Evening star., 1945-10-09
General Electric Co.,
Westinghouse Cited
In Antitrust Suit
BY the Associated Press.

The Justice Department today
announced the filing OF, a civil
action against the General Elec.
trio Co. and the Westinghouse
Electric Corp, alleging violation
of the antitrust laws in the sale
of electrical equipment for ex-
port.
The action, brought in the Fed
eral Court for Southern New York
also named the International Gen.
eral Electric Co., formed in 1915
by GE as an agent in certain for
eign countries; Westinghouse Elec-
trio International Co., organized in
1919 by Westinghouse as an agent
abroad, and Electrical Apparatus
Export Association, formed about
1881 by ICE and Westinghouse In
ternational.
The Justice Department announce
ment here said the complaint alleged
that since about 1881 the five de-
PENDANTS "have been continuously
and are now engaged in an unlaw-
full combination to restrain trade
with foreign nations in electrical
equipment, and that the General
Electric and Westinghouse subsidi-
aries have agreed to fix prices on
electrical equipment sold to major
American corporations and banking
houses which the buyers would
export.
In New York Philip D. Reed,
chairman of the board of General
Electric Co., and officials of the
Westinghouse Electric International
Co. issued statements denying par
ticipation in any conspiracy to re-
strain foreign trade in the electrical
apparatus field.
Mr.. Reed said international Gen.
eral Electric has participated in
export trade associations since
1881" and with other American
companies has sought to obtain
a share of available foreign busi-
ness on a stable, lawful basis, un-
der the supervision of a United
States Government agency" the
Federal Trade Commission.
Under FTC Supervision.
. Westinghouse said the Electrical
Apparatus Export Association has
been operating under the super
vision of the Federal Trade Com
mission for more than IA years. Its
activities have been reported Pc
'riodically to the commission and
were carried out in the belief that
they were entirely legal"
. Membership in the association,
said, enabled the
company to do more business in
the world and to furnish more en-
ployment to American workmen at
the high standard of American
wages"
The Justice Department an
nouncement said the complaint
charged that ICE and Westing-
house International, in carrying
on the foreign business of General
Electric and Westinghouse, have:
l. Entered into a conspiracy with
the principal German, British and
Swiss manufacturers of electrical
equipment to fix prices and allocate
sales Of particular types of elec-
trical equipment for use in all coun-
tries except the United States, Eu-
ropean territory, Russia, Japan,
Canada, Turkey, Newfoundland and
the colonies of Spain and France
2. Agreed with the foreign COM
panies to exercise whatever inf1u-
ence" they could on other COM
panies" not to sell electrical equip
ment in the territory covered by
the alleged agreement.
3. Agreed with each other to fix
prices and to allocate between
themselves on a quota basis sales
Of other electrical equipment for
use outside the United States. The
complaint said the quota arrange
ment was about so per cent for ICE
and 10 per cent for Westinghouse
international.
4. Singled out major American
firms, including oil chemical COM
panies and mining companies, and
banks and financial houses, and
agreed to fix prices on and to allo-
cate between themselves sales of
electrical equipment to those firms
for use outside the United States.
The complaint asked Cd that the
defendants be perpetually enjoined
from alleged violations of the Sher-
man antitrust laws; (2) that con-
tracts between the defendants and
foreign companies be adjudged il
legal and 90 that future contracts
between the defendants which have
"the effect of restricting exports of
electrical equipment from the United
States, fixing prices in export sales
or allocating sales in export mar
ketS" be prohibited.