Document 3eBKwXBjn8BdjkmdRJBXx5NwO

FILE NAME: Friction Materials Standards Institute (FMS) DATE: 1947 Aug DOC#: FMS073 DOCUMENT DESCRIPTION: Legal - Indictment Filing 301947 N \ OESSSfiHOI' *n '0 xocE w m o *s rr a n o a *8 *r JtCISSY *H *7 KO&TXHS V. *l m m *o *r r c n m *o *h xaro i m sro a *o *s KHEeDCH *0 'l XTT6 T *f srwtoa *f *y SCnOHSYS *X K0S7IA * "I JT U 1 U V . *7 join s ^ *0 SI IKS X5878 i t i n *r c m dsoo scasaa crmft *oo aiam zas <koo BTvnoor* iouoem s m i o s urratoo o t u iz s ruraiccnros *00 KISilWrjt.'TK THS8K `oui 's a m s n r e c a s m r z *oo m a s <r x a u snm ta *oo ir t w *f *7 `<07 " dsoo HOQCCSa KXT88 OOflOT loisntooe oo m u K rjm H or ra m Knsuoratnrx Trente lou rsoasoo ssoiok ttsmto iinrdKOD Z8E0S xoureoffioo m r o axr n u tsoou asu `OKI `SSOCCOM TTZSDt f JKU koutkoskoo K ou ru r a u ra 20 jkv<dk MiHMovaifflrx soissot jurraioo BS r m z s r o m a r `as: 'hoiitiocbst iSOEtsracnrmrK o a is n a s m ronow <o sauras m u ta Il X . 3X8 nmnuxmui a. X. s in 0. S. CIU K acBsac s. ama mum s. anas h. oeosuDus roauB uos*. jx. J. D, BOiCS C. Vf. S 0H3 8. J. 3THSD J. E. BOVU H. X. K lin 0. M. VIXIiLliM X X 8. S O L U T il T. i. SPZXA HOVJSD SBDV T. X. IL IA . L. CJKPtXX H, 5. SCHBCEUS m o s. scmoxga 1*. a . UBS&ABO 2C J) X. SPICIE h w m w sxs Z KOI G I O I I be Oraai Jury sbarcasi gam cm a n g w ii U Xha ter "braies Haines" vherarer raferrad to la thie isdlctnent, aeans asbestos brait Unisca usad for rapinoocant purposes la motor rabile aad ln Industrial cjuipost. a& M sam m 2. Brak Idnlnc Msnufecturara' Association, Ino. (baralnafter rafarrad to aa the Association) la hereby indicted sad iode a 2 " V " '*a*j7*r^r _________.3p tV61C c"> dafaodant barala. Si*Association1aanbarahlpcorporation organise! under andesistile ter virtue of tha la of th Stata f **vtorteandbMita prinoipal plaaof Wslnaas lalevTorteCity. Xt la atradeeaeoeletlonW toaabaraaraaaaafasturarof friotioanatarisis, Includinebraiellnlsgs. 3. Siafolio!anaaedcospanleearaharebf indlstadand idi dfendantebarain. Seahof aald dfendant# haa basa organisai under andsolatabyvirt#of thalavaof tbaatata Indloatadbaio I, andaaohaucbdfendant bas ita prinoipal officeandplacaof busi naaa in tha city designate!. Sarti of tali Aefandanta, durine all orpart of tbapariodeoveredbjrtble lnletaent, indudingtba paried vlthUtba atatuta of lUltstloaa, bat beea engage! in sellini braieslUlags andba#baanandIsa awbar of tbadainiant Association. Stata of Principal Placa Anerlcnn Bralea Sboe Oonpaqr Baiavera Asbesto*ManufacturingOonpargr Indiana Bandir Aviation Corporation Baiavara Tibre *Natal Prodoota, Ino. California TiraatonaTiraandBibbarOospany Obl Ostie Corporation lUlooii Central Motor#Corporation Baiavara CrlsslyManufacturingCoapaiy Callfornl* Johne-M anelile Corporation Sav Torte IraaeoBrnfcaProduotaCorp., Xtd. California X. J. Mlltgr Co. Illinois Pbarla TirabBabbar Oo. Obl Rs^besto Manhattan, Inc. Bay Jersey Bettoli, Kich Amtlngtoa, Ini. Betroit, Mieh. Bovnar, Cai. Aron, Ohio Chicago, 111. Batrolt, Kiob. Ball, OaU levTorte, . T. Oakland, Cai. Chicago, 111. Sevcrtc, Ohio Passale, V, J. 3 ) ;-J!T ` S- sio i > I d B ussali M anufacturing (jo. Scandinavia B e ltin g Oompnny Southern P rio tio n