acquired this control by the exchange of one share each
of the Machine company for the common stock of the
Window Glass Company. The latter leases on a royalty
basis the patent rights owned by the Machine Company.
The original company was incorporated under the laws of
Pennsylvania in August, 1899, and was formed by the
acquisition of 20 companies, which at that time produced
5% of the window glass manufactured in the United States.
The American Window Glass Machine Company was
incorporated under the laws of New Jersey in 1903. It
owns practically all of the stock of the American Window
Glass Company, which is the largest manufacturer of
window glass in the United States. Its capitalization
consists of $6,998,993 cumulative 79, preferred stock and
$12,997,993 common stock. There are no bonds or other
funded debt. The company owns the exclusive rights in
the United States to patents on machines for the manu-
facture of window glass, which rights are leased on a
royalty basis to the American Window Glass Company.
With the use of these machines window glass can be made
more cheaply than by any other process. Through its
subsidiary, the company is operating manufacturing plants
in seven cities of Pennsylvania and Indiana. The Machine
Company is paying 129%, dividends on the common stock
and 7% on the preferred. The company has been uni-
formly successful in defending its ownership of patents,
there having been much litigation against concerns for using
the machines without license. Courts have decided that
such companies are liable for every foot of glass made,
:ogether with future royalties for the use of the machines.
The American Window Glass Company blew glass by
hand until 19038, when machines were adopted and installed
for the mechanical drawing of window glass cylinders
entirely abandoning the hand-blowing method. This
improvement reduced the number of 41 hand-blowing plants
to 6 machine-blowing plants. These are located at New
Kensington, Jeannette, Belle Vernon, Monongahela City
