The Washington herald., 1913-08-12
Tariff on Aluminium.

The aluminium industry in the United
States is practically controlled by one
concern, the Aluminium Company of
America 4 few years ago a suit
was brought by the Federal govern
ment against this company charging it
with being a corporation in restraint
OF interstate trade under the Sherman
antitrust act. In the petition in this
equity suit we read the following:
The use of aluminium in commerce
and the industries is a matter OF COM
parativeIv recent development Though
the metal has been known since about
Iz22, yet prior to 1889 it was regarded
as a precious metal. extracted only in
small quantities. at great expense, and
sold by the ounce, and at any price
demanded. In 1886 Charles NJ. Hall
applied Tor a patent on a process for
the manufacture OF aluminium, by which
he was able. with the aid OF the cleo
trio current. TO produce aluminium
cheaply in large and commercial guam
titles.
The Aluminium Company has built
up its monopolis,ic control on the Hall
patent Aluminium is now sold for 80
% 20 cents per pound and produced in
quantities totaling millions of pounds
zach year Ii is best known as ma
terial for making cooking utensils, but
it has many uses, especially in the
automobile industry.
Bauxite is the raw material from
which aluminium is made. 1t is an ore
or clay. and is found in extensive de-
posts in the Southern States. The
government alleged in its petition that
the Aluminium Company OF America
OWNS and controls 90 per cent OF the
known supply OF bauxite in the United
States. This is an important fact to
he considered in determining the tariff
on aluminium
The Aluminium Company of America
owns the Northern Aluminium Com
PAW Of Canada. Through the Cana
dian company it entered into an agree
ment in 1908 with all foreign manu-
lecturers OF aluminium. On this point
the following colloquy from the tariff
hearings is interesting. Mr.. Davis is
the representative OF the Aluminium
Company:
Mr.. Palmer-Then your only contract
Is between your Canadian company
ard the European companies:
Mr.. DaviS-Ges, sir.
Mr.. Palmer-Which prevents the
European companies from importing
into CANADIANS that the contract?
Mr.. DaNi>-No. sir; that is not the
nature OF the contract.
Mr.. Palmer-What is it?
Mr.. DaviS-Wcll. the companies
agree to subject themselves to certain
rule, OF a committee. both with re-
spect to price and quantity OF output
and so forth.
Mr.. Palmer-This agreement pre-
vents competition between your Cana
dian plant and the foreign manulac-
rurers:
Mr.. Davis-IeS, sir.
Mr. Palmcr-lt is successful in pre-
venting that competition?
Mr.. Davis-Yes, sir.
While Mr.. Davis denied that the
aluminium Company of America is a
party to the International agreement
for fixing prices and output, many peo-
pie think that il is. and the fact that
it controls the Canadian company. one
Of the parties to the agreement lends
weight TO this belief. Senator Kenyon
recently arraigned it in the Senate as
4 bad trust.
In the tariff bill now in the Senate
the rate OF duty on aluminium is ?
cents per pound, and bauxite is placed
on the free list. 1t has been charged
that this is a favor TO the trust, and
under ordinary conditions it would be-
1t will, however, produce more ef-
fective competition than to place alum
mum on the free list The patent on
making aluminium has expired. and the
monopolistic control of the Aluminium
Company re>ts on It's ownership or
control OF the bauxite supply. indie
pendent companies are at its mercy.
1t is therefore proposed to give these
independents access to the unlimited
supply of foreign bauxite and to pro-
tect their product with duty. Free
trade in aluminium and its products
would not injure the Aluminium Com
pany on account of the international
agreement. 1t would kill the indie
pendents. however and leave the Amer
lean market to the trust" Apparently
the Democrats have adopted the only
way of encouraging competition in
aluminium production.