Evening star., 1924-10-09
ALUMINIUM FIRM
DENIES MONOPOLY
Declares Report of Trade
Commission Is Biased
and Unfair.
By the Associated Press.


PITTSBURGH, Ia, October g.
Charges by the Federal Trade Com
mission in a recent report that the
Aluminium Co. OF America has nonopo-
listic tendencies and employs certain
unfair practices in trade were char
acteriZcd as biased and unfair to the
last degree in Il statement issued
here yesterday by Roy y. Hunt vice
president of the company. 1T is easy
to make charges, Mr. Hunt declared.
at is another thing 10 establish
them. The company can readily dis
pose Of these accusations before any
impartial tribunal"
Mr. Hunt in his statement detailed
the history Of. the Aluminium Go. of
America from the time of its incor-
poration to develop the patent OF
Charles NJ Hall, who had discovered
process for recovering ALUMINIUM
from its native ore. and continued:
The Aluminium 60. is not monop-
oily, unless 1t is called 50 because at
present il is the sole producer OF
aluminium in the United States. In
I'll 1909 it was protected by patents
covering some Of its processes, but
for the last I5 years there has eX-
listed no obstacle 10 prevent any one
entering the field. The Aluminium
Co. does not control the supply OF
bauxite nor the supply OF amy other
raw material. all of which are album
dainty obtainable At prices as low as
the Aluminium Co. pays. The Aluml-
rum Co. Itself imports one third of
the bauNite which il uses ana pays
the duty of 81 per ton thereon"
Relation TO Tariff.
Undcr the suhhcading Of The
Aluminium Company ana the Tariff.
the statement said:
Prior 10 the World War European
aluminium producing capacity was
greatly in excess of European capac-
ity to consume aluminium. During
the war European producing capacity
was largely increased TO meet the
temporary war needs. The large
European surplus is avo~edlN dcS-
tined for dumping in the United
States
Under the Underwood bill importa :
tionS had grown uutil they exceeded
so per cent of domestic production in
1921, which was the last year OF the
Underwood tariff. In order to meet
the rising tide of importation the
aluminium company was forced TO sell
its aluminium ingotS at loss OF sew
eral cents per pound. More than half
OF its producing plants were closed
down and American labor RENAME d
lido while European labor worked.
The increase in tariff from 2 cents
per pound to cents per pound under
the Fordney McCumber act has af-
fordcd the American producer relief
with the result that at present the
greater part of the American plants
are i'll operation and American labor
is profiting thereby. Under the Ford
neyMcCumber tariff. however, i'm
portations of aluminium have aver
aged 80 per cent OF domestic produc-
ton.
Hall Holdings Largest.
The stock OF the Aluminium Com
pany of America, the statement said
is practically all held by the original
organizers, their estates and the en-
ploycS Of the company, adding that
no person, family nor any financial
group control q majority nor any.
thing approaching majority Of thu
stock" The largest stoC kholder, the
statement continued. was the in
ventor of the process, Charles NJ. Hall
now deceased, and in his will he left
his stock to educational and philan-
Ihropic causes.
The authorized capital stock OF the
company was given as 10000, 600, OF
which S1S,729,600 is issued and out
standing. Ihe statement placod the
net invested capital on December 81,
1923, at $111,5o0,00O, declaring that
this invested capital repre- ;ents the
cash which has been put into the
Comrany by tho stockholders, plus
the earnings that have been turned
hack into the business since 1883, a
period of almost 40 years"
Declaring that the earnings of the
company have averaged 12.3 per cent
the statement said, - per cent has
been paid TO the stock holders as diVi-