# Transcript of Record — Ethyl Gasoline Corp. v. United States > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385002_1719%3A1 ## Record - **Collection:** Supreme Court brief - **Document type:** Transcript of Record - **Published:** January 1, 1940 - **Citation:** 309 U.S. 436 ## Text TRANSCRIPT OF RECORD . Supreme Court of the United States @ OCTOBER TERM, 19399 .- = * ~ "RE HO Rien renin Sy. lags Sia hain — a ae ‘No. 536° : 5 ie 3 ‘ tS 3 ° HTHYL‘GASOLINE CORPORATION, EARLE W. WEBB AND JOHN COARD TAYLOR, APPEL- MMM ee" 8 - US. JHE UNITED STATES OF AMERICA. ; 4 ie -@APPEAL FROM THE: DISTRICT COURT OF THE UNITED STATES FOR ’ THE SOUTHERN DISTRICT OF NEW YORK - Pa 2 FILED NOVEMBER 16, 1939. ” SUPREME COURT OF THE UNI STATES . : % OCTOBER TERM, ol aw No.'536 ETHYL GASOLINKQUORPOR ATION. EARLE W. WEBB AND JOHN COARD TAYLOR, APPEL- fee ese cae STATES OF AMERICA : oe a. « APPEAL FROM THE DISTRICT COURT. OF THE UNITED STATES. yen THE 50 THERN DISTRICT OF NEW. YORK / & INDEX. , Original Print .. : Record from D. C.'U. 8., Soutberfi District of New York.. ae + | Petition ......cccccscccedegecccscceces bccccccceseces _& 1 Exhibit “A’*—Ketiner’s license and sales agreement, : regular (same as Exhibit 9a’ to : #4 te ay pee ogee: in printing) . 16 . “B"—Refiner’s: license and sales agreement, | he ’ Ethyl (same as Exhibit 9B to stipu- > lation) (omitted in printing)...... 22 P “C™—Refiner's ‘license, non-manufacturjng (same as Exhibit 9-C go stipulation) (omitted in printing)..... 7 $2 “D"—Jobber license, Ethyl (same as Ex- © hibit 13-A to-xtipe lation) (omitted | Sj ERP PERT Eee CTT ee 38 © —Jobber license, regular (same as Ex- a hibit 13-B testipulation) (omitted 4 * CD. ck cncevnsadlteViecsce 44 Sie eo su csascct cavddedakatadcdd tan tpeciascue a... 9 Stipulation of facts ....... Seah s sae heb oN Senos baares 59 7 Gettin, Melle Bic ciccccisccecteccsphsssscees Pepkias * 98 43. = Findings of fact ang concinsions of 1h. baccgecccccocs | es Fina}, GEOIOD sana pce cv qtbvcvessccersesénacéontccns eas ee 62 Order staying Ree ecution of GOSEDD. bck eviscceenens skban 133 , 64 —5507 % Jupp & Derwrater (INc.), Printers, Wasninoron, D. C., JANuARY 5, 1940. ae he ii*. 4 P pe oe alee Record from D. C. U. S., Southern District ‘of New, York— ~ Continua. & | Original - Petitiaig: for appeal, assignments of erro Cag prayer far + Nye cs PI oc pakanaes onesdadaccakevaseeriecs Order allowing appeal Vineens Scare onmandes iene Citation and servicé............ Bond on appeal........ et tebets - ———;——-Stiputations as to transcript of record.—.-v........... ; 145 Clerk’s certificate.............. (omitted in ae). 150 Exhibits to stipulation of facts inset teteeeeees eescaveee ee 3-A—Patent: No. Vt eee eee ameuses <> § 3-B—Pitent No. 1,502,064.......20cccssceceee0s - 5 _ 3-C—Patento No. 1,668,922........ Rclatanckeiens AP a 3-D—Patent No. 9 a eee rexne wtkin?. wv aid 6-A—Photograph of mixing sie (omitted in print- ; ys : ing) Trrrrere ree PTOePERETELELEEeT eT “+ Ti ‘ | 6-¥—Bluepript of mixing ots (omitted in j eat ea - Be): bs eeeee PE Aree te. 12 4; 6C—Defendan handling ang, ae CS Siig GE WV ccencccacecese acm ~ 13-- . 0-A—Refiner’s license—Regular........+.-%... Z Se 9-B—Refiner’s license—Ethyl. . Ce ececseesccee 37 ° 9-C—Refiper’s license—non-manufacturiag. seacues be 13-A—Jobber license—Ethyl .:..... nannies ane aus o _’ 13-B—Jobber. licvense—Regular «2.05... 85 6 14-A—Regulations’ proposed by ‘surgeon-general.... 58 _-” & 14-B—Cha ‘in aforesaid regulations. . OTS eee ee 65 14-C—Lead \ign—first form ...........--eeceeeess 69 4 14-D—-Lead sign “POTM. cece ee ceceseseccees . TO 17-A—Investigatjon re form—first ............ Pe 17-B—Investi mivt form—second.......... GF: 17- C—Instruct ns to representatives.............- a. F - 17-D—Supplg ental instructions. ....... Gi cad pp od 107 : 2A— FU eum code (February 11, 1929 (omitted wre. a PD 2. SPE cu aneencépecsseesos dees 116 : 23-B—Yodified code ’ (abet 10, 1981) ¢omitted in , ‘MD i5 pot waukteksdoedaenees's e800 bod 122 7. 23—Code of Fair Competition for Puindlouss In- -, dustry ‘(omitted in printing». es fs 23-D—Federal Trade Commission order (Sept. Pes 1937) (omitted in printing) veGtabsessdso-+ ae 595) 25-A—Trade Mark Registration No. 187,410........ a | _ ¥ ‘2B Trade Mark Registration at such refineries; “ind the. greater ¢ art of- all gasoline, rented with ethyl fluid, as afor esaid; i s sold and transported (ts ‘interstaté commerce from the® States in which such re- ‘ida are located into. each of the other States of the United’ States, including the State 8f:New York and the _ Southern District thereof, @herein such gasoline is’ sold for + consign, Said gagfline is sold by the refining com- - panies in*part through golesale and retail outlets owned . -or controlled by them, afid i in ‘part to so-called jobbers for | - resale.to retail dealers and consumers. : 8. Jobbers usually own and operate bulk storage plants . . s peep ning a ‘ted so as -to serve such gasoline, by their @ trucks or Lauk wagons, to retail service stations, either. = ay OP ‘rated ‘by them, or independently owned or oper- a ail dealers, in the various marketing territories pens. f $ them... There are approximately 12,000 jobbers . of gagsdline doing: business insthe several: States of the — Unitéd States, who distribute a great part of all gasoline sold and distributed in the United States. The greater part of all gasoline, and of the gasoline treated with ‘ethyl fluid, - as aforesaid, purchased by said jobbers is purchased by _ [fol. 6] them in tank car quantities, and is delivered to them — from the States in which said gasoline is refined to the — States i in which said*jobbers are engaged in business, anda large part of such gasoline sold byjobbers is sold and dis- tributed by them in intetstate commerce from the States in ' which their®said bulk storage plants are Tocated to service | stations located in other States. oe Defendants, each well knowing all the matters of fact © — hereinbefore alleged, have been’ engaged in an unlawful - combination, conspiracy, monopoly, and attempt to monopo- ’ - lize, in. violation of.the Sherman Antitrust Act, whereby said defendants have adopted and put intd effect. certain licensing policies and practices hereinafter referred to, and ‘have attempted to control and. regulate, have in fact ¢on- : - trolled and regulated, and have unlawfully restrained, the manner of sale and the prices of the greater part of all gasoline sold in interstate. commerce in the United States. Defendants have, as “part of said unlawful activities go the purposes and objectives thereof, conspired and comsbivied we ny 2 eG with numerous rdfiners of gasoline throughout the United — States as hereinafter more fully alleged. Said violations | of law ure more fully’ described as follows : : 10." Defendant: corporation, antes, with and hivngh its officers named as defendants herein and others of its officers ‘ind employees, ha# entered intn numeroyis agreements with | -> refiners of gasoline pursuant to which ethyl fluid is seld ‘ _{fol. 7] outright by defendant compgration to said refiners oy 3 ap. ethyl fluid per gallon, or gne part of ethyl fluid to 4400 parts . from time to time, ‘and said refiners are licensed té use said ethyl fil: and to sell the same wheb mixed with gasoline. Said license —— authorize said refiners — to treat-the gasoline actured by them with sufficient ethyt fluid (not-exceeding-3 cubic centimeters per gallon of gasoline) ‘ ‘to produce a grade of gasoline having an octane | rating of ‘not less than 76 (such gasoline being known as premium or ‘‘ethyl’’ grade of gasoline), or # grade of gaso- line having anoctane rating pot in excess of 70 (such gaso- line being known as regular gasoline and sometimes reférred to -by defendants As **Q”’ gasoline). Said license agree- ments impose re a ietons ‘upon the refiner licensees with respect to the pt finer’ s best non- -premium gasoline, 11. An-average of approximately 85 enbis centimeters of. of gasoline, is required fo produce regular gasoline. Usu- ally the quantity of ethy] fluid requived to produce premium gasoline i is approximately 2.25 cubi¢ centimeters per gallon. me, gasoline, or one part of ethyl fluid fo.1700 parts of gaso- : | [fol:8] line. Nea#ly all (more than 96%) of the asdline treated with ethyl | flnid § is regular gasoline. a UL The names of refiners who have meted ae said . - : livense agreements are too numerous to set out herein, there being approximately. 123 such refiner licensees, who.together refine, sell and control more than 85% of all gasoline sold in - "* the United States. Copies of typical forms of such refiner license agreements employed by defendant corporation are —— hereto and marked Exhibits.A, B, and @, respec- ces at which the premium or Ethyl grade, of —s may be sold. by them to jobbers, dealers and con-- “su * Saids license agreeménts impose the further re- f : strittton as to regular gasoline that said regular gasoline es shall be sold by the refirer as the next highest priced motor ‘fuel below the refiner’s Ethy) gasoline, and shall be the re- > 4 . 2 i. 4 . oes 2 PSNI Ha eae , . . ee tively. All except one of-the major (i. e. large, integrated) - * pefiners of_gasoiine in the United States have entered into such Neense agreements: with.defendant corporation, and . ull exeépt one of said major company licetisees treat with °. ethyl fluid their regular or so-called house brands of gasv- line, which constitute moré than 90% of all gasoline manu- factured ‘and sold by each of said major ‘gotipany - license PS, 13. Each of said refiner license agreements contains the | express prqvision, and defendant corporation and each of | ‘ the refiner licensees have agreed with cach other, Yhat the latter will-seli gasoline treated with ethyl fluid only to thosé jobbers who shall -have been licensed by defendant corpora- ‘tion to handle .such gasoline. Jobbers have been licensed by defendant. corporation, acting with and through: its of-_ 8 ficers namedas defendants herein, and others of its officer’ ~ ‘an: ~smployees, wider two forms of Ticenses, ene purporting to ‘-ense the handling of premium or Ethyl and the other of Report gasoline. ‘Copies of each. of -said forms of [fol. 9]. licenses are attached -hereto and. marked: Exhibits .” D and E, respeetively, Jobbers desiring to apply for. such licenses are. required. to apply Wrough their. respective re-. finers* suppliers, who, in turn, s ubmif such jobber applica- tions to defendants. Very often the same jobbers have been Se licensed under both -forms_ of . licenses. : ‘Approximately: 10,000 jobbers have. been granted. such licenses by defend-. ants. Numerous applications for jobber licenses havé been | _ dénied.” Apart from the issuance of such Jicénses to said jobbers’ (through their respectiv e refiner suppliers, as afore- _said) and the "investigation thereof hereinafter. described, defendant corporation dees not have any business relations : ™ any of said jobbers. *° Se ° 14, “Said jobber: licensés- purport: to be aimed-atthe pro- --teetion of health and the maintenance of quality of gasoline treated with ethyl fluid. The additioygof ethyl fluid to gaso-. © line, however, does*not cause or proguce any dangers or ., hazards, to health, thé Ethyl and regular gasoline. being i in g no respect more dangerous to health than ordinary. un- » treated gasoline. No authentic cases of lead: ,0isoning, OT , : other.injury to health from sych lead.treated gasoline, have © -£ ever been discovered. . Also, d&endants have not employ ed ee ° or requiréd ‘the use of any trade name or trade-mark in con- _ nection with regular: gasoline; and have established no frade ' reputation in. conne¢tion with such ganoline, No mil imum. , 6 a ' octane requirement is specified. by the defendants with re- [fol. 10] spect. to such gasoline and ‘the maintenance’ of |. . quality thereof is not, actually or in practices a factor in defgndante’ licensing policy. 15. Defendants have eniploy ed said jobber licensés, and - their power to grant or withhold the. same, so as to require *- and compel jobbers purchasing outright any gasoline treated _ with ethyl fluid.to maintain. so-ca}led‘*business. ethies’’, a term employ ed by defendants to denote compliance with approved marketing policies of of the major oil. companies, - or the inarket leaders ‘among such major oil compunies, . and particularly the maintenance by jobbers, arid retail dealers who in turn purchase such gasoline outright from , jobbers, of the retail prices for gasoline posted by. said . ~ major oil companies or market leaders. Defendants have - reftised to grant licenses to a large number of jobbers who do not ‘abide by said- approved. marketing policies -or do not maintain said major oil company -prices, and they have o required and compelled. jobber licensees, under: threat, or’ apparent threat of revocation of said licenses or refusal _ to renew said licenses, to maintain, and to see to it that their retail dealer oufléts maintain, said approved market- ing methods’ and practices and prices: of. ‘said major oil * eompanies or market leaders. Each, jobber license contains — a provision whereby defendant corporation is authorized |, to cancel said: license, without stating-any reasons therefor, at any time upon thirty days’ notice. 16. In order to effectuate ‘said clidien and said céutrol and restrictions upon-jobbers and their retail dealers, de- * fol. 11] fendants have organized and maintained an @X- tensive system of invéstigation.of the practices and prices: maintained by jobbers in, their retail outlets‘or those main- tained. by the retail dealers to whom they sell. Ostensibly such investigations, whether of Jobber licenses or Of ap-. plicants for jobber licenses, have been made for. the purpose _ of protecting the quality of gasoline treated with ethyl fluid or of discov ering possible health hazards. in the sale’ - of.such gasoline, but in fact the primary prrpose. of said investigations, and -the only substantial purpose theredf, has been as aforesaid, to effectuate the unlawfui control. Ce and restrictions upon, said jobbers and their retail dealers - above described.’ ‘By reason thereof, regular investigators, or field representatives, in the’employ of defendant .eqrpo- . e WV . . acs . rer py a a i Oe ls Sas a Peay ne ee, a ee ae ee ee wed ee gE ‘ . -f i : } eae, “ration eine been instructed not to report ‘their findings in wri tiie, and the purposes and results of ‘said investigations reserved disclosing the aforesaid true réasons, er any reasons, why’ licenses to jobbers have been refused. « Said’ - invéstigators or field representatives are many in-n goer, - are located throughout the United States, and exereis¢ , fide. discretion and anthority in determining the granting sor: refusal of jobber licenses ; usually the mere decision’ of Ahe -— field investigator as to the applicant’ s ‘*businéss éthies”’, without. supporting data, has determined. whether a Tied ese would be granted. " e 4 [fol. 12] 17: “‘Rediiers. iment. as : well as jobbers, know ’ and understand that jobber licensees, and their dealers, are required to maintain prices as aforesaid and to abide by- the marketing practices and- methods of the major oil com- panies as’ aforesaid, and. jobber licensees generally have _ accordingly conformed to these requirements. 