New-York tribune., 1915-03-14
GREGORY AWAITS
TEXT OF DECISION
Famous Sherman Law Suit SAID
TO Have Involved $500,OOO
in Expenses.

decision OF the IOWer CouiH ""'N
victed John H. Patterson and twenty
six other officials or former orficials Oh
the National Cash Register Company,
of Dayton, Ohio, of being guilty OF vio-
latinp the criminal section of the Sher-
man antitrust act and remanded the
ease back TO the lower court for a new
trial
The first count charged conspiracy
to monopolize the cash register trade
of the country, while the other two
counts charged the monopoly OF the
trade. The upper court held that, while
the first count was in proper form 10
present to the jury, yet evidence had
been introduced concerning National
Cash Register competitors who had not
heen in existence during the three
wear limit Of law previous to the ind
ing of the indictment. This evidence
the court said, should not have been
allowed.
The court continued: 1--WE think that
there was conspiracy against compeu,,
tors during the years that the Natlonal
Cash Register Company was making us
first fight. but the evidence showing
that a conspiracy did exist only brings
us to the door of the three-year perlod,
and it was for us to decide whetner IL
had entered that door"
Tribute TO the Company.
In the decree the court paid tribute
TO the National Register Company
saying:
an Justice to the National company
and the defendants. it should be noted
that it was the pioneer IN the cash
register business and developed 1t: IL
owned the basic patents and must nave
acquired in a proper m-nner very
great number of improvement patents.
/ In addition TO this, it had the ad-
vantage of very great capacity IN
the management of its affairs.
/ "These two considerations together
without reference to any unfair treat
ment of it's competitors, are sufficient
in themselves TO account In a large
measure for the success 1t has at
tanned. And il is not unlikely that
its trade was pirated by other com
petitors besides the American, or Pnil-
delphia. and the Boston, against which
il obtained decrees of infringement,
and that these, as well as others, IN
their competition with it resorted TO
some of the tactics complained -
here"
In another part Of the decree the
upper court said:
"The defendants also requested the
giving Of three instructions embody-
ing certain general propositions as to
what il was not unlawful for the de-
fedants to do in their separate capaci-
ties as officers and agents of the Ma
tional, to wit:
"First-To require the agents or
their company to report the names OF
persons who had purchased cash reg
isters from competitors or TO secure
samples of the machines from time TO
time put on the market by competl-
tors.
Offer to Exchange.
"Second-To sell or offer or try 70
sell National Cash Registers to persons
who had bought and owned competing
registers in exchange at such price as
was satisfactory to the parties.
"Third-To compare by comparative
demonstrations or otherwise competi-
tive cash registers with National cash
registers for the purpose OF demon
strating the superiority OF National
cash registers and thereby induce the
prospective purchase to purchase the
National cash register
NO objections can be made to the
last proposition, but the other two were
too broad. They need qualification. 1t
is unlawful for a defendant to do as
stated in the second proposition if the
doing thereof involves the purchaser
and owner of the competing cash regis
ter breaking his contract with the COM
petitor in any particular or was done
for the purpose of driving the COM
petitor out of the cash register field"
The defendants in the National Cash
Hegister case who were indicted by
federal grand jury at Cincinnati three
wears ago numbered thirty men, includ-
ing the president, John II. Patterson,
and twenty-nine other officials or for
mer officials and departmental heads OF
tie National Cash Register Company,
of Dayton, Ohio. Twenty-nine were
convicted by a jury and twenty-seven,
including President Patterson. were
sentenced each to serve approximately
a years time in Ohio jails.
The indictment alleged conspiracy to
crush competition by warfare on COM
petitors, in violation Of the federal law.
The trial was begun on November 10,
1918. II continued almost three months.
Both Jail and Fine.
President Patterson was sentenced to
paw $4,000 fine and serve one year in
the Miami Jail. Others were sentenced
to costs and one year Imprisonment at
Miami, Montgomery or Warren County
jails.
The estimated cost Of the case is
conservatiyely fixed at S500,000, of
which 100000 was borne by the gov
ernment, and 100000 by the National
Cash Register Company. During the
stay of the dc 'endants in Cincinnati
for the trial a whole floor was en-
gagged at leading hotel for them, and
the business of the National Cash Reg
lister Company was conducted in these
quarters. Clerks, stenographers and
other help were kept here. Special
forth between Cincinnati and Dayton
on Friday nights and Monday mornings.
Washington, March 13.-Ohicials Of
the Department of Justice declined TO
comment to-day on the decision in the
! National Cash Register case in the ab-
sence Of the entire opinion. Attorney
General Gregory will decide what line
of action TO follow later, and IL is pos
sible he will ask the Supreme Court for
a writ of certiorari, which would bring
the case up TO the highest court
II was evident, however, that some
dan arfr ant Nff fafa l. 4