Indianapolis Times, Indianapolis, Marion County, 16 December 1938 — Page 27

Frank Ball Learns New Trick in Probe Of Glass Industry

‘Testifies Before Monopoly Committee and Finds - That Royalties He Paid for Unused Machines Were Divided Between Competitors.

4 :

By DANIEL

M. KIDNEY

Times Staff Writer > WASHINGTON, Dec. 16.—Although he spent more than 50 of his 81 { years in the fruit jar manufacturing business, President Frank C. Ball of Ball Brothers, Muncie, Ind. is on record here today as admitting that the temporary National Economic Committee taught him a new trick in

his old trade. For not until he heard the testimony before the Committee and appeared as a witness himself yesterday, did Mr. Ball know that the royalties his company pays the Hart-ford-Empire Co., Hartford, Conn, for patented machinery which Ball Brothers do not use, are being divided up with two of Ball Brothers’ competitors. According to testimony before the committee the royalties are split with Owens-Illinois Glass Co., Toledo, O., and Hazel-Atlas Glass Co., Wheeling W. Va., both of whom are in the fruit jar manufacturing business. So when Senator O'Mahoney (D. Wyo.), Committee chairman, asked Mr. Ball what he thought of such ‘an arrangement he received the

. prompt reply:

“

.corporati

“We don’t like it very much.” After leaving the witness stand, Mr. Ball and A. M. Bracken, assistant treasurer of the company, +.told reporters they had not yet decided what would be done about it but that the matter would be i‘ threshed out when they got back to Muncie. “That these competitors are sharing in the, royalties from our production was a complete surprise to me,” Mr. Ball asserted, “That certainly is amazing.” The Committee turned its inquiry today to patents which cover manus facture of electric light bulbs. Meeting half an hour earlier than usual, ‘members believed they could complete the second phase of the twoyear investigation and recess until after the new Congress convenes. Chairman O’Mahoney .(D. Wyo.) said the week-long investigation of the glass industry shows that “the ‘patent laws' in their present state offer the opportunity for persons or so inclined to acquire by skill, by guile, or by coercion a dominant position in any industry to the extent that the payment of tribute may be compelled in the form of royalties.” He said the testimony revealed that under the patent law it is possible to get a patent “so broad and basic as to bring a whole established industry within its scope.” The evidence, he added, raised the question whether this should be permitted. When the four Ball brothers first began making fruit jars in Muncie back in 18838 they employed the same methods they had been using for eight years before at Buffalo, N. Y. “It was a system that could be traced way back to the Egyptians of more than 2000 years ago,” Mr. Ball said. “It consisted of sand blowpipes and moulds.” Paid $400,000 for Rights

' Soon, however, the Ball Perfect brand Mason jars became known ih America’s housewives far and wide and that reputation has not declined |: in the intervening years, Mr. Ball relates with a twinkle of pride, | ~So when Hugh Cox, Justice Department attorney assigned to the committee, questioned him about price-fixing, the veteran Muncie manufacturer declared that no competitors ever are consulted andj: prices are set by Ball Brothers

- based entirely on their own produc- * tion costs and market conditions.

reached with Hazel-Atlas

"In 1933, when the company paid the Hartford-Empire Co. $400,000 for use of patented feeder machines and agre€d to royalty pay-

ments on production from their]

own patented machines which they continued to use, both® President Frank C. Ball and his brother, George A., who now is 76 and vice president of the company, sought to restrict the domestic fruit jar field, the testimony showed.

The payoff on the patent was|? with the idea that’ Hartford-Em-|:

pire would lease no more machines and in addition to a. contract to that effect an “understanding” was and Owens-Illinois, Mr. Ball testified. The Hazel-Atlas fruit jar production was to be limited to 300,000 gross in any year of normal demand and Owens-Illinois 100,000 gross.

Considers Other Jars “Unfair”

This “gentleman’s agreement” did not include Ball Brothers’ knowing that these competitors were to share in the Hartford-Em-

pire royalties from Muncie, how-|¥

ever, the testimony showed.

A financial analysis prepared by the Justice Department today showed that Hartford-Empire’s return on capital and surplus amounted to 35.43 per cent and its return on net capital employed in _ operations to 67.77 per cent.