H ata rlai Corp. Thersoid Co. lforld Beato* Corp, Conasotiout Main* . Carolina Belav are Hew Je rse y Middletown, Conn, Beverie, H. J . C h arlo tte, H. C, Trenton, B. J . P aterso n , U. J . C ollectively the above-naaad defendant are h erein after referre d to as tha corporate defendants, 4, Tbs follow ing In d iv id u a ls are hereby in d ic te d and asde defendants h e re in . Bach i s atso o ir.ted w ith a defendant eo ro o ratlo n in the capacity ! I shown below, Zech sa id defendant during a l l or a p a r t of th e p erio d covered by th is indictm ent, including the period w ithin the sta tu te of lim ita tio n s, has authorized, ordered or dons the a c ts alleged herein to have been in i v io la tio n of law, ... Defendant Corporate Defendant with which A ssociated T itle or Poeitioa . Address Tred J . Kelly American Brake Hgr. D e tro it, Mich. Harry S eith Aaerioan Brake Asat.Mgr. D e tro it, Mich. C. H. Staith American Brake A set, to free.. D e tro it, Mich, 1. W. T u ttle Xu X. Y ilsoa l , -,i. Kaeholde Aebesto* Mfg. Aebeetos Ufg. Bendix A viation V. P re s, H untington, Ind. Sec.A Treae,. Huntington, Ind A sst. Sale Mgr. Troy, H. T. A. 3, Hoener Bendix A viation Seles Mgr. Troy, r . 7 . J . A. Blake Ti'ore A M etals 7. P re s. Dovnsy, Cel. P. C. Hepburn Pireetone Brake lilt lng Dept, Akron, Ohio X. 0. Bemgen ? . 1 , Oetke H. S. Berkely J , 5. Erown P. V', Shelton Oatke Catke Oeneral Motors G rissly O rizsly Sec' t . Chicago, 111, Prea. Chicago, 111. Sales Hgr. Dayton, Ohio Sales Mgr. Paulding, Ohio Paulding, Ohio 4 X m [ X M. Cassidy J . 8. Doyle J . B. Slasebrook 0. Jorgensen M. S tder Jurber Iter hr 11 5. 2. H itter 0. 3 C ille r Bo'cert 2 . Duels "illlira H. Sub.-. B. Qroend;vke Horaan Leeds, Jr J . 3. ?4>*eh Of. V. Sechs 8. J . Synnott J . B. Howie H. 2 Keene 0 . K. VUllM X>. S . S u l l iv a n V . A * S p in e B ovm rd Snow 5 . 2 . A lle n A. L . C r a p b e l l 2 . Z, S e h e c k l e r B red 2 . S c h l te r I>. 8 . K e r a g a r d Donald E. S p i c e r John -M earill J ohne-X en rille Joh n s-U aarlH Laeeo u. J . Mlley P h a ris P b arie Baybegtos Baybestcg Eaybestos Bayhegtoi Eaybestos Eaybestos Eaybestos Haybeetoe B u ssell R u seell B u eeell Bull Scandinavia Southern P riotion Them o ld Tharaoid Theraoid Thermoid Vorld Bestoe Morld Bestos T. Pree. Vv Tork S taff Hr. Set# Tork S taff e n te r Dew Tork Sales Mgr. Oakland, Oal. Sales Ugr. Chicago, 111. Pres. Bldgsway, Pa. Sri as Kgr. Sidgevay, Pe. 7. Pres. Manhela, Pa. 7. Pree. B rid g ep o rt, Conn. 0oo$t. P a s s a ic , H. J . Kgr. P a ssa ic , H. J . Gen. S eles Jigr. B rid g ep o rt. Conn. Sole* Bagineer Kaaheia, Pa. Mgr, Menhelo, ? a . Ugr. P ase eic , K. J . Mgr. Middletown, Conn. Automotive D ir. Middletown, Conn. Pree. Middletown, Conn. Mgr. Middletown, Conn. Trees. Bewar'r, K. J . P re a. Charlotte, IT . 