18. As part ‘of said unlawful policies, “@efendauta have from time to time required that each jobber licensee con-. . tract to purchase all his requirements of .gasoline from one refiner supplier. Similarly defendants have employgd _ the power inherent in:said’ jobber. licensing system to en- ‘force supply contracts of jobbers with refiners, and they have refused to license jobbers who desired to change their . sources of supply, upon the ground that said jobbers were -under contract to purchase from.their existing refiner stip- contracts had been - pliers, even where pe a jobbers have’ contended that such ‘ ogated,. or for other reasons: were ~ not. eriforceable against them. 19. Defendants’. policies and practices with reaps to jobbers -have abused, and gone beyond, the scope of, any patent rights defchdants may own or control, and have con- + stituted an unlawful exercise of futureeontrol, over what % irchasers may wish to do with gasoline which they have chased outright for full sconsideration. Acting in eon, noe “and in combination - with sa ul refiner licensees, as aforesaid, .defendants have emplo said jobber licenses almost exchisively for the employes ‘ and. with the effect, - [fol. 13] of-:controlling and reguiafing the marketing : of gasoline throughout the United States, and theyi lave * been concealed. ~ Usually no records’ have been made | attempted to eontrol, and.have, in fact, controlled and regu- sid « | i ei yi t NE sty S ; . «i 20. Defendants are now engaged in said Tntawful acts and practices and threaten to and -will ¢éntinue to engage in said unlawéul acts and practices unless enjoined by W herefore petitioner prays: 1. That.writs of subpoena issue ‘directed to ‘acti of énid defendants, commanding them to appear herein and answer. . the. allegations contained in this petition, and to abide by and. ‘perform such decrees as the Court may make in the __ premises ; 2 gy Nee That the ‘monapaty, ‘combination and. conspiracy de- sicthed: herein be declared illegal and in violation of the Sherman Antitrust. Act; 3. Tit defendants and each of them, and cach and all [fol. 14] of their respective ‘officers, agents: and employees, , and all persons acting or claiming to act.on behalf of them, or any of them, be perpetually. enjoined from continuing ‘the unlawful practices hereinabove described and, particu- larly, from requiring jobbers to procure Jicenses for han- dling ¢ gasoline treated with ethyl fluid; and from agreeing with refiners,. ‘carrying out existing agreements, or other- wise requiring, “that the latter shall sell gasoline treated with ethyl fluid to such jobbers only as defer@lants, shall license or otherwise designate; and from i in any otner way, “directly or indirectly, cBntinuing to engage ‘in che afore- ° svid monopoly, combination and conspiracy for any other monopoly, combination and conspiracy of like’ character os effect; - yore sei anh eal > ae 48] \ Unirep Seades District Coury, mf Petition herein say: . oath ht My te ee 9 4. That petitioner have such other and further relief as the case may require and’ the Court may deem proper in- the premises ; 8. That. petitioner recovel its costs. » : John Henry Lewin, Hammond FE. Chaffetz, W. Bz - . Watson Sny der, Grant W. Kelleher, Special Assist- ants to the Attorney General. Stanley Reed, Act- 7 ing Attorney Generdl, Feb’y 16,1937. Robert. H. .- Jackson, Assistan iecraar “General. _ Lamar (3 0 Hardy, United Ste tes Attorney. , — [igls. 15-47] ‘Duly sworn to by John Henry Le win. -Jurat— omitted in printing. . obey 5 -: [Title omitted] “ ANSWER e W. Webb (incogr ectly designated herein as Earle C. ebb), ‘and: John Coard Taylor, and for answer. to the | a They -admit the allegations of paragraph 1 of the Petition. * 2. For answer to the allegations of paragraph 2 of the Petition, they admit that the purpose of this,suit is for rélief under the Met of Congress of July 2, 1890, known — as the Sherman ‘Anti-Trust Agt, but deny thatsthey or any . of them: have in any way violated said Act. 3. They deny the allegations of paragraph 3 of the ae | tion except. that they admit that the ‘interstate commerce in gasoline described in the Petition is carried on in part within the, Southern District of New York. ; ‘4. For eye the iateitions of parniraph 4.of the: Petition, they admit that, for a ntmber of years the. de- fendant corporation: has Keen continuously ergaged in the production of an anti-knock compound (ar fluid): known by _ its licensees as Ethyl fluid when used in’ making a pre- , mium gasoline, and ‘as ‘‘Q’’ fluid when used in. making a | asad gasolines f and they admit the allegations. of said “s . * . . ‘ . ¥ , ‘ ‘ ‘ Jow come - the defendants, Ethy] Gasoline Corporation, Xe > Ethyl and «Q"" finids have been added, and that the gaso- te ee ae paragraph: 4 with respect to the nature of said fluids. They .{fol. 49] admit that deféndant corporation.is the sole pro- ducer of said Ethyl] and “‘Q” fluids within the United States and that it is the owner of exclusive rights/under Letters Patent of the U nited States. covering’ the manufacture, use . and sale of said fluids and allege that it is also the owner of exclusive rights under Letters Patent of the United States: - covering the manufacture, use and sale of motor fuels con- taining tetraethy] lead and cov ering the use ‘of tefraethy] lead*as an anti-knock in‘an internal combustion engine. Defendants are without information sufficient to constitute a belief as to whether or-not other substances of like char- acter are manufactured or. sold and therefore defendants deny that no other substane ‘e of Hike character is manufae- fured-er sold but they admit that no other substance of like character is sold in commercial volume. Def fendants admit that“speaking generally Ethyl and ‘*Q’’ fluids’ haye heen. found to be the. cheapest way of getting certain high auti-knock values, but they deity the allegations 0! para- graph 4 of said Petition with respect to the practicability of improved refining processes, such as sovcalled ‘‘eracking’’ processes, and allege that there are many instances where. by reason of the quality of the eurde petroleum to be re- fined and the-nature of the distribution ef petroleum prod- uckesby a refiner, ‘‘eracking’’, re-forming, and other re-.- fining processes have been and jre now being employed to produce a high octane rating gasoline competitive with the addition ef Ethyl ‘ind “ ms é j ‘ ° Was" i 13 - all gasoline manufactured: and ‘sold by each of said major cémpany licensees; and they allege that the fluid so tsed | is ~— fluid and that such gasoline constitutes between 80% and 90% of all gasoline manufactured and sold by each of said | major company licensees, . , " 13. They deny ‘each and .every allegation of paragraph ——-— 13_ex¢ept ‘that_they- admiit-that tach of said refiner license . agreements contains the provision as te sales to jobbers, - | that the refiner licensee will sell gasoline when tre ted with Ethyl or ‘*Q’* fluids to only those jobbers. who.hold a license | from the defendant cor poration to sell such gasoline, and ‘they admit the making of. jobber agreements in the form of Exhibits D and E attached to the Petition.. Defendants, further admit that jobbers: desiring to apply for -such- li- censes are generally réquired to.apply through their pres- pective refiner suppliers who in turn submit such jobber applications. to defendant corporation, and th&t often the - - same jobbers have been licensed under both forms of li- cense. Defendants further admit that approximately ten thousand (10,000) jobbers have been granted such licenses by the defendant corporation and that numerous applica- - tions for jobber licenses.have been denied. Defendants aver that the principal business relation of the defendant corpo- ration with jobbers is in the promotion of sales: of Ethyl] . and ‘*Q’’-treated gasoline ‘and the protection of the gyuality thereof and the food will of the defendant corporation therein, and the maintenance of health regulations herein- after mentioned. mn a 3 14. For answer to the allegations of paragraph 14 bof Neate Petition, they admit that said jobber licenses are aimed at (fol? 53] the protection of ‘health: and the maintenance. of quality of gasoline treated with Ethyl and ‘‘Q”’ fluids, and that to the knowledge of these defendants, no authentic _ , cases of lead poisoning-“er.other injury to health from such. lef treatpd’ gasoline, havé ever aor discovered, and that i ovtane number is required by defendants in respect to,regular gasoline containing ‘£Q’’ fluid, ‘and they ', allege that the United States Public Health Service has pre- scribed certain regulations covering the blenditig of Ethy! and ‘*Q’’ fluids with gasoline and the sale and use of gas- ” oline treated” with such fluids and that, the defendant cor- ' poration has endeavored by its jobber licenses’ to comply . ‘with such reg@lations and takes steps to see that its jobber e : ws _ eee . | Pecos licensees observe such regulations and that in so doing defendéats are conforming to the wishes of the United States Public Health Service and that.suchk performance on the part of the defefdants is essential. to the maintenance _—of tke good will of the defendant corporation with the United’ States Public Health Service, with the licenseés of defendant - corporation, and with. the public. ’ Defendarts admit that in the opinion 6f executives. of the defendant cor- “4 poration, the addition of Ethyl fluid or *‘Q’’ fluid.to gas- “dline does not. cause or produce any dangérs or hazards to _ health and is no more dangerous to health than ordinary “ untreated gasoline provided that -said gasoline is used for * the purpose for which it is deSigned to be used, ‘amely, as a motor fuel only, and that it does not contain a, m amount ‘of tetraethyl lead which is in excess of that prescribed by “the regulations of. the United States Public Health Service, ana the aforesaid licenses. Defendants allege that the anti- ck compound intended for use in the production of said regular gasoline referred to in paragraph 14 of the Petition is delivered by the defendant corporation to refiners as “Q”’ | fluid and as-such is well Known iat the oil business, and that gasoline produced by the addition of ‘‘Q”* fluid is sold by refiners to their jobbers and other customers and upon in- ‘formation and belief is known and referred: to by a large -number of refiners, jobber rs and retailers as ‘‘Q”’ gasoline.’ Defendants allege that in the sale of said regular or ‘*Q”’ " treated gasoline the defendant corporation has. required the [fol 54] jobber to.specify the trade name said jobber will” use in connection With the sale of ‘‘Q’’ treated gasoline as: appears from paragraph 4 of the form of jobber license agreement attached to the Petition as Exhibit FE. -Defend- ats further allege that by reason of said regulations of the United States Public Health Service said regular or ‘*Q”’ | treated gasoline i is required to be dispensed at pumps bear- ing lead wa rning signs of the prescribed form substantially as set forth in Exhibit. E of said Petition ; that ‘upon in formation and belief said- warning signs have acqyired a. meaning with a large number of the public purchasin motor fuels as indicating a grade of gasoline of good quate ‘ity. and such ‘‘Q’’ treated gasoline .is understood in the mind of a substantial percentage of the purchasing public — to be related e" ithyl Gasoline and to be sponsored by the defendant corpération. Defendants allege that substan- tially all of such ‘‘Q”’ treated gasoline is between 68 and” - a : 5 ; ' te ee. me Se res + m ‘ A, aeskally _— Le Be ee P ° s . e \ : in ane «\ pee 15 \ rs . Se 70 octane and that the defendant corporation has specified | in its .refiner’s license-contracts for the production of so- called *Q” gasoling certain requirements as to the distilla- tion, sulphur, corrosion and gum qualities of said gasoline as more fully appears in paragraph 5 of Exhibit A attached to said Petition, and that the jobber license contracts sath as Exhibit E of the Petition provide that jobbers Shall not -adulterage-or modify ‘‘Q’? treated. gasoline as sold by the refiner; all for the purpose of maintaining the reputation: and good will of the defendant corporation. Except as mete expressly admitted, defendants deny each and every al ation in said paragraph 44 of the Petition. paragrap 15. Defendants deay each and. every allegation of para- graph 15 of the Petition except that they admit.they have | _refused to grant licenses to a number of. jobbers who were . not abiding by the marketing policies of the major oil com- . panies or the market leaders’ among-snch major oil com- panies or who were: not: maintaining: the: retail prices for gasoline posted by “said major oil companies-or market: leaders. Defendants are informed and believe that. if there are or have ‘been any instances’ of threats or apparent threats as described in paragraph 15° of the Petition, they (fol. 55] are isolated instances and unauthorized by defend- ants. They allege.on information and belief that there are innumerable instances where jobber: licensegs have not: fol- “lowed the marketing policies of the major oil companies or the market leaders among such major oil companies and innumerable-instances of jobber licensees who do not main- ain and have not maintained the retail prices for gasoline posted by said major oil companies or market leaders, con- cerning ‘Which instances no action of any character has ever ‘been taken by the defendants. Defendants admit-that: each jobber license contains a provision whereby defendant cor- pordtion is author ized to cancel said lieense without stating any. reasons therefor at any time upon thirty (30) days’ notice, Bet they are informed -and believe artd therefore allege. that such cancellation Clause has not béen exercised Bem > . * because a jobber licensee was not following the policies vas) prices of the major oil companies. or market leaders. -& 16. They deny each and every ‘allegation of paragraph 16‘of said Petition except that they admit that the defend- ant cérpération has a number. of field representatives whose eee. function is to promote the sale of: gasoline treated- t > 4" ee eee — i. ; 407; . t. . ' 4 : a ~ with Kgbyl and “ Duly sworn to. by Earle W. Webb ond. John 0. Pais: Jurats omitted in printing. : - a e ° , ? e 4 7 , $ e ° ) 7 ; ’ -# ‘ 18 - PD, « 8 3 g . - AQ = , ee agin ‘fol, 61] ib Ix Unitep States District Caprt - f Boers (Title omitted] aimee ae ee z hiiners sini OF Facts — Plains? having filed its petition herein. and defendants. having filed their answer, it is hereby stipulate and agreed , ® that the i isguies raised by,said pleadings shall be determined: withowt the introductiéggpf other evidence on the basis of .