Waterbury evening Democrat., 1906-12-12
AFTER THE TRUSTS
The Watch Makers COmbina-
 ton Will Be Busted"

Washington, D. O., Dec 12.-An- other trust is to be sbusted" if Rep resentative Henry E. Rainey of the twentieth district of Illinois, can have his way. The special object of MT Rainey's desire is the so-called watch trust and the Illinois member has burned the midnight oil in his investigations of alleged violations of the law by the trust. On his own statement he seems to have made a case, too, as he has induced the de- pertinent of justice to give him a hearing on the subject matter of his investigations.
 Representative Rainey, who is democrat, has been pursuing the American watch companies for year or two. At the last session of con- gress he delivered an interesting, not to say, sensational. speech on the methods Of the watch trust, in which he stated that American-made watch es were being sold in Europe at prices ranging from 35 to 50 per cent less than they were sold for in this country. In this connection he instanced jeweler in New York who purchased American watches from European dealers, reimported them and sold them at price less than his competitors who made their purchases directly from the home companies could afford to make. In- quiry developed the fact that the New York jeweler had had trouble with some of the American watch companies, especially the Waltham and Elgin people concerning the prices at which he offered their goods for sale. The companies have en- deayored to prevent him from obtain l ing any of their watches, but thus far he has been able to supply all de- mands.
 Mir Rainey declares he has proofs that the companies have violated the Sherman antitrust law in that they have entered into contracts with Eu- ropean dealers to supply them with watches at price far below that at which the same watches can be ob- tained in this country, the dealers binding themselves to prevent the importation of the watches into this country. Indeed, the European deal- CTS are not permitted to sell the watches to American citizens. MT Rainey maintains that these con- tracts are clear violation of the Sherman law which prohibits any re- striction of trade between this coun- try and any other country. and are a violation, too. of other sections of the law which relate to operations in re- straint of trade.
 In discussing the subject with ofii- cials of the department of justice. Mir Rainey said that the New York deal- CT was continuing his fight against the trust despite the odds against him. He obtained the watches in Europe and. as they are of Ameri- can manufacture, he was able to im- port them into this country duty free. To prevent the dealers from Importing the watches, the American dials. a short time ago, were removed from the watches after they reached Europe and Swiss dials were substi- tuted. When the New Yorker im- ported lot of watches representa- lives of the watch trust made the point that they were subject to the duty of 50 per cent as they were not wholly of American manufacture Mir Rainev says the scheme was exposed and did not work.
 The Illinois member expects in a few days to take up the whole ub- feet with Assistant Attorney General Purdy, who has devoted much time to the preparation of prosecutions of trust cases for the government. He is convinced that suit for violation of the sherman law will lie against the American companies and he pro- poses to press the matter vigorously.