Hamilton Mfg. Co. v. Tubbs Mfg. Co.

216 F. 401, 1908 U.S. App. LEXIS 5521
CourtDistrict Court, W.D. Michigan
DecidedOctober 20, 1908
DocketNo. 1377
StatusPublished
Cited by16 cases

This text of 216 F. 401 (Hamilton Mfg. Co. v. Tubbs Mfg. Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hamilton Mfg. Co. v. Tubbs Mfg. Co., 216 F. 401, 1908 U.S. App. LEXIS 5521 (W.D. Mich. 1908).

Opinion

SATER, District Judge

(sitting by designation). The court is indebted to counsel for their painstaking abstracts of the voluminous record. They have discussed the case with ability. The conflict of evidence, however, as to many points, is so sharp, and the interest of many witnesses is such, that I read the entire record to enable me the better to determine the questions of fact.

Whether the complainant’s machines and processes of manufacture were secret or not is the 'first question which I shall consider.

J. E. Hamilton testified that strangers were always prevented from going through the complainant’s factory, that they might not see its special machines and methods of work. He says there were shop secrets which he did not wish to give to the public; that he further wished to avoid interference with his workmen; that every foreman in the factory talked to him a good many times about the admission of strangers; and that it was thoroughly understood between him and them that the principal reason for the exclusion of strangers was to prevent disclosures as to special machines and methods of manufac[403]*403ture. De Lili, one of the complainant’s foremen, testified: “A. I was told to keep strangers out without a pass. Q. Told by whom? A. By Mr. Hamilton, and also our people without a pass, because they interfered with the workmen.” He admitted strangers, as well as residents of the vicinity, on passes, with a warning to the latter not to interfere with employés too long. In the instructions given him noninterference with the workmen was alone impressed upon him. The conclusion is deducible from his testimony as a whole that both strangers and residents were sometimes admitted to the factory without passes. He is credited, however, by the defendant Kurtz with having excluded from the factory Hamilton’s former partner. Wiese, another of complainant’s foremen, understood the purpose of the pass system, which was introduced in 1893, to be to keep men from talking to the workmen and seeing certain machines. Johannes, another foreman, understood the purpose of the pass system to be to keep people from seeing how things were made and what was done, and says that Hamilton instructed the foremen to enforce the rule requiring visitors to have passes. His source of knowledge upon this point is not stated. He excluded from the factory Nash, a stockholder in the complainant company, because he was without a pass and unknown to him. Frank Kaufman, the complainant’s superintendent, understood the purpose of the pass system to be to avoid the disclosure of ways of work and secret machines and to prevent any interference with the workmen.

Objection was interposed to Wiese and Kaufman giving their understanding, on the ground that it was the statement of a conclusion. None of the last three witnesses testified when or from whom he obtained his understanding of the purpose of the pass system, or on what facts it rested. None of the last four witnesses testified that Hamilton instructed him that the exclusion of visitors or the purpose of the pass system was to hold secret any of the complainant’s machines or methods of manufacture. Wiese and Kaufman make no mention of having received from him any instructions whatsoever.

Considering now the defendant’s witnesses, Gagnon, the complainant’s former draftsman and designer, testified that all he knew about the pass system, and the only reason known to him for its existence, was that the employés should not be diverted from their work by visitors. Anton Kaufman, a former foreman of the complainant, testified that the object of the pass system was to avoid interference with workmen. Neither of these witnesses was interrogated as to the source of his knowledge regarding the purpose of the system. Kaufman never heard it said by Hamilton, or the superintendent, or any foreman, that the special machines were to he kept from the eye of strangers, nor did he ever hear such idea expressed. Kurtz, also a former foreman of ¡complainant, testified that the pattern room was not kept secret, that both workmen and strangers were admitted to it, some having passes and some not, and that the public was sometimes excluded and sometimes not. His testimony does not consist with the complainant’s position.

The conflict in the testimony of the above-named witnesses is such that the consideration of other facts and circumstances disclosed by the record becomes important.

[404]*404The eight machines named in the bill; excepting the slat rounding machine, which was installed in 1899, were all put into operation from one to six years prior to the inauguration of the pass system. The case boring machine was introduced in 1887; the case frame routing machine in 1888; the slat slotting machine in 1888 or 1889; the disc joiner and endwood machine in 1892; the reglet machine and the machine for sizing and smoothing slats not earlier than 1890 or later than 1892. These machines were principally made in Hamilton’s shops. There is no evidence that any secrecy was enjoined on any person employed in drafting designs, making patterns for the construction, or assisting in the construction of any of the last-named seven machines. When completed, the machines were all located as desired in the factory, were used by workmen without any communication made to them as to their secret nature, and were exposed to the gaze, not only of the employés operating the machines or workmen in the factory, but of visiting strangers and residents of the city. All that any one needed to do to acquaint himself with the machines, in so far as knowledge could be. acquired by the sense of sight, was to enter the complainant’s service. This statement, however, is subject to the modifica-tioh arising from the fact that over each reglet, slat rounding, and end-wood machine used by the complainant was a hood which concealed from view such machines’ interior working. and arrangement, but Hamilton himself testified that there was no other purpose in placing the hoods over those machines than to take care of sawdust. Concealment was an incident and not the design, because he says he does not claim that the hoods were to cover the machines to keep them secret. It is not shown or claimed that any notices or rules were posted, warning would-be sight-seers against intrusion, or enjoining employés against their admission, or that subordinates were informed by the management or foremen that any machine or method was deemed secret. It seems that the factory, during a portion of the time at least, was so insecurely guarded at night that the curious might, without great difficulty, have entered and gained access to the machines and other property now claimed to be secret. Visitors, whether strangers or residents of the vicinity, were supplied with passes, to which coupons were attached, admitting them to any floor of the factory. Some persons were allowed to go through the plant without passes. Em-ployés, as well as visitors, were admitted to the pattern room, and the former would at times watch the work of drafting in the drafting department, and in some instances witness the preparation of blueprints. It is in evidence that such employés would move on as foremen appeared, but it is not affirmatively shown whether or not that was due to their knowledge of a system of secrecy or to a desire to avoid the appearance or consequences of loitering.

Although where an idea, or trade secret or system, cannot be sold or negotiated or used without a disclosure, it would seem proper that some contract should guard or regulate the disclosure, otherwise it must follow the law of ideas and become the acquisition of whoever receives it (Bristol v.

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Bluebook (online)
216 F. 401, 1908 U.S. App. LEXIS 5521, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hamilton-mfg-co-v-tubbs-mfg-co-miwd-1908.