The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-08-15
SMALL FIRMS
ASK u. s. AID
AGAINST TRUST
Aluminium Co. of America Is
Held Menace to Little
Fellows in Industry.
SAFEGUARD Is URGED
Independents Charge Un-
fair Practices INDUCED In
by Competitor.
BY RUTH FINNEY
Times SprcizI Writer

WASHINGTON, Aug. 15.-As a
safeguard against approval of mo-
nopolies or monopolistic practices in
connection with codes of fair COM
petition. the National Recovery Ad-
ministration has been asked to con-
suit the department of justice or
the federal trade commission be-
fore acting on a code submitted by
any industry which previously has
been investigated under the anti
trust laws.
This suggestion, made to the ad-
ministration by a number of indie
pendent aluminium companies, is be-
ing considered seriously. The ad-
ministration already has consulted
these departments in a number of
matters, but adoption of this broader
suggestion as general regulation
would require even closer co-opera-
ton.
Oswald F. Schuette. spokesman
for the aluminium independents.
pointed out today that without
thorough study by departments ia
milinr with practices which hereto
fore have come under suspicion of
being monopolistic, there always is
the danger that provisions in code
which specifically appear legitimate
will sanction the practices that the
department or the commission would
condemn as monopolistic."
Practices Are Prohibited
The senate wrote special pro-
hibition against monoplistic prac-
tees into the recovery act.
If the recovery administration
declines to follow Schuette's sugges-
ton, it will call for a report from
one of the two agencies mentioned
on the steel industry, steel rails,
united shoe machinery, radio
aluminium. sugar. motion pictures,
cement and cotton seed products.
All these industries have been I'M
der investigation at some time UNI
der the antitrust laws.
Three independent aluminium
companies already have filed with
President Roosevelt a complaint
under the recovery act. charging
the Aluminium Company of Amer
lea with unfair competitive prac-
tees. lin selling products in COM
petition with the compliments and
others for less than the sum of the
market value of the aluminium used
in the fabricating process and the
cost of such process"
Fear Trust Competition
These companies. Baush Machine
Tool Company Of Springfield. Mass;
Aluminium Products Corporation of
La Grange, Ill. and the Sheet
Aluminium Corporation of Jackson,
Mich. have signed unemployment
agreements with the President. but
charge that unless the Aluminium
Company of America is compelled
to desist from the abuses herein
complained of, the compliments
will find it difficult. if not impos-
sible. TO continue to perform their
obligations under their agreement
with the President to raise wages
and TO create employment"
The independents also are ex-
tremely anxious to be allowed
permanent code of their own. not
connected with that for the Alum
mum Company. They express fear
that the newly created Association
of Aluminium manufacturers of which
Arthur V. Davis. chairman of the
board of the Aluminium Company
of America is president. will en-
force trade practices which will put
them out of business.
AS an alternative, the independ-
ents have presented a code propos-
ing creation of supervisory agency
appointed by the government to
enforce its terms and TO prevent
sales of aluminium products at less
than the sum of the market value
of the aluminium and the cost of
processing.
The aluminium industry. original
ly assigned to Deputy Administra-
tor Harry o. King, who handles
other nonferrous metals and their
products. has been transferred TO
Philip c. Ramp. formerly of Simp-
son. Thatcher & Bartlett. utility
LAWYERS.