Omaha daily bee., 1910-12-07
Sixteen Companies and Thirty Two
individuals Are Involved.
LICENSES TERMED sUBTERFUGE
Officials Assert Defendants Disguised
Methods by Patent Rights.
WAYMAEs TESTIMONY VALUABLE
Licenser of Alleged Com binntion Gets
Immunity from Criminal Pro-
eeedinEs - sherman Law
Basis Of Prosecution.

DETROIT. Dec 6.-The antitrust cam
paiEn Of Attorney General Nvickershnm
shifted 20 Detroit this week. with the re-
suit that indictments were returned hy
the federal grand jury today against SIX
teen firms ard thirty-two individuals. al
legged TO have secured control Of IS per
cent Of the annual output Of enameled
irouware bathtubs sinks. laboratories. etc.
in the United States.
The criminal proceedings grew out ola
suit to dissolve the alleged combination
begun By the government IN the federal
court at Baltimore. hearings being held
IN Chicago. PittEburg and New York within
the last forty DAYS.
The evidence was presented to the grand
jury by Edwin p. Grosvenor. special ass St
ant to the attorney general; United States
District Attorney Frank II. Watson OF De
troit and Jose CARING special agent Of the
Department OF Justice. Secret hearings
began yesterday and nothing was given out
until the indictments we're handed down
this afternoon. 1t was charged that as
the result OF a ten days meeting at Mt.
Clemens. Mich, last April. a fund Of 5000
was subscribed 10 set in motion a plan
that resulted in giving the defendants con-
trol Of sixteen manufacturers and nearly
200 jobebrH, representing an output Of ap-
proylmately Sl0,0O0000 year
Ten Count sAgainat Ffrma.
The two indictments against each defend
ant contain six and four counts, respect
lively, and charge that the defendants, con
trolling s. per cent OF the annual output.
combined TO restrain the trade Of manu-
facturers and jobbers Of plumbing supplies
by refusing to sell to the jobbers handling
the goods of so-called independents. by
the fixing OF resale prices. by the division
Of the United States into eleven zones and
refusing to sell TO jObbers who would not
maintain the resale prices. It is charged
that the effect OF these resale prices Is TO
make the pree the same throughout the
United States and 70 eliminate competition
Of tobbers well OF manufacturers.
N'ao Indictments aiSo charge that the de-
PENDANTS compelled the jobbers TO enter
into uniform contracts and that ali the
defendants refused 20 sell 20 any jobber
unless he would sign such a contract.
The government officials took the ground
that the evidence taken IN the civil SUIT
established that the defendants attempted
20 disguise their combination by the sub
terfuge OF PURCHASING the patents on GER
tain tools and licensing certain firms to
use these tools.
Wayman's Testimony Important.
The government places great weight
upon the testimony Of Edwin L. Wayman
OF Pittsburg. who Is described as the
Hcenser OF the alleged combination and
whose testimony already given IN the
civil suit has given him immunity from
criminal proceedings.
The government charges that Wayman
obtained f7.OoO from the Peoples state bank
OF Detroit by giving 100 shares Of the
Standard Sanitary Manufacturing company
as security and that in using this fund
TO purchase several patents 5000 went
back 70 the Standard Sanitary Manufao-
turing company for patents that "a Is al
legged to have turned over to the combi-
nation. Wayman Is not a voluntary wit
ness.
The government chargts that Wayman
collected s. per day for each furnace from
each OF the sixteen defendant firms. some
OF which had as many as eighty furnaces
and that after two months these firms that
did not violate the agreement we're TO re-
ceive rebate OF % per cent OF this con-
tribution. Wayman's collections. IL is al
legged. ran as high as 500 per day.
The defendants against whom indictments
were found today win be required 70
appear at once in the United States court
here and Eivs bonds for their appearance
List % Defendant Ftrms.
Both the civil suit brought al Baltimore
and the criminal proceedings begun mere
have been Instituted under the Sherman
antitrust law The defendant firms in th'
criminal proceedings are:
standard Sanitary Manufacturing com
pany, Pittsburg Pa; A. WeIskittel & sons
company, Baltimore; the Barnes Manu-
featuring COMPANY. Mansfield. o. th,
CalilI Iron works, Chattanooga, Ieun-
Cohweu Lead company. New York city
the hay-N ard company, Warren, o. me
Humphreys Manufacturing company, Mans
field, o.. kuruer Manufacturing company
FlUsblrg. Ia. the j. l.. Mott iron works
New YORK CITY, McNay a walker. Brad
dock, ia; the McCrum-AOWeH company
New York; the National SANITARY Manu-
featuring COMPANY, Saisgu. o. Union SAM
tarE NanfractgIllE company. NoblesNlie
Ind H. N0ff hauufactuung company
chicago. M Wheeling Euameled lruI
company, MheelinM, Ma United Statei
sanitary Manufacturing company. Pitts
burE- Pa
individual Dcf~RdHmss.
The Individual defendants ere