The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-05-16
Which Has a Practical Monop-
oily of the Business.
PAYS ENORMOUS DIVIDENDS
Five Hundred Per Cent De-
cIared in Year 1909.
The Defendants Agree to Sub
nit to a Decree.

PIttsburg, May 16.-The federal
government filed a civil antitrust suit
asaInst the aluminium company of
america which will be the basis for
an agreed decree designed to restrain
the socalled Aluminium trust from
n1ohopoIizing the manufacture of
aluminium and it's products including
cooking utensils.
In petition in equity to the United
StdteS court for the western district
OF pennsylvania, the company is
charged with being monopoly re-
stra1n1ng interstate and foreign COM
nnerce in violation of the Sherman
law. 1t is declared to have acquired
substantial control of the aluminium
INDUSTRY in the United States and to
nave charged unreasonably high
prices and profits on it's products. The
dissolution of the corporation is not
sought, but the court is asked to issue
nine broad injunctions against alleged
unlawful contracts, com bination, con-
spiracies and practices.
The government comedies that the
company's ownership of more than
30 per cent of the known deposits of
bauXite Chase of aluminuIn) in the
the manufacture of the metal is not
within ITSELF unlawful. 1t is
charged however, with practical
monopoly in bauxite and the mon
opoly of aluminium which the com
pany legally enjoyed on the expiration
of it's patents for making aluminium in
1919 has been maintained by unlaw-
Tul agreements and unfair methods
towards competitors.
History of Shipwrecks.
The extent of other bauxite de-
posits in the United States is not
known at this time but it is pointed
out that there are ineXhaustible guam
Titles abroad which could be placed at
the disposal of competitors for alumni
mum manufacture If the restraints on
the trade were removed. The history
of the aluminium cooking utensil in
dustry in the United States says the
petition, is a history of shipwrecks,
caused chiefly or contributed to by
the arbitrary, discriminatory and I'M
fair dealings of the defendant
The agreed decree will be entered
In a few days and will follow the gov
eminent prayer for restraints on the |
company. This agreement obviating |
a long battle in the courts was the re- |
suit of several weeks of negotiations
between the department of justice and |
the corporation. VIM. T. Chantland |
special assistant to the attorney gem |
eral is in charge of the case which he
developed for the government The |
bill also is signed by Attorney General |
Wickersham, assistant to Attorney |
General Fowler, and United States At
torney Jordan of Pittsburg.
The Aluminium Company of Amer
lea, Incorporated in Pennsylvania |
originally as the Pittsburg Reduction
company, has grown, it is pointed |
out, from a $4,000 capitalization in
1888 until its assets now are esti-
mated at $27,OOO,00O. A stock divi-
dend of 500 per cent or $4,000, 600
was declared in 1909.
Practically a Monopoly.
In addition to its extensive raw
material bauxite holdings, the govern
ment declares that the company pro-
duces practically 80 per cent and con-
sumes substantially 100 per cent of
the aIumina used in making aluminium
manufactures, substantially 100 per
cent of the crude and semi-finished
aluminium for the United States and t
Canada, more than 20 per cent of the
aluminium cooking utensils in the
United States, controls the manufac-
ture and sale of over SO per cent of
aluminium castings for this country
used primarily in the automobile in
dustry and more than 70 per cent of
all aluminium goods and novelties of
general make in this country.
The defendant company is charged
with entering into illegal agreements
with the following corporations or in
dividuals: With the General Chemi-
cal company, Norton company and
the Pennsylvania Salt Manufacturing
company forbidding these three po-
tential competitors from engaging
in the manufacture of aluminium and
from selling bauXite to any one except
the defendant; with the so-called |
Swiss or Neuhausen company of Gu T.
rope, the largest European alumni
mum corporation, preventing importa-