The Saint Paul globe., 1901-08-27
ADVICE OF DEPARTMENT OF JUS
TECE TO THE SECRETARY
OF THE NAVY
m MATTER OF ARMoR PLATE
We'll Laid Plans of bethlehem and
Carnegie Steel Companies
May Yet Gang
Aglee.
UP TO COURT OF CLAIMS

WASHINGTON, Aug. 26.-The depart
ment of justice in ar opinion by Acting
Attorney General Beck has advised the
secretary of the navy that he is justified
i'll Withholding his approval of several
vouchers which have been submitted by
the Bethlehem Steel company and the
Carnegie Steel company for royalties
which tnese companies paid to the Har-
vey Steel company for the use Of the
Harvey process in hardening steel and
for which they claim reimbursement
from the government under a contract Dy
which the government agreed to repay
these royalties to the steel companies If
the steel companies were required to
pay them to the Harvey Steel company
Liability to pay these royalties has been
a matter of dispute for several years and
while the particular royalties only relate
to the hardening of the armor plates of
the battleships OHIO and Wisconsin, yet
the question of royalties on harvey
hardened armOr for battleShipS con-
structed since 1885, or which shall be con-
structed in the future is involved
The opinion Of the acting attorney gen.
eval sets forth that on April H. 1893, the
United States made a contract with the
Harvey Steel company, by which the gov
ernment acquired the right to use the in
ventiOns described as the Harvey pat
ents, by paying a royalty of one-half of
one cent pound upon the finished
product Subsequently Capt. Sampson,
then chief of the bureau of ordnance, ad-
vised the navy department that no
further royalties should be paid as the
process used by the government, through
it's contractors, in the construction Of
armor plate, was not the same as that
covered by the Harvey patents and for
the additional reason that the Harvey
patents We're invalid for want of nov
city On this recommendation Secretary
Herbert, in 1895, refused to pay further
royalties. In 1897 the Carnegie Steel
company took out a license from the
Harvey Steel company, to use its process
in the face-hardening of armor plates,
and the contract stipulated that the steel
companies were under no obligation to
pay any royalties whenever the Harvey
Steel company had previously granted
license to any government and the roy
alties provided by said license had in
fact been paid by such government.
TO WORK UNCLE SAM.
The agreement further stipulated that
the steel companies should submit to an
adverse decree for an alleged Infringe
ment of the Harvey patents and the is
sUance of an injunction to restrain them
from the use of the process except under
this license. Suit was commenced in the
United States circuit court for the East
ern district of Pennsylvania, and de-
cree entered as stipulated in the agree
ment Subsequently the two steel COM
panies in 1898 made contracts with the
government for the manufacture of
armor plate for the battleships Illinois
and Wisconsin, which provided taat if
the steel companies were required to pay
royalty for the use of the face-harden-
ing process" the government should re-
imburse them and the Harvey Steel
company, then brought suit against the
government in the court of claims for an
infringement of the patents and the gov
ernment defended on the grounds indi-
Gated by Secretary Herbert. The Bethle-
hem Steel company and the Carne gle
Steel company having paid the royalties
for hardening the armor plate of the
Illinois and Wisconsin to the Harvey
Steel company, presented a voucher for
the approval of the secreatry of the
navy to secure reimbursement, and the
secretary requested the opinion of the
attorney general as to whether he was
justified in withI<ding his approval until
the case in the court of claims, involv-
ing the validity of the Harvey patents
was first determined.
The acting attorney general, in the
opinion just sent to the secretary of the
navy, advised him that he is justified in
Withholding such approval to the end
that the questions involved may be ju-
dicioially determined.