Evening star., 1961-05-03


had been betrayed.
At the same time, he told
the subcommittee that he was
convinced that some of the
witnesses who thought their
superiors were aware of their
price-fixing activities might
have misunderstood through a
failure of communication.
He explained that those who
engaged in price-fixed meet
ings and thought their Su-
periors were aware of it had
a code Of communication"
where even a wink was sup
posed to convey something.
Blunt and Direct
Mr.. Paxton, blunt and direct
on the witness stand, got red
faced under questioning by
Chairman Kefauver about Ar
thur F. Vinson, GE vice presi-
dent and group executive.
Senator Kefauver told Mr..
Paxton that you weren't try
ing to find out if Mr.. Vinson
was involved"
Il have never tried to cover
up for Mr.. Vinson and in my
opinion there has never been
any need to cover up for Mr..
VinSon." the witness retorted.
Mr.. Paxton was asked about
the testimony of Raymond
Smith, former general manager
of the transformer division,
who had testified that at his
first meeting with Mr.. Paxon,
Mr.. Vinson and the company's
general counsel after the grand
juries began meeting on price
fixing in the electrical indus
try, Mr.. Smith implicated Mr..
VinSon.
Mr.. Paxton recalled that at
this session Mr.. Smith was
asked If any of his superiors
knew anything about the price
fixing meeting that had gone
on.
Mr.. Paxton testified that Mr..
Smith pointed his thumb at
Mr.. VinSon and that immedi-
ately thereafter Mr.. Smith was
excused from the room.
Seeks to Testify
Mr.. Paxton said Mr.. Vinson
then leaped into Mr.. Smiths
chair and said, Now I'm the
witness, ask me-"
Senator Kefauver commented
that it did not make sense that
Mr.. Smith was excused after
his accusation of Mr.. Vinson
and insisted that If Mr.. Paxton
had not been trying to cover
up. Mr.. Smith would have been
asked to specify what he
meant.
Il categorically deny that I
was trying to cover up" Mr..
Paxton retorted. Il was anxi-
GUS to get to Mr.. Vinson. There
were questions trembling on my
lips"
Mr.. Paxton was asked when
he first became aware of price
fixing activities in the industry.
The Scottish-born company
chief testified that in the mid
30s he was sent to the Wesl
Coast to spend several weeks
with a customer on a large
transaction in switch gear
equipment. He recalled that
he did not get what he con-
sidered a satisfactory propor-
ton of the order and returned
in somewhat disappointment to
his Philadelphia headquarters
Exchanged Angry Words
He said that when he re-
ported to Robert F. Tinnerholm,
the sales manager of his Sec
ton, Mr.. Tinnerholm told him,
We'll, you weren't expected to
get that order anyhow" He
said Mr.. Tinnerholm winked at
me and we had some angry
words.
II told him I would never
have anything to do with such
monkey business" Mr.. Paxton
recalled. II told him it was an
outrage to go through the mo-
tions that way. He had sent
me out 5000 miles and I spent
several weeks working against
a stacked deck. ] didn't like it
then and I wouldn't like it
now."
He testified that his attitude
became well known and as a
result, those who did engage in
price fixing or bid rigging didn't
tell him about it.
"AS far as I was concerned,
he said, they pretty much
went underground"
Testimony Differs
Mr.. Paxton has figured in
conflicting testimony. One wit
ness left the impression that
ne got into a violent argument
with Mr.. Paxton because the
witness insisted on competing
not collaborating-with other
electrical firms. Another wit
neSs, however. pictured Mr..
Paxton as a stern believer in
hee competition.
Mr.. Paxton is the highest on
;he management ladder the
subcommittee has gone so far
n its efforts to determine
whether the top command di-
:ected or condoned price fixing
meetings.
William S. CHM. a former