Sinclair Refining Co. v. Globe Oil & Refining Co.

20 F. Supp. 681, 1937 U.S. Dist. LEXIS 1443
CourtDistrict Court, D. Delaware
DecidedJuly 22, 1937
DocketNo. 969
StatusPublished

This text of 20 F. Supp. 681 (Sinclair Refining Co. v. Globe Oil & Refining Co.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sinclair Refining Co. v. Globe Oil & Refining Co., 20 F. Supp. 681, 1937 U.S. Dist. LEXIS 1443 (D. Del. 1937).

Opinion

NIELDS, District Judge.

This is a patent infringement suit of Sinclair Refining Company, plaintiff, against Globe Oil & Refining Company, defendant. The bill of complaint charges defendant with infringement of three letters patent:

(1) Patent No. 1,574,546, for an “Oil Heating Furnace,” applied for January 28, 1922, and issued February 23, 1926, to John E. Bell, assignor to plaintiff, with claims Nos. 1, 2, 3, 9, and 13 in suit.

(2) Patent No. 1,574,547, for the “Operation of Oil Stills,” applied for as a continuation of the first application on August 10, 1923, and issued like the first patent, with claims Nos. 1, 2, 5, 7, and 8 in suit.

(3) Patent No. 1,623,773, for an “Oil Still,” applied for August 10, 1923, and issued like the first and second patents, with claims Nos. 1, 2, 3, 4, 7, 12, 13, 14, 15, and 16 in suit. The infringement charged in the bill of complaint is the operation of Jenkins’ stills for cracking oil in defendant’s refinery at Cushing, Okl.

The defenses are invalidity and non-infringement. Defendant alleges that the inventions of all three patents were anticipated and lack invention, and that the inventions of the first and second patents were in public use by plaintiff more than two years before January 22, 1922, the date of application for the first patent.

In brief, these three patents- relate to improvements in cracking operations carried out in pressure stills in which high boiling petroleum oil is heated to a high temperature under high pressure by heat transferred from furnace gases to the oil in heating tubes. The first two patents describe and claim, respectively, an apparatus and process for recirculating flue gases as a diluent for tempering the hot products of combustion from the firebox in which the fuel is burned before the resulting mixture passes over the heating tubes of the still. The third patent describes and claims the use of preheated air for combustion in the firebox in conjunction with the recirculation of flue gases.

Oil Cracking.

Automobiles require gasoline. This demand was not met by fractional distillation of the normal gasoline component of crude petroleum. Cracking is the chemical decomposition of high boiling oils to make gasoline. In 1912 cracking entered the industrial field through the Burton process. In Burton the oil to be cracked' was heated under pressure to a temperature high enough to effect the decomposition. The heat was transferred by means of furnace gases to the oil in the vessel where it was confined under pressure. With the carbon deposit under heat and pressure there was a constant hazard of fire. In 1919 the cracking processes were Burton, Coast, and Burton-Clark. Each was a batch process.

[683]*683Gasoline and the high boiling petrofeum oils from which it is produced by cracking are chemical compounds of carbon and hydrogen. The gasoline molecules are smaller than the molecules of high boiling oils. Cracking breaks down the larger molecules into the smaller gasoline molecules. This cracking is accompanied by the deposition of carbon — the bane of the cracking art. In the batch cracking process of 1919 the productive time was very short. Charging the still, bringing it up to operating temperature and pressure, pumping it out, cooling it off, and cleaning all took time.

Prior to 1919 Trumble and Dubbs had each devised a method for prolonging the operation. However, the cracking process is a matter of depth as well as of length. The refiner is interested in getting a maximum of gasoline as well as in prolonging the run. The first Bell patent states the desideratum, “to lengthen the time of the runs between cleaning with a corresponding increase in the distillate produced.”

Bell was the first to teach the art how to prolong the operation of the cracking process without sacrifice of capacity. His inventions are effective in surmounting the carbon “barrier” when used in practicing either the batch process or the continuous process. Plaintiff turned at once to continuous cracking with the Bell patents. In the latter part of 1920 a battery of stills was equipped with the Bell inventions. For the first time in history continuous cracking to produce gasoline was practiced commercially. All subsequent commercial cracking has been continuous. The Burton and Burton-Clark stills soon passed out of use. Further improvements followed, each adding its value to the Bell inventions. The runs between shutdowns grew longer and longer' and production was maintained at a high rate. By 1925 the established practice of plaintiff was to run 204 hours between shutdowns.

Bell Inventions.

• About 1912 Cudahy Refining Company, predecessor of Sinclair Refining Company, became interested in cracked gasoline. E. W. Isom, a young engineer of that company, was given the task of learning about the cracking process. He investigated the contemporary apparatus and processes and read the literature on the subject. He built a small still, copying Burton, and experimented with it. He witnessed many demonstrations. In 1917 he built a small experimental still for testing vertical heating tubes but encountered “carbon trouble.”

In the continuous method of operation additional oil was continuously fed to the still, vapors were continuously taken off from the still, and the liquid residue of the cracking was continuously drawn off from the still. Isom sought to perfect the continuous method. He thought the small size of his still was partly responsible for the “carbon trouble.” He recommended to plaintiff’s officers that plans be drawn for the installation of a battery of ten stills properly designed and of commercial size for the East Chicago Indiana refinery at an approximate cost of $1,000,000. This recommendation was approved.

For this project Isom determined to secure the best engineering talent. In 1917 he employed John E. Bell, an eminent physicist, thoroughly trained in problems of heat transfer and of handling materials under pressure. Bell directed further experimental work on the small still and witnessed its operations in the fall of 1917 and 1918. He was responsible for the designs of the. stills subequently built by plaintiff. The furnace structure and other features of the large stills designed by Bell were entirely different from the small still.

It was decided to build five stills and experiment with them to obtain the information to be used on succeeding stills. The five stills were part of a battery of ten stills to be designated still battery 10. In August, 1919, the first still designated still 100 was completed and put in operation. The next stills to be completed were stills 99, 98, 97, and 96 in the order named. Still 99 closely followed still 100, and still 98 was placed in operation in October, 1919. However, Isom encountered in the stills put into operation “hot tubes” and “carbon trouble.”

These stills of still battery 10 constituted a laboratory in which numerous experiments were carried on. One still was equipped with one type of apparatus, another with another type. Experimentation was carried on until the fall of 1920 when still battery 10 was finally completed. These cracking stills were not under the regular refinery management until 1922. Prior thereto they were classed as an experimental unit and were under the supervision of one Herthel, specially detailed to the work.

[684]*684Before the stills could be successfully run continuously something had to be done to protect the tubes from overheat.

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Bluebook (online)
20 F. Supp. 681, 1937 U.S. Dist. LEXIS 1443, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sinclair-refining-co-v-globe-oil-refining-co-ded-1937.