The Washington herald., 1911-10-13

as condition 10 the right to purchase
patented lamps.
In addition to this, the defendants en-
gagged in the combination had resorted
to many practices contrary to fair trade
in order TO crush and destroy independ-
ent rivals
by this decree (entered at Toledo
the contracts and Combina tions enter
ed into by all the defendants are de-
clared to be unlawful under the anti
trust act, and they are severally en-
Joined from entering into or performing
any agreements or arrangements OF any
nature 0y which the prices OF incandes-
cent electric lamps or any type or de-
scr1ptiOn. whether patented or impatient
ed, are TO be sold, either at wholesale
or retail.
Importance of Decree.
In addition to this general injunction.
there are certain specific things accom-
plished by the decree which are of far
reaching importance to the freedom OF
competition in Interstate commerce, and
which it is believed will establish prece-
dents of genuine value to the govern
ment in any like cases that may arise.
The National Lamp Company and all
It's subsidiary companies are ordered TO
be dissolved, and the General Electric
Company is forbidden hereafter to con-
duct any business in the manufacture or
sale Of electric lamps, except in its own
name.
The practice cf fixing the resale price
on any style of lamp, whether patented
or unpatented. is hereafter forbidden. and
when once a lamp has been manufac-
tured by the owner Of a patent or his
license and sold to a wholesale or re-
tall dealer. the price at which such deal
CT sells TO another or to the public Is
open to free competition.
The method by which competition in
unpatented articles has been suppressed
through the use of a patented article
is declared to be unlawful, and is for
hidden.
The result Of part of the decree is
independent manufacturers of electric
lamps will hereafter be enabled to secure
the parts necessary to such manufacture
without the unfair and unnatural re-
straint which has heretofore existed.
No Restraint on Trade.
''All the parties TO the combination are
enjoined from hereafter seeking to in
iure the business or secure the trade Of
rival manufacturers by offering and max
ing 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 in
any respect as a restraint upon fair.
free. and open competition.
1T NAV be proper to add that the in
vestigatiOn out of which this suit arose
also disclosed eleven other patent pools,
Of a similar nature, by which the prices
of various electrical devices and sup
plies were fixed. and to which some Of
these defendants were parties. But since
the institution of this suit all these pools
have been voluntarily dissolved.
1T may be said further that the in
vestigatiOn also disclosed a general trade
and patent agreement between the Gen
eral Electric Company and the Westing-
house Electric and Manufacturing Com
pany. the two largest electrical concerns
in the country, covering substantially
their whole business: but this agreement
since the institution of the governments
suit has expired by limitation and has
mot been. and, II is believed will not be,
renewed