The $7 Billion Conspiracy

"Guilty!"

The word rolled out like a dirge in a Philadelphia court last week as lawyer after lawyer rose to voice the history-making plea for his clients. They were 19 major electrical manufacturers, including General Electric Co. and Westinghouse Electric Corp., charged by the Government with conspiring to rig bids and fix prices in the sale of $7 billion in electrical equipment (TIME, Dec. 5). In the largest criminal case in the history of the antitrust laws, most of the companies were allowed to plead nolo contendere (no contest) in certain cases, provided they pleaded guilty in seven major cases. On each indictment the companies are liable to a $50,000 fine; some 46 individuals involved face possible jail sentences.

The courtroom drama was enhanced by the presence of two distinguished antagonists. Attorney Herbert Brownell Jr., acting as counsel for Westinghouse, rose seven times to state "Westinghouse pleads guilty." Opposing Brownell in court: U.S. Attorney and Trustbuster Robert Bicks, who in 1953 was brought into antitrust work in Washington by then U.S. Attorney General Brownell. "Bicks," said Judge J. Cullen Ganey, "has done a splendid job." To teach the guilty electrical companies a lesson, Trustbuster Bicks is expected to urge jail terms for some of the conspiring executives when sentence is pronounced next month.

This file is automatically generated by a robot program, so reader's discretion is required.