ANTI-TRUST LAW

Evening Post, Volume CXXXVII, Issue 5, 7 January 1944, Page 4

ANTI-TRUST LAW

CHARGES IN U.S.A.

CHEMICAL COMPANIES

(By Telegraph—Press Association—Copyright.) Rec. 11.15 a.m. WASHINGTON, Jan. 6.

The Justice Department has filed a civil suit charging du Pont de Nemours and Company, the Remington Arras Company, and Imperial Chemical Industries, Ltd., with maintaining an international cartel agreement, violating the Sherman Anti-Trust Act.

The Attorney-General. Mr. Biddle, said that the complaint alleges restraint of trade in the manufacture of chemical products, fire-arms, and ammunition. The complaint also names as defendants high executives of the companies concerned, including Lord Mc- | Gowan, Lord Melchett, president and deputy chairman of Imperial Chemical Industries respectively. The complaint describes the du Pont Company las the largest manufacturer of chemicals in the United States, with assets totalling 1,000,000,000 dollars, including 23 per cent, of the stock of General Motors. It says that the Remington Arms Company is the largest manufacturer of sporting arms and ammunition in the United States, and that since 1933 it has been controlled by the du Pont Company. It also describes Imperial Chemical Industries as having a virtual monopoly of the chemical industry in Britain. The complaint alleges that some time | prior to' 1920 the du Pont Company and Imperial Chemical Industries reached an understanding for the elimination of competition in the sale of explosives throughout the world. The du Pont Company was allocated j the United States and Central America, and Imperial Chemical Industries was allocated the rest of the world except Canada, Newfoundland, and South America. Both companies agreed to refrain from manufacture in or the export to each other's exclusive markets, while Canada, Newfoundland, and South America were shared by both companies on a non-competitive basis. The South American profits were to be divided equally. Canadian Industries, Ltd., jointly owned by both companies, operated in Canada. POLICY OF CO-OPERATION. The complaint quoted a letter by Lord McGowan to Mr. Lammot du Pont, chairman of the board of the du Pont Company in 1933, in which he said no prospective political or legislative action on the part of Governments was permitted to influence the relations between the du Pont Company and Imperial Chemical Industries. "If any legislation or international agreements affect these relations," he said, "I am sure we will be able to adjust ourselves so as to get the continued benefit of our agreement." In a statement in London on the anti-trust suit. Lord McGowan said: "Imperial Chemical Industries or its predecessor companies for the past 40 years have pursued a policy of cooperation with the du Pont de Nemours Company. This policy stands on two legs: first, a patent processes agreement under which the two companies disclose to each other the fruits of their respective large research organisations in defined' fields of chemical science and cross-license them to each other for use in defined territories; and secondly, joint investment under which the two companies are at present the major stockholders in chemical manufacturing companies in Canada, Argentina, and - Brazil. I believe" this policy of co-operation has been to the public benefit in the United States and the British Empire, as well as the South American countries." POST-WAR POLICY? The Washington correspondent of the "New York Times" recalls that Lord Strabolgi in July, 1943, demanded that the House of Lords investigate the operations of Imperial Chemical Industries, whose head, Lord McGowan, defended the cartel system of corporate foreign trade agreements as the backbone of the chemical industry. Informed circles believe that the present suit may be considered to be the United States' answer to a question asked by many people in Britain: Will America insist on competition in the world markets after the war? AMERICA AND DOMINIONS MELBOURNE, January 6. Proposals for the appointment of a joint committee for the promotion of cultural relations between Australia, New Zealand, and the United States i are being prepared by Dr. Allan I Nevins, who is visiting Australia and New Zealand on behalf of the American Office of War Information. He recently spent seven weeks in New Zealand. The Office of War Information wanted more Australian and New Zealand university scholars and teachers to go to American universities after the war and he hoped American university men would be invited to Australia and New Zealand, Dr. Nevins, said. It was hoped also that some arrangement might be made for temporary exchanges of journalists, and that more Australian and New Zealand medical students would go to American hospitals. It was evident that after the war the United States would be planted more firmly in the Pacific —it seemed possible they might be given complete or partial possession of the Marshall and Caroline Islands —and necessarily would have to work in close partnership with Australia and New Zealand. of 40 years, is stated in his citation to have shown outstanding diligence to duty during the Treasury Island campaign. His devotion to duty and example have been an inspiration to all ranks. Private Owen, who is a farmer at Tauranga in civilian life, left New Zealand in December, 1942.