Evening star., 1923-10-12
CHARGE ALUMINIUM
COMBINE REVIVAL
Federal Trade Commission
Sees Effort to Obtain Con-
troll of Rolling Mills.
pY FREDERICK WILLIAM VILE.

The Aluminium Company Of Amer
lea, said to be the only 400 per cent
trust" in existence, once again is un-
der heavy fire from the Federal Trade
Commission. Having "unscrambled"
the combination In 1921. on charges
Of violation of the Clayton act, the
commission now accuses the ALUMNI
mum Company OF maneuvering- IL
legally to secure a fresh monopoly Of
the aluminium industry. Proceedings
have been launched in the United
States circuit court Of appeals at
Philadelphia, whereby the Federal
Trade Commission seeks to enjoin the
ALUMINIUM Company from carrying
out certain transactions designed to
make it's grip on the industry more
absolute than ever.
The corporation is charged, in pur-
suance of that purpose, with "fctlti-
Gus bookkeeping" and consequent
evasion both of a Federal Trade Com
nilsson dlssolving order and sustain
states Circuit Court of Appeals and
the Supreme Court. The aluminium
Company of America Is a Pittsburgh
corporation. At one time 1t was con-
trSlled by the interests dominated by
Andrew w. Mellon, now Secretary of
the Treasury.
Pledge to Take, No Action.
The Philadelphia court has ap-
pointed its deputy clerk TO take evil
dence on the governments applica-
ilon Tor an injunct, on: The aluminium
company has pledged itself to take
no action in the meantime in further
anCe OF the monopoly the corporation
Is alleged to be organi2ing In Deccm-
per Per the SQUIRT viii pass Judgment on
both by the Trade Commission and
the aluminium company.
The particular move which the
government seeks to Illustrate is the
acquisition by the Aluminium Com
pany of the plant of the Aluminium
Rolling Mill Company. The latter
corporation was originally founded
by the Aluminium Company in con-
junction with the Cleveland Metal
thirds of the rolling mill corpora
tons stock went to the Aluminium
company, and one-third to the Cieve-
land concern. On August Is of this
year the aluminium Company sold to
the Cleveland company Its S40O. 900
holdings in the rolling mill property
Tor $1,000. This transaction having
been affected. the Aluminium Com
pGny informed the federal trade COM
mission that the Rolling Mill Com
pany owed the Pittsburgh corpora
ilon SSS5.s0o, representing four prom
lSSory notes and interest The In
dootedness was said 10 have been
contracted on account of pig alumni
mum and aluminium ingot sold to the
koliing Mil company from January,
1918, to July. 1923.
Produced All Pig Aluminium.
The Trade Commission found that
The Aluminium Company produced all
or the pig aluminium in the United
states; that when the Rolling Mil
Company was organized, the only
producers of sheet aluminium, except
tho two contracting Pittsburgh and
Cleveland companies, was a small
mill In New England; and that
through the acquisition Of the rolling
mill unit of the Cleveland Metal
Products Company, the Aluminium
Company of AmeSica secured a prac-
tica1 monopoly of sheet aluminium
production in the United States
The Federal Trade Commission
learned during the summer that the
aluminium Company intended in the
near future to sue the Rolling Mill
Company for the above mentioned in.
debtedness and. through securing
judgement, to obtain eventual possess
sion of its properties.
The amount of the Indebtedness
was claimed to exceed the value of
the entire rolling-mill plant. The
Federal Trade Commission contends
that in the event of the aluminium
company being the highest bidder for
the ro' 'n~ rnN1 Dronertv at iudg-