WASHINGTON -- The nation's largest producers of artificial Christmas trees have been accused of violating an antitrust settlement with the government.
The Justice Department filed a civil contempt action Monday in U.S. District Court in Harrisburg. Pa., against American Technical Industries Inc. of Pittsburgh, a producer of artificial trees, and its corporate parent, Papercraft Corp. of Pittsburgh; Marathon Manufacturing Co. of Houston and its corporate parent, Penn Central Corp. of New York.
The complaint also named as defendants Joseph M. Katz and his son, Marshall, both of Pittsburgh. The elder Katz is chairman of both ATI and Papercraft; his son is president of both operations.
In its complaint, the government asked the federal court to hold the companies in civil contempt and to set aside a sale agreement that called for ATI-Papercraft to acquire the artificial Christmas tree assets of Marathon's Carey-McFall Division, which manufactures artificial Christmas trees.
The complaint also asks that ATI and Papercraft be prevented from using any competitive information they may have acquired during negotiations for the company.
The government's original 1973 complaint challenged ATI's acquisition of Masterpiece, Inc., of Blakely, Pa. At the time, ATI was the nation's largest producer of artificial Christmas trees and Masterpiece was the seventh largest.
In 1975, the government filed a settlement allowing ATI to keep Masterpiece on the condition it offer its patents and know-how to all competitors.
The agreement prohibited ATI from acquiring the assets of any firm that manufactures or sells artificial Christmas trees.
