Medford mail tribune., February 17, 1961, Image 5

First in a Series
Government Spent Over $300,000
To Break Up Electrical Conspiracy
Editor's note; United Prtc In.! u. - nnr "
Editor's note: United Press In.
ternatlonal reporters, headed by
Jack V. Fox, have checked into
the background, in various cities,
of the recent electrical industry
anti-trust case. Following is the
first of three dispatches reporting
on now wie government DrOKe me
case and obtained convictions at
Philadelphia Feb. 6, and describing
the "organization" men involved.
By JACK V. FOX
UPI Correspondent
It took the United States
government four years, cost
more than $300,000 and in
volved a good part of the FBI
to crack the anti-trust con
spiracy in the heavy electrical
industry." ,
Investisa tors were ud
against executives who used
codes, destroyed communica
tions and met in expensive
hotels in dozens of different
cities.
One group met 26 times in
10 months to set prices, rig
bids and divide up sales in the
power switchgear equipment
field.
They used an elaborate
formula known as "phase of
the moon" to indicate whose
turn it was to submit a low
bid and at what price in the
$2 billion yearly heavy elec
trical field. Each company
had its copy of the "moon
sheets."
Yet so complete was the
Justice Department investiga
' tion that not a single one, of
the 45 men and 29 corpora
tions doing 95 per cent of the
nation's heavy electrical busi
ness entered a not - guilty
plea, v
Prison for Seven
Federal Judge James dul
len Ganey of Philadelphia sen
tenced seven men to a month
in prison, suspended prison
sentences for 23 and levied
fines totaling $1,924,000.
None of the top manage
ment of General Electric,
Westinghouse or the other
huge corporations was in
dicted. The government had these
, weapons in its inquiry:
Expense Accounts. They
showed the same executives
present time and again in the
same hotels -wi'n -their com
petitors,. The Tennessee Valley Au
thority. The huge federal
power project furnished a
mass of information on its
own purchases which showed
beyond a doubt there was a
price-rigging plot.
Informers. As the case de
veloped, minor figures in
volved told on their superiors.
The government, playing for
keeps, granted them immunity
from prosecution for doing so.
Subpenas. The simply
power of subpena drew in cor
poration accounts and forced
' executives to testify before
grand juries. They could not
claim the Fifth Amendment
clause against self-incrimination.
The Sherman Anti-Trust
Act excludes that.
Begins Under Rogers
The prosecution began un
der Attv. Gen. William Rogers
in the Eisenhower administra
'tion, and new Atty. Gen. Rob
ert Kennedy got in only on
the tail of the case but long
enough to endorse the severe
penalties the government was
asking.
The man closest to the case
was William L. Maher, chief
of the Anti-Trust Division in
Philadelphia. . Maher at one
time had 20 Justice Depart
ment lawyers working under
his supervision. In his office
this week, Maher described
how the case developed.
For years there had been
complaints about near iden
tical bidding on equipment for
public agencies. In late 1957,
hahd ' JUhtuaMf
Aomi from the Courlriouia
FRANK MOIOAN - HAROLD SNODGHA5S, FUNERAL DtSiCTOM
DAY OR NIGHT Jjp PHONE SP 2-8030
Ask Us About the OREGON FUNERAL INSURANCE PLAN
Which We Heartly Recommend and Endorse
.
the FBI started an investiga
tion oi certain products.
Then in May, 1959, the TVA
furnished substantial informa
tion on its experiences with
the big electrical companies.
It was enough to call a grand
jury, the first of four in the
case. In all 75 witnesses were
summoned.
Maher said there was no
wire tapping or "bugging" of
hotel rooms. Testimony of
those involved exposed the
whole conspiracy.
Members were known to
each other by numbers. They
wrote on plain stationery to
each other's homes and de
stroyed letters afterwards.
One group involved General
Electric, Westinghouse, Allis
Chalmers, I-T-E Circuit Break
er Co. of Philadelphia, and
Federal Pacific Electric Co. of
Newark. N.J.
Meet in Hotels
During 1958 and part of
1959, executives of those com
panies met in hotels in Phila
delphia, Pittsburgh, Newark
and Haddonfield, N.J., Cleve
land, Milwaukee, Detroit,
Scranton and Hershey, Pa.,
Louisville, .New York and Chi
cago. They divided up the switch
gear business:
Company Percentage
General Electric 39
Westinghouse 35
I-T-E Cricuit Breaker 11
Allis-Chalmers 8
Federal Pacific 7
When it was completed, it
was the biggest anti-trust case
in the 71-year history of the
Sherman Act. There had been
larger suits involving one or
two companies, but none of
this magnitude affecting an
entire industry.
