RIGGED PRICES

Press, Volume C, Issue 29488, 14 April 1961, Page 20

RIGGED PRICES

U.S. Sues 11 Firms <N.Z Press Am —Copyright) PHILADELPHIA, April 12 The United States Government today sued 11 electrical firms, including the two largest In the nation. for millions of dollars’ damages for allegedly selling equipment at “high, non-competi-tive prices” and through rigged bids. Six different complaints were filed in the United States District Court by the Tennessee Valley Authority and other Federal agencies, including the Army, Navy and Air Force, concerning | the purchase of devices used for generation, transmission or distribution of electricity. The General Electric Company and the Westinghouse Electric Corporation were named in all the suits. A mouth ago. on March 14, the Government and the Tennessee Valley Authority sued five of the firms named today, among them General Electric and Westinghouse, for 12 million dollars’ damages for alleged price-fixing in the sale of circuit-breakers. In February. Judge J. Cullen Ganey, of the United States District Court, imposed fines of 1.924.500 dollars on 29 companies, including the 11 named in today’s suits, and 44 of their executives. Seven electrical firm officials spent more than four weeks in gaol. The latest complaints charged that the conspiracy to defraud and injure the United States and its agencies by false, fraudulent or fictitious prices had begun as early as 1958.

The first announcement of the suits came from the Attorney-General, Mr Robert I* nnedy, in Washington. He said the damages sought would run into millions of dollars, but that exact figures coulc. not be given as his department had not completed studies of the Government p’l.chases involved. The new damages actions involved switch gear assemblies, transformers and turbine-generators. The possibility of suits by numerous private firms end local government bodies also confronted the companies. Representatives of State Governments conferred privately in Washington today on plans for bringing damages suits in relation to supply contracts.