Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-01-09
DONOVAN UPHOLDS
SARGENT ON STAND
IN ALUMINIUM QUIZ
Continued from First Page.)

Il have no recollection Of it," re-
peated the Attorney General
The memorandum later was read to
the committee by Col. Donovan, and
in substance 1t directed that the At
torney General be informed with re-
gard to the case of the Aluminium Co.
OF America before any definite steps
were taken.
During the hearing this morning
Senator Nicely OF West Virginia as
sailed the Federal Trade Commission
particularly because II had declined to
turnover to the Department of JUS
tice the information received in it's in
vestigation from the Aluminium Co
OF America unless that company
should give It's consent.
is the reason that you don't go to
the Federal Trade Commission for in
formation because the commission has
people who need protection from these
big monopolies?" asked Senator
Nicely. las a member OF the House
I helped to pass the legislation Great
ing the commission. ! now think it
ought to be abolished. or a new COM
mission obtained. I fear that il will
merely be a great obstacle to your
getting information you may need"
Col. Donovan told the committee
that he took charge of his present
Office about March %, 1925. Previous
to that he had been an Assistant
Attorney General in charge of Grim
inal cases. AS an assistant to the
Attorney General, he is charged with
handling the cases brought under the
antitrust laws.
In reply to a question by Senator
Walsh. Col. Donovan said that the
Aluminium Co. case had been brought
to his attention two or three days
after he had taken over his new Office
by the memorandum of Attorney Gen
eral Sargent. Col. Donovan said that
he went to see former Attorney Cen
eral Stone. whose letter to the Federal
Trade Commission of January 81, 1925,
indicated he had ordered an investiga-
ton of the Aluminium Co. of America
to ascertain whether the company had
been violating the court decree.
Traces Letter to Source.
Mr.. Stone. he said. had informed
him that he had signed a letter to
the Trade Commission which had
been handed to him by Mr.. Seymour,
Col. Donovan's predecessor. Col Don
ovan traced the letter down to q, sub
ordinate who drafted it and ascer-
taIned that it had been based on the
report Of the Federal Trade Commits
upon an investigation by the Depart
ment Of Justice itself The Trade
Commission report was made in Oc-
tober, 1924.
Col. Donovan said he had ascer-
tanned that the investigation by the
department had already been outlined
and Mr.. Dunn had been assigned to it.
He said that he had called the atten-
ton Of former Attorney General Stone
20 ~ m
Commission had declined to give the
department the data obtained from
the Aluminium Co. itself Mr.. Stone,
he said, had told him that he had been
told the Aluminium Co. was ready to
give the same information to the de-
partment-
Il thought the procedure outlined
by former Attorney General Stone
was proper" said Col. Donovan, and
it has been adhered to ever since; first,
to go to the Trade Commission to OBJ
tain information there, then to the
purchasers Of supplies from the
Aluminium Co. of America and then to
the company itself. I found that
Dunn had already been to the Trade
Commission and had examined it's
files"
Cites Other Trust Cases.
Col. Donovan called attention to the
antitrust cases which were then pend
ing against furniture companies and
refrigerator companies, as well as
against the Aluminium Co. He said,
in defense Of the department against
the suggestion made yesterday by
Senator King of Utah, that the de-
partment had failed to prosecute anti
trust cases vigorously, that convic-
tons were obtained in the furniture
and refrigerator cases, with many per-
sons being found guilty and fines
amounting to nearly half a million
dollars being imposed. He said that
the investigation of those cases had
been conducted and the cases were
ready to be submitted when he came