The analysis showed that the|{

profits steadily increased after the glass industry came virtually under Hartford-Empire licenses. Other testimony was that the General Glass Co. was paid $100,000 by Hartford-Empire to cancel its license to manufacture fruit jars

under the latter’s patents, although|:

none had been made, and that Ball Brothers paid $100,000 to buy out the Knox fruit jar competition in 1933. It was estimated that Ball jars

"dominate at least 60 per cent of

the domestic fruit jar field. But Mr. Ball pointed out that so-

* called “packers jars” are being sold

~ this “unfair.”

for domestic use and he considers These jars use the same screw-tops as Ball brand ma-

* - son jars, but are of slightly different

; 7 2 Doors South INO 13 ST

Sensational LOW PRICES on Watch and Jewelry

REPAIRING

All Work GUARANTEED

DAVID KLOR |

“The STING 3s s

115 N. ILLINOIS ST.

shape. hearings. Frank C. Ball's appearance before

a Senate committee was contrasted here ‘with that of ‘his brother George, who testified) on how he came into possession of the Van Sweringen railroad empire before the Wheeler Committee last year. The latter is a small.man with an innocent look but a quick financial mind, who was ever ready with the apt and sometimes sly reply to committee questioning. The elder Mr. Ball is a mountainous man and slightly hard of hearing. He sat in the witness chair with the immobility of the Rock of Gibralter and every question brought a forthright answer that resounded through the loud-speaker system to boom into the farthest corners of the huge Senate caucus room.

EDEN ENDS VISIT, SAILS FOR HOME

Leaves on Queen Mary After Trip in Train Cab.

NEW YORK, Dec. 16 (U. P.).— Anthony Eden, resigned British Foreign Secretary, sails for home on the Queen Mary today after a busy week crammed with speechmaking, sightseeing and informal conferences. He returned from Washington last night to speak at a private dinner of the Council on Foreign Relations. He had spent the day paying brief calls. at Annapolis, where he visited the grave of his colonial ancestor, Sir Robert Eden, last provincial governor of Maryland, and at Baltimore. On the trip from Baltimore he was permtited to ride in the cab of the electric locomotive from Wilmington to Philadelphia. Capt. Eden arrived in this country a week ago today to address the National Association of Manufacturers. He told the industrialists that democracy was on the defensive in a world menaced by totalitarian states. In Washington he

talked informally with the President and others.

Both were exhibited at the

MRS. DULL SOBS STORY. OF LIFE WITH HOLBROOK

Hope of Escaping Conviction Rests Largely on Own Testimony.

ST. JOSEPH, Mich. Dec. 16 (U: P.).—Mrs. Fern Patricia Dull’s own dramatic, tearful story of her intimate life for nine years with William Holbrook brouught her trial for murder near its close today.

Her defense against charges that she vengefully killed Holbrook with four pistol shots in front of the Benton Harbor police station last Oct. 17 rested largely upon the testimony she herself gave from the witness stand. Mrs. Dull was on the stand most of yesterday and returned today to complete her story. Sobbing softly at intervals during her testimony, the blond secretary and mother of two children told of how she and Holbrook had enacted a common-law marriage which she believed was binding. Holbrook told her, she said, that the vows they exchanged at night before the Old Home Church at

Kimmel, Ind., were sacred and legal.

Warm Winter

Assured for

Church Thief

Add weather notes: While members of the Broadway Baptist Church, 22d and Broadway, held a party last night, a thief took advantage of the. merriment to enter the church and make off with the coal fund. The thief took $5 in pennies which were on display at the church. Thieves also invaded the vestibule of another church and Fire Department headquarters last night to steal two overcoats and a pair of gloves. | The Rev. W. E. Carroll, 3837 Broadway, told police a thief entered the Northwood Christian Church, during choir practice and took his gloves and a coat belonging to a

member of the choir, E. L. Long, 5030 Carrollton Ave. Capt. Charles D. Milender said some one took his overcoat, which was hanging on a coat rack in the Fire Department headquarters.

INOODROW WILSON

BANQUET DEG. 28,

Democrats to Hear Manion At Winchester Event.

Clarence E. Manion, Indiana director of the National Emergency Council, will speak at the 17th annual Woodrow Wilson banquet to be held in Winchester Dec. 28. The<banquet will be held at the Main Street Church of Christ at 6:30 p. m. In Indianapolis, tickets may be obtained from Anderson Ketchum, secretary of the State Tax Beard. Mr. Manion will speak on “The Case for Modern Democracy.” A former professor of constitutional law at Notre Dame, he was the keynoter of the 1932 Democratic State convention. Democrats from nearby counties and many high State officials and party executives from Indianapolis| are expected to attend.

