The New York herald., 1922-01-07
Harper, Who Makes Decora-
tive, Motor and Miniature
Bulbs, Tells Story.
HAMPERED BY LAWSUITS
Lockwood Committee Hears Of
Labor Unions Yielding to
Various Demands.

Inc LOCKWOOD legislative commit
tee. through its counsel. Samuel Un.
termyer, yesterday laid the ground
work of an investigation by which II
hopes to show that the country Is ir
the grip Of sloo.0Oo.oOO monopoly
exercised by the General Electric
Company through the manufacture
and sale OF incandescent bulbs. It IS
Mr.. Untermyer's belief that the COM
pany has an annual profit of abou,
s60,000,000 through it's control Of the
domestic market. He thinks also that
the price OF bulbs should be reduced
at least a third.
This statement was issued last night
by the company:
The General Electric Company has no
monopoly in the manufacture and sale
OF incandescent lamps. The company
does large part Of the. incandescent
lamp business only because the public
demands the efficient tungsten lamp
which is the result of the extensive worl,
Of the General Electric laboratories
These lamps produce about three times
quantity Of current. In view Of this, Mr..
Harper. who testified to-day. and certain
other manufacturers prefer naturally to
make this type of patented lamp rather
than the older types which are not In
sringing.
"As to the charge that the General
Electric Company Is extorting 500, ,00O.-
900 from the public for light bulbs, It is
sufficient to say that in the year 1920
Its profit from all of its manufactured
products. including lamps, was s26. AGO.
O57.57. This profit was further reduced
by the payment of Federal taxes. The
total receipts from the sales OF lamps
were less than one-quarter Of its re-
ceipts from sales of all its manufactured
product. The profit from the sales of
lamps was higher than the average rate
of profit on the rest OF It's business"
Newark Man ms witness.
The record Of yesterdays hearing was
In effect "a portrayal of corporate leger-
demain through which competing COM
panies were absorbed by tho parent con-
cern or put out OF business until. ao-
cording TO the testimony OF Harvey w.
Harper. manufacturer of Newark and
the chief witness of the day.ssthe Gen.
eral Electric Company acquired control
Of 9s per cent. OF the bulb business Of
the country. I-
Although the session dealt specifically
with the manufacture of miniature cleo
trio bulbs used principally in decorative
work and In the manufacture of flash
Lights and automobile accessories
f1ough was disclosed to Indicate that
an exceedingly big margin OF profit
can be made in the manufacture Of
fulbs. Mr.. Untennyer holds that condi-
tions In the miniature bulb industry
only approximate what exist In the
manufacture and sale Of The standard
Size bulbs used In housing construction.
Through Haiper. who IL president of
the Miniature Incandescent Lamp Cor
poratlon OF Newark, Mr. Untermyer
showed that the annual output of minia-
ture bulbs was about 100000. 900 at a
cost TO the manufacturer Of between
s1O,000000 and sf5.000.000. The cost
to the consumer Mr.. Harper estimated
at approximately $40. 900. .0c0. Mr.. Har
ger gave specific figures In his own
business In 1915. when he and his part
ner made $4,000 each on turnover Of
slss.ooO In the Howard Electric Novelty
Company. which he Joined after leaving
the employ OF the General Electric
Company.
Last year. as president OF the Minia-
ture Incandescent Lamp Corporation of
Newark. the witness said he made a
gross profit OF s325.0oo on an investment
of between s225.oOo and saso,ooo, not
taking Into account the Federal corpora
ton tax.
Mr.. Harper's testimony was a chrono-
logical recital Of his own experiences in
the business, from when ne began
work rs boy for RE General Electric
Company UP TO the present time. In
1902 he left the company and Joined the
Howard Electric Novelty Company In
1904. the witness told the committee IN.
Howard Company was forced TO ioIn an
association that had for its purpose
control OF the lamp market. with the
General Electric Company as the '.pareni
OF the outfit"
Goes Back Days OF Carbon.
His story ran on from The original
production OF the carbon nlament bv
Edison to the years 1907 and 1908. when
the metallic filaments tungsten and tam
talum were produced by German scien-
sists.
Harper told the committee he tried
IN 1907 TO obtain tungsten wire from the
General Electric Company. applying per-
sonally to Mr.. Page. then manager of
the lamp works at Harrison, ". J. He
was told that the General Electric con-
trolled the patents and that they were
not In a position to allow tungsten lamps
10 De manufactured OUTSIDE at that time.
Accordingly the witness went TO Ger
many and obtained supply OF tungsten
there. but on his return was told by
officials OF the General Electric that the
Howard company was Infringing on the
General Electric's patents and that II
the company desired n license to manu-
facture Il must cancel It's German con-
tract The company had no surplus
capital at that time and the German
contract was cancelled.
Mr.. Harper testified that the average
headlight lamp. for which motorists pay
SO cents, costs between 15 and 16 cents
10 Manufacture and sell. while the side
sod tail lights. for which they pay from
2s TO 30 cents, arc put on the market for
between 6Ia and cents.
At the outset Mr.. Untermyer an
nounced that tho brickiayers' and
plumbers organizations had capltulated
- the committees demands.
Acceptance by the labor organizations
OF these demands by the committee. Mr..
Undermyer said. practically cleared UP
the differences existing He added:
"1 want to express my appreciation
OF the splendid spirit OF citizenship with
which the leaders Of the labor unions
have met these demands"
The committee will resume its hear
iner, II the presence OF the members 10
not required at Albany. next Tuesday.