40
41
stag adopted the Patent Law, which took effect on July 1. It provid-
ed for establishing a Patent Offi ce and introduced the require-
ment of publication, compulsory implementation, and an entitle-
ment to be granted a patent. From now on, patents would have a
term of 15 years and were no longer granted to the inventor, but
to the applicant.
28
Thus industry and industrial associations
had won out – the great age of individual inventors was past. The
sharp increase in patent applications over the next few years
shows that the new law encouraged Germany’s economic develop-
ment. On July 1, 1877, the President of the new Kaiserliche Paten-
tamt (Imperial Patent Offi ce) appointed Werner von Siemens a
non-permanent member of the authority. The position was asso-
ciated with an appointment as “Geheimrat” (Privy Councilor).
Certificate appointing Werner von Siemens a member
of the Kaiserliche Patentamt, July 1, 1877
July 1, 1877
Today’s German Patent and Trade Mark Offi ce begins its ex-
istence as the Kaiserliche Patentamt. Founded in Berlin, the authority has
been located in Munich since .
42
43
Telegraph lines to India and America
As early as 1856, Werner von Siemens had formed the intention to
extend the Russian telegraph lines across the Caucasus to India.
29
It would take years before the project took actual shape. In the
meantime, the Siemens brothers did indeed turn their attention
to the Caucasus, where the company got contracts to build local
telegraph lines. Werner and Carl established a branch offi ce in the
Georgian capital of Tbilisi, and in 1860 placed it under the man-
agement of their 27-year-old brother Walter. Four years later, on
his recommendation, the brothers invested a rather large amount
of capital in the Caucasus by acquiring a copper mine in Kedabeg
as a “private business”. But expectations that the mine would
prove a profi table investment were long in reaching fulfi llment.
Yet even though Kedabeg caused substantial losses, Werner saw it
as another family company that he wanted to keep fi rmly in hand
as “an indestructible item of family property”.
30
A few years later,
Walter was followed to Tbilisi by the youngest brother, Otto. Otto
established a rather large oil business in the Caucasus for the
fi rm’s branch there.
The Indo-European telegraph line
In 1865 the Siemens brothers found the opportunity had arrived
to attack the project of a line to India. It would run from London,
across the North Sea to Emden in Germany, then across Prussia,
Poland, Southern Russia and the Caucasus to Tehran.
31
From
there, it could connect with an existing line of Britain’s India
Telegraph Department, which led on to Karachi and further to
Calcutta. The necessary concessions from the governments in Lon-
don, Berlin, St. Petersburg and Tehran were gradually obtained,
in negotiations that were sometimes protracted. Here it proved to
be an advantage that the Siemens brothers and their companies
were established multinationally. William conducted negotiations
in London, Werner in Berlin, Carl in St. Petersburg and Walter in
Tehran. To raise the necessary capital, William and Carl urged
their brother Werner to found a stock corporation in London.
Werner was uncomfortable with the idea. He had a distinct aver-
sion to stock companies. But his brothers won out. In the nego-
tiations to found the Indo-European Telegraph Co. Ltd. in Lon-
don, the young lawyer Georg von Siemens – only son of Werner’s
cousin and former investor, Johann Georg Siemens – proved his
mettle.
32
In the spring of 1868, Siemens & Halske began building the
line under a contract for the Indo-European Telegraph Co. Work
was carried out in three segments from the Prussian-Russian bor-
der to Tehran. Existing lines could be used between London and
the border between Prussia and Russia. Shortly after work began,
Walter Siemens died in a tragic accident in Tbilisi, and Werner
appointed youngest brother Otto as the new head of the branch.
Since the Persian concession had to be renegotiated, he sent Georg
von Siemens, now general counsel for Siemens & Halske, to Teh-
ran. The negotiations took nine months. During that period, en-
gineer Ernst Höltzer pursued further work on the Persian seg-
ment.
33
Even before the Indo-European telegraph line had been com-
pleted, Werner learned that a well-fi nanced
company headed by
Scottish businessman John Pender was laying a submarine cable
1864
Once the Kedabeg copper mine has been acquired, it takes considerable
effort to make the business profi table. The copper business does not begin
showing a profi t until the late s.
1870
Georg von Siemens leaves Siemens & Halske to become one of the
founding directors of Deutsche Bank. He heads the bank for years, and
is raised to the nobility in .
44
45
through the Red Sea to India. In the competitive bidding, Pender’s
British Indian Submarine Telegraph Company won by a hair. When
the Indo-European telegraph line opened on April 12, 1870, it was
able to send a telegram from London to Calcutta, some 11,000 kilo-
meters away, in only 28 minutes. That set a new standard for tele-
graphic traffi c to India. Pender, for his part, began operations in
June 1870 on a continuous submarine cable from London to India.
The Siemens brothers realized that submarine cable technology
had now reached maturity and would dominate the future. The
Indo-European telegraph line had earned them a succès d’estime,
but only a major submarine cable project would put them among
the global players in the sector.
Adventure in the Atlantic
Of all the Siemens brothers, it was Carl most of all who urged
laying an intercontinental submarine cable. He had taken over
the management of Siemens Brothers in London in 1869. After a
good deal of vacillation, the brothers decided to initiate a transat-
lantic project of their own, with the aim of breaking John Pender’s
monopoly – the “Cable King” controlled the three existing trans-
atlantic lines. Because he charged high prices, there was great in-
terest in Europe and the USA in establishing new connections that
would be independent from him. In March 1873, the Siemens broth-
ers founded a special company in London for their new major
project: Direct United States Cable Co. Ltd. The stock of the new
company was placed with the support of Deutsche Bank, where
Georg von Siemens, Werner’s former general counsel, now sat on
the board of directors. Since Siemens Brothers had learned from
its past mistakes, William Siemens commissioned a shipyard to
build a professionally equipped cable ship, which was christened
the Faraday in February 1874.
34
Werner von Siemens stayed in the background during the wea-
risome, risky execution of the transatlantic project.
The cable-lay-
ing was supervised by his brother Carl and the engineer Ludwig
Löffl er. On May 16, 1874, the Faraday sailed off toward the North
American coast to begin laying the cable from there. On July 2, the
Reuters news agency reported that the ship had sunk off Halifax,
Nova Scotia. Fortunately, this soon turned out to be a deliberately
planted false report. The Siemens brothers now knew that in this
project they would have to contend not just with the Atlantic, but
with powerful antagonists.
The project repeatedly faced potential disaster because the cable
broke or was lost. It took three tries before the line could fi nally
Route of the Indo-European
telegraph line, 1870
1869
John Pender founds the British Indian Submarine Telegraph Company –
one of a total of telegraph companies included in the “Cable King’s” empire.
1866
American entrepreneur Cyrus W. Field lays the fi rst permanent
transatlantic cable, between Newfoundland and Ireland, for John Pender’s
Anglo-American Telegraph Company.
London
Emden
Berlin
Warsaw
Odessa
Kerch
Tbilisi
Tehran
Bushere
Karachi
Agra
Calcutta