COMPLAINTS OUTLINED

Nelson Evening Mail, Volume 79, 7 January 1944, Page 2

COMPLAINTS OUTLINED

RESTRAINT OF TRADE ALLEGED Washington, Jan. 6. The Justice Department filed a civil suit charging Dupont de Nemours Company, the Remington Arms Company and Imperial Chemical Industries with maintaining an international cartel agreement violating the Sherman Anti-trust Act. The Attorney-General, Mr Biddle, said the complaint alleged restraint of trade in the manufacture of chemical products, firearms and ammunition. The complaint also names as defendants high executives thereof, including Lord McGowan and Lord Melchett, president and deputy chairman of Imperial Chemical Industries. The complaint described Dupont as th e largest manufacturers of chemicals in the United States with total assets of 1,000,000,000 dollarsi, including 23 per cent of the stock of General Motors. It says the Remington Company was the largest manufacturer of sporting arms and ammunition in the United States and since 1933 has been controlled by Dupont, and also described Imperial Chemical Industries as haying a virtual monopoly of the chemical industry in Britain. The complaint alleged that some time prior to 1920 Dupont and Imperial Chemical Industries reached an understanding for the elimination of competition in the sale of explosives throughout the world. Dupont 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 refrain from the 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. South American profits were divided equally. Canadian Industries Limited, jointly owned by both, operated in Canada.,

The complaint quoted Lord McGowan’s letter to Lamont Dupont in which he said no pros' ?tive political or legislative action on the part of Governments would be permitted to influence relations between Dupont and Imperial Chemical Industries. “If any legislation cr international agreements affect these relations I am sure we will be able to adjust ourselves so as to continue the benefits of our agreement.” Lord McGowan in a statement in London on th e anti-trust suit said “Imperial Chemical Industries or predecesor companies for the past 40 years have pursued a policy of co-operation with Duponts. This policy stands on two legs. Firstly, the patent processes agreement under which the two companies disclose to each other the fruits of f ; r 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 major stockholders in th e chemical manufacturing companies in Canada, Argentina and Brazil. I believe this policy of co-operation has been of public benefit to the United States and the British Empire as well as to South American countries.”