Evening star., 1938-12-17
Monopoly Committee
Will Ana|yze
Clayton Act .
Strong and Weak Points
Will Be Taken Up at
Next Hearing
~ the Associated Press.


Members of the Federal Monopoly
Committee said today they would
seek to analyze strong and weak
points of the Clayton Antitrust
Act soon after they resume hearings
next month.
The Federal Trade Commission,
which administers certain provisions
Of the act. is expected to make
general presentation of evidence re-
tating to monopolistic trade prac-
tices.
The committee completed yester-
day hearings on the use of patents
IN the automobile and glass con-
tainer industries.
The Justice Department now is
preparing memoranda on the use OF
patents as restraining influence on
trade in other industries.
Assistant Attorney General Thur
man Arnold said the department
had selected the automibile and
glass container industries for hear
inss because it considered the for
mer typical example of mon
aggressive" use of patents and the
latter typical of aggressive use.
Recommendations Invited.
The committee invited represen-
tatives of the glass container indus
try to submit recommendations to
speed up patent litigation or any
other changes in existing law.
Senator King, Democrat, of Utah
suggested they consider the desira-
bility of special court to have final
jurisdiction, except under certain
circumstances, on patent appeals
brought directly from the Federal
District Courts.
Chairman Summers of the House
Judiciary Committee suggested they
also express their opinions as to the
advisibility of compelling patent
holders to issue licenses to compet-
. ing manufacturers.
Held Private N. r. A.
At the close of the Glass hearings,
Senator O'Mahoney, Democrat, of
Wyoming, chairman of the 12-man
Monopoly Committee, said in a
formal statement that the industry
had employed patents in such way
as to create "a sort of private
N. R. A."
Some of the testimony, he added,
showed the South and West had
been hindered in the development
of natural resources because of "arti-
fical restraints"
During yesterdays hearings, Gov
ernment investigators produced fig
tlres to show the Hartford Empire
Co, which holds essential patents
for production of glass containers,
received last year net return of
81 per cent on the capital employed
in its operations. These figures were
described by company official as
substantially correct.
Says Production Held Up.
George Day of Detroit testified
that Hartford-Empire refused to
license new company to make beer
bottles for the Detroit area, and
that the company consequently was
unable to 60 into production.
The committee also heard state
ments:
That four directors of the Corn
Ing Glass Works at Corning, N. Y,
sit on Hartford dEmpire' board of
directors. and that through an in
tsrmediate company, Corning has a
43 per cent stock ownership in
Hartford Empire.
That by a cross s-licensing agree
ment between Corning and Hartford
Empire, other glass manufacturers
are denied the use of Hartford EN-
pire machinery for production of
heat-resistant ware-baking dishes
and the like-which is principal
line of production for Corning.
That two companies, Corning and
General Electric, produce practically
all the Nations electric light bulbs.