ANTITRUST LAW

Wanganui Chronicle, Volume 88, Issue 6, 8 January 1944, Page 5

ANTITRUST LAW

CHARGES IN U.S.A. CHEMICAL COMPANIES Recd. 6.15 p.m. Washington, Jan. 6. The Justice Department has filed a civil suit charging du Pont de Nemours and Company, thp Remington Arms 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 McGowan and Lord Melchett, president and deputy chairman of Imperial Chemical industries respectively. The complaint describes the du Pont Company as 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 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 noncompetitive 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 Nem-