Second in a Series
Men Convicted in Huge Conspiracy Said Highly Respected in Community
Editor'i note: This Is the xerond
of three dispatches reporting in
depth on the recent electrical
Industry anti-trust case.
By JACK V. FOX
UPZ Correspondent
Elmo Smith and John H.
Chiles Jr., are in the same cell
block at Montgomery County
Prison at Norristown, Pa.,
near Philadelphia.
Smith, 29, is a murderer.
He faces mandatory sentence
to the electric chair for the
sex killing of a 16-year-old
girl.
Chiles, 57, is serving 30
days. He is a vice president of
Westinghouse. His crime was
that he violated the nation's
anti-trust laws for profits for
his company.
Chiles, along with 47 other
executives and 29 corpora
tions, pleaded guilty or no de
fense in a conspiracy to fix
prices and rig bids in the $2
billion annual sales of the
heavy electrical industry.
Six other men were sen-
Dividends To Be'
Paid on Policies
Portland-Under a new step
ped up payment of GI Life
Insurance dividends, 58,000
Oregon veterans will receive
nearly $3 million before the
end of March, 'manager R. J.
Novotny, of the Veterans Ad
ministration regional office at
Portland, has announced.
The first 12,000 checks, to
talling 5540,000 will be mail
ed immediately. By March 4,
14,000 more payments, adding
up to $630,000, will be in the
mail and the remaining 51,
800,000 will reach 32,000
more policy holders before
March 30, he said.
The payments are the regu
lar annual dividends to hold
ers of World War I and World
War II insurance which nor
mally are paid over a 12
month period. The current
speed-up is made by order of
President Kennedy as a stimu
late to the national economy.
Nation-wide the VA is paying
a quarter billion dollars to
more than five million veter
ans.
tenced with Chiles. One is
William S. Ginn, a $130,000-a-year
vice president of Gen
eral Electric. They are in six
of the 36-adjoining cells of
the block, dressed identically
in blue denim prisoner uni
forms with the initials
"MCP" over the shirt pocket.
Each man has a space 9 by
12 feet with a toilet and wash
basin. For the 30 days, if they
wish, they can do nothing.
Or they can work in the pris
on laundry, boiler-room, as fil
ing clerks in the office or in
the library.
Grant Postponement
One man, J. M. Cook of the
Cutler - Hammer Co., was
granted a postponement in be
ginning his jail term so he
could be present at a long
planned party to announce
his daughter's engagement.
Almost all the defendants
were highly respected individ
uals usually referred to as
"pillars" of their community.
Was prison too stiff a pun
ishment for their crime?
The government thought
not. It asked jail sentences for
30 men but U. S. District
Judge James Cullen Ganey
gave suspended sentences to
23.
The prosecution - which be
ean unrlpr tlm Kisnnhnwpr ad
ministration and was approved
By the Kennedy - pointed out
that the victims of the price
cartel inclurleerl the armpri
forces, the Atomic Energy
commission, the Tennessee
Vallev Authority, state and
municipal governments a s
Scout News
Back 4
Cub Scout Pack 4 will hold
their annual blue and gold
dinner Thursday, Feb. 23, at
6:30 p.m. at the Oak Grove
school gymnasium.
Parents will be contacted
regarding potluck dishes, and
each family is to bring their
own service. Coffee and ice
cream will be furnished by
the pack.
The opening ceremony will
be conducted by Den 4. There
will be presentation of awards
and other entertainment is
planned.
Plumbing-Contractor
City and State License
ST'
, CALL
SP 3-3503
"Misa, STEVENS PLUMBING & HEATING
well as private utility com
panies. Judge Ganey had some un
compromising words as he
passed sentences.
"I am convinced that in the
great numoer of these de
fendants' cases, they were
an approved corporate policy
with the rewarding objectives
of promotion, comfortable se
curity and large salaries," he
said.
"In short, the organization
or the company man, the con
formist, who goes along with
torn between conscience and his superiors and finds balm
for his conscience in addition- A case In point is Chiles,
al comforts and the security on the day he was sentenced,
of his place in the corporate he WM reelected vice presi.
Friends, Neighbors Shocked
Many of their friends and
neighbors in home towns are
thoroughly shocked by jail
sentences.
