Evening star., 1945-11-14
Artificial Limb
|FirnnsCharged
Excessive Prices to
Veterans Alleged in
Grand Jury yIndictment

ANeASAAS cAAA SH hAaAfldudlo, ICp-
resenting rs per cent of the total
volume of business in the arti-
fetal limb industry, today were
indicted by a District grand jury
for conspiracy to fix high and
unreasonable prices for the sale
OF artificial limbs to veterans
The indictment charged viola
tion of the Sherman Antitrust
Act.
One of the defendants is j. E
Hanger, Inc, of 221 G street NV.
The indictment charges manufac-
turers with agreeing to fix minimum
and noncompetitive prices in bids
submitted to the Veterans Admins
tration on artificial arms and legs
supplied to veterans. The manu-
facturers also are charged with con-
spring to fix identical prices tc
State agencies and agreeing that
supplers OF artificial limb parts
would refuse to sell to governmental
agencies and charitable, public OF
private institutions that supplied
artificial limbs to amputees without
cost.
50 Pct. Of Parts Business.
The defendants do about 80 per
cent of the parts business for arti-
flcial limbs In the United States, the
Justice Department said. Violations
OF Section One of the Sherman
Antitrust Act, which deals with
Illegal contracts or combinations iu
restraint of trade, and Section
Three of the act, which pertains to
violations involving the District, are
specifically charged.
The case was presented to the
District grand jury today, under thu
direction of Assistant Attorney Gen.
eral Wendell Berge, and the indict.
ment was speedily voted and re.
turned in District Court.
The trade association. the Asso.
ciation Of Limb Manufacturers o1
America, supervised price fixine
activities. Mr.. Berge asserted.
Many Users Are Veterans.
A substantial number of the 9o0..
900 artificial limb wearers in the
United States are war veterans, Mr.
Berge explained, while in peacetime
some 25,000 amputations occur an
nually. The indictment saws tina,
the total annual sales volume al
artificial limbs approximates &c.
000,0 and that this is divided
among some $50 manufacturers, who
have a production capacity of from
Is to $500 artificial limbs each an
nually.
Presenting the case to the District
grand jury were Special Assistan,
to the Attorney General Daniel B
Britt, assisted by Maurice Godin
Elmo Flynt and Harry Brooks
Holmes Baldridge, chief of genera
litigation in the Antitrust Division
OF the Department of Justice, has
general supervision of the case.
Attorney General Clark said thai
the effect of the conspiracy was te
deprive the Veterans Administra.
ton Of the opportunity to make
artificial limbs for war veterans;
to force the administration anc
various State agencies to pay non.
competitive prices for artificia
limbs; to force veterans buying
limbs direct from manufacturers te
pay high and noncompetitive prices;
to prevent charitable institution.
from making artificial limbs with.
out cost to amputees, and ito i'm.
pede and discourage the develop.
ment and improvement of the util.
ity and comfort of artificial limbs
Injured May Recover Damages.
A 5000 fine and one years i'm.
priSonment are maximum sentence.
against the guilty. Those injured
by unlawful acts may sue and re.
cover triple damages and the good.
may be seized and condemned, if II
transit from one State to another
If conviction is secured.
Veterans and others, claiming tt
be defrauded by purchase of arti.
(See LIMBS. Page A-I81