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687434. F. Myers, November 26, 1901. 692409. J. E. Alexander, February 4, 1902, assignor to General Phonosphere
Corporation. 759348. A. Clark, May 10, 1904. 859150. Rabe & Kamrath, July 2, 1907, assignor to Landay Brothers, of New
York, N. Y. 877207. T. H. Macdonald, January 21, 1908, assignor to American Graphophone Company.
364472. L. Bock, jr., June 7, 1887, recorders. 356877. C. J. Hohenstein, February 1, 1887, recorders. 372786. E. Berliner, November 8, 1887, recorders. 427279. W. Suess, May 6, 1890, recorders. Assignor to E. Berliner. 53-1543. E. Berliner, February 19, 1895, recorders. Assignor to United States
Gramophone Company. 561586. E. Berliner, July 28, 1896, recorders. Assignor to United States Gram
ophone Company. 600315. J. W. Jones, March 8, 1898, recorders. Assignor to J. A. Vincent. 602-1990. J. A. Vincent, April 19, 1898, recorders. 624301. C. G. Conn, May 2, 1899, recorders. 619916. D. S. Williams, February 21, 1899, recorders. Assignor to J. A. Vin
cent. 625957. T. S. Parvin, May 30, 1899, recorders. 631944. E. R. Johuson, October 17, 1899, recorders. 651905. L. P. Valiquet, June 19, 1900, reproducers. Assignor to Universal Talk
ing Machine ('ompany. 651904. L. P. Valiquet, June 19, 1900, reproducers. Assignor to Universal Talk
ing Machine Company. 663192. F. Myers, December 4, 1900, recorders. Assignor to Stylophone Com
pany. 650843. E. R. Johnson, June 5, 1900, recorders. 651076. E. R. Johnson, June 5, 1900, recorders. 689349. E. Berliner, December 17, 1901, recorders. Assignor to United States
Gramophone Company. 676106. L. P. Valiquet, June 11, 1901, recorders. Assignor to Universal Talking
Machine Manufacturing Company. 717953. L. P. Valiquet, January 6, 1903, recorders. Assignor to Universal Talk
ing Machine Manufacturing Company. 722977. G. H. Hall, March 17. 1903, recorders. 728567. F. W. H. Clay, May 26, 1903, process making. 741500. E. R. Johnson, October 13, 1903, recorders. Assignor to Victor Talking
Machine Company. 742666. E. R. Johnson, October 27, 1903, reproducers. Assignor to Victor Talk
ing Machine Company. 730986. C. S. Tainter, June 16, 1903, reproducers. Assignor to American Graph
ophone Company. 752682. E. R. Johnson, February 24, 1904, recorders. Assignor to Victor Talk
ing Machine Company. 760606. T. P. Burnbaum, May 21, 1904, record plate. 754508. C. W. Skiff and S. A. Grant, March 15, 1904, reproducers. Assignor to
United States Music Machine Company. 759143. L. P. Valiquet, May 3, 1904, reproducers. Assignor to Victor Talking
Machine Company. Re. 12213. E. R. Johnson, April 24, 1904, reproducers. Assignor to Victor Talk
ing Machine Company. 759142. L. P. Valiquet, May 3, 1904, reproducers. Assignor to Victor Talking
Machine Company. 765462. W. N. Dennison, July 19, 1904, turntable. Assignor to Victor Talking 776194. H. E. Morgan, November 29, 1904, reproducer. Assignor to Victor Talk
Machine Company. 773290. E. R. Johnson and W. C. Moore, October 25, 1904, reproducer. Assignor
to Victor Talking Machine Company. 774435. E. R. Johnson, November 8, 1904, cabinet. Assignor to Victor Talking
Machine Company. 776183. J. Jetter. November 29, 1901, reproducer. Assignor to Victor Talking
ing Machine Company. 178492. E. R. Johnson, December 27, 1904, turntable. Assignor to Victor Talk
ing Machine Company. 779030. L. F. Douglass, January 3, 1905, cabinet. Assignor to Victor Talking
Machine Company. 781429. E. R. Johnson, January 31, 1905, recorder. Assignor to Victor Talking
Machine Company. 785362. E. R. Johnson, March 21, 1905, reproducer. Assignor to Victor Talking
Machine Company. 785363. E. R. Johnson, March 21, 1905, reproducer. Assignor to Victor Talking
Machine Company. 790546. A. C. Wiechers, May 23, 1905, sound conductor. Assignor to Regina
Company. 793627. F. Myers, June 23, 1905, recorder. 793140. G. A. Manwaring, June 27, 1905, recorder. Assignor to American Graph
ophone Company. 805923. J. H. Lutz, November 28, 1905, reproducer. Assignor to Victor Talking
Machine Company. 814786. E. R. Johnson, March 13, 1906, reproducer. Assignor to Victor Talking
Machine Company. 816978. H. J. Hagan, April 3, 1906, reproducer. Assignor to Universal Talking
Machine Company. 831606. T. A. Edison, September 25, 1906, recorder. Assignor to New Jersey
Patent Company. 834511. J. C. English, October 30, 1906, reproducer. Assignor to Victor Talking
Machine Company. 812982. C. Thomas, February 5, 1907, recorder. 847033. E. Wardrina, March 12, 1.907, recorder. 852725. T. Kraemer and H. Sheble, May 7, 1907, recorder. Assignor to Haw
thorne & Sheble Manufacturing Company. 856704. E. R. Johnson, June 11, 1907, reproducer. Assignor to Victor Talking
