New-York tribune., 1912-01-09
SAY TRUST IS NAMELESS
indictments Handed Down in
Buffalo in Coaster Brake Case.
BILLS FOUND AGAINST 10
Test to Determine How Far Pat
entee Can Go to Fix Prices,
Says Defendants Lawyer.

Buffalo, Jan. s.-That a trust without a
name has secured control of 20 per cent OF
the business of manufacturing and selling
fcoaster brakes for bicycles and motorcycles
and large percentage OF other bicycle ac-
essories. and thereby has violated the sher-
man antitrust law, is charged in indict-
here to-day.
There are eight counts I'm the indictments,
in which eighteen individuals and six cor
porations are charged with conspiracy to
restrain their own trade and that Of COM
petitors and jobbers and with attempting
to monopolize tho business. The individuals
indicted are:
Edwin f. jackson. jr. Frederick r.
Huntington and James p Drouillard, Of
New York; Albert +. Rockwell. De Witt
Page. Charles T. Treadway and Gales p.
Moore, OF Bristol, Conn: william A. Gra-
ham, OF Brooklyn; Charles Glover and Clar-
ence A. Earl, of New Britain. Conn; David
L. Whittier. Ralph D. Webster, Leonard s.
Whittier and Edward J. Dunn, of Elmirs.
y. Y; Simon Florsheim and John ID. Hur-
ley, Of Chicago, and Kelly r. Jacoby and
Emmett ". Jackson OF Middletown. Ohio.
The firms represented by these men,
which are also indicted, are the New De-
parture Manufacturing Company, the Cor
bin Screw Corporation, the Aurora Auto
matte Machinery Company, the Eclipse Ma
chine Company, the Miami Cycle and Man
ufacturing Company and the Buffalo Metal
Goods Company.
II is charged that representatives Of the
six firms in 1908 entered into an agree
ment arbitrarily fixing prices and provid-
ing for system of penalties and black
lists. No corporate name was adopted then
or since. although the alleged combination
has been known 10 the trade as the asso-
citation Of coaster brake licensees
Jackson and Huntington. two of the New
York men indicted, acted as "arbitrators
=, and were custodians OF fund OF several
thousand dollars deposited by the six firms
as guarantees that the alleged agreement
would be kept. They settled all questions
at issue between Jobber and retailer or
manufacturer and jobber and kept records
Of the output OF each concern. The cutting
of prices Of the goods Of any one of the
six companies. it is alleged, was penalized
| Dy DldChuStlUB on lUe DOOkS OF HIl OF tneul,
and as the companies controlled the manu-
facture OF 90 per cent OF the coaster brakes
made, a dealer who failed 10 observe the
regulations and prices Of the association.
it Is alleged. was practically shut out from
that line Of the trade.
All the men indicted have been notified
TO appear before n United States judge here
on Friday to plead TO the indictments.
Their defence. II is understood. will be
that there was no combination In restraint
Of trade and that the companies were
merely exercising rights guaranteed "a
them under the patent laws.
This will be test case TO determine
Just how far a patentee can go in fixing
the price Of his product" said ar attorney
for the defence tonight. That IS ques-
ton which has not yet been passed on by
the Supreme Court. and the decisions OF the
lower courts have been adverse to the stand
taken by the government I'm this prosecu-
ton"
The evidence against the alleged coaster
brake trust was secured by John LORD
O'BrIan, United States attorney for this