The herald., 1898-08-02
DECISION AGAINST INDEPEND-
EMIT COMPANIES
ANOTHER FRATERNAL ROAST
Pennsylvania Insurance Commission
er Heard From-Stamped
Endorsements
OFFICE OF THE HERALD,
los ANGELES August 1, 1898


The New York Evening Post of the 9Th
ult. says:
The decision of Judge Burlington OF the
United States circuit court at Pittsburg,
yesterday, sustaining the Carly bridging
bell patent. and enjoining certain persons
against the unauthorized use of the device,
bids fair greatly to embarrass the thousand
and one small Independent telephone cor
porations in the southern and eastern
states. The company directly enjoined by
this decision is the Millheim Electric COM
pany of Pennsylvania, small concern nav
ing but twenty-five subscribers and doing
business in a small Pennsylvania town. Ac-
ton was brought against 1t by the Western
Electric company, owner of the patent, TO
make a test case. An injunction only was
asked; no effort was made to collie. dam.
ages.
1.-THE Carly patent" said ]. ]. Carly,
chief engineer of the New York Telephone
company and the inventor, this morning,
has to do with the signaling apparatus at
the subscribers station. A description IL
detail of IT would be too technical for gen.
eral understanding. 1t is device however.
by means of which conversation can be
carried on over single wire having num-
Der of stations on it. Before this invention
was In use, 1t was impossible to hear salts
factorily over a telephone having more
than a single metallic circuit; more than
that, the conversation could be heard at
any station on the circuit, as we'll as at the
one desired. 1t is not in use-at least, its
utility is small-in cities where. with great
many central stations. 1t Is the best econ
omy to give every subscriber single wire.
So this decision will affect only the com
panies doing business with a comparatively
large number Of subscribers over wide
territory.
,-he effect of the decision is, however,
far reaching. In the southern and New
England states, and in this state, there are
very many small telephone companies DO
ing a profitable business-the so-called in
dependent companies. Their managers, I
believe. concede that. without the use of
the Carly bridging bell, they cannot give a
satisfactory service to their subscribers. AT
any rate, I know this to be so. The Carly
patent is one of the few devices tina. are
absolutely inseparable. so far as is now
known, from the perfect telephone. En-
Joined from its use. the companies will be
forced to go back to the days when telc-
phonic communication was hardly posi-.
Bile because of a confusion of noises, or 10
make some arrangement with the Bell Tel
ephone company, which has the exclusive
right to the use of the patent.
1.-THE decision is a broad one. The patent
is unqualifiedly sustained and the injunc.
ton absolute. 1t is now practicable to pro-
coed against the infringing companies, one
by one, to collect damages and to enjoin
them all. Whether or not proceedings will
be instituted, cannot say. The Bell COM
pany has never been vindictive in its att,-
tude toward infringing and competing com.
panes. In the action just decided you viii!
notice that damages were not asked. Prob
ably the company will take steps to con-
serve its rights; but have no information
as to that. If 1t should, it seems to me that
the independent companies will be very
much embarrassed. indeed. If they ale not
utterly destroyed, they will be seriously az
fected."
The action against the Mllhem company
has been in progress for about two years.
and has attracted but little attention,
though 1t has been carefully followed by the
Infringing companies. Not long ago the
Berliner patent was sustained, and within
a few weeks decision sustaining the Fir
man patent was handed down by the cir
cult court Of the United States sitting in the
northern district of California. Both of
these decisions tended to embarrass the
companies doing business In thinly popu-
lated districts. The Carly patent decision,
It is said, will aid materially In the firm
establishment of the control of the tele
phone business of the country by the Bell
Telephone company.