FAMED SOVIET PILOT KILLED MOSCOW, Dec. 16 (U. P.).— Valery :Chkalov, star Russian airplane pilot killed in a test flight yesterday, will be buried in the wall of the Kremlin as a national hero, it was announced today, and cach meraber of his family will be pensioned. Chkalov was the first ‘aviator to fly over the north pole

EO TE POR Ta PA EA ES EA PA YAK EA PA EA i PS YE BA EA ES ES ES EA BA pv)

to the United States.

And $49.50 Up fo $100

Give her one of these gorgeous | fur coats for Christmas. Well | made, lovely | styles, nicely “lined! Shop. and compare these values — you’ll find these coats REAL BUYS!

on onal WI

radio itself — PHILCO

PHILC

FURS... THE PRECIOUS GIFT ¢ Lasting Luxury for HER! Great December Sale!

ir [ERS Ne ES

RR RR RT RS RR Rs RR Re RE RR

tunes this New 1939 Philco from anywhere in your home...

So small, so light, you can, easily carryitin one hand!

YOU CHANGE STATIONS . . . CONTROL VOLUME ... TURN THE SET OFF... Here's the greatest -radio invention since MYSTERY CONTROL! IMAGINE the thrill of tuning this

new PHIL€O from any room in your home—

you and your family.

GET THE BIGGEST

DELIVERED - CHRISTMAS EVE

. Open Every Evening Till Christmas

upstairs, downstairs, even from the front porch—without ‘going near the radio. No hopping up and down or tiring effort when you want to change stations. Be among the first to know the convenience and enjoyment PHILCO MYSTERY CONTROL provides for

SEE IT! HEAR IT! COMPARE IT! VALUE IN RADIO You'll SAY IT'S A SENSATION and A GREAT BUY!

KEMPLER RADIO CO.

A ERTL RICE connection of any kind |

PR REA EARN : £3

107 N. PENN ST. . . . . .

TEN PAY PLAN ;

Wear Your Fur Coat as You Pay for It— Open a Charge Account!

RRR Sb a SRA SR

Regular $162.50

NOW

$1325]

And Your Old Radio

BUY NOW! START PAYING IN FEBRUARY

90-DAY FREE SERVICE

Free Delivery and Installation

BREE Y

FIRECHIEF AUTO

A Real Beauty

Re sh.69

he would All Toys Subject to Previous Sale

With what want bring.

Santa to

RR RA RES NR RA RT RA RA ST RG

MOVING PICTURE PROJECTOR

| the

COWBOY SUIT

All boys love to play cowboy. A suit like this would make them happy.

Similar to Cut

Sewing Machine. .69¢ Lincoln Logs .....3% Electric Metal Tapping Set ......69% Sand Painting Sets

Mysto Planes ... AERA PI A YA PRK YAK EI EEK

XMAS TREE LIGHTS

ARG TR NG RR RA SAR Automatic

Fire Station Road Building Set 89%¢ ‘LIONEL TRAINS

Also Marks Electric Trains

FROM $3.98 UP

entire Similar to cut.

Limited Quantity A RT AR Ar RR RG RANTS 2

Kneehole Desk. .$2.98

All = metal streamline . pedal car of modern design with rubber tires.

family.

Flat fibre doll cab similar to cut. Also a complete line of English

5] .59

SERENA NA NTE NE RERE ART

OPEN EVENINGS FROM SATURDAY, DEC. 17, UNTIL XMAS.

19:

3314x15x3 Just think.

98 low price.

COMPARE THE SIZE

RAGA RARE SK RARER NG RANE

ST NT WT ROA RA PAT RSA ME RSA RSA RSA RNA SERA RARE RENT

Streamline Pedal Car

Other Wagons from 89c up.

WTR RT NT RE RA SANA RA ME RE RE RA RARE

RA SR RA SR SE RR RA RA RA RA RA RA RA RGR

Fibre Doll Cab

BETSY WETSY

A real Betsy Wetsy Drinking and Wetting Doll. Also a com= plete line of Dydee dolls.

A ee Ee Hymn

LAMP Ensemble |

LIMITED QUANTITY

Oca Week

’ Reflector lamp has 9-inch of with 3-way indirect light and 3 candle direct lights. Think, you can get all three of these beautiful bronze-finished lamps, =hrome trim, with crystal inserts, at a rare value of $7.95 for all 3 lamps, Act Now!

wn mmm i F

The Store of Quality — Out i, 11s TI Rent District

NATION

FURNITURE CO.

343 Ai ST.

= 337 71-339-3 \%% ASHING