- _ the following statement of fact®, agreed to solely for the, ‘poses of this suit, subject to objections by either side ~on the ground of. relevancy or materiality, the right “to in- terpose such objections being expressly reserved: , 1. Defendant Ethyl! Gasoline Corporation is a corpora- — . tion organized in 1924 under the laws of of the State of Delaware, and _has_a principal place of business at 135 half of its capital stock is owned by the Staridard Oil Com-, [fol. 62] pany (New Jersey), and ‘the remainder is owned by General Motors setae and E. I. du Pont de Ne- Coard Taylor are President and Vice-President in charge of sales, respectively, of Ethy] Gasoline Cor poration. De- fendant Webi is a citizen of the State of ¢ ‘onnecticut, and resides in. the town of Greenwich in that’ State. Defendatit “Taylor is a. citizer of the State of New Jersey —_ resides in the town of Montelair in that State. a 2. Defendant corporation has been for a numbex of years continuously engaged in the production and sale of an anti- knock compound. or fluid’ (hereinafter referred to as ‘*fluid?”), consisfing principally of ttrac Du used in increasing theeetane, or ‘anti- -knock, rating motor fuel, | principally gasoline. When a mixture.of gasoline and air pression, ‘knocking’ oecurs at frequent intervals, _ This ‘*knocking”’ is reduced or’eliminated if the mixture of gaso- line-and air is burned in the presence of the vapors of this Fast 42nd Street, in the g¥ty and State of New York. One- - mourg Company. Defendants Earle W. Webb and John | ‘is burned in an automobile engine. of relatively high conf- - fluid.. Comniercially this result has heey obtained by mix- , ‘ing with gasoline, af the refineries, gelatively minute quanti- ties of fluid so that the fluid will be in the combustion cham- - ber of the automobile engine when the gasoline is burned. Automobiie engines of recent years have generally been of relativ ely high compression. 2 . fe By ae ® . The compression of an automobile efigine is the: extent to : which the mixture of gasoline vapor and air is compressed in ‘the cylinder by the piston moving upward. | The higher the compression of an automobile. engine the: greater is its inherent efficiency, i. e., it will develap more power and run: t giver quantity of gasoline, hence. . [fol. 63]- longer with — i . a ." . : Set . 19 it may .be ‘smaller in’ size an& still suitable for a certain ° task. However, in order -to reajize these advantages the gasoline used must be of a correspondingly high compres. sion value (high ‘‘critica] coinpression pressure’’, i.-e., high anti-knock value) ; : otherwise, ‘‘knocking’’ with a loss of . power, instead™of an increase, will occur whenever, as is frequent -i in normal driving, the automobile engine is called - upon to do more than_a smal! amount of work. Generally* stated, the ocfane nuniber of gasoline is a rating,.on a con-: venjent arbitrary® scale, of its critical compression pres- ‘sure—that is, the: compression to which a_ ‘mixture of the gasoline and air: may be subjected without ° causing a’ _% knock?” and consequent loss of power, in.an automobile | engine. Engines of high compression may be made, by re-: ° tarding of the spark, to operate without knock on.fuels of lower gritical compression pressure than those of higher octane’rating, but this results in a reduction in both power ~ and economy, thus defeating the purpose for which the high compression feature of: the engine was designed. | ee ‘The present composition of fluid, for use in automobile gasolines, is as follows, jn percentages by weight :\ _ Tetraethyl Jead ..... a BO 63.3 ’ Ethylene dibromide ..'. 20.0. ,..... 25.75 Ethylene dichloride ..... Rieweeepeeoms: > i Kerosene, | 2 a re pepe 3, Defendant . corporation. is’ the sole producer of fluid . in the United States, and is the owner of Letters Patent . of the ‘United States: No. 1,573,846, issued February 23, *[fol. 64] 1926; No. 1,592,954, issued July 20, 1926; No. 1,668,- . 022, issued May 1, 1928 and No. 1,787 419, issued December’ ‘ _ 30, 1930, copies of which are attached hereto as Exhibits ey 8-B, 3-C and 3-D respectively.” - “Patent No. 1,573,846 (Exhibit 3-A): Seecvibes and claims | an improved nrotor fuel: which is more efficient. atid, higher. in anti-knock ‘value ‘than ‘the » gasoline from which: it is made, The patent claims a produét, comprising gasoline , and, an anti-knock ingredient, ec.. g., tetracthy} lead » and | — _. of gasoline and air ’ 20 ¢ ; { ‘ G gasolipt treated with fluid (both Ethyl and ‘‘regular’’), as descrybed in this stipulation, i is a product which is claimed — in-each of the. claims of the patent.. Patent ‘No. 1,592,954 (Exhibit 3-B.) deseribes and claims compositions of matter relating to motor fuels, whereby a halide compound, ‘such * asa chloride or.a bromide, or a contpound of like properties, . is included with a.lead anti-knock ingredient so, that when aes the fuel is burned, the lead will. form only -a’‘ ngh-fluxing compound and deleterious. effects of lead on. ¥: plug -points and other motor parts, possile- éver. a period of time, will be avoided: - As described iti this stipulation, fluid is a, product. which is claimed in claims 9 and. 10 of this patent, and. ge: gasoline treated) with fluid (both Ethyl and regular’) is“a prdduct whick.is claimed-in ¢laims’t to 7, ° - inclusive. Patent No. 1,668,022 (Exhibit 3-C) describes and” claims compositions of matter : relating to motor fuels, wherein one feature’ involves the use of- volatile bromide eompotinds sueh as ethyleng dibromide, as specifiéally ad- vantagebus substances for pieventing Phe formation of flux-: ing compounds and consequekt deleterious effects on motor parts, When a lead anti-knock ingredient is-used. As de- scribed in this stipulation, fly “4 a product which is claimed » [fol. 65]. in claims 21, 22 gid 23 of thiis patent, and: ge’ line treated with fluid (b rth Ethyl and ‘‘regular’’) is a product which is claimed in Mims 9, 10, 1Yand 12. * Patent. No, 1,787,419 (Exhibit 3-D) deseribes dnd claims: an, im- proved method for ‘using fhotpr fuels, such as gasoline, whereby improyed efficiency and an inhibition of Rnocking are “obtained ; and whereby low: ‘compression gasoline may bused in motors of relatively high. compression. pressure. The claims of ,this patent claim they burning, in’ a. motor of retytively high col ‘igre of the combustible mixture t.2., the mixture produced in the @ir- buretor of a motor) in ‘ain presence of vapors of an’ anti- knock ingredient, e. g., tetraethy! lead. The present com- .. mercial method of introducing tetraethyl lead into the com- | bustion chamber of the motor-is by mixing it with gaso- line at the refinery socthat when the mixture of gasotine and . . air enters the ‘combustion chamber. the’ vepors from ie- traethyl lead are present at the Same time: This result was “at one time accomplished | by mixing fluid’ with gasoline at _the filling. station pumps ; direct injection of fiuid into the intake manifold’ of the engine has been used/to a limited ' extent by one of the airways. ° PF" tn ‘ i j _ 4. No other sabat cts of like. disitnchet 3 is manufactured . -or sold commercialy.~To. explain’ the position of fluid: in e the petroletm industry it is necessary to describe briefly the manufacture of gasoline. Speaking generally, gasoline is preduced by all.or some of the following processes :-— - (1) The crude Oil is distilled,and the distiHate boiling Within. the range of gasoline is separated f ra the higher and lower - boiling constituents. Such gasoline is known as ‘‘straight” [fol. 66] run’’-or ‘‘virgin’’ gasoline or naphtha. (2) All or some portions of the products of higher boiling range’ than gasoline are subjected to high teiiperatures and _ (usually) high pressures, and undér ihese, conditions are _ partially converted into préduets boiling in the gasoline” range. This process, W hich may be carried out under widely” A varying conditions, i is known as ‘‘eracking,’’ and-the gaso- line so’ ‘produced is known as ‘‘eracked gasoline. ” .In.the’ United States at-present the amounts of stra it run and tracked gasoline produced are abot 7 equal. (3). Gasoline is produced by compressing natural gas (thus condensing out some of the gasoline yapors usually contained therein) or by scpubbing natural gas with oil, (thus ‘absorbing some, of" the gasoline vapors). “Gasoline produced by such pro- cesses is, known as ‘‘natural gasoline’? or “absorption gusoline,’’ and is génerally a very volatile pane (4). Straight run gasoline or naphtha may be modifiéd in i ical eomposition by subjecting it to heat anppressure u conditions similar to those of cracking. Such a proves s ‘ne known as ae warning signs, an? deterioration of Ethyl] gasoline through [fol. 86] long storage in jobbers’ or dealers’ tanks; and de- fendaft corporation, particularly through its field xepresen- _ tatives, has made it a practice to investigate stich instances ‘ and to endeavor to prevent the occurrence or_recurrence of the same on the part of licensed jobbers or their dealers. 17: Since April, 1929 each applicant fora jobber license has been investigated by a field representative of defendant corporation. Numerous field representatives are employed by defendant corporation and are located throwghout the United States. ‘Said. representatives exercise wide dis- cretion inyrecommending the granting or refusal of jobber licenses, { he recommendation of a fild representative de- termines largely whether a license will be issued. Said field representatives are required to report up®n’ their inyesti- gationsson certain report forms. Exhibit 17-A is the form which has been employed with Hnmaterial changes from April, 1929 to January, 1935. Exhibit 17-B is the form which’ | “has been in use since ‘January, 1935. Said reports are sub- anitted by the field: representatives to the respective division managers, and are by the division managers forwarded for” final approval to the head office of the company in New York City. Following the customary practice of the company, the field representatives usually have not.set forth the fea- sons why recommendations have been made against the is- ", suance of licenses. To a large extent this was due to the re- -luctance.on the part of defendant corporation -to preserve in its records the’extent to which, maintenance of ggisoline prices and marketing policies by jobbers. entered into the. - granting of licenses. Officials of the company charged with .. ‘[fol. 87] reviewing said jobber reports have almost in- variably adopted the recommendation of the field repre- sentative whén approved by his Division Manager., In 90% to 95% of Hl cases the approval or disapproval of the Di- _ Vision Manager was indicated only-by the word ‘‘yes”’ or the word ‘*no”’’ on the face of the report. Usually and oily ex- cepting in some cases where the division manager had inde- pendent knowledge of pertinent facts, the action of: the di- vision manager in approving the report of the field repre- sentative was perfunctory in character. Usually yo records . other than the reports themselves have been made or pre- * 7° Go Oe oe 4 served disclosing the reasons why jobber licenses have been - refused. A copy of instructions issued to field representa- tives in 1931 and of supplemental instructions issued in 1932 is ‘attached hereto as Exhibits 17-C and 17-D respectively. The defendant corporation has not made a practice of giving detailed written. instructions. to its field representative on any subject, including the conduct of jobber investigations “or the consider ations to which weight should be given in such investigations. The amount.of reliance placed by defend- ant corporation and its officers and employees on the so- called business ethies of jobbérs‘has normally not been dis- closed i in their records and communications. | 18, From April, 1929 to January, 1939, as appears in Ex- hibit 17-A, one of the questions appearing on the form of jobber report related to the ‘business ethics’’ of the jobbek) *: applicant. Said term has been. employed by defendants to - denote) compliance with marketing policies and prevailing prices ofthe petroleum industry as deseribed in paragraph 21.) In January 1935, said question. with reference to busi- [fol 88] ness ‘ethies was eliminated from the form of jobber report, as appears in. Exhibit 17-B.° But the ‘business — ethics?’ of the jobber. has contihued to be among the prineipal subjects of vestigation, the findings of the field representa- tives with respect théreto-being incorporated in the recom- mendations of: the field represeiitatives for or against the ‘issuance of: a, ticénse, made at the end of the report. An adverse finding upon. the business ethies of a prospective jobber licensee is alone in.many instanees sufficient ground for defendant ‘corporation to refuse such jobber a licensé. The greatest number. of jobber applicants who were denied Jicenses were turned down on the basis of adverse findings of field representatives as to ‘business ethies.”’ In a num-_ ber of instances where ligenses were, granted to jobbers whose pragices were previously considered unsatisfactory, they were granted after representation. that the jobber’s marketing practices would be chatiged. In at least an equal. aumber of instances licensgs were, refused by, defendants after similtir Fepresentation. ‘Gasoline treated with fluid: deteriorates with prolonged in storage. Some applications for Ethyl jobber licenses and fi few for regukar gasoline jobber licenses have been refused because th. volume of*business of the jobber was not suffi- cient; in the opinion of defendant corporation, to move the: ~ - 37 gasoline with sufficient rapidity to avoid deterioration in storage. A number of jobber licenses have been refused be- cause in the opinion of defendant corporation the physical equipment of the jobber lent itself to the actual or accidental’ mixing of different grades or brands of gasoline or because [fol. 89] in the opinion of defendant corporation the retail - outlets of the jobber were shabby or _disreputabte in ap- pearance or lovation, or because in the opinion of defendant corporation the jobber’s reputation in his community was * bad, or because in.the opinion of defendant corporation the jobber had a reesrd of tax evasion, dilution, substitution, or misbranding. Employees of defendant corporation would é testify that in passing upon applications for jobber licenses . they were guided by their respective individual judgments — “as to what was in the best intérests of the corporation ,in- reference to the good will of the corporation with its refining, * ‘licensees or tlie public. : 19; § Supplementa ry investigations of licensed jobbers are © . _ made from time to time and reports thereon made on the . same report forms (Exhibits 17-A and 17- B hereto) as are used for.the initial inv estigations. a 20, Testimony ‘of witnesses_for the government would | tend to establish that a large number of refiners. and a ma- jority of jobbers believe that a jobber must maintain ‘‘busi-_ less ethies’’ in order to obtain a license, and that a num- cher of jobbers believe that jobber licensees are: required to maintain the ‘prices and abide by the marketing practices and policies of the major oil companies. Defendants have not issued any statement or instructions to the effect that » Ahey would cancel licenses for such reason, and there has been and is a great deal of cutting of p ices below the posted prices on the part of licensed refiners, including major oil . companies. and licensed jobbers. [fol. 90] 2t. Defendants -have refused om issue licenses to a number of jobbers wh, investigation showed, were not abiding by. the marketing policies. prevailing or ostensibly prevailing i in the industry or-who Were nét maintaining the retail-prices' on: easoline posted generally in the industry or . whose retail dealers were not maintaining said prices. Such marketing policies and posted prices were those. atlopted by the major oil companies or the market. leaders: among such compatues, oe major: oil companies ‘refining about 38 G 85 per cent of the gridoline sold>in the United States and ~~ : distributing the major portion of the gasoline sold through- out the United States through their own outlets.and through jobbers. The operations of jobber licensee¢s have been in- vestigated by defendant corporation as hereinafter set forth to determine the method of securing supplies, gal- lonage, pump markings, facilities of bulk plant and nature of other physical equipment, number, character and appear- ance of outlets, sales effort, and whether the said licensees were maintaining the marketing policies, practices. and - prices prevailing or ostensibly prevailing in the industry. 4G Defendants have issued licenses to a number, of © jobbers who, investigation showed, were not abiding by the prices prevailing or ostensibly prevailing in the industry or who were not maintaining retail prices on gasoline posted gen- erally in the industry or whose retail dealers were not main- taining said prices prevailing or ostensibly prevailing in the industry. There are numeroas instances where ‘jobber. licensees havé not followed the marketing practices prevail- ing or ostensibly prevailing in the industry and where job- | ber licensees have not maintained retail: prices posted gen- | [ fol. 91]. erally i in the industry concerning whom no aétion 4 has been taken by def fendants. , Some of the division managers and field representatives | of defendant corporation have from time te time reported. _to the jobbers’ suppliers that such jobbers have.not been j abiding by such suppliers’ marketing polici ies and practices, 7 and there have been sporadic instances in which representa- tives of defendant corporation in cooperation with the job- ber suppliers, have persuaded jobbers to market gasoline | in accordance with the suppliers’ marketing prattices.: — oe eS > ba ies ek ee ee ran! Se en ee 22. 899% of the jobbers licensed by defendant corporation ‘ sold under a refiner’s brand on Feb. 15, 1926, and 88% on | Feb. 15,1987, and 87% on Feb. 15, 1938, the remainder in _ , -each ease selling under their owni brand. Each time ‘a a jobber licensee who is selling under a refinér’s brand changes | his ‘seurce of, supply he is required to apply for a new li- cense. Except in cases of breach of license agreement, or’ where the jobber’s contract with the supplier had not been | terminated (in which case the jobber’s existing license was continued in effeet) defendant corporation in most cases has granted a new license to a jobber who wanted to change his sonrce of supply, irrespective of the jobber’s mainte- nance or noh-maintenance (prior to or at the time of change) ‘of the policies, practices, and-prices of the major oil com-. panies or market leaders. Ina few instances it has not done so. Each jobber license contains a provision whereby either party is authorized to cancel such license without stating any reason therefor at any time upon thirty days’ notice. Jobber licenses have not been cancelled because of the fail- |fol. 92] ure of a jobber te maintain the policies, practices, - _ and prices of the major oil companies or market leaders. _ 23. On February 11, 1929 the petroleum industry adopted certain Trade Practice Conference Rules knowr in the in- dustry as the Petroleum Code, attached hereto as Exhibit 23-A, On August’ 10, 1931, said code was modified, said modified code being attached hereto as Exhibit 23-B. As appears on Exhibits 23-A ‘and.-23-B, all of the provisions of said codes were either approved or accepted by the Fed- eral Trade Copnmission. On August 19, 1933, the President approved The Code of Fair Competition for the Petroleum Industry, which was in éffect until May 27, 1935. Said code is attached hereto as Exhibit 23-C. On September,5, 1937, — the Federal Trade Commission issued an order, attached hereto as Exhibit 23-D, withdrawing its approval and ac- ceptance of the Trade Practice Conference Rules adopted August 16, 1931 (Exhibit 23-B). _ 24. The defendant corporation has:usually required that each jobber licensee purchase all his requirements of Ethyl vasoline from a single refiner-supplier of his own selec- tion. Jobbers selling regular gasoline under their supplier’s brands are required to purchase such gasoline from. such ‘supplier; otherwise jobbers selling regular gasoline may obtain their gasoline ‘from any licensed supplier. The de- fendant corporation has-in some cases refused a license to a jobber who desired to change his source of supply upon the ground that such jobber was, or was claimed by the refiner-supplier to be, under contract to purchase his Ethyl [fol. 93] or regular gasoline from an existing refiner-sup- ‘plier, and that the request, if.granted, would in the opinion of the defendant corporation have breached such contract or claimed contract. In-a few of these cases the jobber has contended that his contraet with the existing refiner-sup- plier had already been abrogatéd or fer_other, reasons was not enforceable against him. - ora: 40 25. Since 1924 as to ‘‘Kthyl’’ and since 1933 as to ‘‘Q”’, defendarit corporation has-been and is the original and the exclusive user of trade-mgarks-embodying the words ‘‘ Ethy]”’ and ‘‘Q’’ as applied to fluid. All containers-of fluid sold bear either the word ‘‘Ethyl’’ or the word ‘‘Q’’..” Copies of registrations in the United States Patent Office, which - are owned by defendant’ ee are attached hereto as follows: 7 99 ee Exhibit 25-A—Registration No. 187 410 | Exhibit 25-B—Registration No, 202,275 Exhibit 25-C—Registration No. 215,282 Exhibit 25-D—Registration No. 292,242. All licensees, except Standard Oil Company (New Jer-. sey), inelude the word ‘‘ Ethyl”’ as a part of the brand name under which Ethyl gasoline is sold, said company-using the trade name ‘‘Ksso’’ for most of its Ethy! gasoline and the name ‘‘Spartan Etbyl’’ for the rest of its Ethyl. gasoline. All licensees are required to display the registered’ trade- mark design, Exhibit 25-C, whenever they sell, offer to sell or adgyertise Ethyl gasoline. No persons except, such’ li- censees and their customers have been or‘aré users of the word ‘Ethyl’? or of such trade-mark design for: ‘gasoline — and the only gasoline for which sygh word and design have fol. 94]. been used is Ethyl gasoline as identified in this stipulation. Defendant corporation has also registered the word ‘*Kthy!’’ and the aforesaid 4lesign, under state laws, ,in every state of the United States except one (Wisconsin), copies of the registrations in the State of New Jersey. which may be taken as typical of all said state regist ‘ations, being attached hereto-‘as Exhibits 25-6 and 25-F,. Since June, 1926 defendant corporation has carried on a ‘large amount of advertising of the Ethyl trade-mark and Ethyl gaso- line, including full page advertisements appearing fre- quently each year in a large number of popular magazines ; and including ‘billboard advertising. The refining licensees of defendant corporation have done a large amount of ad- vertising of their respective brands of Ethyl, gasoline. Numérous users ‘of gasoline would testify that the name ‘*Ethvl’’ and the aforesaid trade-mark design have become associated: in their minds with high guality gasoline of high anti-knock qualities and that Ethyl indicates to them es ~chanies, and others having to‘« a a Sa 41 the use of lead in gasoline. Defendant corporation has de- voted efforts to promoting the use of regular gasoline by fleet owners (i. e.,;owners of truck, taxi, bus and like fleets) | and other large users, oftentimes, in such promotional work, designating such gasoline as ‘‘Q’’ gasoline. Exhibit 25-G, attached hereto, comprises copies of ad- vertisements of regular gasoline (treated with fluid) which ‘have been published in newspapers throughout the United. States by licensees of defendant corporation; the adver- tisements in Exhibits 25-G, which were published as ap- ‘pearing thereon, being representative of a great many {fol. 95].similar advertisements, similarly deseribing regu- lar gasoline, which have’ been published by many of de-- fendant corporation’s licensees (both refiners and jobbers) at those and other times, in a large number of newspapers and other periodicals (and on uesnoarde and other media) throughout the country. Exhibit 25-H, attached hereto, comprises copies of advertisements published by defend- ant corporation in various magazines and newspapers, some of circulation to farmers and in rural districts, and. others of urban and general circulation; the advertisements in’ Exhibit 25-H, which were published as appearing thereon, being. representative of many similar advertisements,— similarly referring to the defendant corporation’s manu- facture of anti-knock fluid and tetraethyl] lead, for regular gasoline,—which haye been similarly published by defend- Ce het ant corporation in the years 1934, 1935 and 1936 and also singe 1936. On occasion, filling station attendants, garage propriétors and workmen, caper dealers and me- lewith the sale or recom- mendation of gasoline, have advised meinbers of the: gaso- line-purchasing publie that regular gasoline, as dispensed from pumps containing the lead warning sign, is ** just about the same as Ethyl gasoline’?, or contains the same anti- _ knock ingredients as Ethyl gasoline, or contains lead ‘made by the Ethyl Gasoline peaple”’, or is “‘like Ethyl gasoline”? or contains lead like Ethyl gasoline; or have otherwise . i ? " passed on to the public, by word of mouth, their knowledge or belief that regular gasoline, dispensed from pumps con- taining lead warning, signs, is related’ in some manner to Ethyl gasoline or to defendant corporation. 7 [fol. 96] The lead warning signs, Exhibits 14-C and 1 14-D | - (supplied by defendant. corporanen at a charge of seyen In the-General Electric case, 272 U. S. 476, 489, 490, the Supreme Court established the principle that a patentee may grant.a license ‘fupon any condition the performance of which is reasonably within the reward which the patentee by the grant_of the patent is entitled to secure,’’? and may restrict the Selling of the patented article by: his licensee - by limiting the method of sale.and the price, ‘‘provided the | conditions of sale are normally and reasonably adapted to secure pecuntary reward for the patentee’s monopoly. ”” See also General Talking Pictures Co. v. Western Electric Ca., 305 U.S, 124,127. The reasonimg in both eases establishes. that the legality of the conditions imposed by the. patentee upon his licensee is a question to be determined by the court and not, as contended by defendants, a question of ~ [fof 121] poliev reserved for: the judgment of the patentee. , In the General lectric-case both the patent owner and its licensee mantfactured and sold the patented product. “The. court merely decided that the patent owner couid fix the: prices and preseribe the method of sale of the patented prodnet manufactured by the lcensee in order to sustain the prices af which the former sold the patented product. See EK. Bement & Sonx’v, National Harrow Co., 186 U.S. 70; Mraight Side Bisket Corp. v. Webster. Basket Co., 82: F. (2d) 245, 246. The defendant corporation does not charge any rovalty for the use of its patents, aor does it manufacture, refine or sell any gasoline,- whether treated with fluid or not. It is engaged only in the sale of fluid and derives its profits | solely from the sale of fluid to its refiner licensees. Its pecuniary interest, if any, in the marketing and price poli- cies of the jobbers selling gasoline is obviously very remote. (f. Dr. Miles Medical Co. y. John D. Park & Sons Co., 220 U. S. 373, 407; Bauer & Cie. v. O’Donnell, 229 U. S. i, 16. ‘sales of treated gasoline by refiners to licensed jobbers so “monapoly.”