New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1926-01-12
Donovan Tells Senate Committee
Full Examination Is Now
Under Way
DELIVERY DELAYS ARE
FOR LACK OF MATERIAL
Department ID OF Justice Assistant
Denies that Facts Support Charge
that Company Declined to De-
liver to Deliver Goods Because II
Did Not Want to Given Them TO
Business Competitor.

washington, Jan. IL LPD--Senstr
Investigators Of the case against the
Aluminium Company OF America, ir
which Secretary Mellon is a heavy
shareholder, were told today by As.
slstant Attorney General Donovan
That the company had agreed freely
to full examination OF its books
by the department of Justice.
Mr.. Donovan made this disclosure
IN resuming before the senate
Judiciary committee his story OF the
departments part In the case. Under
instructions from the senate, the
committee Is inquiring why the de-
partment did not institute contempt
proceedings against the company
after the federal trade commission
had accused it OF violating a court
decree against certain trade prac-
tees.
Are Looking Over Records
a. V. Davis, president Of the COM
pany, WAS quoted by Mr.. Donovan as
having stated that his company had
no objection to the department hav-
ing confidential data which the trade
commission withheld.
We are now examing the COM
pany's record" Mr.. Donovan said.
Did you get the data In the Dos
session of the federal trade commits
sion?" asked Senator Walsh, demo-
crat. Montana.
1--WE did not"
"And why not?"
Because we had available the
original files OF the company.
Admits Month Delay
The witness conceded that there
was a delay of a month or more in
the aluminium case because one of
the investigators assigned to it, Ex-
aminer Benham, was at work on the
furniture cases In Chicago.
Senator Walsh read a letter writ
ten by the Cleveland office Of the
Aluminium company to the Pitts
oursh office, advising that goods be
held from the market when prices
we're "unfavorable" Mr.. Donovan
said this had been inquired into, and
hat no other instance Of the kind
had been disposed nor was there
evidence that the recommendation
had been followed.
Monopoly Not Proved
The trade commission had been
convinced that the aluminium COM
'any refused to make a contract for
pecif1c date delivery of raw ma
er1als because 1t did not want to
Ieliver them to a competitor, but
Mr.. Donovan said "the facts did not
upport this conclusion"
AS to charges in the trade COM
mission report that the company de-
iberately delayed shipments to dam
ge competitors, the witness quoted
Examiner Dunn as caylng that none
+ the manufacturers named in the
ommission's report would affirm
hat his business had been damaged
y the discriminatory or arbitrary
PRACTICES" OF the aluminium COM
any.
Answering suggestion that the
luminum company was unable to
upply the trade because OF lack
+ material, Senator Walsh called at
srition that a senate committee had
ound that the company was al
'wed Sl6,O00,O00 In plant depreeia-
on, involving a tax Of from $2,-
10000 to 100000, because of
'ar-time expansion Of the plant.
Ir' Donovan responded that the
liant might be "as big as all out.
oors," but could not turn out the
roducts unless it had the raw ma
,rials.