The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1911-12-21
WATCH TRUST ON
OPERATING TABLE
Government Charges It Is an
Unlawful Combination
Under Law

Philadelphia. Pa. Dec. 21.-The
federal government late today filed
suit in the United States circuit cour
against the Keystone Watch Case
company. declaring it an unlawful
combination in violation of the Sher-
man antitrust act and asking that Il
be restrained from carrying on an al.
and sale of watch cases . The govern.
ment declares that the company now
manufactures and sells eighty pc,
cent of all watch cases manufactured
and sold in the United States" and
that it is the "intent and. purpose OF
the defendant that the company shall
monopoli1c the remainder of the
trade and commerce."
In addition to the keystone Watch
Case company, Il Pennsylvania cor
poration. individual defendants named
in the bill are Theophilus Zurbrugs
OF Riverside. n. j.. until recently
Fox. Philadelphia acting president:
Edward T. Stoteshury. Philadelphia,
vice president: John j. Mueller, Phil.
adelphta. secretary: Charles NJ. Fogg,
Philadelphia. treasurer: F H. Kahn,
Philadelphia. assistant treasurer and
Irving Smith. New York. a director.
n hill recites that Zurbrugg con.
solidated two firms of watch case
makers which were absorbed later by
me Riverside Watch Case company,
HurhruEg and others. the hill avs. &C.
cured control of a corporation named
the keystone Watch Case company
and under the name of the Keystone
watch Case company took over the
old keystone and Riverside compan.
los in 1899. Later control was obtain.
ed of the New York Standard Watch
company. the United States Watch
company and the f.. Howard Clock
company. In 1906 the Keystone com.
pany, the government charges, &C.
quired control Of the Crescent Watch
Case company, which had previousl,
purchased the entire watch case bust.
ness of the American-Waltham Watch
company and the Bay State Watch
Case company of Boston. 1t is also
alleged that the keystone company
acquired s51 of the 1000 shares OF
The American Watch Case company
OF Toronto. Limited.
h remainder Of the stock is own.
ed by he Waltham Watch company
and the Elgin National Watch com.
pany. A Canadian corporation known
as the Keystone-Crescent Watch Case
company Of Canada. Limited, wa.
then organized to act as a sales agent
OF the American Watch Case com.
pany Of Toronto. The capital stock
OF this corporation is owned by the
keystone company.
In 1904. it is charged, the Key.
stone company entered into a contract
with the Elgin National Watch com.
pany whereby the Keystone company
was put in exclusive charge Of the
entire export trade of the Elgin com.
pany. except the trade with Canada;
and in 1905 the Keystone company
through a contract with the Wal.
than Watch company sales agent 70,
the latter in all leading foreign com.
tries except Great Britain, France and
Spain.
BY virtue of these consultations
n contracts. the government bill as.
serts. the Keystone company directly
and indirectly controlled the trade
and commerce in watch cases so az
to enable 1t to practically exclude ali
competitors and monopolize the trade
itself. 1t also charges that the de.
PENDANTS induced jobbers to ceas
handling any other lines Of goods thar
those made by the keystone compan,
and its subsidiaries. kept a blacklis
Of all dealers who sold said move.
ments at less than the established
price land refused to sell said move.
ments as well as any Of their watc,
cases to jobbers who continued I.
sell to retailers whose names appear
| cd On said list"
Defendants have also urged com
p%etitors to sell their plants and bust
ness to he Keystone company" tn,
hill adds. threatening them with de.
struction should they refuse to do 81
and have declared their intention o,
acquiring the remainder Of the trade
and in watch cases anc
have asserted that they would spent
n million dollars IL necessary 10 driv.
some OF the larger of its competitor.
out Of business and hat defendant
would hang crepe on the doors Of such
| cOmnetifQrs factoriesn