The Goodland republic. [volume] (Goodland, Kan.) 1891-1907, 1906-03-16
AFIER IRE ELEgAT0R egOPUs
GOVERN8IENT 70 APPLY AMI
TRUST TREATMENT.
Moody Issues statement and says
Indictment Includes An Big
Companies.

Washington, March s.-On adTfces
that a federal suit was filed in san
Francisco yesterday against thirty
one elevator concerns, including the
Otis Elevator company, on the charge
Of violating the antitrust law. Attor-
ney General Moody made the follow
ing statement last night:
The United States attorney for the
Northern district Of California, under
instruction from the attorney general,
fled in the United States circuit court
for the Ninth circuit a bill Of com
plant against the Otis Elevator com
pany and twenty-seven other cOmpa-
MES and three individuals engaged in
the elevator business charging them
with violation Of the Sherman anti
trust law. The companies named as
defendants comprise the principal eIe-
vatOr companies Of the United States,
but the operations specifically COM
planned OF have been carried on main
" in California and the states and
territories west Of the Rocky noun
tafns
ct is charged that these companies
make and sell at least 80 per cent
Of all the elevators used in that terri
tory. and that they have entered into
a combination among themselves to
control and enhance the prices at
which elevators are sOld5 that in or
der TO make the combination effective
the Otis Elevator company has ac-
quired the whole or a majority inter
est in the business Of all the other de-
PENDANTS, although said defendants
are said to be operating as apparent
" separate 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.
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 com
panies to submit bids, apparently in
good faith, but higher than the bid Of
the company which has been desig-
mated to receive the contract; if out
side competition does appear, one Of
these subsidiary companies is direct
ed 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 combination carrying on business
west Of the Rocky mountains, and in
order to drive these companies out Of
business and secure an absolute mon
OpOly the Otis Elevator company has
instituted suits against them for the
alleged infringement of its patents,
which suits are brought solely to haT-
raSs and injure them, and when one
Of these independent companies Sc
cures a contract the Otis Elevator
company notifies the customer that it
has brought suit against the indie
pendent for infringement and if the
customer allows the independent COM
L.
CustOmer) viii thereby become liable
for damages for said infringement
The bill prays that the defendants
be perpetually injOined from carrying
out their illegal combination and from
further agreeing and combining to-
gether to control the trade and COM
merce in elevators and deprive the
people Of the several states in the
United States Of the benefit in rates
and prices derived from free and I'M
restrained competition in said bust
ness
THE facts in this case have been
for many months under investigation
by the department Of justice. They
were originally brought to the atten-
ton Of the department by complaints
made to the president and to the at
torney general"
The United States Of America is
named in the suit as complainant and
the following are named as defend
ants: Otis Elevator company, Elec-
tricaI Engineering company, Fraser
Electric Elevator company, Cahin &
Hall Elevator company, A ]. Nc
NichOlI Elevator company, Crane Ele-
vatOr company, Standard Elevator
and Manufacturing company, Smith
Hill Elevator company, Morse, Will
liams & Co, McAdams & Cartwright
Elevator company, Graves Elevator
company, Plunger Elevator company,
Sprague Elevator company, Blooms
burg Elevator and Machine company,
SulzervOgt Machine company, Cen
trail Iron Works company, Noon Ele-
vator company, Warner Elevator
company, NJ J. ODOnnen & Co,
Gardiner Elevator company, HOugh-
ton Elevator company, Geiger, Fiske
& KOOp, National Electric Elevator
company, Burdette & ROuntree Man
ufacturing company, Moline EleYa-
tor company, Samuel Burger, W. D.
Baldwin, c. G. ComstOck, John Doe,
Richar Doe, Thomas Doe, William
Doe, Henry Doe, George Doe, Charles
Doe, Adam Doe, Hugh Doe and Ed