Thank you for visiting SNEWPapers!
Sign up free
Editorial
December 30, 1960
Toledo Union Journal
Toledo, Lucas County, Ohio
What is this article about?
Editorial criticizes U.S. newspapers for ignoring or downplaying the major antitrust scandal where 19 electrical equipment manufacturers, including General Electric and Westinghouse, pleaded guilty to price-fixing and market-splitting on over $1 billion in bids, involving 72 entities and potential prison for 44 executives.
Clipping
OCR Quality
98%
Excellent
Full Text
ONE OF THE MAJOR news stories of the year occurred last week in Philadelphia but you wouldn't know it from the way most newspapers handled or ignored the story.
We refer to the fact that 19 of the country's principal electrical equipment manufacturers pleaded guilty to fixing prices on bids covering more than $1 billion.
The guilty pleas, made in the U. S. District court in Philadelphia, ended the largest criminal antitrust case ever filed by the Federal government. The pleas put 44 business executives, including four vice presidents of General Electric Corp., and three of Westinghouse Electric Corp., in danger of prison terms.
The corporations admitted that they conspired both to fix the prices and to split up the market on certain electrical items.
Counting both companies and individuals, there were 72 guilty pleas and 88 of no defense. The companies are liable to a maximum $50,000 fine on each indictment.
The individuals could receive a maximum penalty of a year in jail and a $50,000 fine.
However, it should be pointed out that when a company pleads guilty to an antitrust charge, anyone affected by its conduct can sue for triple damages. Almost a fourth of the products involved in the cases were sold to Federal, state and local governments. It was estimated that more than $7 billion was involved in the violations.
The firms involved included the "big five" of the industry - General Electric, Westinghouse, Allis-Chalmers Mfg. Co., I-T-E Circuit Breaker Co., and Federal Pacific Electrical Co.
Assistant Attorney General Robert A. Bicks, head of the antitrust division, said: "These men and companies... have in a true sense mocked the image of that economic system which we profess to the world. They have destroyed the model which we offer."
Here are some of the top names-companies and individuals-of the country pleading guilty to price fixing and bid fixing. Here is the largest criminal antitrust case ever filed by the Government. And where are the big, black front page headlines and indignant editorials written by outraged editorial writers and editors?
We refer to the fact that 19 of the country's principal electrical equipment manufacturers pleaded guilty to fixing prices on bids covering more than $1 billion.
The guilty pleas, made in the U. S. District court in Philadelphia, ended the largest criminal antitrust case ever filed by the Federal government. The pleas put 44 business executives, including four vice presidents of General Electric Corp., and three of Westinghouse Electric Corp., in danger of prison terms.
The corporations admitted that they conspired both to fix the prices and to split up the market on certain electrical items.
Counting both companies and individuals, there were 72 guilty pleas and 88 of no defense. The companies are liable to a maximum $50,000 fine on each indictment.
The individuals could receive a maximum penalty of a year in jail and a $50,000 fine.
However, it should be pointed out that when a company pleads guilty to an antitrust charge, anyone affected by its conduct can sue for triple damages. Almost a fourth of the products involved in the cases were sold to Federal, state and local governments. It was estimated that more than $7 billion was involved in the violations.
The firms involved included the "big five" of the industry - General Electric, Westinghouse, Allis-Chalmers Mfg. Co., I-T-E Circuit Breaker Co., and Federal Pacific Electrical Co.
Assistant Attorney General Robert A. Bicks, head of the antitrust division, said: "These men and companies... have in a true sense mocked the image of that economic system which we profess to the world. They have destroyed the model which we offer."
Here are some of the top names-companies and individuals-of the country pleading guilty to price fixing and bid fixing. Here is the largest criminal antitrust case ever filed by the Government. And where are the big, black front page headlines and indignant editorials written by outraged editorial writers and editors?
What sub-type of article is it?
Economic Policy
Crime Or Punishment
What keywords are associated?
Price Fixing
Antitrust Case
Electrical Equipment
Guilty Pleas
Bid Rigging
Corporate Conspiracy
Media Coverage
What entities or persons were involved?
General Electric Corp.
Westinghouse Electric Corp.
Allis Chalmers Mfg. Co.
I T E Circuit Breaker Co.
Federal Pacific Electrical Co.
Robert A. Bicks
Editorial Details
Primary Topic
Media Neglect Of Electrical Equipment Antitrust Scandal
Stance / Tone
Indignant Criticism Of Press And Corporations
Key Figures
General Electric Corp.
Westinghouse Electric Corp.
Allis Chalmers Mfg. Co.
I T E Circuit Breaker Co.
Federal Pacific Electrical Co.
Robert A. Bicks
Key Arguments
19 Major Electrical Manufacturers Pleaded Guilty To Price Fixing On Over $1 Billion In Bids
Largest Criminal Antitrust Case By Federal Government Ended In Philadelphia
44 Executives, Including Vps From Ge And Westinghouse, Face Prison Terms
Companies Conspired To Fix Prices And Split Markets
72 Guilty Pleas And 88 No Defenses Entered
Violations Involved Over $7 Billion, Much Sold To Governments
Antitrust Actions Mock U.S. Economic System Image
Press Failed To Provide Prominent Coverage Or Editorials