Evening star., 1926-04-04
COURT D|SSOLVES
BIC BAKING MERGER
|NVOL WING BILLIONS
Ward Food Products Cor
poration Broken Up and
Charter Surrendered.

BALTIMORE, Nd, April 3.-Out.
right dissolution of a potential 81 600
OOO,0OO corporation and drastic cur.
tallment and regulation of other mem.
bers of what the Government had
alleged to be a huge baking combina.
ton, was effected in Federal District
Court here today in one of the most
sweeping DEGREES ever promulgated in
an antitrust case. Twenty.three mil.
non shares of corporate stock
$500, 100000 potential capital under
Maryland corporation laws-were
wiped out and a charter ordered for.
feited to the State of Maryland. The
decree brings to a close, with victory
to the Department of Justice but with
the consent of the corporations in
volved, without trial, the Government
ton filed last February against the
Ward Food Products Corporation and
alleged allied concerns
Specifically, the decree accomplishes
the following:
The Ward Food Products Corpora.
ton, Incorporated in Maryland last
February with 2O,000,000 shares
stock assessed under Maryland law at
valuation of $4,000. 900 900. is dis.
solved and it's charter surrendered to
theNState of Maryland.
Stock. Heavily CurtaiIed.
Glass A non-voting stock of the Gen.
eral Baking Cooperation. a codefend-
ant with the Ward Food Products Cor
poration, Is reduced from 5000, 900
shares to 1000, 900 shares, the corpora
ton being enjoined from issuing any
of the outlawed 100000 pending
their actual cancellation.
Counsel is ordered to certify that
William B. Ward has completely liqui-
dated his holdings, set by Government
auditors as 100000 shares of capital
voting stock. in the General Baking
Corporation.
The number OF directors of the Gen
eral Baking Corporation is increased
from three to seven.
The Ward Baking Corporation, the
Continental Baking Corporation and
the General Baking Corporation are
enjoined from acquiring or holding
each others stock individually or sew
orally or exercising control over each
other in any manner.
All defendants, both corporate and
individual. are enjoined from doing
any act or thing in furtherance" OF
the alleged combination, which the
Government describes as having been
in violation of both the Sherman and
Clayton antitrust acts. The corpora
tions, including all officers and en-
ployes, are further enjoined from en-
tering any contract or agreement. for
the Joint purchase of supplies, mate
rials or equipment, or for common
prices or policies in marketing.
Barred From Other Companies.
The corporate defendants are en-
joined from acquiring directly or In
directly all or any part OF the capital
stock of any other baking corpora
ton engaged in interstate commerce
where the effect would be substantially
to limit competition.
William r. Ward, George G. Bar
ber and Paul H. Helms, described
in the decree as the "triumvirate con-
trolling and directing the baking in
duStry," are enjoined from holding
or acquiring voting stock in more
than one of the corporate defendants.
The Government suit, a petition in
equity, as originally filed, named the
Ward Food Products Corporation, the
Ward Baking Corporation, the Ward
Baking Co., the General Baking Cor
poration, the General Baking Co, the
Continental Baking Corporation and
the United Bakeries Co. and William
B. Ward, Howard B. Ward, William
Deininger, Paul j. Helms, J. w. Rum
bourgh, r. f. Peterson, George G..
Barber and George S. Smith.
One Charge Dismissed.
The decree today dismissed a charge
against the Continental Baking Corpo-
ration. involving alleged violation of
section of the Clayton act in the
acquisition of stocks of competing
bakeries, as having been al
ready taken under consideration by
the Federal Trade Commission. The
Government retained the right, how
ever. to raise the same issue against
the Continental Baking Corporation
on any subsequent proceeding.
The decree dismissed the Govern
ment petition with regard to all indi.
vidual defendants other than William
r. Ward, Barber and Helms. The
other five named were described as
'.merely nominal factors in the in
dustry."