Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1912-05-17
ALUMINIUM COMBINE IS SUED
Government Files Petition in Equity
to Restrain the Monopoly.
BASIS FOR AN AGREED DECREE
Court Asked 20 Issue Mine broad In
functions Against Juiawf fui Com
tract. aud Conspirscic.-
Company to Br Good.

PITTsBuRG, Pa, May is,-'rhe federal
government ilied a civil antitrust suit
against the Aluminium Company Of Amer
lea. which will be the basis for an agreed
decree designed to restrain the so-called
Aluminium trust from InonopoiiEing the
manufacture Of aluminium and its prod.
ucts, including cooking utensils,
In a petition In equity In the United
States court for the western district Of
Pennsylvania, the company Is charged to
be a monopoly restraining interstate and
foreign commerce IN violation Of the
sherman law. II Is declared 10 have
acquired a substantial control OF the
aluminium industry In the United states
and to have charged unreasonably high
prices and profits on It's products. The
dissolution uf the corporation Is not
sought. but the court Is asked to issue
nine broad iniunctlons against alleged
unlawful contracts, combinations, con.
spiracies and practices.
The government comedies that the com.
4 pany's ownership of mere than % per
cent Of the known deposits Of bauxi,e
| tbaae Of aluminuu) IN the United states
and Canada suitable for the manufacture
Of tho metal Is mot within itself unlaw-
fui.' II Is charged, however that the
practical monopoly OF both hauSite and
the manufacture OF aluminium. which the
company legally enjoyed on the explra-
ton OF It's patents for making aluminium
III 1870 has been maintained by unlawful
agreements and unfair methods towards
competitors.
The extent OF other bauxite deposits m
the United States Is not known at thls
time. but II is pointed out that there ar,
inexhaustible quantities. abroad which
could be placed at the disposal Of com,
petitors for the manufacture Of alumi
mum II the restraints on the trade wcrt
removed.
The history Of the aluminium cooking
utensll industry In the United States
says the petition. is history OF ship
wrecks, caused chiefly or contributed
to by the arbitrary, discriminatory anC
unfair dealings OF the defendant"
Agreed Decrr WIN lie entered.
The agreed decree. which will be en-
tered within a few days. will follow th'
governments prayer for restraints OF
the company. This agreement obyiatin:
prolonged battle In the courts. was th'
result Of several weeks OF negotiations
between the Department Of Justice am
the corporation.
William T. Chantlsnd. special assistsn
to the attorney general. is In charge o
the case, which he developed for tn
government. The bill also Is signed b.
Attorney General Wickersham. Assistan
10 the Attorney General Fowler an
United States Attorney Jordan Of Pitts
burgh.
The Aluminium company Of America
incorporated in Pennsylvania originali!
as the Pittsburg Reduction company. hai
grown. II Is pointed out. from a ts0.0o
capitalization In 1855 until Its assets nov
are estimated at ss7,co.cco. A stool
dividend Of 800 per cent. or 1is.oo.ooo wa
declared in 1909.
In addition TO Its extensive raw materin
hauxite holdings. the government de
clares the company produces PRACTICAL,
50 per cent and consumes substantial!
{ 100 per cent Of the alumina used In max
ing aluminium manufactures. substanti
} ally 100 per cent Of the crude and semi
finished aluminium for the United State
and Canada: more than 20 per cent OF tn
aluminium cooking utensils In the Unite
States. controls the manufacture an
sale Of over 70 per eeot OF aluminium cast
ings for this county. used primarily 4
the automobile industry; and more tina
20 per cent Of all aluminium goods an
: novelties made in this county.
Parties 20 Illegal Contract.
The defendant company ts charged wit
! entering into Illegal agreements with IN
following corporations or individuals:
With the General Chemical company
Norton company and the Pennsylyani
. salt Manufacturing company. torbIddln
these three potential competitors frou
engaging In the manufacture Of aluminium
and from selling bauxite to anyone ex
! cept the defendant.
With the so-eslled Swiss or Seahause
company, OF Europe, the largest Euro
pean aluminium corporation. preventing
importatIons and exportat ons and divi
ding territory and trade 30 that tn
American company controlled the busi
ness on this side OF the Atlantic and tn
European corporation on the other.
With Gustav a. Kruttsnitt and Jane
c. Coleman. both Of Newark. n. J.. VIII
are alleged to have agreed not to manu-
facturs or sell aluminium east Of Da.yer