The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-02-08
CLOUDED PATENT RIGHTS.
CONTEST THREATENS ArIL HoLLAND'S
o OFFICE PIPE LINE.

The news from Washington in THE o
yesterday that q company was being reorgan-
lied in this city which intended to contest the
patent rights Of the Tubular Dispatch Company.
the chief boomers Of which are John L. Milhol-
land and the Netc Fork Tribune, was almost as
much a surprise to the mon who IRE interest
ed in thnt company as 1t was to Milholland and
his company. It was not intended that the news
should get out Mt this time, or before the meet
ing OF the Committees on Post Offices and
Post Roads, before which men financially In
terested In Milholland's and the Tribune's
company are going to plead for an appropria-
ton from the Government with the aid Of un-
truthful petitions. THE SUN yesterday learned
q number Of facts about the company and about
the patents held by Milholiand's and the Trio
une's company that may be OF considerable In
terest not alone to the Committees on Post Offices
and Post Roads, which are being /" boned for an
appropriation. but also to the officials of the
Post Office Department, who have made q con-
tract with this company for the carrying of what
mails the tubes can carry between the Produce
Exchange and the Post Office and the Post
Oflce and Station II.
Milholland. It will be recalled, in the story
that he told Of tho accidental dinner, where
five Congressman and two Senators, one of
them q member OF the Committee on Post
Offices and Post Roads. which is being boned for
oh hppio WV buiu thhb hlb JubCb vet
operated under patents obtained by q man
named Batcheller. He also said that Mr..
Batcheller was present at this accidental din
nor, and, the Congressman and Senators being
greatly interested. Mr.. Batcheller explained his
that are to be attacked. on the ground that they
are arrangements on patents obtained by En-
Fi II %as f tSo Clay Els and sp TIE S hieS patents 4; Itch that were
used BY the first pneumatic tube company that
the Government made q contract with, the
| phiada1nhtn rnmnanv fha praafdAnf nf ~hirh
that 1t is from Kelly that he obtained the exciu.
now In this city. 1t was explained to a Sun re.
porter Yesterday By persons interested IN the
and the Tribune's company's patents that tho
Clay and Lieb patents were formerly owned
: e snH @'ifsr0 ers ss%do un aIan' the 'II sWs q
N Ss%bs Ser sD. rr SIns,ds N patents IT ss MeF for two pne IN
Oct. 20. 1889. for improvements in the pnen.
% ps,sS,, despatch NsEs s1aDt or F tFsns 81. , system and d hiss,s
s., 1859. Le6 had other patents, also. ali OF
which were the property Of the Electro-Pneu.
When the Government made the contract
with the Pneumatic Transit Company in Phila-
dpslphiS this company hat to go to the : E ns;o,s
the right to use pneumatic tubes; Kelly's com.
punyh sSsla rom sn sh The Re etsTo.P at sll; i mceF om.
the tubes in the State Of Pennsylvania. 1t had
NJ iiBht W lCub0 LnObO Tlknb5 " III DOis.
THE SUN reporter saw yesterday II copy of tho
contract that was made between William J.
G GSn,p . ns !a and william william q ". .9 MlI rne aus Presi dtahs OF
tho Electro; Company; This contract
was wa entered int &c, on n March r1rc 81. 1892 81 It recit ss'
scribes them. and then says:
Whereas. The party of tho second part Is
Hereunder for the State OF Pennsylvania; now.
therefore. in consideration Of the sum of 81
each to the other in hand. well and truly paid:
receipt whereof is hereby acknowledged. and OF
the other consideration Of this agreement. the
Tho party OF the first part hereby grants to
the party OF tho second part the exclusive right
under said letters patent. and under such other
The party, OF ne second part hereby &C
granted upon soid application. oni agrees that
United States. the said covenant to be a con:
Itnuing covenant during tho life of the said
The contract goes on and states that the Elec-
tro'Pneumatic Company shall furnish III the
plant. Conditions are made as TO bonds, &r.,
the time limit N which The pipes ,nre TO DO laid;
s ths.. w This ]co 1hes arr THE 70 sr SS r% laia; %n 8 inl
formed, went into operation Immediately. and
there AFRO dozons Of letters In cxistcncc, from
thing but fulfil his contract in every particular.
The tnbcs werc run IN Philadelphia success
Company there. ii was stated Yesterday 10 THE
now bobs up rs the inventor OF the method OF
transit used by Milhollnnd's company. Mr..
Kelly appearing as the owner and leasing the
The Electro.P Pneumatic Company got into
trouble in the state OF New, Jersey; 1t didn't
the statements made to TIE Sun reporter and
IT didn't pay its taxes. There was no question.
however. ntOut tho value OF the patents, and us
soon as the Government showed a disposition to
go into the pneumatic tube mail delivery bust
meas ness to an eT, tie io That bd + would s,sn. pay Ssr a company ~
bring about the reorganization of tho company
holding the pneumatic. tube patents and to
fight for the rights of that company. The
work of reorganization was undertaken by
the Manhattan Trust Company OF this
conpany were notified. and for some time they
have been turning in their stock. preparatory to
yesterday that By Feb. l., the date which the
Reorganization Committee has set, nearly all OF
cation Committee. The plan of reorganization
is not made public. but 1t was asserted yester-
day that it's success was assured. and that tho
first business of the company would DO to en-
force It's patent rights against the Tubular Dis
patch COMPANY, which is being doomed by Nil.
for q Congressiona al appropriation.
AS to tt The validity Of the patents Of Clay and
matte Transit Company and which, it is alleged.
are being i%nfringed by the patents used by MIL
Ih SoEed in nna BY S'f p fiSRRPsoS' ( shf bic mersor h ihe S %eii
known patent lawyers. and their opinion is that
t ths,r Clay iwn and lie aD5 patents 1sri are c yHli4 as R TO all
giving this decision this firm OF patent
lawyers made n search OF the entire art
in the Patent Office and. examined every
patent that had ever been granted for
pneumatic tubes of any description, This opin.
Ion, tho nloncyed men interested In the com
pany owning tho patents say, shows absolutely
the validity of the patents, but, further than
that, they called tho reporters attention again
10 the clause in the contract between Kclly's
company and their company. reading:
The party Of the second part hereby a%cknowl;
tho letters patent uuon said applications. and
agrees that 1t will not contest the same in any
court OF the United States, the said covenant to
be q continuing covenant during the life of the
said patent"
Tho last Board of Directors OF the Electro
Pneumatic Company were William W. Allen,
John G. Scott, George J. Simpson and Henry
Clay. all OF Pennsylvania: Edward NJ. Dicker.
son, d. II. Bates, Ernest. l.. Oppenheim Of the
Panama Railroad. William j. Berg. William
Allen smith Of the Harvey.zed steel Company,
Edward Lanterhacb and James H.. Townsend,
ST., OF New Haven. the father OF Judge William
Townsend Of the United States Court.
Two OF the men who are interested In this
COMPANY called on Milholland some timo AGO