Steele v. D. L. Ward Co.

257 F. 747, 1919 U.S. Dist. LEXIS 818
CourtDistrict Court, E.D. Pennsylvania
DecidedMay 29, 1919
DocketNo. 1833
StatusPublished

This text of 257 F. 747 (Steele v. D. L. Ward Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Steele v. D. L. Ward Co., 257 F. 747, 1919 U.S. Dist. LEXIS 818 (E.D. Pa. 1919).

Opinion

DICKINSON District Judge.

It may contribute somewhat to a clear view of the real questions involved in this case if a preliminary outline statement of the situation of the parties, their respective claims of right, and how far these claims have a legal basis is first given. We may then proceed to consider which of the claims to legal tights are well founded.

A man by the name of Alexander Ehmiing conceived the thought oí a letter stationery box which would make its appeal to purchasers through having certain features of convenience of use. Without enumerating all these features, one of them was to have the box so constructed as that it would in itself answer to the purposes of a writing desk. This was an important, if not the chief, feature, and gave to the box the designation of a “desk box.” Another feature was the division of the box into compartments, so that the lid, when opened, might hold the writing paper as a pad, and the body of it the envelopes, separated by a partition, which made a tray for holding pens. This required, or at least suggested, such a construction as would permit of 1he lid, with its pad of writing paper, folding down over the body containing the tray and envelope space, with other features of what may be termed the mechanical construction of the box. It was found that the average user required more letter sheets than envelopes, and the box was supplied with them in the proportion of 24 to 21.

It would be readily recognized that all and any one of these features have a value of convenience, but that the purchaser who buys boxes of stationery for home use would be' so well supplied with desk and other facilities that having them supplied along with the box would make no very great appeal to him.

The attempt to build up a business met at first with only a modest success. The first type of box was known as the Dutch Girl. The [748]*748•business was that of the “Twin Company.” Alexander Ehmling was himself the chief, if not the only salesman. As such, he was efficient and quite successful. He had patented his box, and thus secured rights, which will later be discussed. Naturally he laid strong emphasis upon the fact that the box he was selling was his make of box, and protected by letters patent issued to him. He was also president of the company, and his name appeared as such. The box was not, however identified by the trade with his name, so as to be known in the trade as the “Ehmling box,” but was known under other trade-names. Although the efforts to secure a trade met, as has been said, with a fair measure of success, and stationery put up as the Twin Company put it up in their boxes came, in a limited way, to be recognized to ' be in a class by itself, the business as a commercial venture was not a complete success.

This lack of success was probably, at least, in large measure, due to other things than any failure on the part of users of the ,box to appreciate its merits. There was need, however, to reorganize the business. This brought the present plaintiffs into it, and Ehmling, the patentee, dropped out. His brother, Charles T. Ehmling was also in the employ of the company, and learned of the box and the details of the business. The brother also severed his connection with what became the business of the plaintiffs.

Then came the establishment of military camps, first on the Mexican border, and afterwards officers’ training camps and cantonments in a number of places, as well as an increase in the number of ships and naval stations. The sale of letter-writing facilities, such as these boxes afforded, was greatly stimulated, and the business expanded eightfold or more. Soon the salesmen of the plaintiffs, on their visits to camps and to naval and military officers, who were purchasers of navy and army supplies, found there were competitors in what the plaintiffs looked upon as their special field. Among these competitors was the defendant. It had been led, or induced to go, into the trade under the following circumstances :

The defendant, who had long been and was largely engaged in the same general line as a manufacturer, was approached by Charles T. Ehmling with the project of making for and supplying to him letter boxes for which he thought he could build up a trade. Ehmling had no capital and no credit. The project in consequence did not appeal to the defendant. The insistence of Ehmling resulted, however, in an arrangement being made by which he was to be provided with f acili1 ties for the manufacture of his make of boxes, which were to be put upon the market and sold. Ehmling’s compensation was to be determined by the deféndant after the success of the venture became known. The defendant had at the time no knowledge of the plaintiffs’ box as patented or otherwise, or of their claims upon the trade in their special field. A box was put out under the trade-name of “Ehmling’s Linen,” and is the box known to this record as defendant’s “first box.” It possessed all the features of plaintiffs’ box, and was substantially like it; the most noticeable variance being in the location of the pen tray. Notice of the trade competition thus introduced sent [749]*749the plaintiffs to the defendant, with a complaint of a trespass upon plaintiffs’ rights, and a warning of the consequences of infringement. The parties, with their counsel, met in conference. No bill of complaint had at that time been filed, although one had been prepared, ready to be filed. The attitude of the defendant as declared by it (and its sincerity is found) was one of willingness to meet the demands of the plaintiffs.

The business of the defendant with Ehmling had not turned out to be profitable, so that, aside from other matters which entered into consideration, the defendant had no selfish motive in a continued trespass upon plaintiffs’ rights. In consequence, the defendant, without any formal admission of plaintiffs’ proprietary right to the tray form of box, agreed to discontinue the use of this form, and to take the tray feature out of its make of box. This was done, and the defendant thereafter put out what is known to this record as the defendant’s “second box.” This is substantially the same box, with the tray feature eliminated, making of it a box with the envelope.compartment larger in one direction than that called for by the size of tbe envelopes. The practical result is, when the envelopes slide (as, of course, they do) to one side, there is what the plaintiffs call a “pen tray space” provided, or at least ready at hand for use. The efforts of the parties and their counsel to adjust all their differences, at first thought to have succeeded, were finally unsuccessful, and the bill now before us was filed.

There is in the mind of the plaintiffs the natural, although unavowed, because untenable, claim to an exclusive right, if not to the special sales field of army cantonments, at least to the sale of “desk boxes.” We have characterized this claim as natural, because, as often before observed, the one who is the discoverer or the creator of a special field of demand resents as an intrusion the entry upon it of any one else. The claim of an exclusive right (as t»*, any monopoly) cannot be given judicial sanction or support, unless it reaches the dignity of a legal right.

This brings us, after an overlong prelude,' to the averments of the bill of complaint, the answer, and the proofs disclosed by the evidence. The complaint may be summarized as one of unfair competition, and of infringement of the patent rights to which the plaintiffs have succeeded.

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Bluebook (online)
257 F. 747, 1919 U.S. Dist. LEXIS 818, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steele-v-d-l-ward-co-paed-1919.