Evening star., 1961-04-25

bad competitive position, he
said Mr.. Paxton suggested
that we get the competition to
agree to eliminate stocks just as
we got them to agree to fix
prices" He said that Mr.. Pax
ton was then works manager.
Mr.. Burke said that in
August or September Of 1857,
w. v. O'Brien. then a vice
president, teleponed him and
told me he had been ordered
by Mr.. Paxton to bring about
price stabilization. That was
the phrase for contracting COM
petitors, Mr.. Burke explained.
| Mr.. Burke said he passed the
word along to his colleagues
and one Of them, Frank E.
Stehlik. then general manager
Of the low voltage department,
objected. He said Mr.. Stehlik
protested that he did not see
how he could suddenly increase
prices by agreement with COM
petitorS when he had quoted a
substantially lower price to a
big company only a month
earlier. Mr.. Burke said that
Mr.. Stehlik was given permis-
sion to make an exception with
that customer.
Burke Questioned
The subcommittee, which is
trying to find out how far up
the line the conspiracy to fix
prices went in the major COM
panies, questioned Mr.. Burke
closely about his dealings with
Mr.. Vinson.
Mr.. Burke said he had not
received direct orders to deal
with competitors from GE
Board Chairman Ralph ].
Cordiner or Mr.. Paxton, but
had received such orders from
Mr.. Vinson.
Senate Republican Leader
Dirksen said that the FBI had
checked every form Of convey
ance that would have placed
Mr.. Vinson where Mr.. Burke
said he was for their meeting
but could not find evidence to
prove it. :
i am telling the truth" Mr.
Burke responded heatedly. IF
wanted to lie it would be to
my advantage to lie. This is
the same story I told before
l was ever called to a grand
jury"
Mr.. Burke testified that one
day between July and Septem-
Der. 1858. he was asked to come
to the office of George E. Bu-
renS. former general manager
OF the switch gear and control
division, to meet Mr.. Vinson.
Tells of Farley
He said Mr.. Burens asked hin,
to tell Mr.. Vinson of his ex-
pertenceS in contracting COM
petitors, particularly Westing
house.
Il told Mr.. Vinson it was fu-
tile to continue meeting with
competitors that they only
made suckers of us, that they
only used the meetings to gel
us to quote book prices ano
, then get us to cut below them
so there would be not benefit to
us. I cited several instances OF
a double clause. When fin
ished, Mr.. Burens said that that
confirmed what he had told Mr.
Vinson.
"Mr. Vinson said that he now
had their assurances that they
would work with us. He sale
that Westinghouse had learned
its lesson and was more inter.
ested in making profits thar
regaining leadership"
Mr.. Burke said that he
wanted Mr.. Vinson to repeat
what he had said to Mr.
= Burens. so he mentioned at a
luncheon that competitors had
been calling him by phone. He
said that Mr.. Vinson looked
, at me with daggers," but re-
peated his previous instructions
and told the group not to lei
the contacts with competitors
} go below the general manager
! level.
Mr.. Burke said he did moi
: tell the truth when he was first
( questioned by GE lawyers be.
cause he had been under in,
| structions for years never tC
: tell the lawyers about meetingi
; with competitors.