The case involved only
equipment used in the gener
ation, transmission and distri
bution of electricity. It had
nothing to do with consumer
sales of radios, TV sets, toast
ers or refrigerators.
The men convicted were
among the most respected citi
zens of their communities
with outstanding records of
civic service. Defense lawyers
pointed to those circumstances
in asking for leniency.
Bedford Charter
Being Revised; May
Be Finished by Fall
City Attorney Joel Reeder,
working with .representatives
of the bureau of municipal
research, is in the process of
revising the Medford city
charter-the first time 'it will
have been revised since 1905'.
Reeder said he hopes to
have the revised charter ready
to be submitted to a vote of
the people by fall. The city
council can either call for. a
special election, he said, or
wait and submit the charter
to a vote in the 1962 primary
election.
The main reason for want
ing the charter revised, Reed
er said, is that much of it is
now outdated. For example,
there is one section in the
charter which requires that
the chief of police be elected
by the city council. However,
a subsequent chapter, added
to the charter in 1956, speci
fies that the police chief shall
be appointed by the city
manager.
The charter now in use is
MEOFORD
The highest-paid executive
was William S. Ginn of Gen
eral Electric. He was boss of
17,000 men at the turbine di
vision in Schenectady, N.Y.,
and made $130,000 a year.
He was - and is - held in
highest regard. An officer of
the International Electrical
Workers Union, which was in
volved in a bitter, three-week
strike against GE last year,
said: ,
"Locally we found him a
fellow you could deal with
Sanitary Sewer in
West Medford Gets
Approval
The Medford city council
last night approved the instal
lation of a sanitary sewer in
the west Medford area, and
voted to give additional study
to a proposed annexation to
the city. They were but two
of a long list of items to re
ceive council consideration.
The sanitary sewer will be
located between Park Place
No. 5 and Alberts st., from
Prune to Dakota sts.
It was decided to give ad
ditional study to a request to
annex to the city an area east
of Chestnut st., and north of
Stewart ave. This area is part
of a larger area that had been
proposed for annexation, but
was withdrawn after several
property owners declined to
go along with a number of
conditions that the city tacked
onto the proposal.
Several councilmen said last
night they would like to find
out if it would be possible to
annex the larger area, before
they would approve the small
er area. The matter was post
poned until the next meeting.
The council gave its ap
proval last night to six assess
ment ordinances. They are:
A $12.20 per front foot
assessment for paving Black
Oak dr. from Barnett rd. to
60 pages long. The new char
ter, according to Reeder, will
be approximately one-third
that size. '
Will Not Change Power
The revised charter will not
substantially change the pow
er or authority of the city,
Reeder said, but it will leave
many of the city's" specific
grants of power to be covered
by ordinance or statute, in
stead of having them included
in the charter as they are
now.
As a rule, only the general
grants of power will be in
cluded in the new charter.
Such general grants include
broad powers granted by the
legislature and the state con
stitution, and those powers in
herent in being a municipal
ity, Reeder said.
However, those specific
powers which are not covered
by a general grant of power,
such as the requirement that
street paving requests be ac
companied by a petition, will
be retained in the revised
charter, he said.
The charter is to the city
as the constitution is to the
state. Medford's first charter
was approved by the state
legislature in 1885. The char
ter was revised for the last
time in 1905.
Additions Made
Since 1905, many additions
have been made to the char
ter, a number of them repeal
ing earlier charter provisions.
These additions have been
made both by the state legis
lature and by the electorate
of the city.
Reeder said much of the
work in rewriting the charter
will be done by Orval Etter,
a staff attorney for the bureau
of municipal research- A
model charter, prepared by
Etter, is serving as a guide
for the rewriting of the Med
ford charter, Reeder said.
In January of last year, the
city adopted a revised city
code. The new code took two
years to complete, and was
also done by the city's legal
staff working in conjunction
with the bureau.
IT'S ONLY FAIR
White Plains, N.Y.-IUPD-The
Westchester County Board of
Supervisors urged Thursday
that people be given the same
rights as livestock. The board
voted that a state law allow
ing owners of animals bitten
by dogs to collect damages
from dog license fees should
be broadened so that human
victims could collect damages
ttjo. i
MAIL TRIBUNE, MEDFORD,
fairly. He's a very much
respected man."
Gov. Nelson Rockefeller re
cently appointed Ginn a mem
ber of the New York Com
mission on Economic Expan
sion. But General Electric has
been the severest of all on
employees involved. GE says
the anti-trust conspiracy was
in outright violation of com
pany orders and has cut sal
aries, demoted and transfer
red men involved.
by Council
the intersection of Black Oak
dr. and Juanipero Way. The
city's estimate on this project
was $12.75 per front foot.
