﻿578 
  ANNUAL 
  REPORT 
  SMITHSONIAN 
  INSTITUTION, 
  192 
  9 
  

  

  Grover 
  & 
  Baker 
  Co., 
  and 
  other 
  infringers 
  of 
  Howe's 
  patent. 
  These 
  

   decisions 
  put 
  Howe 
  in 
  absolute 
  control 
  of 
  the 
  sewing-machine 
  business 
  

   and 
  he 
  made 
  arrangements 
  with 
  the 
  various 
  companies 
  to 
  pay 
  him 
  

   $25 
  for 
  every 
  machine 
  sold. 
  From 
  this 
  enormous 
  royalty 
  he 
  derived 
  

   a 
  large 
  revenue 
  for 
  some 
  time. 
  However, 
  Howe 
  did 
  not 
  have 
  entirely 
  

   easy 
  sailing, 
  and 
  more 
  legal 
  battles 
  took 
  place. 
  While 
  none 
  of 
  the 
  

   other 
  inventors' 
  machines 
  could 
  sew 
  without 
  using 
  the 
  eye-pointed 
  

   needle, 
  patented 
  by 
  Howe, 
  the 
  latter's 
  machines 
  were 
  in 
  many 
  ways 
  so 
  

   badly 
  handicapped, 
  especially 
  by 
  his 
  slow 
  and 
  clumsy 
  method 
  of 
  feed- 
  

   ing 
  the 
  cloth, 
  that 
  they 
  were 
  of 
  no 
  practical 
  use. 
  When 
  he 
  attempted 
  

   to 
  improve 
  his 
  machine 
  so 
  as 
  to 
  overcome 
  these 
  defects, 
  Howe 
  got 
  

   into 
  further 
  litigation 
  with 
  I, 
  M. 
  Singer 
  & 
  Co., 
  the 
  Wheeler 
  & 
  Wilson 
  

   Co., 
  and 
  the 
  Grover 
  & 
  Baker 
  Co., 
  for 
  infringing 
  mechanical 
  patents 
  

   which 
  were 
  owned 
  by 
  them. 
  The 
  quarrels 
  over 
  patent 
  rights 
  were 
  by 
  

   no 
  means 
  confined 
  to 
  Howe, 
  as 
  each 
  individual 
  company 
  was 
  suing 
  

   all 
  of 
  the 
  others 
  on 
  one 
  claim 
  or 
  another. 
  Finally, 
  Orlando 
  B. 
  

   Potter, 
  president 
  of 
  the 
  Grover 
  & 
  Baker 
  Co., 
  conceived 
  the 
  idea 
  of 
  

   combining 
  the 
  various 
  interests 
  and 
  pooling 
  all 
  the 
  patents 
  covering 
  

   the 
  essential 
  features, 
  which 
  would 
  enable 
  them 
  to 
  control 
  the 
  sewing- 
  

   machine 
  industry, 
  instead 
  of 
  continually 
  fighting 
  and 
  trying 
  to 
  devour 
  

   one 
  another. 
  He 
  pointed 
  out 
  that 
  while 
  Howe 
  and 
  the 
  three 
  large 
  

   companies 
  then 
  suing 
  one 
  another 
  controlled 
  all 
  the 
  basic 
  patents, 
  

   the 
  pending 
  lawsuits 
  if 
  carried 
  to 
  a 
  conclusion, 
  might 
  be 
  disastrous 
  

   to 
  all 
  of 
  them. 
  His 
  argument 
  was 
  convincing 
  and 
  thus 
  was 
  formed 
  

   the 
  "combination" 
  which 
  for 
  several 
  years 
  was 
  the 
  terror 
  of 
  all 
  

   unlicensed 
  manufacturers. 
  Besides 
  Howe, 
  the 
  three 
  companies 
  which 
  

   were 
  parties 
  to 
  the 
  combination, 
  I. 
  M. 
  Singer 
  & 
  Co., 
  the 
  Wheeler 
  & 
  

   Wilson 
  Co., 
  and 
  the 
  Grover 
  & 
  Baker 
  Co., 
  had 
  all 
  begun 
  business 
  

   about 
  the 
  same 
  time, 
  and 
  the 
  main 
  patents 
  under 
  which 
  they 
  were 
  

   working 
  had 
  been 
  granted 
  between 
  November 
  12, 
  1850, 
  and 
  August 
  12, 
  

   1851. 
  

  

  At 
  first 
  Howe 
  did 
  not 
  take 
  very 
  kindly 
  to 
  the 
  idea 
  of 
  the 
  combination 
  

   as 
  he 
  felt 
  that 
  he 
  had 
  the 
  most 
  to 
  lose 
  by 
  joining 
  it. 
  He 
  insisted 
  as 
  

   one 
  of 
  the 
  conditions 
  of 
  his 
  coming 
  into 
  the 
  plan 
  that 
  at 
  least 
  24 
  

   licenses 
  to 
  manufacture 
  sewing 
  machines 
  be 
  issued. 
  By 
  the 
  terms 
  

   of 
  the 
  agreement 
  he 
  was 
  to 
  share 
  equally 
  with 
  the 
  other 
  three 
  parties 
  

   in 
  the 
  profits 
  of 
  the 
  combination, 
  and 
  in 
  addition 
  was 
  to 
  receive 
  a 
  

   royalty 
  of 
  $5 
  for 
  each 
  machine 
  sold 
  in 
  the 
  United 
  States, 
  and 
  $1 
  for 
  

   each 
  machine 
  exported. 
  

  

  It 
  is 
  estimated 
  that 
  Howe 
  received 
  in 
  the 
  form 
  of 
  royalties 
  as 
  the 
  

   result 
  of 
  this 
  agreement 
  not 
  less 
  than 
  $2,000,000 
  from 
  the 
  business 
  

   of 
  the 
  combination. 
  

  

  The 
  three 
  other 
  concerns 
  contributed 
  their 
  various 
  patents 
  to 
  

   the 
  combination, 
  and 
  the 
  price 
  for 
  a 
  license 
  to 
  manufacture 
  was 
  set 
  

   at 
  $15 
  per 
  machine, 
  with 
  the 
  condition 
  that 
  no 
  Ucense 
  could 
  be 
  

  

  