Evening star., 1938-12-15
BY JOHN c. HENRY.

Frank c. Ball, gray-haired patri-
arch of the glass industry, told the
Monopoly Committee today he had
never known until he read it in
the newspapers" that his two major
competitors were getting a slice of
the license fees which his concern
was paying the Hartford Empire Co.
for use of machinery.
Head of Ball Brothers of Muncie,
Ind. principal producers of the Ma
tion's supply of glass fruit jars. the
dean of the industry told how Hart
ford-Emplre, after numerous threats
of legal action for infringement of
its patents, had persuaded him in
1882 to sign a licensing contract at
a cost of 100000.
License Limit Promised.
AS part of the persuasion, he said,
Hartford-Empire agreed that it
would issue no further licenses for
manufacture of fruit jars, there
being only four then outstanding
Were you ever told your royalties
were going to be divided with Hazel
Atlas and Illinois?" Mr. Ball
was asked by Hugh B. Cox, commit
tee examiner.
No sir"
When did you find it out"
Read it in the newspapers a few
days ago. the witness answered
grimly
Testimony earlier in the week
showed that Hazel l-Atlas and Ovens
Illinois have had contractual rela-
tionship with Hartford Empire bv
which they were to receive a certain
portion of the "divisible income,
which the latter concern receives
from royalties, license fees, infringe
ment damages. etc. Owens is not at
present participating in this ar
rangement, but did prior to 1885.
Production Limited.
With two Of the original four fruit
jar licenses being restrictive as to
quantity, it was developed that Ball
Brothers had sought some under
standing that Hazel-Atlas and
Owens would not produce beyond a
certain amount. Although no re-
strictive provision was written into
a contract. Mr. Ball testified TODAY
that he was given to understand
that the former company would not
go beyond 100000 gross of jars per
year and that Owens would not pro-
duce more than 100000 gross.
Bright to the stand for question
ing about this process of dividing
up the market while cutting them
selves in for sizable portion of
Ball Brothers cash. both H. j. Nc
Nash, president of Hazel-Atlas. and
w. E. Lewis. president of Owens-Il-
linois, admitted their interest in
persuading Mr.. Ball to sign up with
Hartford.
I'VE got half the back damages
and half of everything they paid"
Mr.. Lewis said. 1--WE were trying to
hquidate an unhappy situation and
I wanted to get as much as could !"
Allotments Above Sales.
Both asserted that the production
allotments mentioned for their COM
panies were above actual sales in
the fruit jar line by their concerns.
1T was restrictive provision
which didn't restrict" Mr.. McNash
said.
Both men were vague about lust
what kind of "gentlemen's agree
ment," if any, had been entered into
as to restricting their production,
although Mr.. McNash. admitted
complete willingness to accept a
100000 gross limit for his company
The basic question of whether
prices are fixed and free competition
stifled through existence of patent
monopolies in the glass container
industry has become the immediate
concern of the Monopoly Committee.
That the monopolies exist, through
legal operation of the patent laws,
has been established definitely.