The New York herald., 1922-01-11
Some Firms Sell Business
to Avoid Litigation for
Infringements.
40 CT. LAMPS COST 16 CTS.
Lockwood Committee Hears
More Suggestions for Rent
Law Changes.


and sale of incandescent bulbs Samuel
Untermyer, counsel to the Lockwood
Legislative Committee on Housing,
yesterday called Independent manu-
facturers manufacturers not operat-
ing under a license to use the General
Electric Company's patents), who tes-
titled that they could manufacture and
sell their product at prices below that
Of the General Electric and still make
good margin of profit.
1t is the further contention Of the
committee that the General Electric
Company's policy is systematic ab-
sorption Of the independent dealers
that has resulted In keeping the cost
to the consumer of bulb that Is
manufactured for 16 cents at 40 cents.
This is done, the committee has been
told, by forcing independent dealers to
become licensees Of the larger COM
pany on the representation that the
after company's patents have been
infringed upon.
If manufacturer becomes defiant
and persists In remaining In business
suit is begun, but If the independent
manufacturer demonstrates willingness
10 carry the case to an appeal pro-
posal Is made to him to buy him out
at about 70 per cent. Of his investment.
the committee has been told.
The committee also says It's evidence
shows that where the General Electric
Company has taken over the business
of an independent manufacturer
through the license system and per-
mitted him to utilize its patents 1t
has reduced his quota of business to
less than half of what he had been
doing on his own account.
In Bulb Business SIX Years.
Augustus z. West, head of the Crys-
tai Light Manufacturing Company Of
Union Hill, N. J., and as such stock
holder in the United Lamp Manufac-
turers Corporation Of A West Eigh-
teenth street, was the principal witness
at yesterdays hearing. His connection
with the electric bulb business began
in 1915, with the American Appliance
Company of Indianapolis. agents for
the Franklin Electric Manufacturing
Company, which In turn was a class b
licensee Of the General Electric Com
pany.
According to the witness, the COM
pany "got caught" selling lamps be-
low the price fixed by the General
Electric Company. whereupon the
Franklin company discontinued supply
ing it with lamps. Efforts were
made. the witness said, to establish
q source Of supply from independent
manufacturers. but the supply was be-
ing restricted. and in February. 1920.
the General Electric Company pub
I,shed q notice in a New York news
paper that 1t intended to prosecute all
rnanufa cturers Of lamps infringing on
its patents. Rather than involve the
company's assets Of s250.000 In litigation
Mr.. West said 1t closed It's prancnes,
when IL was doing an annual business
ef more than 100000 He severed his
connection with the concern in october.
1920 taking for his interest the Crystai
Light Company Of Union Hill. which
vas controlled by the American Appn-
ance Company.
In the spring Of 1921. the witness con-
tinued, when his new venture was run
ninc along nicely. ne was called on the
telephone and asked to go TO the Office
of r. s. Terry, ono Of the managers or
the National Lamp Works of the Gen.
eral Electric Company. He said he was
informed by Mr.. Terry that his conf
many was one of those infringing on the
General Electric Company's patents.
Negotiations were begun then for
license under which the witness would
continue manufacturing and pay the
General Electric a royalty. but his
quota was to be fixed at $4,000. al
though he had been doing a business OF
$4,000. Eventually, he said. he was
informed by Mr.. Terry that his proposal
for a license for the Crystal Light COM
pany had been turned down.
rcura Nox AMc-S 60 ursuv.x
"The only thing to 90 then" Mr..
West said, was to continue our busi-
ness as best we could and we did con-
true tho business up to the first OF
August" Tho witness added that he
would have been glad to sell out to the
General Electric Company for 70 per
cent. of his investment because he "had
not enough money to fight it,
Last August West, with several other
independent manufacturers, organized
the United Lamp Manufacturers Cor
poratlon to market complete line OF
lamps In uniform packing. Inside OF two
months the corporation was doing a
business OF $4,000 a month. The COM
pany since has been made defendant in
patent suit begun by the General
Electric Company.
Alfred J. Lichmann, now manager OF
the Elkhorn plant OF the General Elec-
trio Company, manufacturing metal
lurigical products, but former officer
OF the Independent Lamp and Wire
Company. told Of the terms of the sale
of the Independent Lamp and Wire
Company to the General Electric for
100000 cash and stock and bonds of
the parent concern to the amount Of
about s1.60o,00o.
Former State Senator Edgar T.
Bracket OF Saratoga sat through the
hearing as counsel for the General Elec-
t-ic Company and his presence was irri-
tating to Mr.. Untermyer's urbanity.
just before adjournment Mr.. Inter
nlyer called Patrick Nee, friend of
officials Of the General Electric. He
was called at the instance Of Walter N.
Selfgsberg. counsel for some of the In
0pendent dealers. after It was said he
had been observed talking to some of
the General Electric Company's men.
He was asked. but denied, that he
had approached Mr.. Seligsberg and sug-
gested that " the inquiry was postponed
until Thursday that he could arrange to
get licenses for some of the independent
manufacturers now fighting the General
Electric Company.
Charles @. Edwards and Victor NJ.
Earle of the Real Estate Board OF New
York made some additional suggestions
for amendments to the rent laws.