Evening star., 1937-04-24
ALUMINIUM FIRM
ACTSFOR DEFENSE
Prepares to Meet Charges
From u. S. That It Has
Monopoly Control.
BACKGROUND

AIU"1HHHt 70. U! America. one OJ
the business giants OF the day.
Once aluminium Uds utilized
chiefly for household utensils and
castings. Nop it has 1000 in
dustrial uses, including retriger-
otorS, radios, atrplanes, trains and
implements OF ,pdr.
Andrew Mellon, one-time Repub-
hcdn Secretary OF the Treasury,
has an interest in the concern.
The powerful Aluminium Co. Of
America marshaled its legal forces
today for another battle with the
Government over its alleged monopoly
OF the widely-used light metal.
Announcement by Attorney Cen
eral Cummings yesterday of a suit by
the Department of Justice to dissolve
the far-fung corporation and break
Its monopolistic control" prompted an
immediate response by a company
spokesman here, denying the allega-
tlons and complaining that it was
the most Investigated concern in
America
The department named Andrew W.
Mellon, Pittsburgh millionaire and
former Secretary of the Treasury. a
defendant along with So others.
described as officers, directors or
stockholders. twenty-five subsidiary
and affiliated companies also were
named.
Suit Entered in New York.
Cummings entered the suit in Fed
eral District Court in New York City
with petition that the company's
properties be rearranged under several
separate corporations.
Action Of the company on March /,
1887, In advancing the carlot price of
virgin ingot l cent pound was
cited as an alleged act of Oppressive
and unreasonable price-tlxing"
G. G. Carr, speaking for the Alumi-
mum Co., said it was at loss to un-
derstand why it had been singled out
for further investigation" It has been
subjected to at least seven major in
vestigations in the last Is years. Carr
said the concern believed it had
been cleared of any charges of monop-
olistic practices"
The present suit resulted from in
vestigattons begun in 1888 which, it
was charged, indicated that the alumni
mum system had an alright control
OF the aluminium market.
THESE combinations and conspira-
cies," the Government brief said, "have
excluded competitors who otherwise
would have ventured into the industry
to the great detriment of independent
manufacturers, consumers and the
public"
Manufacture 100 Per Cent in U. S.
The petition states that the company
and its Wholly-owned subsidiaries
manufacture 100 per cent of the vir-
gin aluminium in the United States
sell more than 80 per cent of alumni
mum sheet and virtually 100 per cent
OF such structural items as wire, cable
and tubing made from aluminium.
Further, it charged, the company
has protected its American monopoly
from foreign competition through a
series of devices and contracts with
foreign interests dating back to 1902.
Carr said that while the company
was the only producer Of pig alumni
mum In the Uited States, it sells
American manufacturers only about
one-third Of their requirements. The
remainder, he said, came from pur-
chases Of aluminium scrap and imports.
The probable reason no other groups
have entered the field, he said, was
that they did not want to expend the
initiative, energy and money necessary
to produce aluminium, which costs
many times the outlay needed in pro-
ducing competitive metals.
Carr said Andrew W. Mellon per-
sona!ly held less than l per cent of
the firms voting stock and none of
the controlling stock.
Stock Ownership Cited.
The Government contended, how
ever, that the Mellon influence oper-
ated through financial interest in
subsidiaries.
Its brief said that Mellon, Paul Mel
lon and Ailsa Mellon Bruce own a
large proportion of the company's
capital stock and also through their
ownership of all the capital stock Of
the coalesced company own large
proportion Of the capital stock of
Aluminium Ltd, and thereby influence
the policies and activities of Alu-
mlnum Co. and Aluminium, Ltd"
To substantiate charges that the
March price increase was arbitrary
and excessive the Government alleged
that the advance was made 'in the
face of an increase in earnings from
S9,57l ,206 in 1885 to s20,s66 1896 in
1886"