Evening star., 1961-02-08

ulu1lOl III 41LlCS dIlO SCtCA jail
sentences, were charged with
price fixing and rigging bids
IN the sale of equipment that
generates, transmits and dis
tributes electric power.
The industry's two biggest
firms - General Electric Co.
and Westinghouse Electric
Corp.-bore the brunt Of the
penalties. Government lawyers
said they do more than so per
cent of total business.
Nineteen civil cases remain
to be disposed Of. These cases
repeat the charges in the in
dictments and seek to halt the
various price-fixing and COM
petition destroying practices
charged.
Seek Independent Pricing
Generally, the civil suits ask
that the companies be required
to issue new price lists based
on costs arrived at independ-
emily, to submit affidavits of
non-colluSion along with future
bids to Government agencies
and to bar any communica-
tions among the defendants
concerning future bids and
price quotations.
Since the issues have been
decided with guilty pleas and
pleas of mo contest" the civil
cases will not be tried. Instead,
ithey will be worked out by
negotiation between the Gov
;ernment and the companies.
Several defense attorneys,
emphasizing their cooperation
'in attempts to get leniency for
'their clients. told the sentenc-
ling Judge, ]. Cullen Ganey, in
philadelphia that they were
making progress toward workt
ling out consent DEGREES in the
civil cases.
3: General Electric said it volun-
,tarily was undertaking studies
with utilities and other Gus.
TONERS to determine whether
recent violations of the anti
trust laws by certain employe:
chad been financially detrimen.
tai to these customers"
I'VE have taken the initiative
in advising each Of the Gus.
toners concerned that we
desire to review this situation
with them. and to make adjust
Iments if warranted by the
facts" the company said.
Ralph J. Cordiner, Genera
Electric board chairman, sai6
he had asked Charles E. Will.
son, former company president
to represent the company ir
this effort.
Damage Suits Studied
A more vexing problem fac
ing the Goverrlment-as well
as State and local governments
and private utility companies
lis the question Of trying tc
collect damages.
The Federal Government ha'
not yet decided whether to file
( damage suits, although Justice
Department attorneys are
known to be studying the Ques-
ton.
Where the problem arises Is
In determining how much the
Government was hurt ano
therefore how much it should
ask in the way Of damages
The indictments said the vi
olations Of antitrust laws con.
tinued over a period Of sew.
eral years and directly affect.
ed purchases by the Defense
Department, Interior Depart.
'ment, Atomic Energy Commits.
sion, Tennessee Valley Author.
ity and other Federal agencies
Although the Government
knows who bought what from
whom at what price, it still
has to settle what would have
been the right price in free
competition.
GE. Westinghouse and Alis'
Chalmers said they are nov
investigating past and presen
pricing policies. GE added
would make it right with ou
customers.
It is possible that the fixet
prices-even rigged bids-ma!
not have been excessive, tina
the companies merely took /;
normal profit. It was the secre
manipulations which are illegal
and which prompted the sue
cessive criminal action.
r In the bid-rigging, com
panies split percentages of tn
business and designated VIII
was to make the successful
low bid-and when. Sometime
they split geographical areas.
The Federal Government
unlike others injured by anti
trust violations, can seek onl,
single damages. The rest
State and local government
and private utilities who pur
chased from the involved com
panies-could seek triple dam
ages.
The city attorney Of. Sa,
Francisco, Dion r. Holm, sal