* United: States v. General lect ric Cg, 202 refiner licensees, apparently without consulting the defend- fel. 1228] who do not maintain ‘business ethies’’, the court ‘tion is not selecting its own customers when it determines 56. © Moreover, the Ethyl Gasoline Gerporation does not. itself determine the prices or policies, the failure “to abide by which has often resulted in the denial of a: jobber license. They are the prices and policies established by some of the. [fol. 122] ant corporation. ‘There is no evidence that the refiner licensees can not adequately protect such interests as they may lawfully have in the maintenance of the resale - prices of their jobber customers, without any intervention by the Ethyl corporation. : | General Talking Pictures Co, v. Western Electric Co. supra, involved a limitation. in a dicehfse to manufacture | and sell a patented product, rest ricling the licénsee to sales of the*product for private-use in radio reception, as dis- tinguished froin Commercial use in talking picture equip- ment. Since the patentee therein retained the’ right to, license other persons to-manufacture and sell the product for use in the conimercial field, the limitation obviously bore a direct relation to the patentee’s pecutiary reward. The Ethyl Gasoline Corporation, however, does not restrict as to enable it to exploit sales to the excluded group in. some other wat.” Rather its restrictions result. in the perpetual exelusion of nontlicensed jobbers from.the market: of lead- treated Gasoline, thus depriving. its refiner licensees of the, opportunity to sel] to the excluded group. - Miso far, there fore, as the provisions of the refiner license agreements are used fo excludy from the market jobbers believes that they are not conditions ** normally and reason- ably adapted to secnre pecuniary reward for the patentee’s U.S. 476, 490, : : / The defendant corporation attempts to identity its posi- tion with that of?a manufacturer or trader and contends, that, as the latter possesses the privilege ‘of se ‘lecting his. own customers, see United States v. Colgate & Co., 250 ULS. 300, so the defendant corporation may select the jobbers to he Hieensed, upon any hasis’satisfactory to itself. This argu- ment, however, ignares the fact that the defendant corpora- what jobbers may sell Jead-treated gasoline. The Etliy! Gasoline Corporation, manufactures tetraethy! fluid; its sole ‘customers are its refiner licensees. Its selection of refiner 7 “- noe ae licensees is not under attack.. The jobber is in no sense-a dealer in the article manufactured by this corporation. The jobber is a dealer in lead-treatéd gasoline, of which the de- fendant corporation produces merely an ingredient, It is the refiner and not the Ethy! Gasoline Corporation, who produces lead-treated gasoline. The government does not . question the right of each refiner licensee to make an ‘inde- [fol..124] pendent selection of his jobber customers. The facts of the case do not fall.within the permissive pro- ‘visions of the amendment to section one of the Sherman Anti-Trust Act effected by the Act of August 17, 1937, 50 - Stat. 693, 15 U. S. Code, See: 1, and the defendants do not contend that this amendment has any “application to the facts of this case. -The court accordingly is of the opinion that the ane: ments. between the Ethyl Gasoline Corporation and its refiner licensees restricting sales of treated gasoline to those jobbers only whom the former licenses, unre: asonably re- _ Strain trade and are violative of the Sherman Anti- Trust Act. ; The defendants accordingly will be enjoined from re- quiring jobbers to procure licensés for handling lead- treated wasoline and from requiring. refiners to’ sell lead-treated * gasoline to: such jobbers otily as defendant nese " licenses or otherwise designates. Submit proposed findings of fact and conclusions of law in accordance herewith. ° May 19, 1939. ; Wm. Bondy, United States District Judge. ‘{fol.125] Ix Unireép Srares Districr Court [ Title omitted] — aed Findings of Fact and Conclusions of Law Pursuant to: ‘Rule 52 (a) of the Rules of Civil Procedure, i find the facts specially and state separately by my ¢on- clusions of. law thereon, follows: ww Fispincs or Fact The parties in this cause having entered into a stipula--— ‘tion which provides that the issues -.raised by the pleadings . Z ? i f 58 should be determined without the introduction of other evidence on @be basis of the facts as therein stipulated, I. ‘ adopt, find, and incorporate herein by reference the facts as stipulated by the parties and find: » | ° 1. By providing that the. refiner licensee ‘may sell lead- treated gasoline only to those jobbers who are: licensed by the defendant corporation, each refiner license agreement calls for cooperative action between the defendant corpo: ration and its refiner licensee in the exclusion of unlicensed jobbers from dealing or trading in lead-treated gasoline. The 123 refiner license agreements: have been separately made by the defendants and their refiner licensees. Each ‘such dtreement deprives the unlicensed jobber of one source of supply, while the aggregation of agreements deprives him of all ace ess to the lead-treated gasoline market as a jobber. -_ Many persons desiring to engage as jobbers i in ‘the sale of hes treated gasoline, which comprises about 70% of all the gasoline. manufactured and sold in the United States, have been excluded from the market by defendant corpora- - ‘tion. The. rages wey ‘‘business ethies’’ of the jobbers has been the prMcipal reason for such exclusion. ile [ fol. 126] a. Defendant corporation in phalélsterinn its jobber licensing system has not confined itself to employing it for the purpose of préserving the trade marks, edod. cho er reputation of defendant; corporation in lead-treated gas oline, protecting the public from adulteration, or securing compliance with the regulations proposed by the Surgeon . General of the United States: governing, the sale of lead- treated gasoline to-the publie, - 4. Exclusion from the market of jobbers because their marketing or price policies are repugnant to the defendants bears no re ationcto,-and. is not required for the purpose of, preserving the trade marks, good will or reputation of de- fendant corporation in lead-treated gasoline, protecting the public from adulteration, or securing compliance with the regulations proposed by the Surgeon General of the United _ States governing the sale of lead-treated gasoline Bas the cageang ae ifaintonanee of Warning notices on the pumps from’ whieh lead-treated gasoline i is dispensed to the public is the only one of the health regulations proposed by iota General of the United States which is applicable to the handling a cigtribaten of lead- treated sane by job- bers. ; 6: It can not be said that the deena gut a legiti- mate: interest in the maintenance of lead warning notices on such pumps, Defendants’ system of licensing— jobbers ‘is not the only method by which observance by jobbers of, the health regulations proposed by the Surgeon General . can be enforced. 7. Jobbers are under no bandits to avoid compliance with the regulation proposed by the Surgeon General of the United | States concerning lead warning signs, since these signs are supplied by the Ethyl corporation at a charge of only seven.cents each. 8. W hatever interests the. defendant. corporation has in preventing dilution,‘ adulteration or deterioration of lead- treated gasoline in the hands of jobbers may be protected pai resort to the jobber licensing device. . The defendant corporation does not charge any rovalty tor ‘the use of its patents, nor does it manufacture, refine or sell any gasoline, whether treated with ethyl! fluid or not. [fol. 127]. It is engaged only in the sale of ethyl fluid and “derites its profits solely from the sale of ethyl fluid to its. refiner. licensees. The defendant corporation’s pecuniary interest, if any, in the marketing and price policies of the jobbers selling lead-treated gasoline is very remote. ~ 10. The defendant corporation does not itself determine the prices or policies, the failure to abide by which has often resulted in the denial of a jobber license. They are the prices - and policies established by some of the refiner licensees. Sagpiges 11. There is no evidence that the refiner licensees can not adequately protect. such interests as they may lawfully have in the maintenance of resale prices by’ their jobber custo- mers, without any intervention by the defendant corpo- ration. ‘ 12. The refiners, wt the defendant corporation, produce lead-treated gasoline; jobbérs are the customers of the re- finers, not of the defendant corporation; and the latter is 60 not selecting its own customers when it. determines what _ jobbers may sell lead-treated gasoline. _ ay . entered into agreements in un: ‘fasonable 1 ‘estraint of inter- state trade and*commerce, in violation of said act of July 2 1890, > 8, The petitioner is entitled to an injunction restraining the defendants from enforcing or attempting to enforce any provisions in their licensing agreements with refiners which require said refiners not to.sell lead- treated gasoline to job- bers who do not hold a license from the defendant corpo- : ration. LO. ; ~ - § The petitionee is entitled to an injunction restraining the defendants from requiring ae goin to procure licenses {fol. 129}.-for handling lead-treated gaseline, and from re- . quiring refiners not to sell lead-tres ated gasoline to jobbers Who do not hold‘a license from the defendant corporation, and from entering into any combination. or conspiracy in restraint of interstate trade or commerce similar to that herein déelared to be illegal. 7 Wm. pany: United States District Judge. . ‘August 14th, 1939. “a tan a 2 ° Fe ant corporation to sell lead-treated- gasoline; have ‘enter ed * - who does not hold a license- -from the defendant po gpa he * % ——— . F _ said provisions and give due writtén,notice, within twenty “% fendant corporation to jobbers purporting to anthorize- jc - . d - « pa 4 os t — ; : re etme re” > ° . * fol. 1301, ix Unirep "sete District Covkr FOK THE - ‘.@ Sovrnern “Disraiet gr New Yori Sema | ete In Kquity: No, “B43: 21 Sa " Cr) *o ” ev. Pp ¢ , ae J! ™Unrrep Srates. or Amenica, Petitioner, »f * s .? e raha th 8 Ve . , “3h > ad rare (ASOLINE Corporation, ‘Fane WwW. W dsp and Joun ‘ o yy >’ ° »Coarp Tayvor,: Defendants. ae oe age ope - Fran Decree. 6 ‘e “This cause having come On for hearing befare this Court upon the pleadings and the agreed-statement of facts, and having ‘been argued by counsel, and, the Court having filed its-opinion hereiagen the 19th day, of May 1939, . * ba ‘isehereby orale, Adjudged and Decreed as follow’s: I: That the defendants, Ethy] Gasoline Corporation, Earle W: Webb and John Coard Tay lor, by requiring the re- finer licensees to-whom they sell the ethy] fluid which the dée- fendant gorporation. iatiufactures to agree not to sell gaso- . linestreated: with saidSethyl, fluid (sueh gasoline being; re- ‘ferred to herein as lead: treated gasoline) to any a . other. reseller, who does not hold a license from the defend- into agreements: in restraint of interstate trade and com- “merece in violation of an act of Congress approved. July 2, 1890, entitled ‘‘An act. to Protect. Trade and Commeres ‘against U naw ful Restraints and Monopolies”. aes, IT. That the provisions of each license agreement. now in’ "elect t bétween the defendant corporation add its refiner li- censees which. prohibit, or purport to prohibit, the yefiner licensee from. selling lead- treated, gasoline’fo any. jobber to sell’ lead-treated gasoline are illegal, null and void, and ~ [fol. 131} that the defendant corporation forthwith cancel (20) days from the date of this ‘deer¢e, to each such refiner’: licensee that the said provisions have been, cancelled aud ayes of no effect.’ oe Sica BO ba RS rhs y YS, ‘ Ill. That all licenses ; now outstanding issued by the de- "6B bers. to sell lead-treated. ‘ieiiitiis are “Hiewal, null. and void, atid that the defendant corporation forthwith cancel said ‘licenses and %ive due written notice, within sixty (6@) days © from the date of this deeree, to each such jobbeg that the“ « ‘license with sue). jobber has beer? cancelled and is‘ of no ef- feet, together with a true copy of this ees 2 SO: ¢s IV. That the defendant ‘corporation and _ its vgicers, agents, fepresentatives and employees, and each sincditin defendant, be, and they oe perpetually onioined restrained : eo (1), From enforeing or attempting to ‘eifisies any ae _ Vision in any license agreement between the defendant éor- . poration md any refiner of gasoline which prohibits or pur- . ' ports to prohibit the refiner licensee from selling lead-treated — . a gasoline to any jobber, or other reseljer, who does not hold y's a ticense from 'the defendant cor poration to sell lead- treated» gasoline. . ; +» © (2). From including i in any agr eement which the defendant corporation” may hereafter enter into or offer to enter into | With any refiner that the refiner shall not sell lead: -trgated - ‘ gasolizie to any jobber, or other reseller, who does not hold i license from the defendant ‘corporation to sell lead- treated gasoline. =. . (3) From vinboveliier on abninalia: ‘is épforee the’ pros. visions of any agreement by which the def@@dant corpora- -) | tion licenses or purports to license any jobber, or other * reseller, to sell lead-treated gasoline. eo ; re ° vy: (4) From requiring or attempting to require that jobbers,. La or other resellers, procure a license from the defendant cor-” poration to sell lead-treated gasoline in,order ter be able to” huy, sell or otherwise deal in lead- treated gaseline as jobber Be or as ofher resellers. | ee 4) : (>) Prom entering: into or carrying out any agr coment i rN restraint of interstate tradé- 6r commerce shnilar to the Pn _ agreements declared to be illegal fn paragraph I of this Ae; oe f , cree, or ayy. combination or conspiracy of similar character. cow! a V. Phat jurisdiction, of this cause is hereby retained for I fol. 132] the: urpose of enforcing this decree and of mak- ing sugh other-en further orders or decrees as may become wi ed herein. — ie eae ah bag ome’ ears oe % .: 64 % an ‘ a 6 7 *s - . > ae al 2 VI. That the petitioner recover of the dctendants its costs yherein. : é - August 14, 1939. ' (Sd.) Wui. Bondy, U nited ‘States Distriet Judge: Notice of Entry is hereby waiv ede: "Cooper, Kerr & Diinham, Solicited for Defendants, =] @.. . [fol. 133] ° Is Unrrep States District Courr * es [Title omitted] mn. Oxper’ Srayxe wae cone Decrer ~ Upon application of Pag Uae for a stay pending appeal and determination thereof, the petitioner not ob-. ‘jecting, it is Ordered: — execution of the final dues duteied herein, and 18st ugnee yany injunction pursuant to said decree, and compl fake nce by efendants with ahy provision of said decree, be and the same heréby are stayed pending final deter- mination of this cause, either upon appeal or by ‘expiration of the time for appeal without the defendants having taken an appeal. &: ( Sd. ) William Bondy, United States District Fudge: August ‘14, 1939. _ [fgl. 134] Supreme Court or. rue Untirep States ad [Title omitted] . - ° % . Peryrion For APPEAL s Considering the Selves aggrieved. by the final order and decree of the District Court of the United. States for the - Southern Dis: ict.of. New York, in the above-erititled cause, "entered August 14, 1939, the defendants, Ethy! Gasoline ‘Corporation, Farle W. Webb, and John Coard ‘Taylor, hereby pray that an appeal be allowed to the Supreme Court of the-United States and for an order fixing the amount, of bond thereon. The Supteme,Court of the United States Ras jurisdiction of this appeal., Judicial Code, Sec. 238, ° 4. : 65, as amended 28 U.S. c. Sec. 345; Act of Feb. 11, 1903; ¢ c. on, See. 2 2 is at. 823, as amended, 15 U.S. €. Sec. 29. . AssION MENT OF Errors pe And ‘the said defendants ‘assign the following errors in the record and proceedinys in the said cause :\ I The poner ‘erred i ae that the conditions in’ the refiner license agreefnent restricting salessef the patented “S jead-treated gasoline to licensed jobbers are not normall _ and reasonably adapted to secure pecuniary ‘reward ‘for: [fol. 135] the patentee within the, rights conferred by the patent law. e | II (ok, The court erred in-firiding that the defendant corporation in administering its jobber licensing sy stem had not cor- fined itself to preserv ing the trademarks, & eood will or .repu- tation of the defendant corporation’ in the patented Jead- treated gasoline, protecting the public from adulteration, or securing compliance with the regulations proposed by the Surgeon General of the United States governing the . sale of. the patented lead-treated gasoline to the public. % HT The court erred in finding that the’ refusal to: license job- bers becanusé of their marketing or price policies bears. no relation-ta_the preserving of the trademarks, good will or epatation of tenant corporation in its patented lead- treated gasoline, Igo cting the public from adulteration, or securing compliance with the, Surgeon General’s regula-. . tions, «— . +B = As iv ; The court erred in finding, on the basis of speeulative and unwarranted inferences from the stipulated facts, that the maintenance of warning notices on pumps from w hich. the patented mpeiie pits gasoline is dispensed to the pub- - lie is the only one the health regulations proposed, by. ‘the Surgeon General of the United States -which is ap- plicable to the handling ‘and distribution of, the patented _ lead-treated gasoline, by jobbers. : | - 0 - — 536 \ ‘ ‘ : bs s Xs . ae ot , ; 9 : ’ : EG The court erred in finding, in the same speculative man- ner; that the defendants” system of, licensing jobbers is not the ont’ method. by which observance by such jobbers of sueh health regulations can be enforced. -{fol. 136] VI" SCAM The court érred in finding, on improper inferences from the stipulated fact@, that Whatever’interest the défendant corporation has in preventing ‘dilution, adulteration or | deterioration: of the. patertad lead-treated gasoline in the hands of jobbers mhky be protected without jobber licenses. — om ey The court: erred in éoncliiding ‘that the defendant corpo- ration’s pecunifiry intetest in the marketitig and price polli- cies of the jobbers selling: the ~patented and trademarked lead-treated gasoline is yery‘remote. , ie ; “ee , 4 The court erred in failing to distinguish between the license agreements and practices with respect to the manu: facture and sale of the’patented lead-treated gasolineeulti- inately sold at retail under the. Ethyl! trademark owned by - the defendant’ corporation, and the license agreements and’ ' practices concerning the patented lead-treated gasoline soJd ‘ under refiner or jobber tradenames alone. « « A o , 7 * o- c b i ’ I * hg ; X 2 distribution and sale of its patented. and trade-marked lead- * treated gasoline, arising out. of its ownership of patents covering lead treated gasoline and the patent covering the use of lead-treated gasoline in internal combustion engines, as distinguished from its patents relating to fluid. a rer | ; ; ; : xX . ¢ The court-erréd in concluding that the defendants’ sys-— tem of jobber licenses must be regarded as the légal equiva- lent of a combination among its refiner licenses with. re- spect to distribution and sale of an unpafented product - ; e oa \ (OL 187] ee licensees to seéll only to-licensed jobbers the defendants have entered into: agreements in unreasonable restraint of inter-. state commerce. ‘| Scie he ei a The gourt erred in holding that the effective prevention, of exclusion of jobbers from the business-of Marketing. . the. patented: lead-treated gasoline because of their price ' policies, marketing policies and practices requires that the | entire jobber licensing system of defenda t-corporation be abolished and enjoined. , prea . Bee te a HM cee ie ear = 4 . . - “. ° _ The ae A in decreeing that fhe provisions in re- fines:.license agreements prohibiting the sulé by licensees of the patented lead-treated gasoline to unlicensed jobbers are illegal, null and void and in requiring their cancellation, - With written notice, within twenty (20) days. XTV , The- Court erred in decreeing that all jobber licenses are -, Wlegal and in decreeing. their cancellation, with written notice, within sixty (60) days. ) ee a o The court erred in enjoining the enforcement of anv. pro- J g 3 vision in-atiy refiner license agreement’ prohibiting\sie sale of the patented lead-treated gasoline to unlicensed jobbers. ” Paes ; 4 : My [fok. 138] OVI tore ‘The court erréd in enjoining, in ‘Paragraph 1V (5) of the deeree, any license agreement by which the ‘défendant corporation licenses or purports‘to license any. jobber of other reseller to sell lead-treated gasoline. — XV... a: : Thecourt erred in enjoining any attempt -to- require that such jobbers or other resellers procure a license in onder to be able to buy, sell or otherwise deal in lead-treated © gasoline. The court erred int hélding-that by requiring its, refiner - “XVUI *. B The court erred in disregarding i in its decision and deeree Se “the unquestioned claims of the. four ma owned bythe | ‘defendant. corporation, from which deriv¢sthe rights and — > privileges, accorded by the patent Jaw, to control the manu- _facture, ° sale, or‘use of the patented lead-treated gasoline ‘-. and the patented me method: of using it 1 in intert seperaa) eoepantion. engines. ———~ "8 pes ets XIX & The court erred in illegally limiting dune the remain- ~ ing life of the patents the manner and method whereby they may be -utilized atid in restricting the full ‘pecuniary re ward which the defendant corporation might: obtain through their ownership. ‘ o XX: | The court erred. in failing ‘to considersthe deferidant -cor- - > Heration’s trademark rights derived from its ownership of Tawfil trademarks covering the sule of the: patented. lead- ’ ‘treated gasoline, . “[fol.139) iS: ee Reames ee ° The court ‘ann FH) issuing ‘an injunetion on the basic of speculative inferences from the stipulated facts. * a aeatialale, oo ER FOR Rev ERSAL — For which errors the def éndanite, Ethyl! Gaschine Cor- poration, Earle W. Webb, and John Coard Taylor pray : * that thé sdid decree of. the District Court of the United ‘States for the ‘Southern District of New. York, entered August 14, 1939, in the above entitled-ecause, be reversed and the petition dismissed ; that the amount. of the cost ,bond to be given by appellants be fixed;.that citation issued to the, appellee named abdve;.and for such other and further relief to which appellants may be entitled. eee Respectfully submitted, Dean Acheson, Attorney for Appellants. ‘ “October 9, 1939, r 2 Sa a ees a ad ae | on me ‘[fol. 140] Sufkeme Court oF THE Unrrep States # “© gig [Title omitted] £2 OrvEr Atiow1ne APPEAL. ae The appellants in ria above entitled cause, and each of them, have prayedfe allowance of an appeal in this cause-to the Supreme Court of the United States from the decree made and entered in the above trititled cause by the - District Court of the United States for. the Southern District © of New York on the fourtegpth day of August, 1939, and’ s . Statutes of the United States and the rules of S17 hereby allowed to the’ Supreme Court ofthe United States from the District Court of the U ited’States for the South- | ern District of New York in thé abo@@entitled cause as pro- vided by law, and———~ Beer oa hag | It Is Further Ordered That the Clerk of€the United | \ States District: Court for the Southern\ District of New: ‘Yark shall prepare and certify. a transergt of the record, proceeYings and decree in this ea se-and transit the same [fol. f44% to the. Supreme. Court*%f tlie United States so’ _ that he shall have the same in gaid Court within forty days . , Of this date, and : : ; _. It Is Rarther Ordered That security tos Moats on appeal Dated October 9th, 1939. | vs see | .'+.Wm..Bondy, United Statés District Judge: for the en.” Southern Districtof New York. ae } ae SF. . id : hes ae - ‘Da +e “ a Dre. P te J " [fols. 142-143] Citatien to usual forth showing servicéDon Wendell Berge omitted in printing. the Supreme Court: of the U “ited States. 11. Citation and acknowledgment of serv ice thereof. 12. Statement reqiired to he Serv ed on Appellee by Rule | 12, Paragraph 2 2. i3. Bod for costs, together with approval of same. . ment: required by Rule 12, Paragraph 2, oe o— é 15. This stipulation. lees yee of Appeal, with copy of Assignments of E ors and Order - urisdiction, aud state- | allowing Appeal, Statement as to J \ . : — wg ates = % ; | ae ere ie! Eee —1£ Acknowledgment of Service of Petition for Allowance ‘ Dean Acheson, Attorney for-Appellant. John Henry 4 E Lewin, Grant Kelleherattorneys for Appellee, _ \. —t ee Peat , ira * sions of Taw, consisting of 5 pages. _A typewritten copy of the Fina! Decree, consisting of 3, ; pages, ne Gm i A typewritten eopy of the Stay Order, consisting of . ‘page. A carbon copy of the Petition for. Appeal, Assignment. of Errors, and Prayer fay Reversal, consisting of 6 pages. 4 a3 ; . - : ; . ‘ 2 ‘ : = ’, } o ae SiSutanox as TO Recorp --—— » t! ten &/ A carbon copy of the Statement as to J urisdiction, consist- ° ing of a cover and 8 pages, to which is appended a car- bon copy of the Opinion, consisting of 11 pages. | .A.carbon copy of the Order Allowing Appeal, consisting: of 2 pages. - ee ey tae . A carbon copy of the: Citation- and acknowledgment of service thereof, consisting of 2 pages. oie nh aad [fol. 148] A carbon copy’ of the Statement Required by Rule 12 Paragraph 2, consisting of 1 page. Fig ? ° —s . . - . & a = Ge . ; ; & A carbon copy oftfie-bond on appeal and approval thereof, . ‘consisting of 1 page. as dt pata: , io Se ' A carbon copy of acknowledgment of service of the Pefi- ‘tion for Appeal, Assignment of Errors, and Prayer for Re- transmission to ‘the Clerk of the Supreme’ Court. of the : United States. The parties hereto, through theirtéspective | . , counsel, further stipulate and, respectfully request that the * Clerk certify the documents above specified. to the Clerk of the said Supreme Courf of the United States. Dean Acheson, Attorney for Appellants, John Henry Lewin, Grant W. Kelleher, Attorneys for Appéllee. ? ~ ® “a oe © together with two bound volumes of exhibits, Volume 1 cor- . a C. @o-* : Py a . ; , ; e . » 7 . : -[fol. 149] In Unitep States District Court .. ° ° Fs . a . “ i : a * . i se © J 4 . [Title omitted], . Eee ane ae « Late: . . c . ‘ ~~ “og 4a . - f ¢ © ; . : ’ 2 . o 3 . SC 2 AO ed ene, Oh ..” [fols.1-4] Exhibits to Stipulation of Facts 24 * Oh Be est anaes: 3-A 2 ' ‘ » . \ t % 5 > * i . . ! * . ° @ | , ° °.ale : A a, p ps « ZN « . sf 6 se @ ‘ SNe oer * } 2 . ° . . , 2 ‘ ¢ ’ : ’ " ie ° | ’ ? a © P J . eo y ba *& : ‘ &>. ° Go; . ° a , eter {a ¥ ° e 6 z= aie ‘ z J ° . . . y ° . a . ‘ me ie Fe } 2 Of eh % +a > 0 Us eto ee hee ‘ ; i” te gee : gv p ’ ° ; ; eB / j ed 4 . , a - - . , Vy ° ry ee Jar d 2 x a3 . 3 ° m ° \ é ry , %,: : = 3) ° . 2 ; f a 4, fh) . . — és , _- 4 of”. z : ‘. ad é zm é 9 j A . : "\ d . Sea aoe og awe Poy ees a) \ \ . 6e : ate e “9 ba os m4 : ; "7 : > ar Wl ar @ ae a f I oy : . = ‘ ~~ ° Feb. 23 b 1926. 7: “METHOD AND MEAN § FOR USING MOTOR PUELS . Filed April 15, 1922 as a D es y idubdlhiihhededbeeeeecrrrorw st Pie, / * j 4 (444 eibuiidbdddddEédedgaeolert tt ‘ 4 ’ 4 4 s 4 ‘ ” iS ) SELILISSBIARMSS Sa 18 ol aren ate Bb is aa etnies eimai Oe em, ce ee ct ee ae SSKKMO”AQ ‘ - \ . VY WANNA SII oe Ss 4 PIOTEITPEEELS A ~* SSBASBear » NY a (hbbdddididaseizeonu SS SARS SS Nranennant mm SLLPOPTPIIOIT YE TE GRPELPEOB Ss 4 ?. OORVEPOLOLEOELELPLEE ESE E ee . a) ae fr Patented Feb. 23, 1926, ~p° — m=) _ UNITED STATES Fe PATENT OFFICE. | GENERAL MOTORS CORPORATION, OF | DELAWARE. . -* To all whom it may concern: Be it known that I,“TuHomas ‘a citizen: of the United States of Ainerica, residing at Dayton, county-of Montgomery, and : State .o new and useful. Improvements in Methods and Means for Using Motor-Fuels, of which - the following is’a full, clear, and exact de- . Seription. ele gt A ge 10 .This invention relates to fuels, such; for _ example’as kerosene and gasoline, employed “in: the operation of|internal-combustion en- gines and to the art| of, burning the fiels in an engire. The present tendency. is to pro- duce lower grades of gasoline in-order to _ obtain a sufficient output for the increasing demand for motor fuels and to reduce the lower grades of fuel maybe used without 20 knocking. As the-lowering of engine ¢om- pression reduces the efficiency of the engine, _ & still greater output of fuel is:required to ". “meet the increase in fuel required to operate larger and less efficient engines. The princi- 25 pal objects of the present invention are’ to means for using either low: or. high grades of motor fuel more efficiently and-so re- duce the quantity-of fuel used. 30° The present applicatiqn is a continuation “ In.part of my. apricetine Serial No. 464,- 985, filed April 27, 1 neh, +: In the accompanying dMawings: - ~—.. Fig. 1 is a side view of an automobile hav- 35 an engine embedying _ ‘tion and showing the comparative sizes of engines. employed when ‘using high and low See — compressions; and - ig. 2 js'a loneitndinal sectional vtew of M IDGLEY, Jr., . pressure is very high, engine parts may be , Ohio, have invented. certain compressions of: the engines so that these. ‘overcome these difficulties dnd to provide a, the present inven- THOMAS MIDGLEY, J&., OF DAYTON, OHIO, ASSIGNOR, BY MESNE ASSIGNMENTS, TO . DETROIT, MICHIGAN, A CORPORATION OF | METHOD AND MEANS FOR USING MOTOR FUELS. - Application fila April 15, 1922. Serial No. 553,270. - duced, the engine heats rapid] , the ‘efficien-- 6 cy of the engine is reduced and, if the initial injured. .The highest ure at which a ‘ mixture may be burned in a cylinder. with-) out producing a fuel Knock varies with the 65 different fuels arid, to some extent, with the ~ temperature, position of. spark .plugs’ and’ _compression pressure . _of kerosene is about 50 pounds, of the proper oe of gasoline about 7% pounds and of the better grideg, of gasoline abaut 125. pounds. The latter grade of gasoline is 65 - produced in limited quantities and is not available yniversally to the consumer. The sohnsiiies Varied of fuel, such as kerosene and gasoline,. having critical ‘compression Sgrew'gs below 75 pounds are used general- 70; ly, and in.internal-combustion engines for. | house lighting systems; trucks, tractors, and | automobiles are designed to operate on these _-kinds of. fuel. *’ ; “* Thave found The average critical ind that the critical compression 15 pressure of a fuel of the type mentioned above is increased by incorporating there- withe any one of a large number of com- pounds containing ‘metallic elements, i.. e.,, compounded metallic elements: > way of example, I. may use _consisting by volume of 44. of one p of tetra ethyl lead and 9934 percent Gline having a normal “-critical comp -pressure ” of about 75 pounds. , tet ethyl lead dissolves in the gasoline forming a fuel having a “ critical: compression’ pres- sure” of shout 160 nonnds. The presence ie 9 e % , other conditions: within the engjne. This ‘pressure I term the “critical Zompression . pressure” of the fuel. . CO - ea a) Fided April 15.. 