The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-11-19
Upholds Antitrust Law
in Bathtub Trust
Case.
GOVERNMENT IS
HIGHLY ELATED
Opinion Recites That There Can
Be No Monopoly in Unpat-
ented Product of Patented
Machine Without Law Vio-
lation, Thus Checlnat-
ing Business Device.

Washington. November 1s.-In an
epoch making decision to-day In the
so-called -bathtub trust case" the su-
preme Court Of the United States laid
down the broad principle that there
can be no monopoly In the unpatented
product Of a patented machine with
out violating the Sherman antitrust
law. Justice McKenna delivered the
unanimous opinion Of the court
In accordance with this doctrine. the
court struck down as illegal the license
agreements" by which manufacturers
of IS per cent Of the sanitary enameied
iron in the United States were bound
together in combination The license
agreements allow the manufacturers to
use a patented dredger. but only on
condition that they abide by An at
tached price list, would not sell to
1obbers who bought from independents.
would sell in certain territory and
would sell seconds"
Omcials Of the Department Of Jus
tice were highly eiated over the de-
cision. which. II Ia claimed. viii have
an important bearing upon several In
vestigations now under way by Attor-
ney-General Wickersham. an well as
antitrust suits already iled against
the so-called moving picture trust
and the United Shoe Machinery Com
pany. -....-.......
vitalIy InDortant.
The decision is regarded rs vitality
important. because of the govern
ments claim that the patent license
agreement plan was being adopted by
many concerns. a. a result Of the judi
ciaI ban upon the pure trust" plan. az
exemplified In the case OF the Standard
Oil Company. OF Ohio: the holding
company" plan. ~ declared invalid In
the Northern Securities csse, snd the
combination Of = bSlding comDany and
a manufacturing Company. a. SHOWN In
the Standard OIL and Tobacco cases
Justice NcKenna In his opinion de-
clared that the effect Of the agreement
was to convert the Independent ana
competitive companies into a combi-
nation. subject to rules and reGula-
tons ..--. .......- ......., Z
THE trade was practically controlled
from producer to consumer" said he.
and the potency Of the scheme was
established by the cooperation OF
IS per cent Of the manufacturers. and
their fidelity to IT was secured. not
only by trade advantages. but by what
was practically q pecuniary penalty
not aptly termed in the argument
cash ball"
To-day's decision sustains the de-
cree Of the United States District
Court for Maryland. abroeating the
license agreements" and paves the
way for the retrial OF the criminal
suit against the "bathtub trust" The
-
ago resulted in q disagreement OF the
jury.
Attorney General wickersham pest
poned the retrial until the issues In
the civil suit were decided by the Su-
preme Court.
Refused . ExsenA Dsetza.e
Edwin p Grosvenor. special assis-
tant to the Attorney General. who
prosecuted the case and argued II In
the Supreme Court, said tonight:
'On the argument In the Supreme
Court the main reliance Of the de-
PENDANTS was the decision In Dick
versus Henry called the mimeoSraph
case. rendered By the Supreme Court
last May. There II was held that the
owner Of . patent on . mimeograph
may compel the purchaser Of the pat.
ented mimeograph to buy from him.
the p7teutee. All paper anu 1nN "ntCo
is to be used on the mimeograph. al
though. Of course. the paper and ink
are not covered by the patent
The decision Of to-day refuses TO
extend the doctrine Of TIE Dick oooe
TO the unpasensed product Of . pat
ented machine The defendants In the
ba.htub case. on ming patents on ma
chimes used in the manufacture OF en-
ane!ed ware. attempted to az prices
and destroy competition IN commerce
In the unpesented ware.
The economic effect Of the prosecu-
zion By Attorney General wicker
sham 10 Interesting: The combination
commences operation In June, 1910.
At once complaints poured into the
pepa-sment Of Justice. The Attorney
General commenced proceedings July.
1910 since the combination was
broken up. the prices OF the product
have fallen from IS to 30 per cent. YET
to-day nearly all Of the manufActur-
ers engaged IN the business are run
ming their factories overtime. and they
are all making money at the reduced
,rsces nreyaGIinS In this period Of com.