Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-02-25
MELLON DEFENDED
BY SENATOR REED
Pennsylvania Asks Fair Play
for Treasury Head in
Aluminium Matter.
BY G.. GOULD LINCOLN.

! Secretary Mellon of the Treasury
Department and his brother Richard
/ do not own controlling interest in
! the Aluminium Company of America
! Senator Reed Of Pennsylvania told
the Senate today, insisting that 1.-The
| ground has not been laid for an at
| tack on Secretary Mellon in the dis
cussion in the Senate of the charges
| against the Aluminium Co. and
| the Department OF Justice made by
| Senator Walsh of Montana, and
| majority Of the judiciary committee.
.'It has not been Shown that Sec
retary Mellon controls this company"
said Senator Reed, yet throughout
his recent speech in the Senate Sena
tor Walsh made 1t very clear that
this whole proceeding was an attack
on the Secretary of the Treasury.
IT am not here to praise Mr.. Mellon.
| 1t is not necessary. But If Senator
! Glass of Virginia or Mr.. Houston of
| Texas, former Secretaries of the
/ Treasury were involved, there should
/ be the same restraint and the demand
| for fair play would be the same. 1t
| is not asking too much to request that
men who have served as have Glass,
Houston and Mellon should be accord
ed fair play.
Should Consider Facts.
The facts should be considered be-
fore acting on this report of a major
ity of the judiciary committe as a
party measure. The inquiry proposed
is a judicial inquiry. Assuming we
have the power to make it, we are
sitting as a court.
"The fact is that Secretary Mellon
owns less than 1914 per cent of the
| voting stock and less than 1612 per
cent of the non-voting stock; and his
brother Richard owns similar
amount. the two together owning less
than 33 1-3 per cent Of the stock"
Senator Reed said that the report
of the Department Of Justice on the
Aluminium Co. of America shows that
the control Of the company appears
to rest in the Hall estate, Of which
Mr.. Davis, president of the company,
is one of the trustees and votes the
stock of the Hall family; Mrs. Alfred
E. Hunt, widow of one of the found
ers; her son, Roy A. Hunt; George H.
Clapp, a former partner of Alfred T..
Hunt; Arthur V. Davis, A. K. Laurie
and a few other OF Mr.. Hunts orig
inal associates.
Senator Reed declared it was evil
dent that the stock was closely held
by this group.
"It Is idle to say, therefore, that
the stock ownership is dominated by
the Melons" said Senator Reed.
Describes Aluminium Company.
Senator Reed described in detail
the history of the Aluminium Co of
America. He said that up until 1909
the company did have a monopoly,
since it owned the only patents under
which aluminium could be produced.
"Since 1909 the field has been abso-
lutely open,'' said Senator Reed.
There have been no patents to inn
pede the entry of other groups into
this field"
Senator Reed said that the Alum
mum Co. of America owns only 623
acres of bauXite. the ore from which
aluminium is made. This, he said,
does not constitute by any means a
monopoly in the ownership of baux-
ite. for many deposits not owned by
the company have been discovered.
He referred to those in Dutch Guia ma
and British Guiana and in other
In 1912, Senator Reed said, the De-
partment of Justice filed a bill in
equity against the Aluminium Company
of America. charging unfair prac-
tfces. This was the suit which
resulted in a consent decree which
the company has been charged with
violating by the Federal Trade Com
nission and in the debate in the Sem
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