Evening star., 1961-03-15

R0Derc r. kennedy nor WllLlan
Division here, elaborated. Mr..
MAher earlier this year headed
the successful prosecution of 90
big electrical firms and A of
their executives on charges Of
bid rigging and price fixing
which led to yesterdays action
here.
Cities, States Plan Suits
The suit was the first such
- filed by the Federal Govern
ment. In addition to the Fed
eral Government, States. cities
and private utilities are plan
ming multi-million dollar ac-
tions against the firms.
Meanwhile, the General Elec-
trio Co. and Westinghouse
Electric Corp, Americas two
biggest electrical goods manu-
faeturers who were among the
five named in the suit yeSter-
day, said they would vigorously
defend themselves against the
latest action.
The two firms, both of whom
pleaded guilty or nolo conten-
dere (no defenSe) along with
27;other companies in the huge
antitrust case, said their Gus
toners were neither cheated
nor victimized.
Other Companies Named
Echoing the same sentiments
was the Allis- Chalmers Manu-
featuring Co. of West Allis,
Wis, which also was named in
the civil action and earlier had
pleaded guilty or nolo con-
tendere on the antitrust
charges.
The two other firms named
in the joint civil action filed
in Federal District Court here
were the Federal Pacific Elec-
trie Co. Of Newark, N, j.. aud
LIE Circuit Breaker CO. of
Philadelphia. They, too, had
pleaded guilty or nolo con-
teldere earlier this year on
antitrust charges.
They had no immediate
comment.
The civil action charged that
eoHuSive rigging Of bids and
the illegal fixing Of prices in
the sale of oil circuit breakers
since 1851 resulted in prices
that were about 40 per cent
higher than what should have
been charged.
$4.4 Million Asked
It alleged that iva and the
Federal agencies bought more
than $25 million worth OF cir
cuit breakers at prices roughly
40 per cent too high in the
last nine years.
The Justice Department sued
on'behalf of the Atomic Energy
Commission, the Army Engi-
neers, the Bureau of Reclama-
ton, the Southwestern Power
Administration and the Boone
vile Power Administration. It'll
seeks doubles damages Of $4,-
42l.372.
iva contended that it can
sue for itself as an independ-
emf, self-sufficient corporation
and not as a governmental !
agency. i
II the court upholds this new
theory, IVA can collect triple
damages If it can prove it
suStained a money loss. iva,
however, specifically asks for
the treble amount of 81, ,478, ,691.
But If the agency can collect
only double damages, under the
Federal. False Claims Act, it
would be entitled to recover a
maximum of $4.985.794. /
Fines TOtaled 81. Million
Ii the antitrust action earlier
this year, United States District
Judge j. Cullen Ganey levied
fines totaling $1.924, 500 on the
90 companies and A of their
executives. Seven executives
were sent to Jail, including two
from Westinghouse and three
from General Electric. All
were freed last week after
serving rs to 26 days.
GE, Westinghouse and Allis-
Chalmers pleaded guilty in the
criminal action and were fined
$4,000, $4,000 and $4,000,
respectively. Federal Pacific
was fined $4,000 and LITE
$4,000. Four executives were
fined a total of $500 and
three received 30-day suspended
pI1SO11 DCAIUCl1OCo. OVAA4 w VIC
sentenced is a GE official who
is i'll.
Following yesterdays civil
action, .GE issued a statement
saying that an exhaustive audit
showed that most Of the trans
actions involved in the price
rigging case confirm that the
purchasers Of electrical appa-
ratus. have received fair value
by any reasonable standards. -
Discussions Invited
An invitation was extended
by GE to all customers to join
with it in exploratory discus
sions to review facts "in an at
tempt to reach amicable ad-
justmepts."
The firm said such participa-