Publication: The Elmer Times
Elmer, NJ, United States
GLASS WORKS CLOSED
The Novelty Glass Works of Elmer were closed on Wednesday at the suit of the Cumberland Trust Co., of Bridgeton, trustee for the bond holders. The primary cause of the troubles of the company will be of interest to the public. About three years ago the works were purchased of the Receiver of the Gilchrist Jar Co., and have been operated almost continuously winter and summer since in the manufacture of insulators. A large force has been employed, good wages paid promptly in cash, and it has been one of the best industries Elmer has ever had.
Shortly after the company started with special machines for the manufacture of insulators, the Brookfield Co., of Brooklyn, which had long enjoyed a practical monopoly of the insulator business, entered suit against Novelty Co., charging that the machines used by the latter were an infringement on the Brookfield patents. Since then the litigation between the two companies has been continuous and thousands of dollars have been spent in the courts in the fight which was finally decided against the Novelty Co. The Cumberland Trust Co. as trustee then took immediate steps to make themselves safe and the chances are that the Novelty Co. will be wiped out of existence before the battle is over as it would be out of the question for the company with its present capital and assets to meet the claims against it including the big judgment of the Brookfield's for infringement.
The Novelty plant is a good one and we doubt not will find a purchaser who will operate it when sold. So far as we know there will be no local losses in Elmer as the Novelty Company has always been very prompt pay and stood high in the town.
It is said on good authority that the Novelty Co. believed that their machines did not infringe on the Brookfield patent, but the courts have decided otherwise, and since the decree of the court the Novelty, installed non-infringing machines which they have since operated on a royalty.