How German Industrialists Prepared for War

Manawatu Times, Volume 69, Issue 206, 31 August 1944, Page 5

How German Industrialists Prepared for War

(By Tel egra ph—Prass Assn.—Copyright.) Received Wednesday, 9 p.m. WASHINGTON, Aug. 29. “The Allies should break the power of the German monopolistic firms because they constitute a definite menace to the future peace of the world," said the Attorney-General (Mr. Biddle) to the Senate Military Sub-committee inquiring into cartel arrangements. “The purpose of breaking that power," said Mr. Biddle, “would not be to destroy German economic life but as long as the present form of monopolies survive it will be exceedingly difficulty to develop independent industry in Europe outside Germany." Mr. Biddle said the period between the last and the present wars was only an armistice in which German firms conducted a war against the United States with cartel contracts covering such strategic items as beryllium, synthetic rubber, magnesium, military optical instruments, synthetic nitrogen, pharmaceuticals and electrical and radio equipment. Carl Zeiss, of Jena, the scientific optical instrument makers, prevented the making of range-finders, submarine periscopes and bomb-sights. Under the Versailles Treaty they established a Dutch susidiary to do such work. Zeiss made a contract in 1921 with the American firm of Bausch and Lomb under which the latter could not sell outside the United States without German permission, also a further contract in 1935 under which the firm could not sell to Britain or France gun-sights, periscopes and other instruments. Bausch and Lomb were forced to supply detailed royalty statements from which Zeiss could determine the types and quantities of instruments the United States armed forces had purchased. Mr. Biddle added that Krupp 6 when ordered to destroy their machinery after the world war transferred their patents ana licenses for secret processes to the Swedish manufacturer Bofors, and continued manufacturing heavy artillery, tanks, antiaircraft and other armament. Krupps entered into a cartel arrangements with the General Electric Company to restrict the American production of tungsten carbide under which General Electric after 1936 was not allowed to grant additional licenses for the American manufacture of these, with the result that tungsten carbide was sold in Germany at 60 dollars per pound and in the United States as high as 425 dollars per pound. I. G. Farbenindustrie, representing the German Dye Trust at the chemical, oil, metallurgical and pharmaceutical companies’ conference of American industrialists in 1929, including representatives of the Dupont Company, the Aluminium Company and Standard Oil, made arrangements under which, firstly, Important firms were kept from the Latin American market; secondly, others could not manufacture strategic products, including synthetic rubber; thirdly, the development of the magnesium industry was retarded; fourthly, an American company was prevented from selling to Britain a certain type «i munitions; fifthly, the plastics industry was retarded; sixthly, means were established for obtaining information through inspections of American plants.