1922 (74, VILLISIAIEESSD YE EY ) 4 4 4 , 4 earmaw, a . fOr re * Y CAad ‘ \) “¥ WAS hodiehabhthdittiteha S ‘ N : \ ’ Drreacecer , > - UNITED STATES PATENT OFFICE. THOMAS "MIDGLEY, GENERAL MOTORS CORPORATION, OF / DELAWARE. . | | To all whom it may concern: Be it known that L, Tuomas Minctey, Jr., residi ands ’ new and usefyil»Improvements in Methods _ and Means for’Using Motor Fuels, of which -the following is a fall, clear, and exact de- scription. - © ° at Dayton, county of Montgomery, - in the, operation of internal-combustion en- gines and to the art ef burning the fuels in an_engine. The present tendency is.to pro- duce lower = gasoline in order to obtain a suffici demand for motor fuels and to reduce the com ions ofthe engines’so that these lower grades of fuel maybe used without 20 knocking. As the lowering of engine com- a still greater output of fuel is required to = meet the increase in fuel required to operate larger and: less efficient engines. The princi- 25 pal objects of the present invention are to p overcome these difficulties and to provide a _means for using either low or,high grades of motor fifel more efficiently and so re- duce the quantity. of fuel used. -° -_ The present application is a continuation in part of my 985, filed April -In the acgo ‘xo 1921. , anying drawings: ing an engine embodying the present inven- tion and water the comparative sizes of engines employed whén using high-and low engine compressions; and : ig. 2 is a longitudinal sectiona] view of ) an engine cylinder and shows the oe. tive sizes of combustion chambers employed when using fuels having high and low criti- cal compression pressures. _-Kerosene, gasoline and the heavier hrydro- carbons have the characteristi@ that, when a combustible gaseous mixture containing one of these fuels and ait is burned in an inter- ‘nal-combuistion engine.while subjected to a "we relatively high eons, a fuel knock is pro- ag ; ; “é . Application filea April 15, 1922, Seriah No. 553,270. a citizen of the United States of. America,’ ate-of Ohio, have invented certain’ is invention relates to fuels, such, for example as kerocefie and gasoline, employed ent output ‘for the increasing - ; pression reduces the éfficiency of the engine, - . gwith? aon Serial No 464,--compounded metallic elements. ‘ J, Fig. 1 is a side view of an automobile hav- . JR., OF DAYTON, OHIO, ASSIGNOR, BY MESNE ASSIGNMENTS, TO DETRO}T, MICHIGAN, A CORPORATION OF. METHOD AND MEANS FOR USING MOTOR FUELS. G ‘duced,-the engine heats rapid] cy of the engine is reduced and, if the initial pressure is very high, engme parts may injured. The highest ssure at which a mixture may be burned in a cylinder with- out -producing a fuel knock varies with the different fuels and, to someextent, with the temperature, position of spark plugs -and other conditions within the engine. . pressure I term the “critical pressure” of. the. fuel. - ; The average critical compression pressure of kerosene is about 50 pounds, of the proper grades of gasoline about 75 pounds and of ,, the efficien-, is -eompression - 55 the better grades of gasoline about 125 pounds.. The-Jatter grade of. gasoline is preduced. in ‘liffited quantities and is not available ugjversally tothe consumer. The commoner ees of fuel, such as kerosene a ressures below 75 pountls are used general- , and in internal-combustion éngines for house lighting syste1 automobileS ‘are desi kinds of fuel. : ace I have ?aund that the critical compression ure of a fuel of the type ‘mentioned e is inpreased b r“g@pe of a large number: of com- pounds containing metallic ‘elements, i. e., el ta,operate on these ~ By way of example, I may use a fuel consisting by volume of 4 of one percent of tetra ethyl lead and 9934 percent of gas- vline having a nornmal “ critical compression pressure” of about 75 pounds. e. tetra ethyl lead dissolves in ‘the gasoline forming having a “critical compression pres- a fud) sure” of about 160 pounds. elhe presence » of the lead compound, changes the yasol'ne ‘from-a low compression fuel to a highet compression fuel, i. ¢., increases its “critical mpression pressure.” This gasdline-may be used in an, engine having a compression ressure of about 160 pounds, with a smaller fuel consumption for obtaining a given amount of work than is required to operate an engine’ nating | a compression pressure’of 75 pounds on the untreated gas- a incorporating there- gasoline, having critical compression , 70 , trucks, tractors, ands 76 eee a, 3 o .,oline. Experiments with automobiles have shown that if the engine compression is in- creased to 160 pounds, a treated fuel being — used. to run the engine and the gear ratio “6 hetween the engine ani the rear axle is re- duced, the mileage obtained from a gallon . of gasoline is substantially twice that ob- tained when running the enginé at 75 pounds compression on the untreated or low com- 10 pression fuel. . peas Milo ‘In the drawings, 10 is a1. automobile hav- ing wheels-11, axles 12; springs 13, and an , engine 14 whose compression pressure is about 160 pounds. This engine. may be '\S_operated on the mixture of gasoline and tetra ethyl lead just*described. At 15 is shown diagrammatically the comparative size of an engine operating on an engine compression of about 75 pounds anc capable of deliv- 20. ering the same horse power as engine 14. It is apparent that b? employing engine 1+ in- é#tead of engine 15, the size and weight of ‘the wheels, axles and other parts of the_ atapmecbile may be materially lightened, and 28 that by lightening the weight of the machine - as a whole a still sinaller engine may be em- + ) ; «ina hydrocarbon fuel has been found the ployed to propel the vehicle. Fig. 2 illustrates n thethod of* changing the compression of,an engine to obtain these 30 results, In this figure, 16 is an engine cylin- der and 17 the engine piston in its top dead ' eénter position in‘which the gaseous miix-. ture is compressed to about-160 pounds. The dotted line 18 indicates the top dead center 5 position of a piston which compressés Se mM gases to about 75 pounds. A change f ‘a low compression engine to a high com- + pression engine may be made by substitut- ing a piston whose length from the wrist ‘0 pin 19 to the fop of the piston is greater than in pistons. incommon use. This change in the pistons increases the horse power of the engine. Experience. has shown that operation of an engine of the type 4m - ‘S trated in solid lines in’ Fig. 2, on,a low - compression fuel such as common gasoline, ' gives excessive heating, violent knocking, “and under continue piston. | 0 .For some commercial, purp wes it: will probably be sufficient to! use but one part _ cof tetra ethyl lead jn 2000 parts of gasoline. . Th used in a truck motor. is mixture may __- to avoid the knock generally produced: when 5§ climbing hills at low speed with opén throt- tle Daletively: omall nronartional ananti operation cracks the. 1,573,846 pression. pressure. The fuels used inctude | gasoline and other hydrocarbon fuels con- ‘taining hydrocarbons which may be obtained from an asphalt, naphthene’ crude or miMtures thereof. Other lead- compounds which have been used successfully are the phenyl compounds and other alkyl sompouniie ethyl lead. These include the ethyl, iso- propyl and methyl compounds. Methods of manufacturing -lead ‘compounds are de- scribed on page 133 et. seq., vol. 111 of paraffine base. - 70 besides the tetra | Watts’ Dictionary of Chemistry fis revised.. : by Morley and Muir and published by Leng-. mans, Green and Co., London, England. ~ Other metallic compounds may be used to suppress a knock in a motor. These include compounds of* selenium, tellurium, . tin, arsenic and antimony. The phenyl and alkyl -compounds of these metals have been suc- cessfully used where the stable compounds are obtainable. The alkyl metal compounds usually have a greater knock suppressing value than the corresponding: phenyl com- pounds. Dissolving a knoek suppressing substance most satisfactory method of changing the critical compression, pressure: of the fuel, ‘and for this reason the organic componnds have been employed to a greater gxgent than other com cmadle ‘ however, organic compounds nor ‘to the oil: soluble compounds, ; : capa The value of. metallic compounds in changing the critical compyession pressure _depends upon the metal used, the composi- tion of the compound, its stability and vola- _ tihty. Up to ‘the point of complete yapor- ization the anti-knock value depends in part “on the percentage.of the compound vapor- ized under engine condtions. Where the nature of the compound changes before igni- tion of the fuel, combustion of the fuel takes place in the presence of the.hew compound and the anti-knock value depends .on the nature of the new compound instead compound added to the fui. ; If a radical is attached to the metal in the com} in such a manner that the result- ing compound is oil soluble and volatile, a thigh anti-knock value for that metal is o tained. As the compound departs from . these conditions either in the kind of radi- eslemniloved or the rnunher of radicale of a of the 80 85 *05 in supp _ knocksy do not limit my invention-to 100 105 110 113 120 5 The value ment as.a knock suppresser ‘appears also to. he a perioth function of the atomic number. 10° % metallic elements may be emplo Ce a a ; G od ° ‘ less soluble in’the fuel than the tetra ethyl lead. ‘The tri-ethyl lead hydroxide is almost as powergul a knock suppresser as the tetra | ethyl lead. . 9 ie of a compounded metallic ele- and, in general, with ‘similar elements in- creases with increasing atomic, weight. —'To illustrate this function, I take the ethyl coni- _ pounds of the metals in the right hand column of the 4th, 5th, and 6th groups, wherever stable ethyl compounds are obtain- able, “As the ethyl compound of antimony is unstabie in the air at room temperature, employ the phenyi compound of antimony. These compounds increase in knock sup- pressing, value in group 4 in the order tin, ‘lead; in group 5 in‘the order arsenic, anti- mony; and in group 6 in‘the order selenium, tellurium. -Taking group 4 as an example, 1‘% by volume of the ethyl compounds of the metals in gasoline or kerosene gite the fol- ‘lowing increases in critieal compression pressure tin, 15 poundsg:lead at the rate of 240 —— when employed in relatively small quantities. . é 2While I have mentioned more particularly the use of phenyl and alkyl compounds ‘of certain metals’ for increasing the critical compression pressure of kerosene and gaso- , line, my invention‘is not limited wholly to the use of these compounds, nor to com- wunds of these metals, and the compounded ; with the heavier hydrocarbon or other fuels. \urther, while the specific exaniples here- iven constitute preferred forms of em- “bodiment of the invention, it is to-be under- . stood that other forms‘might be edopted, without departing from the scope of the claims which follow. What I claim is as follows: "1. A fuel for internal combustion engines | ‘@mprising a low-compression motor fuel, - and a volatile compound of a metal adapted to increase the critical compression pressure of the motor fuel. : | 2. A fuel for internal.combustion engines comprising a low. compression motor fuel, and an oil soluble volatile compound of a meal adapted to increase the critical com. pression pressure of the motor fuel. _ 8. A fuel for integnal combustion engines ‘comprising a low compression motor fuel, and a relatively small. gmount of compound ‘consisting of a metal bound to a hydrocar- bon radical... jvapay's* ' ; . is rt ae oo as 4 4,573,846 - ¢ n > Hangrys a 8. and a relatively small amount of oil soluble compound consisting of,a metal bound to a hydrocarbon radical. , 6. A fuel for internal combustion engines comprising a low compression motor fuel, ‘and a relatively emall amount of a volatile and oil. soluble compound: consisting of a, metal bound to a hydrocarbon radical. | 7. A‘fuel for internal combustion éngines ~ comprising a hydrocarbon motor fue! con- -75 taining a relatively small proportion of an alkyl compound of a metal containing more than two alkyl groups. — .8. A fuel. for internal gqmbustion engines comprising a hydrocarbon motor. fuel con- taining a relatively small propastion of an oil soluble compound of a metal containing more than two alkyl groups. “9. A fuelfor internal combustion efhgines’ — comprising a hydrocarben motor fuel con- taining a relatively small proportion of a volatile compound of a metal .cohtaining mye than two alkyl groups. _ . 0. A fuel for internal combustion engines comprising a hydrocarbon motor fuel con- inining.a relatively small proportion of # volatile and oil soluble compound of.a.metal containing more than two alkyl groups. 11. A frel for internal combustion engines comprising a hydeorarbon -motor-fuel con- taining 2 relatively small proportion of an. alkyl compound of a metal containing more than three alkyl groups. ° ae: 12. A fuel for.internstpobhgstion engines comprising a hydrocarbon motor fuel con- taining a relatively small proportion of an cil soluble compound of a metal containing more thian three alkyl groups. 13. A fuel for internal combustion engines comprising a hydrocarbon ,motor fuel con- taining a relatively small proportion of a volatile compound of .a metal containing 70° 80 a 95 105 ‘more than three alkyl groups. } + 14. A fuel for internal combustion engines “comprising a hydrocarbon motor fuel con- 110 taining « relatively small.proportion of a — volatile and oil soluble compound of a metal -containing more than three alkyl groups. — 15. A fuel for internal combustion engines comprising kerosene or gasoline ; and a vola> tile alkyl compound. of-a metallic element homogeneously incorporated therein. 46. A fuel for internal combustion engines comprising a low cofmpression motor fuel ~ and a volatile ethyl compound cf a metallic sd e'ement homogeneously inco therein — and adapted to ke vapor haternal- conibustion engine before gombustion\of the ~ P, . } . 