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THE MUSIC TRADE REVIEW
With the Makers and Sellers of Talking Machines
license or contract could only be settled by the
courts. It is now in the process of adjudication.
When the order is entered within thirty days
Will Appeal Decision of Judge Hazel, Handed Down This Week in Favor of the New York
an appeal- will be filed with the United States
Phonograph Co.—Judge Clears Up a Previous Ruling—A Review of the Facts Leading Up
to This Litigation—Business of the National Phonograph Co. Not Interfered with in Any Circuit Court of Appeals. The business either of
the Edison Phonograph Co. or the National
Way—Talk on the Situation with a Gentleman Acquainted with the Facts.
Phonograph Co. is not interfered with in the re-
Once more Judge Hazel, United States Circuit pet hobby of this eminent man, and he exerted motest degree; nor will it, even should Judge
Court, Southern District of New York, has deliv- every effort to save the works, putting in fully a Hazel's opinion be sustained, which I doubt very
ered an opinion in the case of the New York half million dollars of his own money with that much. As it is, should the matter finally come
Phonograph Co. against Thomas A. Edison, Edi- end in view. As a matter of fact, at this period before a master for an accounting, another sur-
son Phonograph Co., Edison Phonograph Works the phonograph or talking machine business was prise is in store that will knock the complainants
and National Phonograph Co., and which was in'a groggy condition, the line had not been per- in this case sky high, for then it will be proven
handed down April 20. The first decision, in the fected, and the New York Phonograph Co. was the entire litigation in no way affects the real
complainant's favor, delivered January 5, "al- practically down and out with the collapse of business of the parties in suit."
lowed an accounting and held that no injunction the parent company. Then at a receiver's sale
should issue as the license in question had ex- the National Phonograph Co. acquired the assets
COLUMBIA PHONOGRAPH CO. SUE
pired, and complainant had failed to exercise its of the defunct North American Co., but it may
option to extend the same." An appeal was con- be stated right here that Mr. Edison does not The Huseby Co. for Breach of Contract, Claim-
ing $11,076.94.
templated at the time by the defendants, but it own a single share in the National Phonograph
was subsequently discovered that an order of Co. His interests reside in and control the Edi-
(Spot-inJ to The Hovh'w.)
this kind was not appealable, and therefore both son Phonograph Works, which manufactures the
Milwaukee, Wis., April 24, 1905.
sides were at a standstill. To overcome this ob- machines and supplies for the National. But in
Suit
for
$11,076.94
has been brought by the
stacle it was concluded to- petition for a reargu- spite of this fact, in every case, without excep-
ment, the attorneys filing briefs in support of tion, brought in the courts, he is personally Columbia Phonograph Co. against the Huseby
their respective contentions for and against.
thrust forward as the chief offender, so to speak. Co., of this city, in the United States District
Judge Hazel, in his decision, on this point Mr. Edison is wrapped up in the improvement Court. The complaint alleges that the defendant
says: "A careful review of the original decision and manufacturing of talking machine devices, company entered into a contract to handle the
Columbia graphophones and talking machines, ex-
and re-reading parts of the evidence satisfies me the selling being left entirely to others.
that the former ruling was erroneous in that
In this special suit," continued The Review's clusively, except that it was permitted to cany a
complainant was not afforded all the relief to informant, "it was argued by defendant's attor- sample line of another machine. The allegation
which he is entitled. The contention that the neys that with the failure of the New York is made that the Huseby Co. carried and sold
complainant's rights under the licenses remained Phonograph Co. to establish their affairs on a more than the sample line, and damages of $3,000
in force subsequent to March 26, 1903, was fully permanent business basis—never having carried are claimed for this reason. It is also charged
argued at the hearing, and sufficient evidence is stock of any account, and maintaining an office that the Huseby Co., to sell the other machines,
found in the record thereof, although it was in form only—had forfeited all rights under their declared that the Columbia machines were in-
not given the importance which I now believe it original agreement. The National Phonograph ferior, and that this damaged the business of the
merits." The court then discusses the extension Co. was organized subsequently as the general plaintiff to the extent of $5,000. The contract was
of contract in all its bearings—quoting the orig- selling organization for the Edison product, but canceled December 15, 1904, and it is alleged that
inal agreement with the North American Phono- no subsidiary companies were formed or exclu- $3,070.94 is due from the Huseby Co. for goods
graph Co. as made with the Metropolitan Co. sive privileges granted. They were willing to treat delivered and not paid for.
and its successor, the complainant—to the extent with the New York Phonograph Co. as a jobber,
BIG ORDER FOR MACHINES.
of seven typewritten pages of legal cap paper, but the latter were indifferent to this proposition,
finally observing: "The defendants, in my judg- excepting they were given an 'inside.' This was
An order for 20,000 machines was taken by
ment, by their acts must be deemed to have re- peremptorily declined, the National Co. contend- C. E. Brown, the resident agent in San Fran-
garded the extension clause as self-executing ing that the validity of the New York Co.'s cisco, for the Talk-o-phone Co., Toledo, O.. last
and operative beyond the period therein speci-
fied. . . My conclusion is that a rehearing of
this cause is not necessary. A re-examination of
the record and the correction of the previous
opinion I deem warranted by the proofs, and
because complainant is entitled to an injunction
and accounting as prayed for in the complaint.
Such injunction, however, may be stayed until
"Cutting off the end of a Mega horn
the determination by the Circuit Court of Ap-
and attaching it to a Victor tapering
arm machine, it is claimed the resonance
peals of the questions presented; provided, of
is increased fully 50 per cent. The"
course, an appeal is taken and seasonably prose-
originator vows it is 'one of the best
things ever.' "—The Talking Machine
cuted. A decree in conformity with the fore-
World for January.
going opinion may be entered."
Explanatory of the defendant's position re
garding Judge Hazel's last decision, a gentleman
familiar with the controversy in its every stage
A SYNCHRONIZING HORN
said to The Review: "In the first place, the
The TRUMPET has a VOICE. The BEST HORN
phonograph business in its early history was
for VOCAL RECORDS ever made—PRICE, $ 6 .
organized on the same basis as the telephone is
CONCERT TRUMPET, $ 9 . Usual discounts.
managed to-day. That is, there was a parent
Descriptive pamphlet on application.
company, the North American Phonograph Co..
formed by Jesse H. Lippincott, which granted
territorial selling licenses to subsidiary com-
THE GRAND PRIZE FOR TALKING MACHINES
panies, and among them was the New York
at the Louisiana Purchase Exposition, St. Louis, Mo., has been
Phonograph Co., which acquired the State of
New York. The original intention was to rent
Awarded to the Victor Talking Machine Co.
machines, and not sell outright, excepting under
certain conditions. The plan did not Work, it
was a failure, and the American Co. went into
the hands of a receiver. Now, Mr. Edison was a
stockholder only in the North American con-
cern, but had established the Edison Works as
the manufacturing end of the business, and which
he controls to this day. When Lippincott went
to the wall, the presidency of the company was
NEW YORK
77 CHAMBERS STREET,
forced on Mr. Edison, for the saving grace of
his name. The phonograph has always been the
NATIONAL PHONOGRAPH CO. STAND PAT.
The "VICTOR "Always in the Lead!
THE VICTOR TRUMPET
THE VICTOR DISTRIBUTING
AND EXPORT CO.