New-York tribune., 1901-08-27
HARVEY ROYALTIES DISPUTED
NAVY DEPARTMENT ADVISED NOT To
APPROVE VOUCHERS OF BETHLE-
HEM AND CARNEGIE COMPANIES.

Washington. Aug. 26.-The Departments OF Jus
tice. IN an opinion by Acting Attorney-GeneraI
Beck has advised the Secretary Of the Navy that
ne is Justified in withholding his approval Of GER
tain vouchers whicE have been submitted by the
Bethlehem and the Carnegie steel companies for
royalties which these companies paid TO the Har-
Vey steel Company for the OF the Harvey
process In hardening steel. and for which they
claim reimbursement from the government under
a contract by which the government agreed to re-
pay these royalties TO the steel companies IL the
companies were required to pay them to the
harvey Steel Company The liability 10 pay these
royalties has been in dispute for some years. and
while the particular royalties only relate TO the
hardening Of the armOr plates for the battleships
Illinois and Wisconsin. yet the decision affects all
the royalties for armor the battleships which
have been constructed since 1895 or are under
process of construction
The opinion Of the Acting Acknowledgement sets
forth that on April ~ 1885. the United States made
contract with the Harvey Steel Company nv
which the government acquired the right to use
the inventions described the Harvey patents
by paying a royalty OF One-haIf of one cent a
pound on the finished product Captain Sampson.
tnen chief of the Bureau of Ordnance. later ad-
vlsed the Navy Department that further roy
altles should be paid the process used by the
government through its contractors in the con-
struction of armor plate not the same as that
covered by the Harvey patents. and for the addf-
tional reason that the Harvey patents were In
valid for want Of novelty On this recommenda-
tion Secretary Herbert in 1895 refused to pay fur
ther royalties.
In 1897 the Carnegie and the Bethlehem steel
companies took out a license from the Harvey
Steel Company to its process in the face
hardening of armOr plates and the contract stipu-
lated that the steel companies were under no OBJ
legation to Fay any royalties whenever the Harvey
Steel Company had previously granted a license to
any government and the royalties provided by said
license had in fact been paid by such government.
The agreement further stipulated that the steel
companies should submit TO adverse decree for
an alleged infringement of the Harvey patents
from the use of the process except under this
license suit was begun in the United States Cir
cult Court for the Eastern District of Pennsyi-
vanfa, and decree entered. stipulated in the
contracts with the government for the manu-
facture or armor plate for the battleships Illinois
and Wisconsin, which provided that II the steel
companies were required 20 pay royalty for the
use Of the face hardening process the govern
Inent should reimburse them, and the Harvey Steel
Company then brought suit against the govern
m.ent IN the Court OF Claims for an Infringement
OF the patents, and the government defended on
the grounds indicated by Secretary Herbert. The
Bethlehem and the Carnegie steel companies. haV-
ing paid the royalties for hardening the aruOr
plate Of the Illinois and the Wisconsin 20 tho
Harvey Steel Company, presented u voucher for
the approval Of the Secretary OF the Navy 20 Sc
cure REIN burseInent. and the Secretary requested
he was justified in Withholding his approval until
the case IN the Court OF Claims. involving tho
validity OF the Harvey patents, was first deter
mined.
The Acting -Attorney-General. In the opinion Just
sent 70 the Secretary of the Navy. advised him
that he is justified in Withholding such approval,
% the end that the questions involved may be.
judicially determined.