Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-05-04
VICTOR COMPANY HELD
AN ILLEGAL COMBINE
Federal Court Issues Decree
Against Big Talking Ma
chine Concern

A final decree signed by Federal Judge
Hand holds the Victor Talking Machine
Company an illegal combination in re-
straint Of trade. The Court issued the
usual dissolution restraining orders.
The Government alleged in its petition
that the company systematically had
made contracts and engaged in combina-
tons in restraint Of trade in violation
Of sherman antitrust law.
In directing decree against the COM
pany. the Court found that the concern
had eliminated competition among
wholesale distributors and retail dealers
I'm tho United states purchasing and
selling its products, and otherwise had
restrained trade and commerce by bring
ing about an agreement that restrictions
promulgated by the company with re-
spect to resales persons and territory
would be observed Approximately 10
wholesale distributors and 1000 retail
dealers were affected. according TO the
Courts findings
The defendant the findings continued,
/ had for many years restrained trade
and commerce among the Sta.ss in talk
| ing-machne records and appliances by
requiring distributors and dealers han
ding its product not to use or permit the
use of records or appliances not pro-
duced by the company
/ The injunction perpetually restraipS
/ the company and its agents from further
adhering to or carrying out the con-
/ tracts, understandings and agreements
| in restraint of trade and commerce in
| the several States and from bringing
| about or carrying out any similar con-
| tracts or combinations with any persons.
/ Prohibition against restrictive or ter
| ritorial agreements regarding resale
prices. warnings to distributors and
| dealers, and refusal to sell defendant :
/ products to dealers failing to observe
the restriction are included In the or
ders The company also Is eniolned from
requiring wholesale and retail dealers
selling its products to refrain from using
| or permitting to be used talking ma.
! chimes. records or appliances produced
/ by rival manufacturers.
The defendant company COntended that
at the time the license agreements COM
planned Of were made they were lawful
under the United States Supreme Court
Interpretation of the patent laws and
the laws regulating commerce. All out.
standing licenses had been Cancelled,
they asserted, and no agreement or un.
Iderstandings with the venders of is
products had been made since the rem
lering of later decisions in other cases
My dear sir | don't know what it's
| all about
This was the answer Of Charles X.
Tiaddon, vice president and treasurer
Of the Victor Talking Machine Company
at his home i'm HaddOn Heights last
night, when asked to make a statement
on the dissolution order by Judge Hand
Il am sure that I, an officer of the
company, would have been aware Of any
legal action looking toward the dsso
luton Of the company he continued
But I am aware of none. I don't know
Of any legal action in which the com
pany has figured recently except in mat
ters concerning patents. That dispatch
from New York is n surprise to me.
don't know what to make of il. Their,
must be twist In it somewhere"