Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-01-10
SECOND ALUMINIUM.
COMPANY PROBED
Senate Body Reveals Inquiry
Into Concern Part Owned
by Mellon Corporation.
BY the Associated Press.

Pursuing its inquiry as to why the
Depa rtment of Justice had not actad
more energetically in the case of the
Aluminium Co. of America.
which Secretary Mellon has large
holdings. the Senate committee yes
terday brought to light that an In
vestigation also is being made into the
Aluminium Goods Manufacturers Co,
one-third owned by the former corpo-
ration.
This information was furnished by
Assistant Attorney General Donovan.
but before Mr.. Donovan took the
stand Attorney General Sargent told
the committee that within seven days
after he took office last Spring he
directed that report be made TO him
rega riding the aluminium investigation
before any action whatever Is taken
or any publicity given" He added in
A memorandum To Mr.. Donovan that
this is in no way To be construed TO
retard a proper and thorough examl
nation and appropriate action as the
disclosed information MAY warra mt.
Mr.. Sargent stated Al the opening
| Of the inquiry Friday that his atten-
tion first was drawn To The matter
some six or seven months after he
came into office and Yesterday he said
that while the memora ndum bore his
signature he had no recollection Of 1t
and that his recollection ~ given 10
the committee Friday had not been
changed.
Control Charge Unsupported
With respect to the Aluminium
Goods Manufa curing Co.. Col. Dono-
| van said the investigation by the de-
/ fain al In
cations which had been made the sub
ieCt of special inquiry. Examiner
Dunn. whose report was quoted TO
the committee. said careful inquiry
had failed to support the charge that
this company was controlled by the
Aluminium Co. of America, hut added
that material obtained from the
Aluminium Goods Manufacturing co.
is certainly indicative Of the actions
OF the company which have been so
generally criticized by its competitors.
such as price policy, special discount.
| full-line forcing. exclusive dealing,
J resale price maintenance and causing
| disContinuation of competing lines.
col. Donovan outlined in consider
! able detail just what the department
! had done in prosecuting he investt
| CATION into Federal Trade Commits
| sion charges that the Aluminium Co.
! Of America mad violated the consent
| decree Of 1912 in which II was en-
| Joined from continuing certain Illegal
| practices.
| He explained he had not sought
| to compel the commission TO turn
/ over evidence obtained by il because
! he did not want To take a chance Of
| ieopa rdizing the Government case
! q gainst the company in the event one
/ was started.
Prosecution of the investigation. he
! added has been along the lines laid
| down by Harlan f. Stone just before
! he became associate justice of the
! Supreme Court.
/ Records Examined.
Agents were sent to the Trade
| Commission TO obtain what evidence
! was availab bile there. he continued ,
| then they went into the field. and
! finally they visited the Alumni m
| cnmpany's offices to examine records.
In this connection he read long
| report by Examiner Dunn. submitted
! August 10 1925. in which ii was hell
| that insufficient evidence had been
! obtained to support the charge that
| the company had violated the decree.
| He added. however. that the inveSti-
| cation still ia under way and that
| because Of the wide difference in the
those of the Trade Commission he
| had ordered that other things he
| done in connection with the inquiry.
Secretary MELONS name as a stock
| holder in the Aluminium Co. of
/ America was brought into the hearing
| Yesterday for the first time.
Have Won learned that Mr.. Mellon.
| the Secretary OF the Treasury. is con.
! nected with the Aluminium Coz
| asked Senator Walsh. Democrat. Mon
! tana. prosecutor of the investigation.
only as ] read il in the public
| prints" Mr.. Sargent replied.
1T was not brought to your atten.
! ton in connection with the matter
| unil recently"
Il cannot tell when | first read it
! in the papers"
Senator Walsh pointed out that it
was referred 10 in the report of the
| Trade Commission transmitted to the
| Justice Department in October. 1924
| but Mr.. Sargent said he had not read
| that portion of the report.
This section then was read into the
| record. 1t quoted Arthur V. Davis.
president or the company, as saying
! that this company really consists of
| A. W. Mellon Secretary of the Treas.
: uryl. and r. y. Mellon this brother):
| when Mr. Mellon concludes his work
| in Wa shington he will return as a
| director of the company.