Evening star., 1961-06-05
Kefouver Hits GE Record i,
Cordiner Explains Policy

Senator, Kefauver today
: called the General Electric
Co.'S antitrust record "a cor
!. porate disgrace" but Ralph j,
Cordiner, GE's president and
board chairman, insisted his
company is doing its best to
stop price-fixing.
Mr.. Cordiner, testifying be-
fore the Senate Antitrust Sub
committee, accepted his "pro-
portionate share Of the respou-
sibility" for antitrust viola
tions that recently resulted in
conviction Of GE and served of
its leading officers. He main
tained, however, that he
neither knew about nor con-
doned the collusive price-fixing
and bid rigging.
Senator KefauVer, Democrat
OF Tennessee, based his case on
the contention that, if Mr..
'Cordiner did not know about
e the violations, he should have
known.
=. He listed dozens of antitrust
cases against GE dating back
to 1911, and said they presented
q pattern. He traced Mr.. Cor
diners career with GE start
ing in 1922, and contended that
the industrialist was in q posi-
tion to know details Of pricing
and competition.
COrdiner President in 1850
Mr.. Cordiner said most of
the cases cited Stemmed from
episodes occurring before he be-
came president in 1850. Before
this promotion, he maintained,
he had no authority or re-
sponSibility to deal with viola
/ tionS.
He said he recommended dis
charge Of two employees for dis
cuSSing prices Of X-ray film
with competitors in 1949, when
he was executive vice president.
: In 1855, he said, he acted as
president to fire another en-
ploye when the company's own
investigation disclosed anti
trust violations.
While refusing to acquiesce
in Senator Kefauver'S charge
Of corporate disgrace" Mr..
-Cordiner said he has been
"aggrieved and concerned"
about the recent cases and is |
trying to do something about c
it." =
Anti -CollusiOn Rules Cited
He observed that GE has J
written rules against colluSion I
with competitors since. 1946,
and has tried to implement t
these rules through "educa- y
tion," legal auditing and other n
measures. y
He conceded that the system
has not been completely effec- s.
tive, and said GE is redoubling d
its efforts. n
Senator Kefauver made no it
effort to conceal his skepticism a
of Mr.. Cordiner's claim that he 81
was ignorant Of antitrust con- c,
spiracy by his subordinates. He
said the record of violations
through the years should have
put you on notice" p ia,
The Senator suggested that b
orders for compliance son1e- Il
times were Cancelled out by "a tG
wink and an infection of the "
voice." n
Past history, Senator Ke-
fauver said, has inspired fear Ii
that GE again will "lapse." W
He asked Mr.. Cordiner Ii
whether he thought he had v,
been pretty negligent" Mr.. lie
Cordiner, who said he earned W
$3.50, 1000 last year, insisted he 2,
has tried his best to enforce it
compliance with antitrust laws m
and rules on the basis Of law, a
morals and good business. "You
can be sure" he said, "that te
if we uncover violations we are Il
going to take actions" o,
Sees Guarantee Impossible. -
But he said it would be i'm :
possible in such a large cor
poration, with $4.3 billion an
nual sales, for an executive to
guarantee 100 per cent" that
there will be no infractions.
Senator Hruska, Republican
of Nebraska, commended Mr.. {
Cordiner for accepting respon- D
sibllity for the recent cases. He c,
said Senator Kefauver has c,
adopted the principles Of guilt fl
by association in trying to /!
blame Mr.. Cordiner."
Mr.. Cordiner said no new b
antitrust cases were brought it
against GE from 1948 to 1860, ii
and said perhaps this record tx
lulled him. Senator Kefauver d
suggested that perhaps this O.
was a period when the Govern tt
ment simply failed to find out
about violations. ii
He said policy directives are A
not sufficient, unless execu- n
tives go out Gin the front el
ranks" to assure compliance. W
Mr.. Cordiner, asked about RI
proposed new antitrust legis- v
lation, said existing laws are 6
"amply severe"
Mr.. Cordiner, who had asked N
that he be permitted to testify, W
gave his views as the subcom- ic
mittee neared the end of five =
week inquiry into antitrust
cases brought by the Govern
ment against GE and other
major electrical manufacturers.
Mr.. Cordiner said the illegal
price-fixing meetings attended r.,
by er-echelon GE execu- - =
tiyes were violations of a clear, q q