Omaha daily bee., 1911-01-15

D
Elected.
The Association Of Licensed Automobile
Manufacturers, commonly known as the
Automobile trust" and which is built
around the so-caled selden patent was
handed severe blow last week when the
circuit court of appeals by unanimous vote
declared in favor Of the independent manu-
facturers.
In arriving at the verdict the higher
courts explained that while the decision
leaves the patentee empty handed with re-
spcet to the patent for the short time II
has to run It cannot be regarded as depriv-
ing him through any technicallty of the
reward Of his labors. lie undoubtedly
appreciated the possibilities OF the motor
vehicle at the time when such IDEAS were
regarded as chimerical. Had he been able
to see far enough he might have taken
out a patent as far reaching as the circuit
court held this one was. The BraytOn en-
CINE was the leading engine at the time.
and his attention was naturally drawn TO
It's supposed advantages lie chose that
/ type In the light of events we can see
that had he appreciated the superiority Of
the otto engine and adapted that type for
his combination, his patent would cover
the modern automobile. lie did not do So
lie made the wrong choice and we cannot,
by placing any forced construction of the
patent or by training the doctrine of
equivalents make another choice for him
at the expense of these defendants, who,
neither legally nor morally, owe him any
thing"
The early history Of the selden patent
makes interesting reading. While the
original application covering road loco
linz
gear propelling wheel steering mechanism,
motor, clutch. etc, was filed by George
b. Selden in 1873. the patent was not
granted until November 8, 1885, having been
before the patent office for sixteen years
During this interval numerous 5improve-
ments were made and the application
amended from time to time to cover them.
II may be interesting to know that sue
cessful car has never been built under the
/ specifications of the Seden patent, and
there can be no doubt but that if such a
machine were possible, It would have been
manufactured long before this.
During the next few years several in
fringement suits were started I'm the lower
courts and in 1903 a majority of the auto
mobile manufacturers formed what is
known as the Association OF Licensed
! Automobile Manufacturers. This organiza-
and attempted in various ways to control
the motor car industry, but new com
panies sprang into existence with great
/ rapidity and these soon became so strong
4 that the American Motor Car Manufac-
I tuI eFs association was founded, this or
1 ganization being Independent of the Selden-
ties and refusing to pay tribute TO them.
Thus matters stood until September H.
1860. when Judge c. M, Hough in the United
States circuit court for the southern dis
tict OF New York rendered his now famous
decision I'm favor of the Selden interests
This decision coming from 50 high an au-
thority naturally caused wild scramble
among their dependents, many OF whom
applied FOR and received licenses 10 operate
under the selden patent paying for the
l privilege a fixed royalty on each car man
ufactured.
The new responsibilities Of fathering thu
| automobile industry now began to weigl
/ heavily upon the alleged AUTOMOBILE
/ trust" as it now became generally known
ana careful Plans were laid to exterminat
| the few remaining companies from whom
| tribute could not be extorted, Automobl
] agents and dealers were prohibited iron
handling unlicensed machines" manufac
urers Of parts and accessories were intimi
1
boycott II they accepted business from tn
independent companies and prosperity
buyers were given 20 understand that the
were buying a lawsuit" II they purchase
| independent cars. These drastic measure
naturally had considerable effect upon th
sale OF unlicensed cars" and interfere
| greatly with the business OF the independ
ent companies
one OF the largest OF the Independent con
Germs who had steadfastly refused TO pa
tribute 10 the association was the Veil
Motor Vehicle company Moline, III. VIII
In 1910 instituted proceedings under IN
Sherman antitrust law. declaring the as
ISOLATION 10 constitute monopoly Ia r,
stralnt Of trade and praying for reimburse
ment for damages In the sum OF $4,000
This suit IS now pending In the circu
court Of the state OF Wisconsin and evers
thing possible Is being done by the plair
dffs 10 rush the work through 10 con
/ pletion,