Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-07-27
GE Pays $7.4 Million
In IVA Price Fixinq
Antitrust
Settlement
Sets Record
BY MIRIAM GUTENBERG
Star Staff Writer

Star Staff Writer
The General Electric Co. has
agreed to pay $7,470,000 to
settle antitrust damage suits
brought by the Justice Depart
ment and the Tennessee Valley
Authority against the company
after the electrical fixing
convictions of 1860, Attorney
General Robert F. Kennedy
said today.
This is by far the largest cash
settlement ever received by the
Government in an antitrust
damage suit. The largest pre-
viouS money settlement in this
type of case was $44, 900 paid by
a baking firm this year.
Mr.. Kennedy said the settle
ment provides that iva will
receive $6,470,000 in damages
for inflated prices it paid Cen
eral Electric because Of the
price-fixing conspiracy.
The remaining million dol
lars will 60 to the Government
for purchases from GE by
other Federal agencies.
Seek Other Settlements
In all, the Government has
filed IL damage actions against
10 defendants in the electrical
case since March. 1861. Mr..
Kennedy said the Government
is trying to negotiate satisfac-
tory settlements with the other
defendants.
The total that GE had agreed
to pay represents an across
the-board settlement on Gov
eminent and iva purchases
from the company during the
period of the conspiracy. Mr..
Kennedy said that while the
price-fiXing conspiracies were
going on, the Government
bought approximately $l2 mil
lion worth of equipment in the
various categories of heavy
electrical equipment covered by
the damage suits. TWAS pur-
chases amounted to an esti-
mated $57.6 million.
viii Drop Other Suits
The settlement provides that
GE will make its multi-million-
dollar payments within 10 days
and that the Government will
go into court to ask dismissal
of the damage suits against GE
within 80 days.
GE was the only defendant
named in all IL damage suits.
The first of the damage suits
was filed March IA, 1861. by
both the Government and iva
and dealt with large outdoor
oil and air circuit breakers.
On April IL, 1861, both the
Government and iva filed
three damage suits involving
power transformers, turbine
generators and power switch
gear assemblies. At the same
time the Government also sued
for damages for nine iva pur-
chaseS of distribution trans
formers. low-voltage distribu-
ton equipment and low-voltage
power circuit breakers.
Last Suits in July
On September %, 1861, the
Government and IVA sued for
damages in the purchase Of
electrical insulators. The last
three Government suits were
filed on July Is, 1862 and dealt
with purchase of power-switch-
ing equipment, isolated phase
broken down by particular
buses and Navy and Marine
Switchgear. Mr.. Kennedy said
The settlement figure was not
products involved in the suits.
The electrical conspiracy
prosecutions brought by the
Government against 20 COM
panieS began when the first
If 20 indictments was returned
n Philadelphia on February
Is, 1860. All the defendants
pleaded guilty or did not con-
est charges OF conSpiring to
TX prices and rig bids.
In February, 1861, the de-
'endantS we're sentenced to pay
ines totaling $1,926,0O0. In all,
Is officers or employees of cleo
rical corporations were in
licted, seven were sentenced to
Today Jail terms and others
we're given suspended Jail terms
md fined.
In New York. Chairman
Ralph j. Cordiner of GE
the settlement reason
lble and fair, the Associated
Press reported.
Now that these landmark
See ELECTRICAL pana A.