3. Asst, to Pres, Trenton, X. J . alee Dept. Trenton, 2. J, '. i ? r . Trenton, 2. Pree. Trenton, B. J . ::gr. P aterM r., H. J . Pree. P ate rso n , *2, C. aescpiPTicK Cg i s g r e s i A n u a s s s - a ITTSP.STATS TOADS AH> a a 3 XSBHSB 5. The co rp o rate defendants aanufeotuxe and c e ll approxim ately 95p of the brake lin in g # manufactured and so ld in the United S ta te s. 5 rr*T3 tveioEa- l a 1944, th e ir sa le s amounted to armroxlaataly $35,000,000. S. Th co rp o rate defendant* 11 Ira k lin in g p rim a rily to tb fallow ing classe s of customera; ( l ) othar f r ic tio n m aterial m anufacturers, Including other co rp o rate d efssd an ta; (3) a o to r vehicle and in d u n trla l equipment m anufacturers; (3) d is trib u to rs , jobber and d e a le rs; (4) la rg e consumer* ouch as m u n icip al, s ta te and f e d e ra l govern ments and owners o f la rg e f le e t* . The bulk of the ta le s a re made to cus tomer* in c l a s t 3; in 1946, such t a l e t m ounted to approxim ately $25,500,000 o r 73ji of th* to ta l ta le * of brake lin in g s . This c la ss of d is trib u to r* , jobber* and dealer* r e s e ll m ainly to r e t a i l e r s who in turn r e s e ll to motor v eh icle owners. 7. The corporate defendant* manufacture brake l i n i n '* in the S tate s of C a lifo rn ia , Connecticut, Ohio, I l l i n o i s , In d ira , "ic h ig a n , fev Je rse y , Tw York, north. C arolina end Pennsylvania and ship therefrom to cus tomer* in every at a te in tho U nited S ta te s. aaraaso g ?, g a m m ' 8* Beginning sometime in 1937, the exact d ate being unknown to the 5rand J u ro rs , and continuing th e re a f te r up to and in clu d in g the date of th ia indictm ent, the defendant* rsu other persona end corpo ratio n * unknown to the Grand Ju ro re have unlaw fully acabined and con sp ired to f ix , e s ta b lis h , m aintain, c o n tro l, manipulete and tamper with the p rices, ta ra s . a l conditions in the aarlceting of breke lin in g s in r e s tr a in t of the a fo re s a id I n te r s ta te tra d e end oomueroa. 9. The a fo re sa id oombincticn end conspiracy has bean a continuing one, th e s u b s ta n tia l term* of whioh have been th a t the defendant* agree that: (a) The A sso ciatio n prepare and d is tr ib u te aaong the defendants uniform p rice l i s t s ; (b) Each corporate defendant p u b lish In it* own p rlo e H a ts th* p rices contained in the Association price lis ts ; 3 X  the defendants dkaaificationa of customers; . (d) Zha A sso ciatio n prepare and d is tr ib u te Bong %'s. defendant u n ifo ra d isc o u n ts, tor and con d itio n * of sal* to be ranted porohaaara in saoh auch c la s s if ic a tio n ; (e) iach corporate defendant use the c la ssific a tio n s of customers, unifora discountc, terna and condition* of ta le in s e llin g to purchasers; (f> Bach co rp o rate defendant re q u ire i t s custom ers in th e ir resales, to use discounts froa the l i s t p rices id e n tic al with those contained in the uniform d isco u n ts described in arubparograTh (d) above; (g) Bach co rp o rate defendant re q u ire r e t a i l e r to s e ll a t the l i s t p rises; (h) iro n tin e to time the prioe l i s t s , c la s s ific a tio n of cuatoaer, dicounts, te rn s end conditions of s a le , ale* and r e s a le p ric e s would he changed. groogs ST -.