Machine Company. 8.71311. E. T. Palmer, April 23, 1907, recorder and reproducer. 853674. H. Sheble, June 4, 1907, reproducer. Assignor to Hawthorne & Sheble
Manufacturing Company. 855761. J. H. Elfering, June 4, 1907. Assignor to Victor Talking Machine
Company. 864758. H. Schroder, August 27, 1907, reproducer. Assignor to Schroder Horn
less Phonograph Manufacturing Company. 865399. H. Koth, September 10, 1907, horn. Assignor to Regina Company. 865398. H. Koch, September 10, 1907, reproducer. Assignor to Regina Company. 868612. E. H. Mobley, October 15, 1907, reproducer. Assignor to Hawthorne
& Sheble Manufacturing Company. 872783. H. B. Babson and A. Haug, December 1907, reproducer. Assignor to
Universal Talking Machine Company. 872586. H. Sheble, December 3, 1907, reproducer. Assignor to Hawthorne &
Sheble Manufacturing Company. 872399. T. Zoebl, December 3, 1907, reproducer. 874985. A. J. O'Neill, December 31, 1907, record plate.
392953. G. H. Herrington, November 13, 1888.
Mr. BURKAN. If any man goes into this business and begins to manufacture these records, which without the musical compositions they are adapted to reproduce are not worth the material they are made of, he is immediately oppressed by litigation, as an alleged infringer of the patents owned by the trust, so that he is left in the position of either going into bankruptcy, or else he sell his stock and plant as junk.
The Columbia Phonograph Company, in a letter to The Musical Age, says as follows:
NINE MILLION INSTEAD OF THREE.
Editor Musical Age.
In the leading editorial of your issue of August 31, quoting from an article which touches upon the life work of our president, Mr. Edward D. E: ston, an error of fact which appeared in the original article is unfortunately copied, and so, though through no fault of yours, is repeated and the mistake emphasized and perpetuated.
The article reads:
“ Under his guidance the business began the giant strides that are a matter of financial history. Thirty companies that had been organized to cover the greater part of the United States gradually vanished, but the Columbia kept ou until to-day it boasts $3,000,000 a ssets."
As our assets are nearly $9,000,000, there would be but slight occasion to “boast $3,000,000 assets."
Outside of trade circles the matter is of but slight importance, but as your article will be undoubtedly widely read and perhaps requoted, we will appreciate either your publishing this or making such other correction as you may deem best. Very truly yours,
PAUL II. CROMELIN,
l'ice-President. And so these 30 companies have been vanquished and all their investment lost under the pretense that these 302 patents covered all of the improvements in the records and mechanical devices used by these 30 vanquished companies.
Now, to go back to the contract, you will see it provides that the jobbers must not sell or offer for sale, either directly or through any intermediary, the records and blanks of the Columbia Phonograph Company at a better discount than is authorized by the Columbia Phonograph Company, General; nor shall they allow any discount whatever from the list price, either directly or through any intermediary, to dealers who are on the suspended list.
Now, what is the suspended list? It is a black list. I believe that Mr. Harris has already turned over to Senator Smoot the suspended list issued by the Edison Phonograph Company.
The CHAIRMAN. I believe there was such a list sent me through the mail. I will say, however, that one of the concerns named on that published black list wrote to me and told me that they were paying no attention whatever to it.
Mr. BURKAN. But they publish a black list, so that if any man goes to these people and pays his money for the record they condescend to sell him, although he buys the property of the composer when he buys it and pays the price they demand for it, and then offers to sell it to the consumer for less than the price adopted by this trust, his name goes on the suspended list and he is not supplied with any more goods, and treated as an infringer and subjects himself to a suit for an injunction, damages, and confiscation of the stock he has on hand.
The CHAIRMAN. There is nothing in this bill we have under consideration that would touch that point in any manner, shape, or form, is there?
Mr. BURKAN. No, sir.
Mr. BURKAN. I submit that this cry of monopoly comes with bad grace from gentlemen who are themselves guilty of the most flagrant and oppressive restraint of trade. I propose to show that they have come into the United States courts and obtained injunctions, confiscating the goods of business men who, in good faith, have parted with their money and bought these records from jobbers.
