Antitrust: Bread Upon the Waters

The most important U.S. executive ever indicted under the Sherman Anti-trust Act appeared last week for sentencing in Manhattan's U.S. District Court. Facing a possible one-year jail term and a $50,000 fine was Jones & Laughlin President William J. Stephens, 58, who had pleaded no contest to Government charges that from 1955 to 1961, while he was a sales executive of Bethlehem Steel, he had met with other industry men in Manhattan hotel rooms to rig some prices on carbon sheets, the commonest grade of steel. Also facing the same sentence was a lesser executive, James P. Barton, 63, a U.S. Steel assistant general manager.

Judge Edward Weinfield, who has a reputation for toughness, said that he had been inclined to jail the two men, but was deterred by their "past exemplary records." Said he: "Bread cast upon the waters is returning to the benefit of each defendant." The benefit took the form of fines, which were ap portioned to each executive's ability to pay. Stephens earns $175,000 annually, and last year his company also set aside for him a "deferred reward" of 1,209 shares of J. & L. stock — now worth $77,500 — which he will collect when he retires. He was fined $25,000; Barton was fined $10,000.