-3 OttCIKaTIOK m K P zi& zi 10. ghe a fo re sa id combination and co na-iirecy hereinabove alleg e d has had the following e ffec ts v ith respect to brake lin in g s as intended by the defendants: (a) P rices have been Increased a t a l l le v els of sale; (b) P ric e s have tended to become u n ifo ra a t a l l le v e ls of sale; (c) She p u b lic and o th e r purchasers have been charged high rur.d unreasonable p ric e s; (d) Substantially a ll price coroetitlcn has been eliminated. i i it IS A M>C\'.ff* r 'two? .a - 131PI0 tJt P ^<* *"V Pl a n u m TXCU1 11 3ie combination ad conspiracy h e rsln te fo re , a lle g e d ha* been formed la .a rt and o a rrie d out in p a r t w ithin th e Southern D is tr ic t of Hew T o ri in the follow ing Banner: (a) Meeting* have been held, in Hew fo rk C ity a t which the defendant have agreed w ith each other upon uniform l i s t p ric e s , c la s s ific a tio n of cuetoaere, discount, te rn s, condition, sale price* and resale prioes; (b) The A sso ciatio n has prepared in Sev York City uniform p ric e l i s t s , c la s s ific a tio n of eustocsrs, d isco u n ts, t e n s end co n d itio n s which i t has sent out to the defendants: (c) Substantial q u an tities of brake lin in g heve been sold in 'Jew Toric C ity a t th e fix ed p r ic e s , including sa le s to th e C ity of Hew York. a rata B ill: He | A*JL io reoIaAMa ' 'd 'o tC a * u - Tai a, ausx Attorney Cenersl a /, C/ johD/H, p m m . , A ssistant Attorney/Cene: .y ; JCHf X lid .ited S tates Attorne; a c cer. `/J , J . ISAHCIS HAYDZff ' ISHHO B. 011005113 joszph t. qpim us SATT2, 3. CAHH Special A ssistants to the At ternay Cenerai HOlilHS BAUCHDOS C30?.G 3. EU3B0CX Soecirl A ssistan ts to the A ttorney Cenerai \ * :/*'w; .Vf* .tsa' mw 4SSBQESLJCSSS' MMtNte 5. Tbe oorporate defendants m an afn etan and t e l l approxim ately 99% , o f tiw alu to h faolngs m am faotured and od l a t t e S a lta d S ta te s . Er 1946, t b t l r ta la s amounted to approxim ately <7,000,000. 6. I te corporate defendants ta ll olutoh facings p rim ri ly to the following e la tte s of cus te te re i (1) o tte r f r io tio a a tta r i a l m a ufa tu ra re , including o tte r aorporata defendants; (2) motor sehiole ate in d u s tr ia l a<)alpawat m aaufhotursrsi (3) d l tr i but o r i , j e t t e r a tad d e a le rs; (4) la rg a eoaauaart a t ah a m n io ip e l, s ta ta and fe d e ra i goter ament and carnaza o f la rg a f l e e t . th e bulle o f th e ta le a ara aada to custom ra lb claaa Sj I n 1946, suoh a tla s amounted to appnoxiaately <4,600,000 or 6i% o f th a t o t a l s a la t o f o ln to h fa c in g . T his alas* of d is tr ib u to r s , jobber* and d ea le rs r e s e ll mainly to r e t a i l e r s who i n tu rn r e s e ll to a c to r irehiole ormer 7* Tte corporate defendants m n u fa o tu rs olu to h facing* i n t t e S tate * o f C onnecticut, Ohio, I l l i n o i s , In d ian a , IS.ohi gen, He* Jersey, Haw Tork, Horth C arolina and Pennsylvania aad sh ip therefrom to euetoaer* i n e ra ry s ta ta i n t t e Oldte d S tates* OOUBDUTXCK JKD CCHSKRiCT 6 , Beginning aomettra i n 1928, th e ex a c t d ata being unknown to tha Grand Ju re ra , a te o o n tim in g th e r e a f te r up to a te in c lu d in g t t e date o f th ia in d i at* n t, th e defendants and o th e r persona and corporation un known to t t e Grand Juror* have unlaw fully combined a te oonapired to f ix , e s ta b lis h , m aintain, o o ntrol, m anipulate and tamper w ith th a price, t a n s ate conditions in tte marketing of clutoh faoinga in restra in t of th e a fo resa id i n t e n t a t e tra d e and oomamroe* tyvetS ourteeae sure Putott I , c, ".