The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-03-08
ATTACKS A TRUST.
United states starts suit Against Ele-
vatOr Combine.

washington. March son advices
that a Federal suit has been filed in
san Francisco against thirty-one ele-
vator concerns. including the Otis Ele-
vator company. on the charge of vio-
laung the antitrust law, Attorney
General Moody made the following
Statement:
ssThe United States attorney for the
Northern district of California, under
instructions from the Attorney Cen
eral filed in the United States circuit
court for the Ninth circuit bill Of
complaint against the Otis levator
company and twenty-seven other COM
Nanies and three individuals engaged
in the elevator business t-ehargiRg
them with violation Of the Sherman
antitrust law. The companies named
as defendants comprise the principal
elevator companies of the United
states, but the operations specifically
complained of have been carried on
mainly in California and the states
and territories west Of the Rocky
mountains
ut is charged that these companies
make and sell at least so per cent Of
all the elevators used I'm that terri
tory, and that they have entered into
combination among themselves to
control and enhance the prices at
which elevators are sold; that In or
der to make the combination effec-
tive the Otis Elevator company has
acquired the whole or a majority In
terest in the business of all the other
defendants. although said defendants
are said to be operating 8 apparently
separate and Independent concerns;
Lhat when an inquiry is received from
customer by any of the defendants
1t is Immediately referred to the Otis
Elevator company.
If there is no outside competition
that company designates the concern
which Is to get the business, fixes an
excessive and exhOrbitant price to be
charged and directs the other compan-
les to submit bids. apparently in good
faith, but higher than the bid Of the
company which has been designated
to receive the contract. If outside com
petition does appear, one of these
subsidiary companies IS directed tC
take the contract at a loss IN order f.
freeze out the competitors.
Only Three independent.
"The bill also alleges that there are
only three elevator companies not ir
the combination carrying on bushes,
west of the Rocky mountains. and n
order to drive these comma nies on
OF business and secure an absolut,
monopoly the Otis Elevator comma m
has Instituted suits against them I'm
the alleged Infringement of its nat
ents, which suits are brought solely t.
+Ae-A ass anu liz 0AE LnGII1t and when
OF these independent COMPANIES &c
cures contract the Otis Elevate
company notifies the customer that
mas brought suit against the independ
ent FOR infringement and IL the ems
toner allows the independent com nan
TO carry out the contract he (the Gus
tpner) VIII thereby become liable 70
damages for said infringement.
The bill prays that the defendants h
perpetually enjOined from CARRYING on
their Illegal combination and from f11r
Their agreeing and combining 40getha
TO control the trade and commerce +
elevators and deprive the people of tn
several states in the United Sfafss =
the benefit I'm rates and prices derive
from free and unrestrained comnetifio
in said business.
The facts ia this case have hae1 fr
many months under Investigation h
the department OF justice Thev ve1
originally brought to the attention {
the department by complaints made
the president ard to the attorney ger
eral"
The United States of America
named In the suit as complainant ar
the following are named as defendants
Otis Elevator company, Electrical FL
cheering company, Fraser Electric Ell
vstor company. Cahiu & Hall Elevate
company A. J. AcNfcholl Elevator con
pany. Crane Elevator company. Stani
ard Elevator and Manufacturing con
pany. Eaton & Prince Elevator con
pang. Smith-HiIl Elevator cOmpan
~ niEller AAacui1e company, stokes
Parish Elevator company, Morse. VIII
Jams 8 Co.. McAdams & CartWriRl
Elevator company, Graves Elevate
company, Plunger Elevator compan
Gprague Elevator company. Bloomsbul
elevator and Machine company, Su
Eervogf Machine company, Central Ire
works company, Moon Elevator con
pany. Warner Elevator company. NJ.
O'Donne1 & Co, Gardiner Elevate
company. Houghton Elevator compan
eiger, Fiske & Koop, National Ele