The Waterbury Democrat., 1940-08-02

Advisory Commission has s.
Justice Department to be more
sympathetic toward the big oil
companies which now face their
biggest antitrust battle in years.
Assistant Attorney General
Thurman Arnold has been prepar-
ing the suit In order to force the
big oil companies to separate the
production and refining of oil
from the selling of oil. He claims
to have evidence that through
this "monopolistic" control, the
public is being overcharged $780,
100000 a year on high-test gaso-
line alone.
Arnold was all set to file the
suit last week - when the Ma
tional Defense Commission stepped
in. While it didn't demand that
the action be dropped, it argued
very forcefully that such a suit
would be q disruptive factor at
time when the government Is try
ing to get industry to make heavy
capital OUTLAWS for defense pur-
poses.
Taking an active part in this
behind the scenes was Blackwell
Smith, youthful acting general
counsel for the Defense Com
mission and One-time general
counsel of the NDA. Smith was
militant foe of anti-monopoly
laws while working under the
Blue Eagle, and even more so
during subsequent years as a
New York corporation lawyer.
NOTE-Since Smith returned to
Washington, Arnold has discov-
cred that, although an officer Of
the Defense Commission, he dis
cussed a private case in which
his firm is interested with mem
bers of Arnold's staff.
PAYING PATRIOTISM
Meanwhile Arnold is very much
on the spot. He has been de-
luged with demands from mem
berS Of Congress and independent
oilmen that he proceed with his
antitrust suit. They got wind
of it and want to know why he's
stalling. One influential western
senator called in person to obtain
an explanation.
When Arnold told him about the
Defense Commissions objections,
the senator blew up. "You mean
to tell me-" he shouted, "that
we've got to bride big business to
be patriotic? Why should we al
low the big oil companies $4,000
600 in unjustified profits in order
to get them to cooperate on the
national defense program?
eff they don't want to cooper
ate without being bribcd, let's
make an issue Of that The
public would like to know about
it."
GOVERNMENT TIN BUSINESS
Following recent Merry-Go-
Round disclosures on tin, it can
now be stated that plans are
afoot to set up a government cor
poration under the RFC to buy
tin ore direct from Bolivia for
smelling in the United States. :.
This was necessary to give the
Bolivians assurance Of a per.
manent agency to take their ore.
They would be reluctant to aban-
don their former market In Eng
land for a market in this coun-
try that might wash out at the
end Of the war.
The Bolivian government will
be asked to buy all the tin pro-
duced by its private mines,
thus establishing a complete
government monopoly over sale
Of the ore. This Is necessary
to give the United States assur-
ance of steady flow Of tin
from Bolivia.
With these two assurances, 1t
will be economically feasible to
establish smelling plants in this
country. thus put an end to the
anomaly Of having the worlds
largest tin user dependent upon
foreign countries to haul tin ore
across the ocean, smelt 1t In Liver
pool, and haul 1t back again.
WILKES SPEECH
That acceptance speech Wen.
dell Willkie Is writing Is one Of
the toughest jobs he has ever
tackled 1t can make him or
break him.
Wilikle has got 70 crack two
Of the hardest political nuts
ever handed . COP standard
bearer: the power Issue and
feFeign policy.
Even under normal conditions
the power issue Is pure TINT. par
ticulariy IN the West. which Is
strong for public power. For will
klc. with his Wall Street and