The New York herald., 1922-01-16
GENERAL ELECTRIC
DENIES LLEGALITY'
Says 1t Breaks No Law in
Making or Selling
Lamp Bulbs.
Z. s. INQUIRY INVITED
Letters to Daugherty and
Newton Ask for Test of
Untermyer Charges.
ACCUSATIONS REPEATED
Lockwood Counsel Assures
Witnesses of Fair Chance
to Give Their Views.
U. s. INQUIRY INVITED
ACCUSATIONS REPEATED

NTA'C INNcs
The General Electric Company,
through Charles w Appleton. counsel
10 the lamp committee Of the com
pany, made public yesterday letters
sent last Friday to Attorney General
Daugherty in Washington and Charles
D. Newton, Attorney General in Al
oany. inviting them to Investigate
charges by Samuel Untermyer. coun-
sci to the Lockwood legislative COM
nittee, that the company was exer-
cising monopoly in the sale and
of incandescent bulbs
and otherwise was violating Federal
laws. Mr. Appleton classified Mr.. Tn
termyers charges under four heads
and made a general denial Of each.
His letter to Attorney General Daugh-
,rty was:
The counsel for legislative commit
zee of the State OF New York has directly
DR. indirectly charged the General Elec-
Lric Company with the following viola
ions of the Federal law:
"First-That it mas created and is
maintaining an unlawful monopoly
in the manufacture and sale Of tung-
stem incandescent lamps.
"Second-That It EFFORTS from the
public every year large sums by un-
lawful sales methods in the market
ing of such lamps.
"Third--That it juggles IFS ac-
counts so that impense profits are
concealed and thereby escapes paying
Federal income and excess profit
taxes.
"Fourth--Thst 1t has violated a de-
cree Of the Federal Court in a pro-
ceeding brought by the United States
through its Acknowledgement.
These charges the General Electric
company denies.
patents Fully Sustained"
The tungsten incandescent lamps
which the company manufactures are
covered by patents which have been
sustained by the highest Federal courts
to which we could take them. The
patents arc based on inventions largely
The result Of experiment in the research
laboratories of the company.
THE distribution OF lamps by consign-
nent to agents has been openly carried
On for a period of ten years. and has
been the subject OF investigation by tie
Federal authorities.
Federal taxes are paid n accordance
with examination of our books and ac-
counts by the Federal examiners OF in
ernal revenue. Our counsel have adj
Used that in all respects we have conf
olied with the decree of the Federal
courts.
Under the rules of the legislative in
1estigating committee the General Elcc-
examining hostile witnesses. and Is pre-
'ented from presenting the facts and law
through counsel.
'1f the chraSes made are true, the
ieneral Electric Company is a violator
" the Federal law and should be dealt
With accordingly. If the charges are not
rue. while the company has no legal
'edress. at least II should not be con-
lemEed by the American people.
"Inasmuch as .hese charges come di-
ectly under your jurisdiction, VIC invite
'ou TO investigate them. and II you are
n doubt as to the legality Of any OF our
tets TO bring an appropriate proceeding
n court where we may be heard. In or
Icr that the matter may be determined"
"Hss Nothing TO Fear"
In the letter TO Attorney-General New
on the General Electric Company sug-
,ests that the Lockwood committee has
'cntured af1eld in its investigation OF
he company's affairs az relating TO
'ousing. The letter follows:
The Lockwood legislative commit
re. created for the purpose of investi-
'ating increased building costs, has as
umed the right to extend its inquiry
nto the cost Of incandescent electric
amps The General Electric Company
BELIEVES that electric lamps have no
more relationship to building costs than
III lamps or candles, but IL has not re-
listed the investigation on technical
rounds because IL has nothing to fear
rom a fun and fair inquiry.
I'VE inclose herewith copy of a let
or which we are to-day sending to the
OF the United States.
Z. In your opinion, any OF the charges
made point TO the violation OF any law
q the State OF New York we invite you
o bring an appropriate proceeding in
ourt IN order that the question may be
determined. The citizens OF the State
re interested In having this question
ctermined, and none more so than the
'eneral Electric Company"
"Dnugherty Already NotiMed."
Mr.. Untormyer. on being Informed OF
he text Of the compsny's letters. made
he following statement:
"As the committees investigation Is
ey-General is n trihe premature In
mother sense, II Is trife late. as IL
oIlows upon notice by me to the COM
any and its officers and legal repre-
entatives that the Department of Jus
Ice would be asked 10 prosecute the vlo-
atoms Of law that have been and are
D be exposed
There can be no question that there
as been wanton and persistent vio-
,tion and evasion OF the Judgment OF
he Federal courts in the suit brought
y the Government against the COM
any. IL will also be contended that the
nti-trust laws have been violated In
he companys maintenance OF its mo-
opoIy.
"Thc company has been afforded the
1ost generous opportunity 10 answer
hese charges Its officers have beer
nd are under subpoena and arc In at
,ndance at the hearings for that pur-
ose. They win be placed upon the
'itness stand. and unless they plead
heir privilege and insist upon immu-
ity their stories win be heard. Their
istinguished counsel. who are familiar
18th legislative Investigations. arc well
ware that no investigation ever has
cen or could he conducted IN which
illnesses were allowed separate coun-