-.ru'ryyc ................ H u..m......n...i...e.....s...h....r....c....l..a..i.....t..r..a..n....o..r............... . ....... w att im a ig n w f e ii te I . tha orparata dafaartanta aaaufasture fr ia tlc n tarlai* la Tarai of th Statai ef th Qaitad Stata# aad Slip aubataatial guastiti# to fo r a la oouatrlaa. Dia apparata dafadant Mao faetwr and s a li approgdantaly 97% o t tha fr lo tio o ta r la la aaaafaeturad in tha Baita* Stata ad ahippod la forai* trada aad aasaroa Za 1946 thair fo r tin i ala aaoostad to appraxijaataJy $2,700,000, I 6 Baginainj ao atlas la 188t, tha eaaot data beig unkncso. ta ; tha (hrand Jurer, aad eoatlaalag tharaaftar up to aad inolu dia* tha data of thia lad lataest, tha dafaadaata ad othsr peraeoa ad oerpara* tlona vrfm'n to tha Orand Aurora bara u n lssfu lly eoablsad and oc aplrad to f ix , aatabliah. a la ta la , oentrol, saaipnlata aad taspar w ith tha prioaa, tara aad codition# la tha alo o f fr lo tio n ta r la la in raatralsb of tha aforaaaid foraiga trada aad aeanarea, 7* tha aforaaaid oaafcinatlon aad ansplrae? ha baaa a sostim ilog ans, tha aabatastlal tara of ifeleh har haaa that tha dfendant agra that* (a) tha Aiaooi a t i prepara aad dietribute aaaag tha ! dafaadaata unifera prisa lis t a , diaosunti, tara and aonditioo of aalai (t) Bash orparata dafaadant publiah in ita oan prie t lis ta tha prie aontslaad In tha Ssaoaiatloa pria lista i (e) Seoh oorporate dafandant usa tha unlfom diaoount, tara*, and eoaditiona o f sala la sa llla g to purahssarai (d) Rroai tla s to tlM tha prioa lis t a , diaoouata, tarai aad eoaditiona o f aala, aad sale prioaa aould ha ehaagad* ' i \ JHmo '* Strprn IM I ::g fc**l*lM fM t o r i * o *v. ' ' f>-- * * 'kk kt&m&m >, i- ' ;A/yv'''*!" I ''e" -* f: ;' > s y R r - * ta ; -> '^laWfcMiri tm ,>MlHkl/nH4t^ ', `J * * W*0 c nuil B n * M M hv o*. OttaiUtvU M t h | Otwy m * m rrWttMMUrtU* OMf. AmmmmX iiiitf p n i m n n 3*000. 1*300. lOO. I*f00. 130. 1*300. 300. 4M. fc1,000. 300. 300 400. 300. MO. H4.2C0. OTBM9I )*zV AS*!... M M , ,,7 1 *#.. . .. m i pomo oA :3*9* I.50. uWU^B S 1.300. *> 0,000. 4,300. 1,300. 4.300. 1.300. .,,!& r 4.300. 300. 1.300. -H5-*., jtf-rr IjM. *** ..er**! :**-)./ HMH 300. 1,000. 1,000. 1,000. 4M. 000. 1,000. 300. M O M M O 1,000. MO. &9B* y MO. 1.000. 111.100- tltt-M. 9BMB SBXS^SS ! tieti .............. li .......... min... ............. .. n -- -- J f r h t t n oisnooT ooow or tbs ow n a s m a fOR THB 300THX8N DISTRICT 0? MOLTO ifflfcmffi United States o f Amarlo HATBSSTOS-HJUBATTAJl, DC / I No, Ca#>/205-206-207 9 On t h i s 22ad day o f Jtoptrtr,19i*8 fo r the government and the defendant appeared by Robert P. Patterson came the attorn ey it. I t I s Adjudged th a t the defendant has been oonvloted upon U fa plea of nolo contender by atty o f the o ffen se o f conspiracy in restraint a t trade and ooomree in friction netrials I . 