The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-12-07
HEADS OF BATHTUB
TRUST ARE INDICTED
Full Jail Terms if Convicted
Under Sherman Law.
PRICES FIXED BY AGREEMENT
Evidence In Suit Brought by De-
Partment of Justice Shows that
Sixteen Companies Dealing In
Plumbers Supplies Entered Into
Combine 10 Control Sales.

Presidents and other important officers
of sixteen corporations comprising the
bathtub trust have been indicted by the
Federal grand jury in Detroit for viola
ton of the Sherman antitrust law. This
| is one Of the biggest hauls, so far as in
dividual prosecutions are concerned. that
| the Department OF Justice has ever made
under the antitrust law. If the officers
are convicted, they will be liable to jail
sentences The sixteen companies we're
also indicted as corporations.
| The companies in the trust are engaged
/ in the manufacture Of sanitary enameled
! ironware, bathtubs, sinks, and other
/ things of a similar character that enter
| into the construction of nearly every
house In the land. The Department OF
Justice some time ago brought civil
suit against this combination.
J FIXED by Agreement.
The evidence In this suit, according TO
statement issued by the Department OF
State, showed that the annual output Of
bathtubs and plumbers supplies aggre-
gated about Sl5OOOOO a year: that the
defendants engaged in the combination
/ have fixed prices by agreement and have
advanced prices so fixed. and have regu-
lated by agreement the prices at which
| jobbers were permitted TO resell the
products. The Department OF Justice
charged further that the combination re-
fused to sell to jobbers who would not
agree to resell at the prices fixed by the
combination. and also refused TO sell 10
any jobbers who would not agree to re-
/ eli oT he fiNgn hz the FRTnblDA-
ton, and also refused TO sell 10 any job
Der who handled any supplies manufac-
! tured by concerns not in the trust.
The evidence. according 10 the depart
ments statement, landed to show that
/ the defendants knew when they entered
into this combination that such an agree
ment would be unlawful. and that they
accordingly sought for a device behind
which they might conceal the true char
acter OF the combination The depart
ment's statement says:
THE evidence tended to show that aft
er they had agreed upon all the terms
and conditions and upon resale prices.
and the day before the final meeting at
which the agreement was 10 be signed,
| three members OF the combination as
/ signed certain patents for tools used In
the manufacture Of the ware, through
/ the promoter of the combination. who
| borrowed securities on which 10 obtain
/ loan OF $500, by the expenditure of
| $500 OF which he claimed to have ae-
quired the patents. and thereby the right
/ to control the entire output OF sixteen
manufacturers. aggregating millions OF
dollars annually
Works with Licensor.
The Department OF Justice says fur
Their that the evidence shows thar the
manufacturers appointed a committee on
the day they entered into this combina-
ton, and that this committee. with the
licenSor, fixes the prices Of all the prod
ucts sold by the combination. The de-
PENDANTS also. at meeting held in New
York City, appointed a committee from
their number. known as the price and
schedule committee" which was TO de-
termine price and conditions Of sale. The
Department OF Justice charges that this
committee held a ten-day session AT Mount
Clemens. Mich. several months ago and
fixed the prices and conditions of sale
for their products.
The Department Of Justice, satisfied
that this was deliberate case of inten-
tional violation Of the Sherman anti
trust law. and that a fictitious arrange
ment for dealing in patented articles
had been entered into TO conceal the true
nature OF the transaction, caused the EVIL
dence to be submitted 10 a grand jury
at Detroit. This investigation has re-
suited in the indictments against the Of
fieeFs OF the sixteen corporations and the
corporations themselves.