BATH-TUB TRUST.

Dominion, Volume 6, Issue 1602, 20 November 1912, Page 7

BATH-TUB TRUST.

-— : — — COMBINATION DECLARED ILLEGAL. By Telegraph—Press Association—Copyright (Rec. November 19, 10 p.m.) Washington, November 19. Tho United States Supremo Court has given its.decision in the Bath-Tub Trust case. The decision fixes the principle that there can bo no monopoly in tho unpatented product of patented machines without violating the Sherman anti-trust law. The combination, which comprises 85 per ccnt. of the enoilieled ware manufactures of America, is thus declared illegal. AN INGENIOUS COMBINATION.'' Under the American patent laws a patentee may fix the price at which a patented article may bo sold. In the . bath-tub case the patent, which is us;d as a device to justify a combination lor the purpose of fixing prices and eliminating competition,, is a patent, not upon tho article manufactured by the combination, but upon an insignificant toot used m -its manufacture. Tho prosecution is brbught against sixteen corporations engaged in the manufacture of all kinas of enameled iron ware used in the plumbing of a house, such ns bathtubs, wash-basins, kitchen sinks, etc. Early in 1909, after a long series of conferences among the different manufacturers of tho enameled ware, the patents on a little tool used in the manufacture were n.pigned to a young man, apparently without capital, named Waymouth. Immediately thereupon this young man granted a; license to each of tlie manufacturuis companies for the use of these patents, under n contract which fixed pi'iccs throughout from the manufacturer., •to the consumer, and which provided that iio manufacturer should sell to any jobber who handled independent goods, or who refused to sign a contract. , Sevens penalties were prescribed for failure to live to the terms of this license agreement. Complete control of wholesale, jobbing, and retail nrices of tho enameled waro whs the result.