15 See 1 08C as charged and the court having asked the defendant whether K> has an yth leg to say why judgment should not he pronounoed, >nd no s u f f ic ie n t cause to the contrary being shown or appearing to the C o u rt, I t I s Adjudged th a t tne defendant Is g u i lt y as oharged and convtoted. I t I s Adjudged th at the defendant be fined the n a of #5000. on each indictment otal fine *15,000. to be peid fay 4 FV y tjO m h jiU tA / m .ti dio trict court o r asm unxscd o tatis rOH THE SOOTHERS DISTRICT 01 NBLtCRK United S ta te s o f Amerioa v* m o n AVIATION COHPOHATIDM / / No> 026/206 * 207 On. t h is 2a,d day o f S^teafcsr,191ti ^ pape t he attorn ey fo r the government and the defendant appeared t a q a n m K by fttftaM, Hubbard * Dalng, A tt/a It I t I s Adjudged th at the defendant has been oonvloted upon W tb plea nolo eoatendere by Attye o f the offen se o f conaptr&oy in restrein t o f trade ano commarce in fr ic tio n m aterials T, 15 Sac 1 OSC as oharged i t and the oourt having asked the defendant whether 2 has anything to say why Judgment should not be pronounced, >nd no s u f f ic ie n t oause to the contrary being shown or appearing to the Co urt, I t I s Adjudged th at tne defendant i s g u ilt y as charged and eonv ietM . I t I s Adjudged th at the difendwt be fined tbs sum of 13000. on each indictment Total fine $6000 to be paid by 4 PM i- rnmmmmm r n m ^ y m v e i l f c i i i i f r i ttU tth 20 0 0 0 * CKtto o r rtm uaxaau mma ew m s* MU Ml D tso u n r o r o o lI smc United S ta te s o f >n erioa l a m i l . MDT08S CORPOBttlO /] / Jk>* 026/205-306-207 On th is 22ad day o f 8pt`b A 9W 9 fo r the government and the defendant appeared by fleer** A. Brook, t y cam* tbe attorn ey I I t I s Adjudged th a t tbe defendant baa been convicted upon M&1plea o f nolo contender by atty o f tbe o ffe n se o f conspiracy in restraint of trad axxl eoomeroe in friction Material T. 15 See 1 CSC as charged it and tbe oourt having asked the defendant whether hgc has anything to say why Judgment should not be pronounced, >.nd no s u f f ic ie n t oeuse to the contrary being shown or appearing to thd Co urt, I t I s Adjudged th at tne defendant i s g u i lt y as charged and con v ic te d . I t 1 Adjudged th a t the be fined th wm of |*00Mon h of ladlotiweta 026/205 A BOV end *200. on 026/206 I yj id)M tt> ijav/sajutha. DISTRICT COWtT OF 13* DRIVED; STATXS FOR Tax SOOTHEUf DISTRICT OF NERLTORK OjtLitsd State o f America V /// 0126/205-206-20? no. AMBSTCAH MAKS MOB CCMPANI On thin 22nd day o f SaptBabW/WA jg oame the attorney for the government and the defendant appeared tBijOWWAMiW by Mttbenk, Tweed, Hope k Hadley, Attya I t la Adjudged th at the defendant has bean convloted upon bte plea of nolo oontendere by Attya o f the offense o f conspiracy in reetraint of trade and coaaerce in friction anterials T. 15 See 1 DSC as charged it j and the court having asked the defendant w hether* y&a anything to say why Judgment should not he pronounced, t.nd no s u ffic ie n t oauae to the oontrary being shown or appearing to the Court, I t I s Adjudged that tae defendant i s g u ilty as oharged and con victed I t Is Adjudged that the defendant be fined the urn of $5000. on each indictment Total fine 115, 000. to be paid by 4 PH I