Evening star., 1961-04-13
Senate Probe
In Electric Fix
Stirs Dispute
BY MIRIAM GUTENBERG
.aJ'. Star Staff Writer

.ar'. Star Staff Writer
Members of the Senate Anti
trust Subcommittee today
fought over the propriety Of
launching a congressional in
vestigation Of the price-fixing
conspiracy in the electrical
industry while damage suits
brought against the offending
companies are pending in court.
Senator Wiley, Republican of
Wise sin, who has five
electrical companies among his
constituents, led the fight to
postpone the hearings or-if
that failS-to conduct the in-
vestigation in executive session.
Subcommittee Chairman Ke-
fauver retorted that if the
Senators waited until all the
tcaseS made their way through
the courts, it could be a wait
of IL years.
THE hasSle broke out after
Senator Kefauver, in his OPEN
ing remarks, charged that top
company officials among the
electrical manufacturers we're
being greatly overpaid if they
were. totally unaware of the
huge and blatant conspiracies
which were going on right I'M
der, their noses"
Eight Witnesses Called
The chairman's opening
Statement and the argument in
which all the subcommittee
members participated occupied
the abbreviated session today.
Eight witnesses had been called
b testify, but none of them
reached the stand before the
$tlbc committee had to break up
Tor a. meeting Of the full Sen
4te Judiciary Committee and
the Senate session.
yAfter the hour-long meeting
ii the crowded caucus room.
Senator Kefauver said he
planned to go ahead tomorrow
despite the attempted block by
Senator Wiley.
-Senator Wiley had started
the controversy by reading a.
letter from an official of one
of the companies calling the
proposed investigation unfair
as long as the court cases are
pending. The letter, from a
source not publicly named, de-
olared that interference with
the court system was "abhor-
nFnt to our theory of judispru-
dence."
s.Sehator Wiley, picking up
Where the letter writer stopped,
declared that if the electrical
cases were "litigated" before
the committee, the result would
be a national pre-judgment of
the civil suits now in the
courts.
Guilty Pleas Cited
. Senator Kefauver did not
entef1 the argument until Sen
Stor Wiley called the proposed
hearings a three ring circus"
and warned that the courts
might postpone the trials be-
cause of prejudice.
1Then Senator Kefauver said
1.-THE question of guilt or
Innocence of the companies
and individuals had already |
been conclusiyely determined
by pleas Of guilty or mo con-
test" He said the matter now
before the courts is the measure
Of civil damages, which will
not be involved in the hearings. |
He said that no witnesses will |
testify to the size Of damages. |
Senator Kefauver empha-
sized in his opening statement
that1t was not the subcommit-
tees objective to punish or
enbarrass any corporation or
any individual. Rather, he
said, the objective was to lay
the facts before Congress and
the public.
Senator Kefauver singled out |
the General Electric Co. for
Special mention. He said that |
less than two years ago Ralph |
j Cordiner, chairman of the |
board Of GE, told the subcom-
IHiittee that GE was making |
every effort to comply with the
anti-trust laws. Since then, he |
sid, GE has been indicted in
10 antitrust cases, has paid
fines of approximately $780,
090, s16 Of its employees have
been indicted for antitrust |
violations, Is of them were
Sentenced and paid substantial
fines, II of them drew Jail SEN
tellces and three of these act
TALLY went to jail.
~"Such an enormous failure
Oh the part of a leader of
American industry must be
plblicly explained" Senator
Kefauer said.