Ilere is a case in which they had sold a jobber a number of machines at a fixed price of $25 a machine. The agreement entered into between the manufacturer and the jobber was that the machine was not to be sold for less than $25. The jobber sold the machines to the owner of a department store, who offered to sell the machines for $18. Having paid for the goods, one would think that he had a right to give them to the poor if he liked. These people brought him before the United States court, however, and got an injunction restraining him from selling these goods for less than $25 a machine, on the ground that he was infringing the patents of this company. Mind you, he was no party to the agreement, but notice how far they can go with their patents; and they asked, in their bill, that he be declared an infringer, from which it followed that he was bound to turn over to them the records he had in his possession, although he paid for them, which were confiscated by this company.
I offer in evidence a similar agreement required of dealers and jobbers by the Victor Talking Machine Company, by the Edison Phonograph Company, and the price maintenance contract of the Columbia Phonograph Company, General.
The said contracts are, by direction of the committee, inserted in the record, and are as follows: Effective June 1, 1906. DEALERS' CONTRACT–LIST PRICES, NET PRICES AND DISCOUNTS, TERMS AND ('ON
DITIONS OF SALE-AGREEMENT FOR THE L'NITED STATES OF AMERICA.
In force between the dealers of Victor talking machines, records, horns, and
accessories, and the Victor Talking Machine Company, of Camden, X. J., U. S. A. (Subject to change and revision on notice from the Victor Talking Machine Company.) Issued by American Talking Machine Company, 586 Fulton street, Brooklyn, N. Y.
It will be particularly noted that all Victor talking machines, records, horns, sound boxes, and accessories are covered by letters patent owned and controlled by the Victor Talking Machine Company, and are licensed for sale and use only under the conditions attached to the goods, and any sale or use of any of the goods in violation of any of the conditions, except as to modified price to the public on records as herein provided, will be an infringement of the patents of the company. It is distinctly understood that nothing contained in this contract shall in any way otherwise affect the character of the conditions of the limited license under which said goods are sold, as noted on the label attached to the goods, and that this contract is not intended to and does not take the place of the license attached to the goods, directly or indirectly.
Any dealer desiring to handle Victor talking machines, records, and supplies and not having previously enjoyed dealers' discounts on Victor goods must qualify as a dealer by purchasing at least three Victor machines of different styles, and 100 Victor records.
In addition, the dealer must have an established place of business, suitable to display our goods, and at all times keep on hand sufficient stock for exhibition and sale purposes.
CONDITIONS OF SALE.
All Victor talking machines, records, sound boxes, horns, parts, and miscellaneous supplies are sold at the company's factory in Canden, N. J., under patents owned and controlled by the l'ictor Talking Machine Company, as hereinbefore noted, under a restricted license under the conditions set forth on the labels attached to the goods; and all sales to dealers and consumers of said patented goods are subject also to the conditions noted in this dealers' contract. The right to the sale and use of said goods is dependent upon the observance by the vendee of all of said conditions. Among numerous other United States patents owner or controlled by the Victor company under which the said goods are manufactured and sold are: No. 534513, issued February 19, 1895, for gramo. phone, and No. 548623, issued October 29, 1895, for sound record, to Emile Berliner, and No. 814786 and No. 814818, issued March 13, 1906, to E. R. Johnson. The number and dates of other United States patents will be furnished on request. The conditions of this contract are as follows:
PREMIUMS AND TRADING STAMPS.
1. Dealers nuust not sell or offer for sale at retail, either directly or indirectly, any Vietor talking machines, records, or supplies therefor at less than the licensed retail prices. Neither shall any of the regular factory product as illustrated in the regular catalogues of the Victor Talking Machine Company be given away as premiums, nor shall any other merchandise, trading stamps, negotiable paper, or other inducements be offered with them as an incentive to promote their sale.
SIIOP-WORN AND SECOND-HAND MACHINES.
2. No license or permission is granted for the sale of shop-worn, damaged, or second-hand Victor talking machines, records, or supplies at reduced prices, and will not be allowed. If, however, the dealer wishes to sell a legitimate second-hand, or an out-of-date, old-style Victor machine, and will inform the factory in writing of that intention, together with the serial number of the machine in question, and this number proves the machine to have been sold by the factory a year previously, then a special license in writing will be issued by the Victor Talking Machine Company to that dealer permitting the sale at a reduced price, if the necessary facts are established to the satisfaction of the Victor company. A new notice or label bearing the serial number and conditions will then go forward with the permit, and must be affixed to the bottom of the machine, showing at the time of the sale that this machine is second hand and is licensed to be sold at reduced price. It is distinctly understood, however, that no such second-hand or out-of-date or old-style machine shall be sold until all of the above provisions are complied with and until the said new notice or label shall be properly attached to the machine.
3. The labels and plates of Victor talking machines and records must not be removed or defaced. The selling of machines or records with these labels removed or defaced will constitute an infringement of patents under which the machines, records, horns, sound boxes, etc., are sold.
LOANS AND PURCHASES BETWEEN DEALERS.
4. Authorized dealers are at liberty to borrow Victor goods from another authorized dealer, if mutually agreeable, but each time the goods borrowed must be replaced by goods of the same make and style. If an outright sale is to be made from one dealer to another, it must be at list prices, and in no ca se shall the said sale be at dealers' cost.