Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-03-08
FEDERAL SUIT FILED
ALLEGED ELEVATOR TRUST d.
RECTED BY THE OTIS COMPANY.

On adyices that federal suit has been
filed in San Francisco against thirty-one
elevator concerns, including the Otis EIeya-
tor Company, on the charge of violating
the antitrust law, Attorney General Moody
has made 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 bill of complaint against
the Otis Elevator Company and twenty
seven other companies and three indi-
viduals engaged in the elevator business,
charging them with violation of the Sher-
man antitrust law. The companies named
as defendants comprise the principal eleva-
tor companies of the United States, but
the operations specifically complained OF
have been carried on mainly In California
Rocky mountains
1T is charged that these companies make
and sell at least so per cent of all of the
elevators used in that territory, and that
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 busl-
nesses of all the other defendants, although
said defendants are still being operated
as apparently separate and fndependent
concerns; that when an inquiry is received
from a customer by any of the defendants
it Is Immediately referred to the Otis Eie-
vator Company, and, II there Is no OUTSIDE
competition that company deslgnates the
concern which is to get the business, fixes
an excessive and exorbitant price to pc
charged, and directs the other companies to
submit bids, apparently in good faith, put
higher than the bid of the company Whlch
has been designated to receive the con-
tract; if outside competition does appear
one of these subsidiary companies Is d.
rected to take the contract at loss IN
order to freeze out the competitors
THE bill also alleges that there are only
three elevator companies not In the combl-
nation carrying on business west OF the
Rocky mountains, and that in order 10 orlVe
these companies out of the business and Sc
cure an absolute monopoly the Otis Eleva-
tor Company has instituted suits against
them for the alleged Infringement or It's
patents, which suits are brought solely 10
harass and injure them, and when one or
these independent companies secures con-
tract the Otis Elevator Company notifies the
customer that it has brought suit against
the independent company for infringement,
and If the customer allows the Independent
company to carry out the contract he (the
customer) will 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 agree
ing and combining together to control the
trade and commerce In elevators and to de-
prive 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.
1.-THE facts in this case have been for
many months under investigation by the
Department of Justice. They were orig
inally brought to the attention of the de-
partment by complaints made to the Presi-
dent and to the Attorney General.