New-York tribune., 1909-05-04
SUES AUTO COMPANIES
FLINT CONCERN INVOKES
SIBERIAN Law.
Says Members Of Manufacturers
association DrOTe 1t ont
Of Business.

Suit has been begun by the Flint Automobile
Company of Flint. Mich. for $4,000 damages
against three members of the Association of
Licensed Automobile Manufacturers, incOrporat-
ed in this state, charging violation Of the Sher-
man law The three defendants are the Loco
mobile Company of America, the George n
Fierce Company. of Buffalo. and the H. H
Franklin. Manufacturing Company, of SYRIA
cuse. The Flint company in the bill Of com
paint which filed Saturday. alleges that
the association drove it out of business by
means of threats of legal proceedings The
companies named and the association deny the
charges
H. L. Stimson. former United States Attorney
is counsel for the Flint company. 1t is a
private suit allowed under the Sherman law 10
persons or corporations who believe they have
suffered through restraint of trade, and per
mits the recovery of three times the damages
alleged The actual damage alleged to have
been inflicted in this is $4,000. In the
bill il was said that the association was formed
on or about March >, 1903 by 20 per cent OF the
persons firms or corporations In the automobile
trade in this country ito raise and maintain
artificialIy the prices of gasolene automobiles
and to regulate and restrict artihcially the out
nut of such automobiles and the trade and com
mercc therein"
tion was organized only one patent was trans
rerrod to it, known as the Sclden patent, and
that the executive committee had the power to
grant license to use that patent to any con-
Germ il saw fit and that fund was established
contributed by the members. TO be used to pros
ecute suits against non-members II was
charged that threats were made against com
petitors and their customers. alleging sinfringe-
ment when such infringement did not exist on
May J. 1903 the Flint company charges. threats
we're made against it, and II charges that these
threats we're continued until rather than go 10
the expense Of defending action, the com
panv On December 81 1908 went out Of bust
ness
The Flint company, in the bill declares that II
was not infringing on the patent or on any
patents and that the threats made solely
70 drive ii out OF business The answer II was
said making a complete denial that the asso-
citation was being conducted in restraint OF
trade. or that threats were ever made to drive
any competitor out of business, will be filed
within u short time.
Samuel T Davis jr, president of the Locomo-
bile Company of America said last night that
he had not heard Of the Flint company's suit.
but that an answer would no doubt soon be filed
IN denial lie said that the Electric Vehicle
Company was the lcensee II the Selden patent.
and that II any action had been contemplated
against the Flint company in 1903 it might have
been by the Electric vehicle COMPANY The
association. he asserted. was composed OF mem
bers who had obtained sub-ucenses. The patent
could not be used without license, he said.
and "A suit bv the Iiceusce against the Ford com
pany which had been dragging along FOR six
years would be argued in the United States
Circuit Court here some time this month. This
suit IS for alleged infringement
Air Davis did not believe that the association
had ever engaged in litigation over the patent.
but that all legal actions had been brought by
the Electric Vehicle Company. The Selden pat
ent broadly is a combination of a gasolene en-
a.ine and an automobile.