A $7.48 per front foot
assessment for paving Juani
pero Way from Black Oak dr.
to Mira Mar ave. The city's
estimate was $6.20 per front
foot.
A $2.84 per front foot
assessment for a water main
on Bealty st. from McAndrews
rd. to Manzanita st., and on
Manzanita st. from Beatty st.
north to Beatty St. south, The
city's estimate was $2.64.
A $3.01 per front foot
assessment for a water main
on Prune st. from Benson st.
to Chestnut St., and on Park
Place No. 5 from Prune st. to
Dakota ave., and on Dakota
ave., from Park Place No. 5 to
Chestnut st., and a 4-inch wa
ter main on Alberts st. from
Prune st. to Dakota ave. The
city's estimate was $2.88.
A $3.03 per front foot
assessment for a water main
on McAndrews rd. from Wav
erly ave. to Wabash ave., and
on Wabash ave. from McAn
drews rd. to Spring st., and
on College Way and Hill st.
from Wabash ave. to 320 feet
east. The city's estimate was
$3.01.
A $4.64 per front foot as
sessment for a water main
on Crestbrook rd. from Ellen
dale dr. to Greenwood St., and
on Greenwood st. from Crest-
brook rd. to Highland dr. The
city s estimate was $3.69.
The council called for a
public hearing at its next
meeting on a request to
change the zone of approxi
mately 11 acres located south
west of Stevens st. and Crater
Lake ave. from single family
to multiple family zone. '
Approval was given to a re
quest to vacate a portion of
the northwest corner of the
intersection of Suzanna st.
and Obispo dr.
A low bid of $15,970 was
awarded to the Richfield Oil
company to supply the city
with gasoline, diesel oil and
kerosene. A low bid of $726
was awarded to the Union Oil
company to supply the city
with motor oil, chassis lubri
cation and gear lube.
Cloer Coordinates
Guidance Workshop
Ashland - Dr. Harold A.
Cloer, director of guidance
services at southern Oregon
college, served as coordinator
for the guidance and admis
sion workshop sponsored by
the college entrance examina
tion board Feb. 15 at South
ern Oregon college.
The meeting was devoted to
the analysis of case materials
of actual cases for college ad
mission. The group evaluated
the potential of students for
doing satisfactory college
work and the eligibility for
financial support.
CEEB tests, their purpose,
and significance of their re
sults were discussed along
with the use of the college
scholarship service of the edu
cational testing service.
They reviewed admission
policies of colleges and uni
versities throughout the
United States, how they are
changing, and the local ad
ministering of college board
tests.
Arts, Cratts Class
Open tor Enrolling
The city recreation depart
ment-sponsored arts and crafts
program is still open for reg
istration, according to Recrea
tion Director Ken Lyons.
The classes are being held
in the YMCA crafts room with
Warren Strause and Ed Logan
serving as instructors. Includ
ed in the program is ceramics
and painting.
The classes are held Mon
day and Wednesday evenings
and Saturday mornings and
afternoons. They are arranged
by age group. Additional in
formation can be obtained by
contacting the instructors dur
ing the classes, or by contact
ing the recreation department
in the Medford city hall.
ORE.
AFL-CIO Attacks
JFK's Minimum
Wage Proposals
Washington - HOT - The
AFL-CIO today attacked Pres
ident Kennedy's proposal to
raise the minimum wage law
as "not good enough."
AFL-CIO secretary - treas
urer William F. Schnitzler
asked Congress to approve an
immediate step-up in the fed
eral floor under wages from
$1 to $1.25 an hour and ex
pansion of coverage to six
million additional workers.
Labor Secretary Arthur J.
Goldberg, former AFL-CIO
special counsel, was expected
to defend the administration's
proposal for a gradual in
crease to $1.25 and extension
of the law's protection to 4.3
million more persons.
Leadoff Witness
Goldberg was called as the
leadoff witness at hearings
before a House labor subcom
mittee on the wage-hour im
provements endorsed by Ken
nedy as anti-recession tools.
Schnitzler, in testimony pre
pared for delivery to the sub
committee, said enactment
of the . AFL-CIO's proposal
would put $1.2 billion into the
hands of consumers compared
to $600 million under the Ken
nedy program.
Other Congressional news;
Farm: Assistant House Dem
ocratic Leader Carl Albert
(Okla.) and Rep. W, R. Poage
(D-Tex.), chairman of an ag
riculture subcommittee, pledg
ed fast action on Kennedy's
plan to bolster sagging income
of feed grain producers. They
forecast approval of the plan,
but predicted a battle would
delay passage until after
spring planting time.
