New-York tribune., 1911-12-27
UNUSUAL METHODS SEEN
IN CASH REGISTER CASE
Government Suit Charges Re-
markabIe Ways for Sitting
Competition.
FAILURES MADE AN EXHIBIT
Display of Former Rivals Ma
chimes in National Company's
Factory Aided Trade
Control.

fIrom The Tribune Bureau
Washington. Dec Cash registers are
neccs sity i'm the commercial world. being
iscd by merchants throughout the entire
United States and in foreign countries" is
the language of the Attorney General in
referring 10 the governments pending anti
trust suit against the largest manufacturer
Of this device. The steadfastness with
which the present prices have been main
,aincd has long been an occasion Of sur
prse 10 many. who assuming that this
industry would follow the course or others,
have been constantly expecting to see
prices forced down by competition as the
novelty Of the device wore of and an in
ased demand made its manufacture In
larger numbers feasible and thus cheap
cned tho cost Of production.
The reasons why the ordinary laws Of
trade have not operated on this particular
line Of business are set forth in the COM
plant Of the government against the Ma
tlonal Cash Register Company, and an eH-
traordinary course of procedure in the ei-
fort 10 suppress competition is given IN
cetau That This administration has un-
dcrtsken "a destroy this monopoly must
provo an occasion of qualification 10 an IN
cslculsblA number OF merchants as well as
10 tho great number of competitors Who'
according TO the assertion of the Attorney
General have been forced out OF business
For the express purpose of destroying
competition. according to the bill OF the
government. the National company main
.lrv fVraGn
times known as the ways and means de-
partment': a corps Of knockers
graveyard" or Midway" also called a
"glooming room" and other devices hardiY
less ingenious than the cash register itself
How Composition Was Killed.
The so-called competition department
according 10 the governments petition, en-
ploved a force Of special men. who were
directed 10 suppress and destroy the ousi-
moss of connetitors and 20 harass and dis
courage and force out Of business such
,ornnetitors as were either manUfactur-
ers. dealers or agents. The special men
we're known as knockout" men. In addi-
lion. IL is alleged, there were also secret
agents 10 spy on the business OF com
pctitors and 20 obtain frguduently ihor-
nation OF sales and shipments. which was
used 10 discourage prospective purchasers.
BASED on such information, instructions
were sent TO agents TO manipulate compel
ing cash registers in such a way as 10
show their defects.
This method. it is charged in the com
plaint. was carried TO greater extremes by
the building of cash registers TO resemble
competing registers. which were sold with
ssff.sl rnriQ lC
ruin competitors AZ soon as this purpose
was achieved their manufacture was dis
continued. These machines. which made
their appearance soon after a competing
machine was put on the market, were
known ms knockers.
Tho combination went even further. ac-
.ordinc 20 the governments allegations by
acqtrjnc registers from dealers and
agents of competing companies whom they
had either forced out Of business by
threats or intimidation or whose businesses
they had purchased. These registers were
thcn advertised for sale at greatly reduced
prjces through agencies established In the
immediate neighborhood Of agencies OF the
competing concerns. As soon as the com
pethiE agencies went out Of business the
trust" agencies were closed.
tho alleged trust and REPRESENTED TO be
Independent concerns. TO interfere with the
iudeueudents BY this means information
was obtained concerning tho business of
the independents. who we're forced to'seil
cut and their competition eliminated
Power OF the "Gloomina Room
The so-called graveyard" or midway,
sltn known 10 the inner circle OF the com
olnation as the "sloomiug ROOM Was the
Sewer of tho system devised to ruin com
retitors This extraordinary Institution.
which resenbled a chamber Of horrors foI
the purchaser who contemplated buying an
independent register or ii manufacturer,
was maintained in the factory at Dayton.
The complaint says:
In this room were shown registers OF
competing companies which had been lorcod
out Of business by The methods above set
rut. Prominent display cards reporting the
names OF these companies, the date Whtn
TREY went out Of business and the amount
OF money lost by them. appeared proml-
nently in the exhibit Manufacturers pur-
posing 70 60 into business were shown TIM
display. and II was pointed ont TO them
by the said officers and their agents as the
fate that would befsll sny company seek
irg 70 compete with them. This process
~ intimidaing manufacturers was known
the 'Eloouling' process snd tne room
vas SOM neti07eS known as inc EipoHiHS
room Thousands OF merchants and other
visitors 10 Che factory we're shown this eH-
bibit and told that II would BE- useless TO
bIy other cash registers. because compel
i1r companies would soon go out OF susi-
ness and fail 10 maintain the guarantees
xiven with their registers
The complaint also charges that inven-
mons were acquired 10 eliminate such com
retition iu It's infancy, and other inventors
were. by intimidation. threats and other
means of duress. prevented from putting
their Inventions on the market. Another
method Of harassing competitors was 10
Institute suits with the purpose Of depict
ing their resources the sooner. the com
rIsint charges. In some cases the business
OF competitors so harassed was secretly
purchased. and arrangements were made
whereby the defendant companies permitted
judgment 70 be returned against them.
such colusiys judgments were thereupon
widely advertised as another phase OF the
psychologfcal process Of dissuadins manu-
of competing companies were persuaded 10
violate their contracts Of employment on
ps vmsnt Of large amounts OF money.
IN line with this system. the trust. ac-
cording 10 the bill. printed a list in 1870
tho uurpOrt OF which was that within nf-
teen years 15s cash register companies had
lccn organized 10 compete with the Ma
jiona Cash Register Company, and that 152
of these failed. with a combined loss Or
s. 10000