Evening star., 1932-11-21
GOVERNMENT WINS
R.c.A. TRUSTF|GHT
Consent Decree Signed by
General Electric and
Westinghouse Co.
(Continued From First Page.)

that it would not constitute an ad-
mission or an adjudication that they
had violated any Federal law.
Violation Charge Stands.
7,2s statement added the Govern
ment stood on It's assertion that the
defendants had violated the antitrust
law, and that the decree embodied all
the relief necessary to meet the OBJ
tections of the Government.
There were more than a dozen de-
PENDANTS named in the suit. Some OF
these were dismissed. They were Ameri-
can Telephone g. Telegraph Co. and
its subsidiary, Western Electric Co.,
Inc; General Motors Corporation and
General Motors Radio Corporation.
The decree orders:
General Electric Co. shall within
three months from this date divest
itself of substantially one-half OF all
of the holdings Of itself and its sub
sidiaries of the shares of common stock
of Radio Corporation of America by
distributing such shares ratably to its
own common stock holders, or causing
them to be so distributed.
THE balance of such common stock
and the shares of preferred stock of
Radio Corporation of America held by
General Electric Co. and its subsidi-
aries shall be disposed of within three
years from the date hereof by dis
tributing such shares ratably to its
common stock holders or causing them
to be so distributed or otherwise dis
posed Of"
The Department Of Justice statement
explaining the settlement follows:
"a decree Of injunction granted to-
day in the radio case by the United
States District Court at wilmington
directed the complete enforcement OF
the General Electric Co. and the West
inghouse Electric g. Manufacturing Co.
from the Radio Corporation of America
and enjoined the defendants from at
tempting to restrain trade by means of
patent licenses or similar devices, in
violation Of the Sherman antitrust
law.
Grants All Contentious.
an working out the provisions Of the
decree, which was entered with the con-
sent of the defendants, the officials of
the Department of Justice have pro-
ceeded on the principle that the decree
must grant substantially all that the
Government could reasonably expect at
the end of a trial.
THE General Electric Co. and the
Westinghouse Company, who now own
o controlling stock interest In the Radio
Corporation, are to divest themselves
of their stockholdings. They must dis
pose of one-fah their holdings of the
common stock Of the Radio Corporation
by immediate distribution ratably among
their stockholders, and the remainder
OF their holdings within three years.
Meantime, they are forbidden to ex-
ercise the voting rights of their stock.
They also are forbidden to impose any
limitation upon the power of their
stockholders freely to transfer or dis
pose of the shares Of Radio Corpora
ton stock received by them.
"The two electric companies are en-
Joined from acquiring stock in the Radio
Corporation in the future, and from
being represented on Its board of di-
rectors, except that Mr.. owen D. Young,
chairman of the board of the General
Electric Co., and Mr.. Andrew W. Rob-
ertson, chairman of the board of the
Westinghouse Co., may remain as dl-
Tectors Of the Radio Corporation of
America during a transition period OF
i've months.
Agreements Nullified.
"The decree also enjoins these de-
further recognizing or enforcing the
exclusive provision Of their patent
cross-lcensing agreements.
"The Government had complained
that these cross licensing agreements
were made to eliminate competition
among the defendants in violation of
the antitrust law.
.It asserted also that the pooling of
more than 1000 patents applicable In
the radio field, and the granting to the
Radio Corporation of the exclusive
rights to license the use of the pools
patents In that field hampered the right
of third persons to engage in the radio
business.
1.-THE decree enioins the defendants
from hereafter entering into any ar
rangement among themselves or with
third persons in any way limiting or
restricting the freedom of any of them
or the freedom of third persons to use
their own patents or patent rights or
to license others hereunder. where the
purpose of such arrangements is to
restrain trade unlawfully.
Trade Restraint Banned.
Agreements for the division of fields
or territority or the use OF other similar
devices unlawfully to restrain trade are
also forbidden.
"The defendants are given q period OF
two and one-hah years In which 10
secure modification or changes OF their
contracts with foreign governments or
corporations in order to meet the Gov
eminent objection to them.
THE decree provides that the issue
as to the foreign contracts shall be
tried by the court If those contracts
should remain unchanged at the end Of
that time.
"The defendants maintained they
had not violated the antitrust law and
consented to the decree on condition
that this should not constitute an ad-
mission by them or an adjudication
that they had violated any law Of the
United States.
All Objections Met.
"T'he Government stood upon its as
sertion that the facts alleged In this
petition were true, and that the de-
PENDANTS had violated the antitrust
law. In recommending that the court
enter the decree. the representative OF
the Attorney Gneral stated that, in
their opinion, the decree embodied all
the relief necessary to meet the ob1ec-
tions made In the pleadings of the Gov
eminent.
THE original petition Of the Govern
ment in this case was filed in the Spring
of 1880. Twice during the interium be-
tween the filing Of the original petit
tion and the entering Of the decree to-
day, extensive negotiations were had
looking to the disposition Of the suit
without trial
The Governments pleadings named
the following defendants:
Radio Corporation of America, Gen.
eral Electric Co. and It's subsidiary, IN
ternational General Electric Co.; west
inghouse Electric International Co.. Ma
tional Broadcasting Co., Inc; r. c. A
Communications, Inc; r. c. A.-Photo-
phone, Inc: R. c. A.-Radiotron Co.,
Inc; r. c. A.-Victor Co., Inc, the lat
ter five companies being subsidiaries of
the Radio Corporation Of America.
Other Groups Dismissed.