VN1TBD

STATES CREDIT SYSTEM 'CO.

INDEMNITY CO.

751

question in the case, it mllY 00 require'd to do, so. The supreme court of the state has already entertained two appeals in this case, and has reversed the judgments given after two successive trials, (26 Pac. Rep. 976, and 29 Pac. 1055;) and the law gives him the rigM to appeal to that court again, and ask for a reversal of the judgment of which he now complains, on the identical grounds upon which he is in this court asking for a writ of habeas corpuB. If the court, on consideration of such appeal, should adhere to the opinion which it has heretofore given, he will then be clearly entitled to a ,writ of error from, the supreme court of the United States. Having that remedy,: it would not be rigM to grant him a writ of habea8 corpus. Ex Bigelow, 113 U. S. 328, 5 Sup. Ct. Rep. 542; In rll Wood, 140 U. S. 278. 11 Sup. Ct. Rep. 738; Fa parte Ulridi., 43 Fed. Rep. 661. The application for the writ is refused.

URlTBD

S'1'ATE8 CREDIT'SYSrE!(

Co. ".

AORIOAN

muNI'lY ,Co.

(OircuU

,P4U11'l!1 I'0Il

Court. N.

D. nlinoCa. Aprll18, tm.)

I1f8l7JLAl(OL "

Letters patent No. 465,485, issued December 22 1891, to Le'fI Haybaum, for -meanl for lecuriug agalnst excessive 101lles by b;I debt., " being a plan of insur.Doe againlt 10llllel fl'Om bad debts based on estimatel of the different percentages OUOIII in different linel of' business, and providinl{ forms for ruling paper, w1th Ipaoe. for enterinlr 1'ariOUI detail. of the iPuranoe tranaaotioD, are void for wallt of iDv8ntioll.

In Equity. Action by the United States Credit Company for infringement of patent, originally brought against one Langsdorf, and, upon intervention, the American Indemnity Company was made defendant. Heard on demurrer to bill. ' ' The amended bill of complaint alleges that the complainant is a New Jersey corporation; that, prior to the date of the patented invention hereinafter referred to, no particular system or means of insuring bUlliness men against loss from bad debts wail known or used; that prior to the 5th day of January,1891, one Levi Maybaum, of Newark,N. J., was the original and first inventor, contriver,and,discovererof.alilew, useful, and practical system Qr method of insuring business men against excessive losses from bad debts, and that he was the discoverer and inventor of a certain new and useful means for carrying said new and useful system or method into practice; that attached to the bill of OQmplaint is a copy of the patent, in which said Levi Maybaum sets forth his claim for & patent, t4e substance of which is as follows: "By & caretul obst'rvatlon of statistiea and of othersourcea ot information. I have ascertained that the average losses due to bad debts vary in different lines ofbu8ines8, and I have compiled tables shOWing what the average;pereentage of losses in all of the principal lines or clasl!es of business are anel have been for a series ot years. I have also ascertained thatin th08ellnes of bllliDes. m which there 11 a large percentage of average los8 there iJ also a

752

(,'

FlllDERAL

vol. 51.

'of average proftt,anjlthat, therefore, on the average, pera,r.eduction of the profits of theh\ business. My invention or art and credits is based upo'n the ascertainment of these facts, aftdiifdt'the purpose of practicing my invention, I ha.\Teprepared or compiled tBbl1'8 ,in:which all kinds ,of business are classifiedj and the average rate or of loss in eacl1 from which can be readily determined of 10ssin"Rlly:given of business would be a loss in excess 'sustaiJ,led, from bad debts in that class, and what, would be an 'amount of a person in thatbtlsinesscannot i!llpairing :the 'average profits normally due In that class;atfd I have invented a sheet" page, or form for entering the details of llutliJ fonD. pi ,which are,\shown in Figs. land 2. respectively. Heretofore it has, of course, been com rpon':forpersons to.. olltain or security for individual doubtful due froQl cei"taill or to require, in the case of any given customer, before dealing 'with him. that purchases by that customer should be Jtuarantied. Such a course cannot, however, be generally adopted,.,8sitwollldinvolve the obtaining of separate guaranties for each individual debt or each individual debtor. It is also not feasible to guaranty persons in business against any loss whatever from bad !,ossliS f):om any and all cUSctor,pers, generally, as such Ii \fi'ode of practicing" the' business of guarantying would induce recklessness on the part in gtving a credit." The statement goes on to give the mode or manner of practicing the art, how toarrtreat, the of loss, and explaining the sheets ofruiedpaper contained therein, which are marked "Sheet No. I" and "Sheet No. 2;" It states, that be' provides sepa.rate tbe4etails .of tM. transaction 'of insurance; for instance, a space for the name of the assurer, another one-{or the name of theassnred, another,for the per cent. or amount beyond which losses aregnai'ahtied against,'et<l; The claim for which he desires to secure letters pntent'is as' foHoWs: ' Claim,' and to secnre by 'letters patent, is (1) the means for securing merchants and others from eX'.cesilive losses by' bad debts. which consist'of aisheet provided with,sepan,te spaces and suitable headings, substanfor ttjepaQle()f thenamt;l.of the assured, the or is given. the class classes .· iLS to ratJlJl{,capltal. ()r In respect to whom saId losses aJ;'e llgilinst, at,'ldthe percentage Of said capitalor the amount which saidlosseil must nqt 'exceed:' (2) The means for securing merchants and others fl'llJm'6xceSllive' losses.bybad debts;: which consist' ota sheet bearing the ,name of ,the assurer, ,and provided with separate spaces and suilable headings, for the niu;oeof tbe. assured, the percentage or 'Yhicll js the class o.r classes of persons, as or in to whom saId losses are guarallt!ed against. (3) The means for securing merchants and .others from exceSSIve 1osses'bY' bad delits, wlli¢h consist of' 8 sheet provided \Vith' separate spaces and suitable'headings, !substantially'll.lldescribed, for the' name of the a:s,&uted,tbe,pe"rc6Iltageora:mount beyond ,which assurance is gi ven, the class ;'Ov,clasae1\:ofJ>ersonlll:asto ratil1g, capital, or otherWise. in respect to whom saip,IOSlleB ,,ave;'guaran4iied'iagainst, in cQnjunction with a register for details to dilsclose.,the 3mul1ntof luss sustained, substaoas,deseribed." ,'"

