Outlook for Electricity

Marvelous as the progress has been in electrical invention and the introduction of electrical devices for doing mechanical work, the progress is likely to be accelerated now that an understanding has been reached between the two great rivals in the construction of electrical apparatus, the Westinghouse Company and the General Electric Company. They have not formed a combination or trust, but will continue to be rivals in business. What they have agreed to do is to stop expensive litigation over patents, and exchange licenses under all their patents upon a basis satisfactory to each.

It is said that there are nearly 4,000 patents, some of them fundamental, thus brought into common use. The two companies will, it is said, sell patented articles hereafter with a guarantee protecting purchasers from patent litigation and indemnifying them in case damages should be assessed against them. This guarantee will in itself greatly promote the business of the two companies.

For years the development of storage batteries was hindered by uncertainty as to patent rights. Capitalists were afraid to invest the large sums of money required to establish the business on such a scale as would lead to economical production, and users of electricity were afraid to buy batteries that might involve them in law suits. The consolidation of the storage battery companies bas put an end to this litigation and, already the business has been greatly increased. Storage batteries are now regularly installed in all Edison stations and their use may be expected to grow.

Similarly the agreement between the Westinghouse and General Electric Companies, terminating patent litigation, may be expected to increase the use of electrical apparatus made by these two companies, and with increased use will come a reduction in cost. The great experimental laboratories maintained by these two companies, and by Edison and Tesla, insure improvements and give hope of new discoveries.