Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-10-13
DISSOLVE.
Order Of Court in
Electrical Case.
Decree FaV0rS Government
Again.t General Co,
Also Involves National Co. and
Subsidiary Corporations.
Petition Dismissed in Case Of
Kentucky Electrical Co.
Precedent OF Value In Antitrust
Law Prosecutions.


Toledo, Oct. 1a.-In the United States
district court for the northern district
of Ohio, Judge john NJ. hialts, today
rendered a decree in favor OF the gov
eminent in the case brought b. the
United states attorney general last
summer in Cleveland. against the Gen
erai Electric CO. and ABOUT 10 subsid-
iary companies controlled by the Gen
eral Electric Co, under the Sherman
antitrust law
The decree in effect orders the Cen
Grad Electric Co. 10 conduct all its
business under its own name and the
dissolution OF the National Electric
Lamp Co, and about 30 subsidiary
corporations. The petition was dismiss
ed as te the Kentucky Electrical Co.
The contention of the government was
that the General Electric Co. and It's
subsidiary corporations had entered
into an unlawful combination N re
straint Of trade. Wade II. Ellis, former
attorney general Of Ohio, conducted the
case for the government.
D Washington, Oct. 12-The Toledo de-
cree according to Atty. Gen. Wicker
sham, establishes precedents of gen
uine value to the government in the
| sherman antitrust law prosecutions.
..By his decree. the attorney general.
the contracts and combinations en-
tered into by all the defendants are
declared unlawful and they are sever
ally enioined from entering into or
performing any agreements or ar
:angaments of any nature fixing the
prices a which incandescent electric
amps Of any type or description,
whether patented or unpatented are
10 he sold either at wholesale or re-
tail
Citing other important accom-
plishluents of the decree, the attor-
neY general added: The National
Lamp Co, and all its subsidiary conf
panies are ordered to he dissolved and
| the General Electric Company, is for
lbiden hereafter to conduct any bust
ness in the manufacture or sale of
electric lamps except in its own
name.
THE practice OF fixing the resale
! price on any style Of lamp, whether
Ipatented or unpatented, is hereafter
| forbidden and when once lamp has
| been manufactured by the owner of
| n patent or his Hcensee and sold TO a
wholesale or retail dealer, the price
at which this dealer sells to another
or the public, is open to free COMPETE
ton.
THE method by which competition
lin unpatented articles has been sup
pressed through the use of patented
article Is declared to be unlawful and
is forbidden. The manner in which
this was done Is fully explained In
the governments bill but in brief it
NAV DE stated that the practice con-
sisfed in q system of contracts with
dealers. iobbers, and consumers by
witch they were compelled to agree
TO nurchase from the defendants ali
their supply OF carbon lamps on which
Tho natent had expired. as condi-
lion 10 the right TO purchase certain
llauns known 70 the trade as Tung
sion Tantalum and Metalized fla
nept LAMPS. which are still claimed
lto he natented BY means of agGre-
eating discounts on lamps claimed to
Inc patentad with discounts on lamps
not patented, another weapon was
rsed 10 suppress competition in un=
patented lamps"
Roth these practices had the effect OF
continuing a monopoly ON an article
long after the patent mad expired by ty-
ing up its sale with a patented article
which the trade required.
The General Electric Company and
each and ali of the defendants engaged
lin the manufacture of electric lamps are
enjoined from entering into or carrying
out certain contracts which it has been
the practice to make in the past oy
which the manufacturers OF bulbs, tub
| ing and other parts necessary 10 a COM
peted lamp. were bound not TO sell tile
article manufactured by them TO anybody
Except the defendants save upon unequal
conditions. The result Of this part Of
the decree is that independent manufac-
turers of electric lamps will hereafter be
enabled to secure the parts necessary to
such manufacture without the unfair and
unnatural restraint which has heretofore
existed.
"All the parties to the combination arc
enjoined from hereafter seeking to in
lure the business or secure the trade
from rival manufacturers by offering and
making terms or prices for incandescent
lamps to the customers of such rival
manufacturers more favorable than they
make to their established trade. though
nothing in the decree Is to be taken N
any respect as restraint upon fair, Tree
and open competition,