The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-10-07
MELLON TRUST
GRABS PROFITS
IN ALUMINIUM
Andy Has Several Ways
to Control Market
Csy The Federated Press,


WASHINGTON, Oct. g.
Secretary Andy Melons alumni
mum trust comes in for rough
criticism at the hands of the
Federal Trade Commission, in
the report just made to the SEN
ate on the latter's inquiry as to
why house furnishings are so
costly.
The third section of this re-
port, dealing with kitchen uten-
sils, is now complete.
Make Cooking Utensils.
'"The Aluminium Goods Manufactur.
ing Co." says the commission, sis the
largest manufacturer of cooking uten-
sils in the United States and is afili-
ated with the Aluminium Co. of Ameii.
ca. The competitive methods of this
company include various kinds of
price discrimination between Gus
toners.
'In some cases special discounts
have been made in consideration of
carrying a full line; in other instances
discounts have been granted in consid.
Grafton of the favored organization
handling the Goods company's prod
ucts exclusively. The Goods company
has also been active in maintaining
resale prices. Data from several
sources show that the Goods company
has received a special five per cent
discount on purchases from the Alu-
minum Co. of America"
Melons squeezing of the house
holds of the nation is seen in the
next sentences in the report: "The
Aluminium Co. of America has a prac-
ticalIy complete monopoly of the pro.
duetion of aluminium in the United
States, and is the only domestic
source of supply for aluminium cook
ing utensil manufacturers. This fact.
combined with a high protective tariff
on aluminium, enables it to control the
price of aluminium"
Has Subsidiaries, Too.
What aluminium ware Mellon does
not manufacture directly, thru his
Aluminium Goods concern and his
United States Aluminium Co., subsidi-
airy to the Aluminium Co. of America,
he grudgingly permits other makers
to turn out, if they can stand the long
delays of delivery of sheet aluminium
which he imposes. From 80 to So per
cent of the orders are shipped in the
month in which shipment is due In
some cases, he dumps big quantities
Of metal on a customer who cannot
use it, or he fails to deliver at all
The federal trade commission sug-
gest that the aluminium combine seems
to be violating the terms of the "con-
sent decree" under which the depart.
name of justice dropped an antitrust
suit some time ago-tho that decree
was totally inadequate to restore com.
petitive conditions in the industry.
Controls the Industry.
The same report shows that there
is no real competition in the produc-
ton of vacuum cleaners, washing ma
chimes, sewing machines and refriger-
ators. The Singer sewing machine
corporation controls rs per cent of the
business in that industry.
Expect Action In Courts.
Action in the United States courts
under the Sherman antitrust law
against the Aluminium company Of
America, controlled by the family Of
secretary of the treasury Mellon, was
forecast today as a result of the re-
port of the federal trade commission
charging the company with the main
tenancc OF monopoly.
The Aluminium company and its
subsidiaries were declared to be vio-
lating the consent decree entered
against them in 1912 under the Shtr-
man law. The report of the federal
trade commission was submitted to
the senate in response to resolution
asking for information on trade con-
ditiong of household furnishings.