Defense: The House Science
and Astronautics Committee
heard Army officials in a re
view of the Defense Depart
ment's research and develop
ment program.
Dad's Day Slated
AtSOC Saturday
Ashland - Dad's Day, an
annual event at Southern
Oregon college will be held
Saturday, Feb. 18, Dr. Loren
E. Messenger, secretary of the
SOC Dad's club, has an
nounced. Registration will begin at
1 p.m: in Britt Lounge. A
Dad's club business meeting
will be held and a tea for the
mothers at Susanne Homes
hall is scheduled. A talent
show and a tour of the campus
are also planned for Saturday
afternoon. Dinner will be
served in the Commons at 6
p.m.
Climaxing the day's actlv
ties will be a basketball
game, the SOC Red Raiders
versus Portland State college,
in the gym at 8 p.m. An after
game dance will be held in
Britt ballroom sponsored by
Alpha Phi Omega. Music will
be provided by a 14-piece
band.
Parents who will be at the
college Sunday are invited to
attend a harpsichord concert
presented by Harold Chaney
at 3 p.m. in Churchill audi
torium. DELAY GRANTED
San Francisco -IUPD Mrs.
Katherine Clever, who plead
ed guilty to a charge of fall
ing to file a 1954 income tax
return, has been granted a
delay in sentencing until
April 18. Her attorney ex
plained Thursday that Mrs.
Clever operated an account
ing business and would be
very busy through April 15
processing clients' Income tax
returns.
TAX RETURNS
2.00
Save Taxes. Find out your deducts. All
Returns prepared en comparative basis
and filed in accordance with Internal
Revenue Code. Fait Service.
OREGON
BOOKKEEPING
SERVICE
217 Fluhrer Bldg. SP 3-6874
OPSN SATURDAY TILL 1 P.M.
OREGON'S LARGEST TAX SERVICE
In the Day's News
ly FRANK JENKINS
Farm note from Russia:
Premier Khrushchev made
a speech today to farm leaders
at Tiflis, capital of the Soviet
republic of Georgia. He is on
a tour of the Soviet Union to
SPUR FARM PRODUCTION.
He urged the Georgian
farmers to PRODUCE MORE.
pOMMUNIST China, as well
as communist Russia, is
having its food troubles. One
gathers from the news that
China's food shortages are ap
proaching the point of famine.
Widespread drouth is offered
as an official excuse, but one
can't help suspecting that lack
of enthusiasm for more pro
duction on the part of China's
farmers had something to do
with it. '
They aren't allowed to keep
what they raise - or to sell
their surplus on the open mar
ket to the highest bidder. In
stead, the state takes it ALL
away from them and feeds
them what it thinks they need.
MOTE to Mr.
Kroosh and
11 f
Old Mao:
Let your farmers BUY
THEIR LAND and own it. Let
them sell their crops to the
highest bidder - either gov
ernment or PRIVATE bidders
- and KEEP THE MONEY.
If you'll do that, you'll soon
have plenty of food. If you
doubt it, come over and have
a look at our storage ware
houses, which are bulging.
VTEW slant on juvenile
de-
i' linquency:
About 483,000 juvenile de
linquency cases, excluding
traffic offenses, were handled
by the juvenile courts in the
U.S. during 1959. These in
volved about 417,000 children
- which Is to say, there were
quite a few repeaters.
SOUNDS pretty bad?
Wait a minute.
These children who got into
the juvenile courts in 1959
(the latest year for which the
figures are available) repre
sented ONLY 1.7 PER CENT
of the nation's child popula
tion. Put that way, It doesn't
sound so bad.
fVUESTION:
" Do we pay more attention
to the bad news than to the
good news?
Another question:
If it is true that we pay
more attention to the bad
news than to the good news.
does it lead us to the con
clusion that the modern world
is WORSE than it really is?
One can't help wondering.
HIORE along that line:
The latest figures- indicate
that in January of this year
about R.7 million persons were
out of work In the United
States. That sounds pretty
bad.
But
Official figures reveal that
in December 66 million peo
ple were WORKING. That is
the largest number EVER AT
WORK IN ANY DECEMBER
IN OUR HISTORY. - .
, Maybe we've been looking
too much at the hole and too
little at the doughnut.
DOGS ATTACK DEER
Leesburg, Va. IUPII D 0 g
warden Jack Hall reported
Thursday he killed two
hounds which attacked a herd
of deer at the farm of televi
sion personality Arthur God
frey. Eleven deer were
killed by the dogs.
