Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-04-28
ALLEGED WATCH TRUST
Investigation of the Department
of Justice.
CERTAIN FACTS ADMITTED
Elgin and Waltham Companies Ac-
cused of Combining.
COMPLAINT OF INDEPENDENTS
Special Agents Sent Out by the Gov
eminent to Gather Information
on the Subject.
COMPLAINT OF INDEPENDENTS

The Department Of Justice has been hot
after what Is called the watch trust ever
since the number of independent watch
manufacturers, with headquarters and bust
ness in Ohio and Pennsylvania. called
President Roosevelt a month ago and de
clared that the alleged trust was opera ting
in restraint of trade.
The department has spent good portion
of the half million appropriation put a its
disposal a year or so ago i'm sending out
special agents to investigate the watch
business and find how much there is in
the complaints of the Independent watch
manufacturers. The testimony and facts
are TO Ice laid before Attorney General
Bonapartc shortly. and the question of pro-
ceedng under the Sherman antitrust act
will be determined by that official There
is some doubt, however. whether the At
torney General will find sufficient testi-
mony to warrant proceedings that give
hope of success in the courts.
The Complaints.
According u the complaints laid before
the President and Department of Justice by
the Independent watch manufacturers. the
alleged watch trust is made up of the Wal
than and Elgin companies. The independ-
ents charge that there is a combine between
T.
ments of an intermediate grade such as
constitute the bulk of the trade are sold
at the same price all over the country, no
matter whether a Waltham or an E,lgin.
1t Is likewise asserted that these two COM
panies do not allow their movements to go
into any other make of cases than those
manufactured by the Keystone Company of
Philadelphia In this way Independent COM
panies are prevented from putting Waltham
and Elgin movements into cases of their
own make and cannot buy them except
with an agreement To use the keystone
cases. The further charge is made that
both companies place their watches in the
hands of the same jobbers or agents all
over the country. The Independents de
clare that the alleged trust sells its watches
abroad cheaper than in this country.
Facts Admitted
On excellent authority II is learned that
the Investigations of the department show
that it is true that the two companies sell
their watches of certain grades at the same
prices all over the country and that the
same agents handle the watches. 1t is
Furthermore shown. il is said, that they
will not permit their watches to go into
other than keystone cases Despite the
acquisition OF this information. however. the
department i said not to have been able
to get any ties timony or facts showing that
there's an agreement between the two COM
panies or that they own stock in the con-
Germs of each other. The companies admit
that they place their. watches in the hands
of the same agents in large cities but
claim that this is a mere coincidence. the
agents being entcrprising. hustlinS men.
who likewise handle the goods of other
watch men. independents as well
II is said the two companies make no de-
NAL of the fact that they do not allow
their watches TO go into other than Key
stone cases. but assert that they nave a
right TO DO this. their patents are their
own \ decision of the United states Su-
preme Court that patents are monopolles
is quoted as showing that the companies
have right To do as they please with
their patents.
Another feature that is favorable 10 the
Combine" is said to he the fact that no
instance has been discovered where II mas
cut rates ON the independents TO force them
out Of business and secure their heldS WIN
the view of raising prices. practice that
is so familiar 10 trusts of the modern type
The department hopes to acquire 1ufther
information that will strengthen us cdSe'
which has some strong points against the
alleged trust.