Evening star., 1938-05-28
BIG AUTO FIRMS
FACE QUICK TRIAL
Ford, G. NJ. and ChrysIer Are
Indicted for AlIeged|y
Coercing Dealers. !
Rx TIE AssociAted Pre6a.

Bv tEe Associated Press.
SOUTH BEND. Ind, May 2S.-The
big three Of the automobile industry
General Motors Corp, Ford Motor
Co. and Chrysler Corp.-faced today
Federal grand jury indictments charg-
ing conspiracy to violate the Sherman
antitrust law as Government attor-
news. satisfied" in q second attempt
for action, planned early trials Of the
cases.
United States District Attorney
James r. Fleming said today he and
his staff of assistants, were pleased
with the results" of the investigation.
They said it was the largest trust IN
vestigation, since the Standard OIL
prosecutions ip 1910.
The Governmnt had failed In its
first attempt to get indictments
against the motor companies. A Mill
waukee grand jury making an in
vestigation was dismissed December
II, 1887.
The charges, contained in three sep
arate indictments, named the three
companies, their affiliated finance
companies and so individuals. All
were charged with conspiring to pro-
mote monopoly by coercing dealers to
finance car sales through the COM
panies' own finance firms
Small Firms Held Crippled.
Each indictment, Mr.. Fleming said.
alleged that the companies conspired
toward sitting and interfering with
interstate commerce for promotion OF
monopoly" and that their action
caused "irreparable damage" to small
automobile finance companies.
We are satisfied" Mr.. Fleming said.
From the evidence presented to the
grand jurors we are convinced that
the antitrust laws have been violated.
The case will be pressed to the full
extent OF the law with as few delays
as possible Trials probably will be
conducted this fall in South Bend"
Alfred p. Sloan, jr., chairman OF
the board, and William s. Knudsen,
president, were named with II other
individuals in an indictment against
the General Motors Corp, the General
Motors Sales Corp. and the General
Motors Acceptance Corp.
The Ford Motor Co.. the Universal
Credit Corp. and divisions. Edsel Ford
and II other persons were named in
another.
The third indictment included in its
charges the Chrysler Corp, the Chrys-
Ter Sales Corp, Dodge Bros. Co., De
Soto Motor Corp, the Plymouth Motor
and it's branches Walter P. Chrysler.
president of the firm, and II other
individuals were also named.
800 Witnesses Testify.
The grand jury's report, issued to
Judge Thomas w. Slick in Federal
Court here yesterday, ended a five-day
investigation that saw q parade Of
nearly 800 witnesses. subpoehaed from
over the Midwest, testify.
In the Governments first attempt
to bring charges. Federal Judge A. F.
Geiger. presiding at Milwaukee. dis
missed the grand jury in that city
last December, on the grounds that
the Department of Justice showed
''impropriety" in discussing a consent
decree with the auto companies coun-
sci while the grand jury was consider
ing the case.
Attorney General Cummings two
days later asked the House Judiciary
Committee (Which could recommend
impeachmenD to consider impeach-
ment of the judge.
To prevent recurrence Of the Mil
waukee action, identity of the South
Bend witnesses was closely guarded.
The entire investigation was conducted
in absolute secrecy.
individuals Named.
The individuals named in the in
dictments:
General Motors Corp.-William S.
Knudsen. president; Alfred P. Sloan
jr., chairman Of the board; E. w.
Berger. George F. Benkhart, M. E.
Coyle, James D. Deane, Nelson c. Dez-
endorf, August Freise, sRichard H.
Grant, Roy Hill, w. E. Holler. w. F.
Huistader. H. j. Klingler, Russell
Lesher, Ralph w. Moore, w. J.
Mougey, Arthur B. Service, John J.
Schumann, jr., and G. I. Smith.
Chrysler Corp.-Walter P. Chrysler,
president H. A. Davis. Alex E. Dun
can, James c. Fenhagen, Byron c.
Foy. w. Cameron Forbes, r. Walter
Graham, william H. Grimes, B. E.
Hutchinson. D. j. Hutchinson, S. H.
Lauchheimer, H. B. Matthews, T.
Stockton Matthews, c. Y. Palitz,
George Ramsey. F. J. Timmens. A.
Van Der Zee and Howard L. Wynegar.
Ford Motor Co.-EdSel B. Ford,
president; c. J. Bamford, H. c. But
kiewicz. w. c. Cowling, Arthur o.
Dietz, Ernest Kanzler, H. A. Mack.
Harry A. Mack. c. r. Mullan. Elmer
A. Rolley, Charles E. Sorensen, H. H.