Evening star., 1941-09-25
Arnold Declares
Corcoran Received
No Favors in Case
Says Consent Decree
In Sterling Products
Inquiry Satisfied Stoff
BY J. A. FOX.

Thurman w. Arnold, Assistant At
torney General in charge of the
Antitrust Division, formally de-
MED today that preferential treat
ment" had been accorded Sterling
Products, a client of Thomas G.
Corcoran, former White House in
innate, in litigation recently ter
minated by the department.
Mr.. Arnold's statement was
prompted, he explained, by a series
of newspaper articles alleging that
Mr.. Corcoran was instrumental in
facilitating a consent decee in Fed
eral District Court in New York
by which Sterling and three sub
sidiary drug concerns were forced to
abandon a long-term contract with
the I. G. Farbenindustrie, the Ger
man dye trust.
Under this consent decree and
an information to which the de-
PENDANTS pleaded nolo contendre.
fines of $1,000 were assessed against
Sterling, Alba Pharmaceutical Co.,
Inc: B. Bayer Co, Inc, and the
Winthrop Chemical Co. against Will
liam Weiss, principal officer of Ster-
ling. A minor officer was fined
1000.
Entered Before Jury Trial.
The consent decree was entered
after grand jury proceedings had
been authorized, but before proceed
ings actually had been started.
Tom Corcoran or no one else has
ever got any favors out of this de-
partment," Mr.. Arnold told press
conference at which his statement
was made public He added that the
case was simply one in which law
yer was representing a client and
was not an instance where "a lawyer
lobby" had been operating.
Mr.. Arnold also denied published
reports that members of the anti
trust division were disgruntled be-
cause Attorney General Biddle had
agreed to the consent decree.
The settlement Of this case was
eminently satisfactory to me per-
sonally and to all the members of my
staff who worked on it," Mr.. Arnold
said.
Answers Questions on Case.
Mr.. Arnold said that Many oues-
tions are being put to me" concern
ing the Sterling case and that he
was choosing to answer several. In
response to the question as to
whether Sterling had received some
sort of preferential treatment from
the department." he responded:
"Emphatically, no. In fact, Ster-
ling Products co-operated with the
Government in the beginning of the
drug investigation six months ago
by giving free access to its files.
thus avoiding the necessity of bring
ing voluminous documents before
the grand jury. 1t also gave active
assistance in permitting the Gov
eminent to tie up funds which
otherwise would have gone to Ger
man drug outlets in South America
under contracts made in 1926. The
entire evidence which was the basis
of the criminal information was
furnished to the department VOL
unfairly by Sterling Products. In
spite OF this, the department in
sisted that Sterling Products, it's
subsidiaries and William Weiss, it's
principal officer, who was respon-
sible for the illegal policy, pay maxi
mum fines"
Mr.. Arnold repeated q statement
made by the department at the
time the consent decree was ordered
that the proceedings had MANY
positive advantages. Sterling Prod
ucts, it was said. is an efficient Or
ganization for the distribution of
drugs and will be valuable in carry
ing on and establishing American
outlets for drugs in South America,
where this Government is seeking
a foothold.