New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-08
ELEVATOR TRUST SUED.
piotdtion of Sherman Lao Charged
by attorney General Moody.
IFrom Tho Tribune Bureau. !

ltron The Tribune Bureau.1
Washington, March 7-Attorney General
Moody made the following statement to-day:
The United States ATTORNEY for the Northern
District of California has, under instructions
from the Attorney General filed in the United
Staten Circuit Court for the Ninth Circuit, at
San Francisco bill of complaint against the
Otis Elevator Company and twenty-seven other
companies and three individuals engaged in the
elevator business. charging them with violation
of the Sherman Antitrust law. The companies
named as defendants comprise the principal eie-
vator 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
1t is charged that these companies make and
sell at least 80 cent of all the elevators USED
in that territory. and that they have entered INTO
a combination among themselves to control and
enhance the prices at which elevators are SOLD;
that In order to make the combination effectiVe
the Otis Elevator Company has acquired the
whole or majority interest in the business or
all the other DEFENDANTS, although sa1d deIehu-
ants are still being operated as apparently sep
arate and independent concerns. that when an
inquiry is received from a customer by any of
the defendants It is Immediately referred to the
Otis Elevator Company, and if there is no out
side competition that company designates the
concern which is TO get the business, fixes an
excessive and exorbitant price to be charged,
and directs the other companies 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 competition does
appear one of these subsidiary companies Is
directed to take the contract at loss, in order
to freeze out the competitors The bill also al
leges that there only three elevator companies
not in the combination carrying business
west Of the Rocky Mountains, and that in order
TO drive these companies out of business and
secure an absolute monopoly the Otis Elevator
Company has instituted suits against them for
the alleged infringments of its patents. which
suits brought solely to harass and injure
Them and when of these independent COM
panies secures contract the Otis Elevator Com
pany notifies the customer that it has brought
suit against the independent company for IN
fringement, and If the customer allows the IN
dependent company TO carry out the contract he
(the cuStorner) Will thereby become liable for
damages for said INFRINGEMENT.
The bill prays that the defendants be perpetu-
ally enjoined from carrying out their Illegal
combination and from further agreeing and COM
bining together to control the trade and COM
merce In elevators and to deprive the people OF
the several states in the United States of the
benefit in rates and prices derived from free and
unrestrained competition in said business.
The facts in this have been for many
months under investigation by the Department
OF Justice. They were originally brought to the
attention of the department by complaints made
to the President and to the Attorney General