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IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF PENNSYLVANIA



UNITED STATES OF AMERICA    

                  v.

KESCO, INC.,

                  Defendant.


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Filed: [9/19/96]

Criminal No.: 96-154

(15 U.S.C. § 1)

Judge: Lee

INFORMATION

The United States of America, acting through its attorneys, charges:

1. KESCO, INC. is made a defendant.

DESCRIPTION OF THE OFFENSE

2. Beginning sometime in mid-1993 and continuing through early 1996, the exact dates being unknown to the United States, the defendant and co-conspirators entered into and engaged in a combination and conspiracy to suppress and eliminate competition in the sale of certain non-electric blasting caps to C & K Coal Company, in Clarion, Pennsylvania. The combination and conspiracy unreasonably restrained interstate trade and commerce in violation of Section 1 of the Sherman Act, 15 U.S.C. § 1.

3. The combination and conspiracy consisted of a continuing agreement, understanding and concert of action among the defendant and co-conspirators to charge identical prices for certain non-electric blasting caps sold to C & K Coal Company.

4. For the purpose of forming and carrying out the charged combination and conspiracy, the defendant and co-conspirators did the following things, among others:

(a) discussed and agreed upon prices or price levels for certain non-electric blasting caps sold to C & K Coal Company; and

(b) carried out their agreement.

DEFENDANT AND CO-CONSPIRATORS

5. The defendant is a Pennsylvania corporation headquartered in Butler, Pennsylvania. It is engaged in the distribution and sale of commercial explosives in western Pennsylvania and elsewhere.

6. Various persons and firms, not made defendants in this Information, participated as co-conspirators in the charged combination and conspiracy, and performed acts and made statements in furtherance of it.

7. Whenever this Information refers to any act, deed or transaction of any corporation, it means that the corporation engaged in the act, deed or transaction by or through its officers, directors, agents, employees or other representatives while they were actively engaged in the management, direction, control or transaction of its business or affairs.

TRADE AND COMMERCE

8. Commercial explosives are chemical products, such as high explosives and blasting agents, initiating devices and accessories, such as blasting caps, that are used in the coal and metal mining, quarry, logging, seismic exploration and construction industries.

9. During the period covered by this Information, the defendant and co-conspirators sold and distributed commercial explosives in Pennsylvania that were manufactured outside of that state. These commercial explosives were shipped in a continuous and uninterrupted flow of interstate commerce from their places of manufacture to customers located in Pennsylvania.

10. The activities of the defendant and co-conspirators that are the subject of this Information were within the flow of, and substantially affected, interstate trade and commerce.

JURISDICTION AND VENUE

11. The combination and conspiracy charged in this Information was carried out, in part, within the Western District of Pennsylvania within the five years preceding the filing of this Information.

ALL IN VIOLATION OF TITLE 15, UNITED STATES CODE, SECTION 1.

Dated:

_______________/s/________________
JOEL I. KLEIN
Acting Assistant Attorney General

_______________/s/________________
GARY R. SPRATLING
Deputy Assistant Attorney General

_______________/s/________________
ANTHONY V. NANNI
Chief, Litigation I Section
Antitrust Division

_______________/s/________________
ARNOLD C. CELNICKER
Georgia Bar No. 118050

_______________/s/________________
TERRENCE F. McDONALD
Texas Bar No. 13559525

_______________/s/________________
KATHERINE A. SCHLECH
Virginia Bar No. 17947

Attorneys
Antitrust Division
U.S. Department of Justice
1401 H Street, N.W. Suite 4000 Washington, D.C. 20530
(202) 514-2474