, 1r; ana
the chairman OF the Board of Directors Is Bray
ton Ives. The works OF the company are at East
Pittsburg, Penn.
LARcER UNION LEAGUE.