New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1927-08-06
BANS MONOPOLY
ON RAZOR BLADES
Federal Court Consent Decree
Affects Gllett

New York, Aug. "a consent de-
cree signed Thursday by Federal
Judge Goddard perretually restraints
the Gillette Safety Razor Company
and five other defendants from con-
tinuing dealing In safety razor
blades in a manner that violated the
Sherman Antitrust law and the
Clayton act. The five defendants
are the United Cigar Stores Com
pany Of America, the Unico Distrib-
uting Company. a subsidiary Of the
United; D. A. Schultz, Inc, the
Louis X. Liggett Company and the
National Cigar Stands Company.
which is affiliated with the Liggett
Company.
The government attack was d.
rected mainly against the Gillette.
United and Liggett companies,
which have been under surveillance
for a year. 1t was learned, accord
ing to Alexander B. Royce, a special
assistant to United States Attorney
futile. that during the last three
years the Gillette Company has been
operating under contracts by which
the three major defendants obtained
large quantities of safety razor
blades at preferential discounts and
at prices much lower than those
charged to the regular wholesale
and jobbing trade.
Swapping of Blades Charged
1t was also charged that the de-
PENDANTS could use the Gillette blades
in lieu for cash for procuring from
the regular jobbers safety razor
blades Of other makers at cheaper
rate than the manufacturers could
sell them. In this way. 1t was al
legged, the defendants were in a posi-
ton to control the market.
The importance Of the Gillette
product and the power Of that COM
pany were shown by a statement in
the governments complaint that at
least IS per cent OF the razors used
in the United States are OF this type.
that the Gillette output is consider
ably larger than the combined out
put of competitors and that the Gill
lette working capital Is at least three
times as great as that of its largest
competitor.
Because Of the facilities Of the
three major defendants and the
chain stores operated by them Gill
lette. it is alleged. sold them any
quantity Of razor blades they desired
so that they were able to serve the
retail and the wholesale trade. Mr..
Royce In his complaint charged that
the conditions created by the agree
ment between the Gillette company
and the other defendants aided the
Gillette company in attempts to &C.
complish monopoly in the razor
blade business and injured the trade
and goodwill of competitors.
I'VE found" said Mr.. Royce
shat so many blades purchased
from the United Cigar Company
Schultz and Liggett were being ex-
changed by traders, In blades that
the other razor manufacturers were
meeting substantial sales resistance
in obtaining orders from customers
Of long standing who were lately ac-
quiring their blades by the swapping
method"
Agreed to Stop Practices
Mr.. Royce said that after he had
advised the defendants of the gov
ernment's intention to present
charges against them, they agreed
to stop the practices complained of
The terms OF the decree perpetu-
ally enjoin the defendants from sell.
ing or bartering Gillette blades in
any manner which may affect the
, trade of competitors OF Gillette OF
that may tend to create a monopoly
in interstate trade. Tha defendants
also are enjoined from entering into
any agreement for the fixing OF
prices for blades or the territory II
which the blades may be purchased
and sold.