The Irish standard., 1911-12-23
WATCHCASE 7RUTS
VIOLATES STATUTE
FEDERAL GOVERNMENT FILES
SUIT AGAINST THE KEYSTONE
COMPANY.
INTERESTING CASE is PRESENTED
Individual Defendants Are Also
Named in Bill Urging Stop to
Alleged Selling
Monopoly.

government filed suit in the United
States circuit court against the Key
stone Watch Case company, declaring
it an unlawful combination in viola
ton of the Sherman antitrust act and
asking that it be restrained from car
manufacture and sale of watch cases.
The government declares that the
company now manufactures and sells
so per cent Of all watch cases manu-
featured and sold in the United
States" and that it is the intent and
purpose of the defendant that the COM
pany shall monopolize the remainder
of the trade and commerce"
In addition to the keystone Watch
Case company, the Pennsylvania cor
poration. individual defendants named
i'll the bill are: Theophilus Zurbrugg
Of Riverside. N. j.. until recently
president Of the company: Caleb T..
Fox, Philadelphia, acting president:
Edward T. Stotesbury. Philadelphia,
vice presidents: John J. Mueller Phila-
delphia, secretary; Chas. NJ. Fogg.
Philadelphia. treasurer: r. II. Kahn.
Philadelphia. assistant treasurer. and
Irving Smith. New York. director.
The bill rccites that Zurbrugg con-
solidated two firms OF watch case
makers which were absorbed later by
the Riverside Watch Case company.
Monopoly Is Alleged.
Nllrhrugg and others, the bill says,
secured control Of a corporation nam.
ed tho keystone Watch Case com.
pany and under the name of the Key
stone Watch Case company. took ovcr
the old keystone and Riverside com.
panies in 1899. Later, control was oh
tanned of the New York Standard
Watch company, the United States
Watch company and the e. Howard
Clock company.
In 1906. the Keystone company. the
government charges. acquired control
Of the Crescent Watch Case company
which had previously purchased the
entire watch case business of the
, American Waltham Watch company
and the Bay State Watch Case com.
rany of Boston. 1t is also alleged that
the Keystone company acquired S5l
of the 1000 shares OF the American
Watch Case company of Toronto, Ltd
The remainder Of the stock is own,
ed by the Waltham Watch company
and the Elgin National Watch com
pany. A Canadian corporation known
as the ACKNOWLEDGEMENT Watch Case
company Of Canada Limited, was
then organized to act as n sales agent
Of the American Watch Case company
Of Toronto. The capital stock Of this
corporation is owned by the Keystone
company.
New Contract Alleged.
In 1904, It is charged, the keystone
company entered into a contract with
, the Elgin National Watch company
! whereby the Keystone company was
put in exclusive charge of the entire
export trade Of the Elgin company. ex-
cept the trade with Canada; and in
1905, the Keystone company, through
contract with the Waltlam Watch
company. was made sales agent for
the latter in all leading foreign coun
tries except Great Britain, France and
| Spain.
BY virtue Of these consultations
serts. the Keystone company directly
and indirectly controlled the trade and
commerce in watch cases SO as to en-
able IT. to practically exclude all com
pctitors and mOnopolize the trade It.
self. 1t also charges that the defend,
ants induced jobbers to cease hand
ling any other lines Of goods than
those made by the keystone company
and it's subsidiaries, kept a blacklist
of all dealers who sold said movements
at less than the established price
land refused to sell said movements
ps well as any of their watch cases to
tobbers who continued to sell to re-
list
"Urged to Sell.
/ defendants have also urged com
petitors to sell their plant and bust
ness to the keystone" the bill adds
Threatening them with destruction
should they refuse to do so and have
declared their intention Of acquiring
the remainder Of the trade and com
merce in watch cases and have as
serted that they would spend $1,000,
900 If necessary to drive some Of the
larger of it's competitors out Of bust
ness, and that defendants would hane
crepe on the doors OF such competi
tors factories"