Evening star., 1926-02-01
Right of Trade Commission
to Withhold Evidence Held
Beyond His Province.
WALSH ASKS SENATE
INQUIRY INTO COMPANY
Declares He Has Doubt as to Good
Faith of Justice Depart
ment Probe.
BY the Associated Press

tee considering proposal for con
greSSional inquiry Into the affairs Of
the Aluminium Co. OF America. IN
which Secretary Mellon is interested.
Attorney General Sergeant today re
fused 10 give the Senate an opinion
as to the right OF the Federal Trade
Commission to withhold evidence in
its possession.
Basing his refusal on a policy which
he said had obtained 'for more than
century" the Attorney General ad-
yiSed the Senate in a letter that he
could find no authority for the render
Ing OF formal opinions on points of
law at the request of either house Of
Congress. Mr.. Sargent'S letter added,
however. that he had TO objection to
giving an informal expression OF his
views on the question.
Doubts Remedy Possible.
He then said 1t was his unofficial
opinion that the refusal of the Fed
eral Trade Commission 10 turn over
to the Justice Department the evi-
dence 1t gathered cannot under ex-
listing law now be remedied In any
proceeding brought by the Attorney
General"
The Senate ordered the inquiry. he
said, and II alone had the power TO
facts in the case.
The letter was SEM to the Capitol
while the judiciary committee, which
already has inquired into the Justice
Departments attitude toward the
Aluminium Corporation. was listening
to a proposal by Senator Walsh of
Montana, prosecutor of the inquiry,
that the whole question of the cor
poration's conduct be made the sub
ject of a Senate inquiry. Action on
the proposal was deferred by the com
mittee until Thursday.
Doubts Good Faith.
The Senate inquiry proposal is
made, Senator Walsh says, because
of doubts aroused as to the
vfgor and good faith of the De
partment of Justice I'm the conduct of
its inquiry to establish whether the
Aluminium company has violated a
Federal court consent decree entered
against it in 1912.
Besides recommending what would
be a third Government investigation
of the Mellon company within four
years, Senator Walsh asks that the
Senate direct the Federal Trade Com
mission to turn over 10 it all of the
evidence furnished by the Aluminium
concern and which the commission
withheld from the Justice Department
on the ground that 1t is confidential -
Describing this action of the COM
mission as "senseless," Senator Walsh
takes the position that since the SEN
ate ordered the commission to make
the investigation in the first instance
1t can compel production of the
evidence.
CriticiZes Sargent.
Attorney General Sargent and other
officials of the Justice Department
are sharply assailed by Senator Walsh
for the manner in which the inquiry
was prosecuted after the Trade Com
mission had reported to the depart
ment in October. 1924, that the Alum
mum Co. had violated the consent
decree.
Calling attention that evidence adj
duced at the judiciary committee
hearing on the subject showed that
months elapsed before any move was
made. the Senator declares that had
the department moved with celerity
II would have obtained the "confiden-
tial' evidence subsequently withheld
from it.
The report emphasizes that while
an agent of the department was find
ing from field Of inquiry that the
aluminium industry was well satisfied
with existing conditions, an investiga-
ton of the Trade Commission found
much complaint against the Alumi-
mum Co. of America. and obtained
evidence on which the commission
issued q complaint last Summer This
complaint is to be brought to trial
on February 10.
Strongly Criticizes Sargent.
at Is sufficient to say" Senator
Walsh continues, that no business
organization could tolerate such pro
Crastination on the part Of it's legal
bureau as has characterized the ac-
ton Of the Department of Justice in
the matter under inquiry nor would
It be regarded as eXculpation on the
part Of the head Of such bureau to
say that he intrusted the work to
subordinates in whom he had conf
dence.
"It Is not expected that the Attor-
ney General will be conversant with
the details of all litigation before
his department. and he may we'll be
entirely ignorant of some matters
having or calling for his attention,
but 1t is not too much to expect that
he will at least be informed concern
ing q charge by his predecessor and
another branch of the Government in
effect, that a fellow member Of the
cabinet, at least a corporation of
which he is the dominant factor has
been guilty of contemptuous -disre-
gard Of an injunction of u Federal
court"
Senator Walsh read the report to
the committee today, but action on 1t