New-York tribune., 1911-12-21
WATCH CASE CO. A TRUST?
Government Asks Court to Dis
solve Keystone.
HAS A MONOPOLY OF TRADE
Also Charged with Threatening
to- Hang Crepe on Door of
It's Competitors.

Philadelphia, Dec. 2o-The federal gov
ernment late this afternoon fled in the
United States Circuit Court a suit against
the keystone Watch Case Company, declar-
Ing IT an unlawful combination in violation
of the sherman antitrust act, and asking
that il be restrained from carrying on an
alleged monopoly IN the manufacture and
sale OF watch cases The government de-
clares that the company now 'manufact-
mes and sells 50 per cent Of all watch cases
manufactured and sold in the United
States" and that it Is the Intent and pur-
pose of the defendant that the company
shall monopolze the remainder OF the trade
and commerce"
The keystone Watch Case Company Is a
Pennsylvania corporation. The individual
defendants named in the bill are Theophi-
lus Zurbrugg, of Riverside, y. j.. until re-
Gently president of the company; caleb f.
Fox. Philadelphia. acting president; Ed
ward r. Stotesbury. Philadelphia, vice.
president; John J. Mueller, Philadelphia
secretary: Charles NJ. Fogg, Philadelphia,
treasurer F. II. Kain. Philadelphia, assist
ant treasurer, and Irving Smith, New York.
q director.
By virtue of various consultations and
contracts. the government in It's bill as
serts that the keystone Company. directly
and Indirectly, engaged In the manufacture
and sale throughout the United States ana
I'm foreign countries Of practically every
grade Of watch cases and watch move
ments. and that It so controlled the traoe
and commerce in watch cases as to enaole
II to practically exclude all competitors
nd ,,,ouopolize tho trade itself.
The bin further says;
The defendants endeavored TO and did
induce jobbers to cease handling any Q2Jher
lines Of goods than those made by the NeN =
stone Company and It's subsidiaries, Ieiuseu
10 sell iobDers watch movements anu a. ~
the Howard movement they nXed ana
naintained selling price for both JobDerS
and retailers and kept BLACKLIST OF an
dealers who sold said movements AT iess
than the established price, and refused 10
sell said movements as well as any OF thelr
watch cases to iohbeTS who contnued 10
sell TO retailers whose names appeared Oh
said list.
The government also charged;
The defendants have also urged its com
peti.orS TO sell their plants and businesses
/ 10 the keystone Company, threaleIlns
them with destruction shouId iIleE aetuSo at,tiH,o
to do so, and have declared Their INTENTION
OF ACQUIRING the remainder Of the trade ana
commerce in watch cases ana nave az
serted that they would Spellu Inl,IloI uO uOI.
lars II necessary to drive some OF the larger
OF it's competitors out Of business, and that
defendants would hang crepe on the doors
OF such competitors factories
The bill charges the company with decep-
ton I'm putting on the market certain In
ferior grade watch cases, labelled 20 suit
the purchasers. with long term guarantees
in order 70 compel other manufacturers TO
compete with falsely labelled cases. the
government declares that the company has
been enabled 10 realize unreasonable
profit" on its capital stock.
Tho bill prays that the acquisition OF
various companies and contracts entered
into he adludged unlawful: that the com
bination be disintegrated; that it be re-
strained from continuing its monopolistic
methods and that jobbers be unrestrain11
i'm their desire to handle all kinds Of goods.