Evening star., 1924-06-25

etc. into the molecules of the light
er hydrocarbon known as gasoline.
The Attorney General charges that
though disclosures of this process
were made in patents issued sixty
wears ago and long since expired
and that while there now are no
valid patents covering broadly the
basic features of the process, the
primary defendants have pooled a
number of patents covering an I'M
portant Improvement relating tnere-
to and are seeking to extort huge
sums from the manufacturers OF
gasoline in the guise of royalties and,
by means of certain restrictive cove
nants contained in license agree
the interstate and foreign commerce
in so-called cracked gasoline and
other commodities produced by the
cracking process.
The Attorney General. in line with
the decision Of the Supreme Court IN IN
U, S. 20) charges, it was explained
in the statement, that the provisions
of the various license agreements go
beyond what is necessary 10 proLect
any legitimate rights of the de1eno-
ants, even assuming the validity OF
petition does not concede the validity
of such rights, and alleges that the
procuring and treating of such pat
ents as valid is but device to ieno
color of legality to the combination,
conspiracy and monopoly Mr. stone
alleged patent rights relate to minor
improvements SO insignificant as to
AFFORD no consideration for contracts
in restraint OF trade
20 Agreements Cited.
"Sevent-nine license agreements
are set up as constituting and
evidencing the combination, conspiracy
and monopoly These agreements
contained numerous provisions affect
ing adversely the production. trans
portation and sale Of gasoline, kero-
sene, naphtha and other p1oducts In
interstate and foreign commerce.
The effect of these agreements,
the Attorney General declares, has
been to pool a large number OF
patents and alleged patent gt rights = re,
long practiced art; to estop all
parties to the plan, both primary and
secondary, from in any manner con.
testing the validity of said asserted
patent rights; to burden the inter-
state and foreign trade and commerce
in gasoline, kerosene and other COM
modities by levying thereon heavy
charges in the guise of ROYALTIES; to
provide for the perpetuation OF the plan
beyond the life of any Of their exist
ing patents by providing for the pool
ing of after acquired patents; to re-
strain many of the licensees in the
amount of gasoline they may produce
by fixing a Limitation on production
or by imposing a graduated scale OF
royalties which penalties production
over a certain amount and makes 1T
Improbable to restrain interstate and
foreign trade and commerce by pro-
hibiting directly the movement of
large supplies Of gasoline and other
unpatented commodities in such COM
merce; and to secure to the defend
ants, the Standard Oil Company of
Indiana, a virtual monopoly of trade
and commerce in gasoline in the ff-
teen states defined in the agreements
as Indiana company territory"
The petition in equity was filed by
Edwin A. Olson, United States attor-
ney for tho ,northern district of Illi-
nois. by direction of Attorney General
Harlan F. Stone. Beside these two,
other Department Of Justice oficials
signing the petition are: A. T. Sey-
mour, assistant to the Attorney Gen
eral; J. A. Fowler, Abram r. Myers
and Stanley W. Finch, special assist
ants to the Attorney General.