EX-COMMANDER DIES
Asbury Park, N.J.-WPD-Com-missioner
Edward Justus
Parker, 91, former national
commander of the Salvation
Army, died Thursday.
up
J"" m r 1 vdSfeA-. I
NEW
PREPARATION H
SHRINKS PILES
WITHOUT SURGERY
Relieves 9jcJLuba
I
I ovc
pain:
I
I INCLUDES APPLICATOR
for Relief of Cold
and Sinus Miseries!
DRISTAN
Help driin ill HGHT
linuiovi- Reg. 98c
tics. 3-lsyer
tablet, ift...
66
100 Tablets
Reg. 1.23
BUFFERUl
twice as fast as aspirin
doesn't upset your stomach
THOREXIN
The Guided Antitussive
1.25 size .... 79c
ELECTRIC
HEAT PAD
86c gF3
By
NORTHERN
ELECTRIC
Three
Positive
Heats
1 Year Guarantee $2.79
3 Year Guarantee $5.45
YEAR GUARANTEE
100 Wetproof
$6.45
Lilac Vegetal
AFTER SHAVE LOTION
New GIANT
12 oz. size,
reg. $1.75 at;
1
.4. 7
plus lax
(limind llmt Only)
WHISKER WILTER
69c tube 39c
49c COURTLEY
SHAVING CREAM
Brushless or
X2
ran
29c
Lather
UNIVERSAL
JUMBO
LUNCH KIT
With VA Pint
VACUUM BOTTLE
S359
Add Federal Excise Tax on
FRCSCRIPl
SPECIALISTS i
V.,.
FRIDAY, FEBRUARY
wnn m n am
new kfl kilSE3?F!d
HETRECAL
DIETARY FOR WEIGHT CONTROL
THE EASY, SCIENTIFIC
WAY TO LOSE WEIGHT
ONE DAY'S DIET
1
lb. can . . 79c
V2"
One Week's Diet
3V2-U). can . $4.98
METAMUCIL
I D A Natural Vcg- M Q7
etable Powder St.O I
McKESSON'S
MINERAL OIL
Pint, heavy.. 33c
25's Glycerin
Suppositories .. 39c
Pint, MILK OF
MAGNESIA ... 39c
TahlctsMILK OF
MAGNESIA ... 39c
Camphorated Oil
2-cz.. ,29c
VALCREAM
59c CHAP-ANS
Grooms jglfjjgi
Showing Tr&fJ
Keeps Hair aaaVkw AIAKIT
Looking Neat W'" VTl .
miu maiurai ... , ' & dm C
I sioo i iDTinirc : oo
Value W I IVI EVENING IN PARIS...... WtJto
$1.00 JERGENS SHAMPOO
COCONUT OIL u 50c
HAIR CONDITIONER (ZiVlt 59c
LANOLIZED GLAMOUR MIST,
Rift 1R.A7 Professional Size qe
Dm O-Oi, ivl9lble Halr Spray OQC
25c
Cards
BOBBY PINS
SHOE SHINE VALET
Durable plastic
8 comparitn.nl for
bruth.t and pallih.i
SILVER or BRONZE
SPECIAL
$1.29
INSTANT SPRAY
PENNY SHINE
Silicones & Lanolin
Will Not Stain
Instant Shine With
No Buffing
12-oz. can, 85c
Taxable Merchandise
MEDFORDS ORIGINAL PRICE
MMSta
17, 1961
VITA-HEALTH
11 VITAMINS
11 MINERALS
$1.75
50 Tablets
25 day supply..
89c
Size
$3.89
130 Tablets CI AC
65 day supply V
260 Tablets M IE
130 day supply SU.HJ
Size
$6.89
Size
COD LIVER OIL
Pint ...... 79c
Rubber Tipped
Black or Bronze..
229c
Try Miracle
"CUSHION
GRIP"
"twin" foit r.tihl
Hodi Haft light!
On Application tails for
Monlhtl
Tuteleu, odorlesi. pliable-ends "click
clack" of loose plates. No messy pow
der, paste or pad. Easily removed when
desired. MONir MW aUAHAMII
MOST
IMPORTANT
Our prescription service
is and always will be
the most important part
of our, business. Your
; prescriptions receive the
. immediate and undivided .
attention of an experi
enced pharmacist who
carries out your doctor's
orders with professional
skill and painstaking
care. This service, so im
portant to your health
and well-being, is most
important to us.
Free Delivery in Medford
CUTTERS
j&T- by Boyle
HAND CREAM.. 39c
if
EM
"mfc y' SO
"J N. CENTRAL