Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1912-06-04

stone absorbed other manufacturers in
the same ln% with the sole purpose of
controlling the market. The eight de-
PENDANTS are &C, ased OF binding their
jobbers with con araets TO trade exclu-
sively in the one product ? in order to
force competitors out of business.
When the suit was instituted officers of
the company denied that the Philadel-
phia plant was to be closed. At the
hearing yesterday Charles NJ. Fogg, treas
urer, admitted that at a meeting of the
directors 1t had been decided to consoli-
date the Philadelphia plant with the one
In Newark. When questioned by Will
lam I. chantland, special assistant
United States encouragement, as to
whether the action of the board had been
reseinded, Mr.. Fogg said 1t still stands
and will be enforced.
Tn testimony in the suit to dissolve
the watch-ease company is being taken
by Edward Hacker, OF Knoxville, Tenn,
who was appointed examiner by Judge
Holland, of the United States Circuit
Court. John q. Johnson and Samuel V.
Hyneman are attorneys for the company;
Assistant Attorney General Chantland Is
looking after the governments interest,
assisted by William p. HaZem, of the
Bureau of Investigation at Washington.
There are eight defendants, the Key
stone Watch-Case Compans. T~heophilus
Z%urbragg, its former .. esident; Caleb f.
Fox, now acting president and director;
E. I. Stotesbury. vice-president; John ].
Mueller, secretary; Charles NJ. Fogg,
treasurer; f. A. Kahn, assistant secretary,
- g.. a Il IL -
defendants, constituted the board of
directors.
One of the disclosures Drought out by
the governments attorney was that the
company has for seveiai years fixed the
selling prices of the Howard watch. The
company defended its position on the
ground that 1t is the owner of two pat
ents used by the Howard Watch Com
pany. One of these is on the crown of
the watch and the other on the double
barreled movement. The government
contends that this is only a subterfuge
and that the owner of patents has no
right to control the sale of any article
where the article is manufactured by
another.
The hearing in Philadelphia will con-
tinue for several days, and then the ex-
sminer n attorneys will so to different
parts of the United States to take testi-
mony. Examiner Hacker hopes to have
his findings finished In time to present to
Judge Holland at the fall term of the
United States Circuit Court.
Record Of Consultations.
The alleged conspiracy is SAID to have
started In 1899, when Zurbrugg. a watch
case manufacturer, bought and consolid'
ated with his own business that Of Bates
4 Bacon N H. Muhr's Sons. Later he
aud his associates In the foregoing con
Germs absorbed the New York STANDARD
Watch Company, United States Watch
Company, the Il. Howard Clock Com
phny and the Crescent Watch Case
Company Later the defendant acquired
SOL shares out Of 1000 shares of stock
Of the American Watch Case Company, of
Toronto, Canada.
The Elgin National Watch Company
and the waltham Watch Company, which
owned the remainder of the stock of the
Canadian concern, entered into a con-
tract, the government AYERS, whereby the
defendants were put in exclusive charge
Of the entire export trade of the Amer
lean Watch Case Company. The present
Keystone Company is a new company, in
: rarporated in August, 1889, by Z~urbrugg
! Thhis associates in the other concerns.