115 * peLween the engine and the rear axie 1s re- _luced, the mileages6ptained from a gallon of gasoline is substantially twice that ob- tained when running the engine.at 75 pounds “compression on the untreated or low com- 9 pression fuel. - Sai In the drawings, 10 is an automobile hiav- ing wheels J1, axles 12, springs 13, and an engine 14 whose compression pressure is about 160 pounds. This engine may be ‘operated on the mixture of gasoline and tetra ethyl lead just described. At 15 is shown diagrammatically the comparative size of an engine operating on an engine compression of about 75 pounds ané:capable of deliv-' ' ering the same horse power as engine 14: It is apparent that by employing engine 14 in- stead of engine 15, the’ size and weight of the wheels, axles arid other parts of the: _sttitomobile may be materially jightened, and ' that by lightening the weight of the machine as a whole a‘still sinaller engine may be em- ployed to propel the vehicle’ » =) | ig. 2 illustrates a method of changing the compression of an engine to obtain these results, In this figure; 16 is an engine cylin- der and 17 the engine piston in its top dead | center position in which the gaseous mix- ture is compressed to about 160 pounds. The “dotted line 18 indicates the top. dead center position, of, a piston which compresses the gases to about 75 pounds. A change from a low compression engine to a high com- pression engine nay be madé by substitut- ing a piston whose length “from the, wrist pin 19 to the top of tha piston is greuter than in pistons’in common use. This change in the pistons increases the horse power of the engine. Experience has shown that operation of an engine of the tyve’i!lus- trated in solid lines in Fig. 2, on'a Jow compression fuel such. as cémmgn gasoline, gives excessive heating, violent knocking, and under continued gperation cracks’ the 5 a .. ‘Kor some commercial purposes it wi probably be. suffieient “to! ise but one = of tetra ethyl lead in 2000 parts of gasoline. This mixture mayybe used in a truck motor to avoid the knock generally produced when: climbing hills at low speed with open throt- tle. Eelstively small proportional qnapti- ‘ties: of the lead compouy@ are required to in- ‘rease, the eritical compression pressure of “aviation” gasoline from 125 pounds to 160 pounds or more. | . The fuel mixture or combination may also ve varied by using other fuels as the fisel base or major constituent of the high com- pression fuel and using other compounded: metallic elements to increase critical com- * & . o 2. crude or mixtures thereof. - Other léad -componnds which have been used successfully are.the phenyl compounds and other alkyl coniponnila besides the tetra ethyl lead, ese include the ethyl, iso- propyl and methyl compounds.’ Method« of manufacturing :lead compounds: are de- scribed on page 133 et. seq., vol. 111 of Watts’ Dictionary of Chemistry as revised by: Morley and Muir and published by Leng- mans, Green and Co., London, England. —° 50 _ Other metallic compounds may be-used to suppress a knock in a motor. Thesa include compounds of. selenium, tellurium, tin, arsenic and antiniony. ‘Che phenyl and alkyl compounds of these metals have been suc- cessfully used where the stable-compounds are obtainable... The alkyl metal compounds usually, have a greater knock suppressing value than the corresponding phenyl com-— pounds, oe _ Dissoiving-a knock suppressing substance -in a hydrocarbon. fuel has been found ‘the most, satisfactory method of changing the critical compression: pressure~ of the fuel,’ and for this reason the organic compounds have been employed to a greater extent than other compounds ‘in, suppressing knocks, however; I do not limit my: invention to organic compounds nor tothe wil soluble compounds. 100 Thé. value of metllic compounds in” changing the critical compression pressure depends upon the metal used, the. composi- tion of the compound, its stabilityand vola- tility. Up to the point of complete vapor- ization the anti-knock value depends in port on the percentage of the compound vapor- ized under engine condtions. ‘Where the nature of the compound changes before igni- tion of the fuel; combustion of the fuel takes’ place in the presence of the new. compound and the anti-knock- value @epends on the nature of the new compdpnd instead of the ‘compound added to the fuel. © If a radical is attached to the metal in. the compound in such a manner that the result- ing compound is oil soluble and volatile, a 105. 115 high anti-knock value for thgt metal is ob- -— tained. As the. compound departs from these conditions either inthe kind of radi- ‘cal employed or the number of radicals of a certain, kind in the compound, the anti- 120 , kneck value will generally be reduced. Ex-* ‘amples of compounds in which* the anti- knock value, as. besed on these conditions, -becomes nevligible are lead oleate and lead acetate. If, in the,formula for tetra-cthyl ethyl lead hydroxide) is less volatile and 125 lead, an OH radical is substituted for an: ethyl radical, the resulting compound (tri-’ 130 95 . 110 ee ee a be a period ‘function of the-atomie number and oil soluble compound consisting of -a and, in general, with simile metal bound to a hydrocasbon radical. creases With increasing atomic fteight. To, 7. A fuel for internal combustion engines - 0 illiatraté this function, I take the ethyl comXomprising a hydrocarbon motor fuel con- 75 pounds of the metals in~the right hand taining a. relatively small proportion of an - column of the 4th, Sth, and 6th groups, alkyl compound of a metal containing more . whereverptable ethyl compounds are obtain- than two alkyl groups. - > able. As the ethyl compound of antimon 8. A fuel for internal combustion engines 5 is unstable in the air-at room temperature, I comprising a hydrocarbon motor fuel con- 89 employ the phenyl compound of antimony. taining a relatively small proportion of an '-These compounds increase in knodk sup- oil soluble compotind of a metal containing wessing Value in group 4 in the order tin, more than two alkyl groups. SI te g in group 5 in the order arsenite; anti- 9. A fuel for internal combustion engines 0 mony; and ingroup 6 in the order'yélenium,. comprising a hydroearbon motor fuel con- %5 tellurium. Taking group 4 as an example, ‘tfining a relatively small proportion of a 1‘% by volume of tlie ethyl compounds of the. “@latile: compoynd of a metal containing . metals in gasoline or kerosene give the fol-. nfore than two alkyl groups.: - 2° ‘lowing increases in’ critical compression ./ 10.°A:fuel for internal gombustion engines pressure : tin, 15 pounds: lead at the rate.of. comprising a liydrocarbon motor _fuel_con-.9 ———. 340 pounds when employed +n relatively\; tai ing a relatively -small-proportion of a - small quantities. _ _.. porceu "\ ee wate and oil soluble compound of a metal pa tf elements in- —~—~AVhile [have mentioned more icularly. ‘containing more tlian two alkyl groups. the use of phenyl and alkyl compounds of 11. A fuel for internal combustion engines certain metals for. ineréasing the critical comprising a hydrocarbon motor fuel eon- “compression ‘pressure of’ kerosene and gaso- taining a relatively small proportion of an line, my: invention is not limited wholly to . aixyl cqiipound of a metal céntaining more the use of these compounds; ‘nor to com- than thre@alky! groups. Od pounds of these metals, and the compounded 12. A fuel for internal combustion engines _- metallic elements may be employed-with the comprising a hydrocarbon motor fuel con- 1% heavier hydrocarbon or other fnels..- “© =* staining a relatively. sma proportion of an. _, “urther, while the specific examples here- cil soluble compound of a metal containing in given constitute preferred forms of em- more than three alkyl groups. ©. bodiment of the invention, it is to be under- 13. A fuel for internal combustion engines _ stood that -otwer forms:might be adopted, coinprising a hydrocarbon motor fuel con-: 1% withont: departing from tkedscope of the: taining a relatively small proportion®of a~ claims which follow. . - volatile compound of a metal containing» | What I claim is as follows: _ ~. more than three alkyl groups. ~ | 1. A fuel for internal combustion engines 4. A fuel for internal combustion engines comprising. alow compression motor fael, «comprising a’ hydrocarbon motor fuel eon: and a volatile compound of 9 métal adapted taining a relatively small proportion of ‘s to increase the critical comprersion.pressure volatile and oil soluble-compound of a metal =~ of the motor fuel. D tat he containing more than three alkyl groups. : 2. A fuel for internal combustion engines 15. A fuel for internal combustion 2xgines comprising a low. compression motor fuel, comprising kerosene or gasoline; and a yola- and an oil soluble volatile compound of a tile alkyl compound: of a metallic éiymem metal adapted to increase the-critical com- homogeneously incorporated therein. r pression pressure of the motor fuel. - 16. A fuel for internal combustion engines . 8. A fuel for.internal combustion engines comprising:a low compression motor fucl; comprising a low compression motor fuel, and a volatile ethyl compound of 2 =:tallic- anda relatively small amount of compound e'ement homogeneously incorporated therein consisting of a metal bound to a hydrocar- and adapted to ke vaporized in an internal- bon radical. ; ‘combustion engine before combustion of the . 4. A fuel for internal combustiop engines fuel therein. — . : 3 comprising a low compression motor fuel, 17. A fifel for internat combustion engine and a relatively small amount of a volatile comprising a low compression. motor fuel} compound consisting of a metal bound,to a and an alkyl compound of a metal in the hydrocarbon radical. =» right hand column of a group between the _ 5. A fuel for internal combustion engines third. and seventh groups of Mendeleef’s -_ comprising:a low compression motor ‘ fuel,‘ table. ~* = 05 _ ~~ a 110 or 11s al 120 we Cc . i~ e . . Y . 78 pre, : . . G 4 | Se Ceres ‘ / oy oa 18. A fuel-for internal combustion engines emoriding kerosene or gasoline; and an . cofiprising a low compression motor’ fyel ; ethyl compound of lead. ~ Me Saree and a volatile lead compound homogeneously 9], A fuel for internal combustion e ines incorporated therein. et com ising gasoline; and tetraethy] nod 5 19.,A fuel for internal combustion engines Win tepineny whereof I hereto affix my sig- comprising a low compression motor fuel; nature. eo - _and an. compound of. lead. ° —— #56 f Aflie Eterna! combustion engines i & : o eat ? ‘s ‘ x Ona, : 647.4. ’ ee > E 4 ; Re, jo a oe Le ‘ Certificate of Correction. ’ It is hereby certified that in Letters Patent No 1,073.46, granted F, wary 23, g the Bg pee specificatiggi reqtiiring correction as follows: Page_1, line 62, for the “ proper ” read ‘poorer; and that the said letters Patent should be read with © - this correction therein that the’sume may’ conform to the record of. the case in the Patent Office. : , me 3 a / Signed and sealed this 22d day of June, A. D. 1926, ee a [sean] > : : 7 . , _ M. J. MOOP¥. Acting Cotnmissioner of Patents. * No Drawing. 10 eee ET ee Patented: July 20, 1926. -- UNITED STATES 3) ‘3 ess : 1 WA T OFFICE. [fols. 5-6] PATE! THOMAS MIDGLEY, JR., OF DAYTON, O10, ASSIGNOR, BY MESNE-ASSIGNMENTS, TO . = MOTORS COHPORATION, DEDAWARE - | ; . a This invention relates is-kerosene and gasoline, to increase the crifieal com- ression pressure of the fuel and avoid a . fuel knock in an internal-combustion engine Operating at compressions above the normal critical compression pressure of the -fuel. The principal object of the invention is to form with the fuel and a hydrocarbon com- pound of lead, a combination which burns in the engine aad yields a lead compound having a relatively low oc | action as contrasted particularly with lead oxide. Fuél knock is a function of the fuel em- ‘ployed and the compression pressure used as contrasted with a mechanical knock, and the term “antiknock substance” as emplo ed hereii designates a compound which, when. present in the combustion chamber in: rela- tively smal] quantities at the time of com- _ bustion, inhibits the fuel knock. This’ combination may be Pea ee ploying with a tetra ethyl, tetra phenyl, tetra methyl, tetra amyl, or other similar compound of lead in the fuel, a chlorine al compound such, for example, as carbon tetra chloride or an alkyl chloride such as amyl. chloride, hexyl chloride or ethyl chloride, which supplies chlorine whic with the lead during combustion’to form a lead-chloride compound. The co FUEL. | to the usé‘of lead alkyl and afyl compounds in hegdtocnibee: . motor fuels such, for example, as: combines : the triglkyl monoh are OF DETROIT, MICHIGAN, A CORPORATICN GF a”, Application filed “May 19, 1923. Serihl No. 640,976. am aryl compounds with lead and.a halogen’ lead triethyl chloride, lead triethy! bromide _ and the‘corresponding alkyl and “iryl com- © pounds with lead and a halogen such as_ chlorine, iodine, or bromine. Methods of manufacturing lead com- ~ unds are. described’ on. page 133 et. seq., . fol. IIL of Watts’ Dictionary of, Chemistry as revised by Morley gnd Min and pub- ee by Longmans, Guan and Ce:, London, 68 ngland. . ety ‘In these fuels, the lead and. the hydro- carbon. combined therewith, form the base of the anti-knock substance which suppresses a fuel knock in a mixture formed in part by 70 a low compression fuel such as gasoline or kerosene and the complete compound or mix- ~ ture is foriiied abqut this-base.. The term chemical is ¢mployed ut the claims to desig- , nate an element or combination of elements 75 present either in chemical-combination with - the lead or in a materigl not in chemical combination with the iead, the chemical be- ing adapted.to form. with the lead a substan- tially nen-fluxing compound during com- 80 bustion of the fuel.’ Jt has been’ found that © these substances form practically nonfluxing compounds when burned. ; The alkyl a pounds of lead and perally less sajable in kerosene and a . line than the tetra alkyl compornds. iodide and bromide compounds may be em Pienza and an alcohol miscible in all pro- ployed in place of the vention in forming this class of combina- tion is to use a mixture (by weight) of 2 weg of carbon tetra chloride and of ead tetra ethyl dr lead tetra - yl, etc. This mixture is added to the fuel in the tank of a storage " tank of a car and fed with the fuel into the chamber ‘of an engine a1 burned therein. One of the ee of combustion ‘is a lead halide such as, m the specific example given above, psd chloride. Another method l of carrying out ee ee oe = ee Se BL eS ee ee combustion . P : > le att wh ll arm es = oride compounds.~‘} A preferred method ‘of carrying out m -im- tures thereof, may be employéd to assistin-90 he ‘fuel, is generally : ing station or the fuel gasc ; and: my in- rtions with paraffin hydrocarbons, or mix- blending, these anti-knock compounds with the fuel. The pens of these biendi agents employed with the small amount o anti-knock compound to be added to the: fiatkyl mono [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385002_1719%3A1. Public record. Not legal advice.