Medford
Tribune
SECTION B MEDFORD, OREGON, SUNDAY, FEBRUARY 19, 1961 PAGES 1 to 8
UM l,.fll.l.lill,.jH,l
ACCEPTS COPY Chief Justice William
M. McAllister (right) of the Supreme Court
of the State of Oregon, formerly of Medford,
accepts a copy of the just-published "Hand
book for Jurors" from Dean F. Bryson of
Portland (left) president of the Oregon State
Bar. The booklet was prepared as a public
service by the state bar. McAllister com
mended the bar for the publication which
he praised as "an excellent and Informative
guide." Thirty-one Oregon county govern
ments cooperated in the project by under
writing printing costs for a supply of book
lets to be distributed in their respective
judicial districts.
dent of the United Fund Or
ganization in the community
of Sharon, Pa., a town of
about 65,000 50 miles from
Pittsburgh.
The Rev. Malcolm MacMil-
lan, pastor of St. John's Epis
copal church in Sharon, where
Jurors Handbook
Prepared by Bar;
Being Distributed
Salem - "A Handbook for
Jurors," prepared as a public
service by the Oregon State
Bar, has been published and
currently is being distributed
to county courthouses
throughout the state, accord
ing to Dean F. Brayson of
Portland, state bar president.
It is the hope of the bar
that a copy of the booklet
will go to every Oregon citi
zen called to serve on a jury,
Bryson said.
The contents of the book
let, written by a special com
mittee of the state Bar, work
ing with the bar's public serv
ice and information commit
tee, deals with the role of
the jury and juror, examina
tion of jurors, evidence, types
of cases, definitions of terms
commonly heard during a
trial and other subjects per
tinent to jury duty.
Commends Book
The public service project
brought words of commenda
tion from Chief Justice Wil
liam M. McAllister of the
Supreme Court of the Stale
of Oregon who said: "The
Handbook for Jurors pre
pared by the Oregon Slate
Bar for distribution in our
trial courts is an excellent
and informative guide which
I am sure will be of great
value to our citizens in per
forming their duties and ob
ligations as jurors."
Thirty-one of Oregons 36
county governments cooper
ated in the publication of the
Handbook for Jurors by un
derwriting the cost of print
ing copies to be distributed
to jurors in their respective
judicial districts. Baker, Ben
ton, Klamath. Lane and Mar
ion counties did not partici
pate in the project, according
to the state bar office.
Of the total press run of
50,000, the Multnomah coun
ty commissioners purchased
10,000 copies to be given out
to jurors in the Fourth Ju
dicial District.
Chiles has served as senior
warden, the highest lay office, i
said: "The vestry still feels'
Mr. Chiles is a man of high i
integrity and we have every I
confidence in him." j
One of his close friends re
marked bitterly that Chiles
was a "fall guy for the com
pany."
A man who worked with
Chiles during 35 years of civic
service, which included a cita
tion last year for his work
with crippled children, said:
"I think that the only thing
John could be guilty of is do
ing his job with the same con
scientious attitude with which
ho goes about everything that
he undertakes."
Leniency Sought
Chiles, a small man with
goldrimmed glasses, has said
nothing in his own defense.
He stood with his head slight
ly bowed as his attorney
Philip H. Strobing of Phila
delphia, sought leniency from
the court.
"No further punishment is
needed to keep these men
from doing what they have
done again.'' Strubing said.
'These "on were not grasp
ing, greedy, cut-throat com
petitors.
They devote much of their
time and substance to their
communities."
Chiles did write a letter
to the Sharon Herald, ex
pressing his gratitude for the
sympathy he had been shown.
"These heartwarming mani
festations of support have
erased any personal fear of
what I may face In the next
few weeks," he said.
Kansas City Man
Sentenced to Jail
A 20-ycar-old Kansas youth
was arrested on a charge of
vagrancy early Friday morn
ing after he chose a men's lav
atory in the Goldy building,
1U8 bast Main St., as a place
to spend the night.
Robert Cecil McCleary,
Kansas City, told police he
had been unable to find lodg
ing for the night so he entered
the unlocked Goldy building
and himself al home in the
lavatory.
But McCleary's sleep was
interrupted about 6 a.m. by a
janitor. The janitor tried to
catch McCleary, but he ran
away. A short time later, how
ever, McCleary came back to
the building to retrieve his
coat, and this time the janitor
caught him and held him for
police.
McCleary entered a plea of
guilty to the vagrancy charge
in municipal court, and was
sentenced to two days In jail.
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