The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-03-08
AFTER THE ELEVATOR TRUST
OTIS COMPANY AND ITS ALLIES
SUED IN CALIFORNIA.
Attorney.General Says 1t Fixes Exorbitant
Prices and Sends In Fake Competitive
Bids How II Gruahes Rivals by
Price Cutting and Patent Suits.

Price Cutting n Patent suits.
WASHINGTON, March Tn regard to
a bill OF complaint filed in la Fran
cisco to-day against the Otis Elevator Com
pany and others Attorney-Genera Moody
has issued the following statement:
"The United States Attorney for the
Northern District Of California has, under
instructions from the Attorney-General.
filed In the United States Circuit Court for
the Ninth Circuit a bill Of complaint against
the Otis Elevator Company and twenty
seven other companies and three individuals
engaged in the elevator business, charg-
ing 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.
1T is charged that these companies make
and sell at least so per cent. of all Of the ele-
vators 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 a majority interest in the BUSH
nesses Of all the other defendants, although
said defendants are still being operated as
apparently separate and independent con-
Germs; that when an inquiry is received from
a customer by any Of the defendants it Is
Immediately referred to the Otis Elevator
Company, and, IL there is no outside COM
tzAla.-- t1.. 1000 xlngtnnn tnc tla nnn-
Germ 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; II
outside competition does appear one of these
subsidiary companies is directed to take
the contract at a loss In order to freeze out
the competitors.
The bill also alleges that there are only
three elevator companies not in the COM
bination carrying on business west OF the
Rocky Mountains, that In order to
drive these companies out OF the business
and secure an absolute monopoly the Otis
Elevator Company has instituted suits
against them for the alleged infringement
OF its patents, which suits are brought
solely to harass and injure them, and
when one of these independent companies
"a VI ttS w " ~
peny notifies the customer that it has
brought suit against the independent COM
pany for infringement, and If the customer
allows the independent company to carry
out the contract he, the, customer, VIII
thereby become liable for damages for said
infringement.
-The bill prays that the defendants be
perpetually enjoined from carrying out
their illegal combination and from further
agreeing and combining together to con-
rnl thA srala md pnTDInnFrA in nlny WI fora
and to deprive the people Of the several
Stat es in the United States of the benefit
in rates and prices derived from free INK
unrestrained competition in said business.
THE facts in this case have been for many
months under investigation by the Depart
ment OF Justice. They were originally
brought to the attention Of the Department
by complaints made to the President and
to the At~torney-General,'
The companies named as defendants in
the Government bill Of complaint are as
follows;
Otis Elevator Company, Electrical Engi-
neering Company, Fraser Electric Elevator
Company, Cahill 4 Hall Elevator Company,
A. j. MoNicholl Elevator Company, Crane
Elevator Company, Standard Elevator and
Manufacturing Company, Eaton & Prince
Elevator Company, Smith-Hill Elevator
Company, Whittier Machine Company,
Stokes & Parish Elevator Company, Morse,
Williams q Co, McAdams 4 Cartwright
Elevator company, bIdNeS Elevator lOll-
pany, Plunger Elevator Company, Sprague
Elevator Company, Bloomsbury Elevator
and Machine Company, Sulzer-Vogt Ma
chine Company, Central Iron Works Com
pany, Moon Elevator Company, Warner
Elevator Company, M. J. O'Donnell 4 Co.
Gardner Elevator Company, Houghton
Elevator Company, Geiger, Fiske Il Koop.
National Electric Elevator Company, Bur
dett d Rowntree Manufacturing Com
pany, Moline Elevator Company, Samuel
Burger, W. D. Baldwin, c. G. Comstock,
John Doe, Richard Doe, Thomas Doe,
William Doe, Henry Doe, George Doe,
Charles Doe, Adam Doe, Hugh Doe and
Edward Doe.