WORLD MONOPOLY

Grey River Argus, 8 January 1944, Page 6

WORLD MONOPOLY

CHEMICALS TRADE U.S.A. Takes Action AGAINST U.S.A. AND BRITISH COMBINE. WASHINGTON, Jan. 6. The United states Department of Justice has filed at New York on Friday tne anti-trust involving high personages in British political and industrial circles, and classing that imperial Chemical Industries limited nas a Cartel agreement’ with the American Du Font De Nemurs Company, to divide up the world markets tor certain chemical products. The Department filed a civil suit charging Du Font de Nemours, the Remington Armv Company, and the Imperial Chemical Industries with maintaining an international Cartel j agreement violating the Sherman Aiiti-’lTust Act. Tne Attorney-General (Mr. Eiddle) said the complaint alleged restraint of trade in the manufacture ot chemical products, firearms, and ammunition. The complaint also names as defendants high executives thereof, including Lord McGowan and cord Melchett, the President and DeputyPresident of Imperial Chemical Industries. The complaint describes tne DJ Pont Company as the largest manufacturer of chemicals in the United States, with total assets of 1,000,000,000 dollars, including 23 per cent, of the stock of General Motors. It says the Remington Company is.the largest manufacturer of sporting arms and ammunition in the United States and since 1933 has been controlled by the Du Pont Coy, It also describes Imperial Chemical Industries as having a virtual monopoly of the chemical industry in Britain. The complaint alleged that some time prior to 1920 the Du Font Coy., and Imperial Chemical Industries reached an understanding for the elimination of competition m the sale of explosives throughout the world. Du Pont were allocated the United States and Central America and Imperial Chemical Industries were allocated the rest of the world, excepting Canada, Newfoundland and South America. . Both companies agreed to retrain from manufacture in or export to each other’s exclusive markets, while Canada, Newfoundland, and South America were shared by both companies on a non-competitive basis. Tire South American- profits were divided equally. t . Canadian Industries, Limited, jointly owned by, both, operated in Canada. The complaint quoted Lord McGowan’s letter to Lamont Du Pont in 1933, in which he said: “No prospective political or legislative action on the part of Governments is permitted to influence relations between Du Pont Coy. and Imperial Chemical Industries. If any legislation or international agreements affect these relations I am sure we will be able to adjust ourselves and so get the continued benefit of our agreement.’ Lord McGowan, in a statement. m London on the Anti-Trust suit, said: “Imperial Chemical Industries or its predecessor companies for the past 40 years have pursued a policy of co-operation with Du Fonts. This policy stands on two legs; Firstly, 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. Secondly, joint investment under which the two companies are at present major stockholders in chemical manufacturing companies in Canada, the Argentine, and Brazil. I believe this policy of co-operation has been a public benefit to the United States and the British Empire as well as the South American countries.” GERMAN'S IN THE COMBINE BIG REICH COY. CITED (Rec. 11.35) WASHINGTON, Jan. 7. Regarding the Cartel suit, the U.S.A. Department of Justice has also alleged that the German I.G. Farben Industrie has been a member of the alleged conspiracy since 1926, and that parties have, at all times since, continued to abide by the provisions of this agreement, except to the extent that its operations have been interrupted by the present war