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HUD Secretary says Smith & Wesson could be conspiracy target
March 31, 2000
Web posted at: 4:39 p.m. EST (2139 GMT)

WASHINGTON (CNN) -- The Department of Housing and Urban Development has asked
the Justice Department to investigate reports of a possible "conspiracy" of
gun manufacturers to punish Smith & Wesson for the company's decision to sign
an accord to produce safer guns in an effort to avoid government lawsuits.

Local, state and federal government officials who are part of the Communities
for Safer Guns Coalition met last week and reported anecdotal evidence that
might "suggest a conspiracy among manufacturers to put Smith & Wesson out of
business," said HUD Secretary Andrew Cuomo at a news conference Friday.

"You can't pressure a company or try to put a company out of business as a
conspiracy of other companies," he said.

Justice spokeswoman Gina Talamona confirmed the department is "reviewing the
matter."

Smith & Wesson, the nation's largest gun manufacturer, signed an agreement
March 17 to install gun locks and other child-safety devices on all guns, and
to introduce "smart-gun" technology in all newly designed handguns. The
company also agreed to impose marketing and distribution rules on retailers
who carry its wares, as ways to keep guns from children and criminals.

Smith & Wesson also promised to put a hidden, second serial number on
handguns to make them easier to trace.

In exchange, the city governments signing the settlement agreed to drop the
lawsuits they filed against the company to recover costs associated with gun
violence, and the federal government agreed not to file its own lawsuit.

Cuomo said the gun industry and the National Rifle Association were surprised
at the settlement, and are "panicked" that tougher safety rules are on the
way.

Besides the federal government, Cuomo said the attorneys general in
Connecticut, Maryland and New York are looking into the reports as well. The
possibility of a boycott was first reported by The New York Times earlier
this week.

Cuomo also used the news conference to rally consumer and government support
for Smith & Wesson and other manufacturers who may choose to participate in
the responsibility standards outlined in the accord.

Nearly 70 jurisdictions have now added the standards to contract
specifications when placing bids for police weapons. Cuomo said police sales
comprise about 25 to 30 percent of the annual market for new guns.

Smith & Wesson's decision to sign the agreement was criticized by the NRA and
other gun groups. Two other gun manufacturers, Browning and Glock Inc., have
declined to sign onto the accord.

Glock refused to sign on because the company wanted the right to make its
business decisions without any interference from the government, said Paul
Jannuzzo, Glock vice president and general counsel.

Browning is a defendant in a number of lawsuits filed by cities and counties
on the grounds that gun makers and dealers do not take the necessary
precautions to ensure the firearms they sell are safe.

"In my estimation, (Smith & Wesson) has been politically drug into giving
away their own rights, the rights of everyone in the industry, the rights of
licensed gun dealers and the rights of law-abiding gun owners," said Rich
Bauter, vice president of Browning.

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