·

0:

,,'"

UNITED STATES CREI>IT BYST!i1}I CO. V. AMERICAN INDEMNITY CO.

753

The dr&wingsor sheets attached to the patent areas follows:
FIG. 1.

I I

Percentage on Sales

Percentage 011 Rating

Ratings Covered Capital R atlng Credit tl Ra ng

Cousideration

;--

I

Name ot Name ot beyond which which IndiAssurance Is v1dnallndeb's Assured /liveu mustnotexd.

----;.... ii

0 l'l

Conditlolls

Z!(

.'

II:!:====!·I====

;.. 'Of

·m

l'l

,..------11----11----11-----'-T ,---1--11-----\1----

a '"

:l

z

ttJ

1_--·......,--11-----11-----11---\ j

:lii

;

!o ..

"Cb

'"

--11--·· ...--11---? "

--4,1-----:..:.11 ------"-11----11--I·

--11-----11---

FIG. 2.

I ....

al

• .al
  

of Assurer Name A:ssnred

of

·Nlt.me

Name of Company

Cl

"

Percent"",e on ., ' Sales beyond which Assurance is giveu Percenta!!'9 on Ratinl/, which Indlv. indebt's must not ..x'd

:

p

., "" t ..

0

Capital Ra1i\l\g

I"

ll:l

:;;l

=

!!l.

Credit '1tatlng

I.

"

I

i

Conditions

v.51F.no.1l-48

7S:&

.0:) '1',

The bill 'toat th& defendant:!s .sali! J.pa.tent, and asks for an injunction and <laJl1il.itll. The defendant demurred to bill. ,,' .. ,J;y800der Hill, for .'", ".'" .Jo/llf&.M.TIw.Jch,ttr 4J.nd.Daw, Kdlogg ere Sevb'a.nct, for c1e fendant.
BLODGETT, Dis!rtct 'Judge,(C1I'aUy.) I cannot any ground on .hich to sustain this patent. It is void for want of invention. The guarantyinj:tof men's' fi+inncial ability to pay is not an invention of the complainant. Nearly all forms of guarantying or insuring have been in existence for many years, notably fidelity, casualty, fire, lightning, and other forms of insurance, all of which are baseu upon averages obtainedfrom practical It required no inventive .genius to form and plan the insuraoce on this basis. One is not entitled to a patent for a plan or method of business which only req'!!!.ElSgood judgment and foresight. In this case ordinary business judgment would suggest this system of guarantying. Again, the'means fors8curing merchants and others against exet.ssive losses is stated to consist of a sheet of paper containing ruled lines and certain tabulated information or statistics. It is evident' that the 'means for securing the merchant is by virtue of a contract. or whereby the assured guaranties the ml'rchant a sheet of paper with ruled lines for agll.inst loss. The np.w.That statistics and various kinds of informatiqn havea1}vays been tabulilf.ed in a similar mallner is a matter of general knowledge. I do' not intend to decide that a man may not have a patent for a mode of or for a form of tabulating amounts or statistics; but am clearly (>f opinion that this patent cannot be construed 'to cover a business principle such as a law of.averages, which seems to have been the purpose of the specifications in this patent.

After tDe foregoing opinion was delivered. and before any formal ord91 was entered, the complainant dismissed its bill ot complaint.

BENZEL

e.

CALIFORNIA ELECTRICAL

Woma.

(OircuU Coun of .AppeaZ,. Ninth. Cwcuit. July lS. 1892.)

I.

PAftNTII

us.

hnBKTIOKI-COKITBtTOTIOK OJ' CL.uK-ELBOTBIo.LIGJlTIKG:GAI-BU1lll

signee of Jacob P. Tirrell, tbe claim 11 for. "In an electric-lighting gas-burner. a magnet for turning the gas cock by one electrio impulse, combined with a fixed electrode, (J', and a movable electrode, tI, normally in contact, and mechanism con· necting tbe armature witb tbe movable electrode, to brsak the contaot between a' and tI tbe inltant after tbe gas is turned on, and create a spark for i&'nition, substantially as deaoribed.· In tbe drawiuga, G' designated a platinum. . on tbe lIxedarm, and f! a small' bent arm normally in cont&ot With the fixed electrodi. Beld, tbat the word "electrode" i'eneraUy, and especially as used .in tbe patent, means the platinum or oth4ll' metal points oonatitutlni the pow of the J'eeL Rep. 876, amrmed. .

In letters patent No.ll8O,IS00. iSlued July t7 1886, to GeorgeF. Pinkbam. al

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M-