Evening star., 1961-04-13
GIN Assai|s
Monopoly
Indictment

NEW YORK, April 13 (AP).
General Motors Corp. has
been indicted on a charge of
criminally monopolizing pro-
duction and sale of diesel loco
motives and suppressing COM
petition in the industry.
A one-count indictment
against GIN was returned here
yesterday by a Federal grand
jury, acting on evidence pre-
sented by the Justice Depart
Antitrust Division.
Frederick G. Donner, chair
man of the GIN board, COM
General Motors is not guilty
OF the monopolistic practices
charged in the indictment. This
will be clearly established at
the trial"
10 Plead Monday
The corporation is sched-
uled to plead in Federal Dis
trict Court next Monday. If
convicted. it could be fined up
to $4,000.
Attorney General Robert F..
Kennedy said in WASHINGTON
that the charge against GM-
violation of the Sherman Anti
trust Act-resulted from a two
year investigation. r
The indictment says GIN
used illegal sales methods to
suppress competition and cap
ture more than "a per cent of
the locomotive business for its
Electromotive Division.
Citing GIN as probably the
Nations largest shipper Of
freight" the indictment charges
that GIN routed shipments to
favor purchasers of it's loco
motives, and withheld or re-
duced patronage to lines buying
diesel locomotives from GIN
competitors.
Bids Questioned
Other accusations are that
GIN took part in drawing Up
specifications for use in bidding
shutting off other manu-
facturers from competition
and selling locomotives at a loss
wherever it had competition.
GIN entered the locomotive
industry in 1880. In 1860, it
had total net sales in all of its
manufacturing lines of $12.7
billion. The Government charges
that GIN had acquired "a per
cent of the locomotive business,
and since 1916 sold locomotives
with a total value of $2,681,-
545,429. .-..>
In recent years, the indict-
ment said. the sales of Alec
Products, Inc, GINS principal
competitor in locomotive pro-
duction, dropped from almost
40 per cent of the market to
about 13 per cent.
1t said further that two
former major produeers-Fair-
banks, Morse & Co. and Bald
win-Lima Hamilton Co.-hage
dropped out of the field en-
tirely, with neither having
made a locomotive for the past
two years.
Mr.. Donner. in his statement,
cited GINS record in develop
ment of the diesel electric loco
motive which has saved the
railroads millions of dollars"
Credits Diesel Design
He said it was no secret that
GIN concentrated on improving
its two-cycle diesel engine while
competitive manufacturers still
were promoting the sale of
steam locomotives. ,
The grand jury action, Mr..
Donned added, may well cause
business to pause before under
taking the many risks of en-
barking upon a new business
venture =" ,.t..
The information leading to
the indictment, Mr.. Donner
said, has been available for
years." and he found it diff
ficult to understand why =.
the Government should now
file this proceeding"
GINS Electromotive Division
has its headquarters at La
grange, ILL.,, and plants at La
grange and Chicago. 1t main.
tains REBUILDING branch plants
at Emeryville, Calf; Hale
thorpe, Md; Jacksonville, Fla. !;
Los Angeles. Hazelwood, No.,
and Salt Lake City. as.
3 Other Actions
The Government has three
other antitrust actions pend
ing against GIN.
In one the Justice DEPART
ment seeks a full corporate d.
vorce Of GIN from E. /. sdu
Pont de Nemours Co. :
In another civil suit at De-
troit, the Government charges
GIN with monopolizing the
manufacture and sale of local
transit and intercity buses.
The third, filed in 1859 in
New York and transferred to
Cleveland, seeks to force GIN
to divest itself of Euclid Road
Machinery Co., once the Ma
tion's largest producer Of
earth-moving equipment.