Morgan companies fined $1 million for obstruction and price-fixing

OTTAWA, July 16, 2004 — The Competition Bureau announced today that The Morgan Crucible Company was fined $550,000 after pleading guilty to obstructing a Bureau investigation into price-fixing among manufacturers of carbon brushes and current collectors used in public transit vehicles.

In related proceedings, Morgan Crucible's Canadian affiliate, Morganite Canada Corp. of Mississauga, Ontario, pleaded guilty and was fined $450,000 for its part in implementing the international conspiracy in Canada.

“The Competition Bureau will aggressively pursue not only conspirators who harm competition, but also those who impede our investigations,” said Richard Taylor, Acting Senior Deputy Commissioner of Competition. “We will take all appropriate measures to ensure a competitive marketplace thrives in Canada.”

Morgan Crucible, a holding company based in the United Kingdom, pleaded guilty in the Ontario Superior Court of Justice to obstruction of justice charges under section 139(2) of the Criminal Code for wilfully providing false and incomplete evidence to Competition Bureau investigators. During the Bureau's investigation, former senior executives of Morgan Crucible and some of its subsidiaries were interviewed and falsely denied participating in, or having knowledge of, a conspiracy to fix the prices of carbon brushes and current collectors sold in Canada. These products transfer electrical current from wires or rails to vehicles such as subways, streetcars, and light rail trains.

Morganite Canada pleaded guilty to a charge under section 46 of the Competition Act that between 1995 and 1998 it received and unknowingly implemented pricing directives from its foreign affiliate, Morganite Electrical Carbon Ltd. of Swansea, Wales that were reached unlawfully by agreement with competitors. During this period, Morganite Canada, also known as National Electrical Carbon Canada, sold approximately $2 million worth of carbon brushes and current collectors to transit authorities in Canada.

The Competition Bureau is an independent law enforcement agency. We contribute to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

Court Documents
Morgan Crucible Company:
Statement of Admissions PDF: 92KB
Indictment PDF: 28KB

Morganite Canada Corporation:
Statement of Admissions PDF: 168KB
Indictment PDF: 52KB

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