The star and Newark advertiser. [volume] (Newark, N.J.) 1908-1909, 1908-02-24
MILLIONS ASKED
FOR AN ALLEGED.
STOLEN SECRET
German inventors Begin Legal
Battle Against Newarkers
in Patent Suit.
ACCOUNTING DEMANDED
OF DEFINING COMPANY
Sewaren Concern Bribed EN-
plOyees, Say Compliments
in Chancery Action.

Millions are involved in a suit of in
ternational interest, and the existence
of a large New Jersey corporation is
affected in an action, hearings in which
were begun today before .Yice-Chan-
celIor Howell. The compliments are
Karl and Hans Goldschmidt, of Essen
Ruhr, Germany, and the defendants the
Vulcan DEFINING Company. The COM
%plainants allege infringement of patent
| on a secret process for extracting tin
from plated tin scrap, and ask for an
accounting and injunction restraining
the defendants from further use of the
process. The Goldschmidts are repre-
scented by Halsey M. Barrett, of this
city. McCarter & English are counsel
for the defendants.
The Goldschmidt brothers allege in
their bill of complaint that they are
inventors of a process for redeeming
tin from plated tin scrap. To carry out
their idea 4 plant was built by them at
Essen-Ruhr in 1888, which is now in
operation.
In 1892, they allege, Adolph Kern, of
New York, endeavored to procure per-
mission from the inventors to erect a
plant in America to operate under their
patents. He was refused permission,
however. according to their bill. and
opened negotiations again in 1898, but
was again unsuccessful
Bribed Employees.
In 1896, the complainants allege. one
Martin Laernoes, of Vilssingen, Hol-
land, bribed two employees of the in
Fentors to betray the secret. Laernoes
erected a plant in Holland, was ar
,..afal al-~.s-A-I ...I z.-A l.. 49,.
L%oernoes's plant in Holland was
operated in the name of the Electro
T~infabrik Company. As the laws of
Holland afforded no relief TO the in
ventors they waited until Laernoes
came to Germany and there arrested
him.
Keafn, after a consultation with
Samuel r. Beardsley, of Newark;
Stephen A. CHINA, Joseph B. Blooming
dale, Franz A. Assman and Leopold
Katzenstein, in New York in 1897, went
TO Europe to try for the third time to
secure the right to operate a plant in
America. Again he met with a refusal,
and as a last the complain
ants charge, he secured the formula
from Laernoes.
American Plant starts.
With this information in hand, the
Vulcan Metal Refining Company was
formed to operate an American plant
Tor defining scrap tin. A plant was
erected at Sewaren, y. j.. and the
formula, stolen by Laernoes. the COM
plainants say, was put into operation.
Later the Vulcan Western Company
was organized and a plant built at
Streathmore, I'll. This was in 1902.
The Streathmore plant also depended
upon the formula, the compliments
say.
On April &c, 1902, the two concerns
were merged into the Vulcan DEFINING
Company of New Jersey. of which |
Samuel r. Beardsley. of this city, is
president.
BeardsIey Testihes.
Mr.. Beardsley was put on the stand
today to testify regarding the manner
of acquiring the secret. He said that
it had been sold him and his associates
by Kern, who received a block OF stock.
Laernoes sent over mechanics from
Europe to superintend the erection of
the plants, he said.
Mr.. Beardsley said that the process
was sold to Kerns, as he had been in
formed by Laernoes. the president of
the Electro Tinfabrik Company. But
four copies were made. he said. one
being given to each director of the
company. p
Mr.. McCarter objected strenuously to
the examination of the witness on the
grounds that the records of the com
pany could be submitted to show what
taken place.
Il don't think the minutes of a cor
poration would be evidence at ALL said
the court, until they had been sworn
to as to what took place"
s3,oOO,OOO Concern.
Kerns was made general manager of
the Vulcan Refining Company, Mr..
Beardsley testified, and a Mr.. Zeyen,
formerly assistant to Laernoes,
was made superintendent OF the
Sewaren plant. Both are still connect
ed with the company.
kerns also superintendent the erec-
ton of the Streathmore plant, near
Joliet, according to the witness. With
kerns e Laernoes, of the Electro
Tinabrik Company, who was given
one-third of the stock. The Vulcan De
timing Company, he said, was organ
lied with $4,000. 900 capital. took over