Evening star. [volume] (Washington, D.C.) 1854-1972, 1941-05-24

Co, makers OF
aluminium and
Gently the David Lawrence.
beneficiary of a $40,000,000 loan
from the r. F. c.
Just a little more than a year
ago-March 10, 1940-there appear
ed in the Scripps- Howard papers a
dispatch by Charles Lucey in which
he wrote:
Last month Secretary IckeS an
nounCed contracts for $4,000 kllo-
watts of hydroelectric power from
Bonneville and Grand Coulee Dams
had been signed with the Reynolds
Metals Co. for aluminium plants.
About that time the R. F. c. lent
the Reynolds company about S40,-
100000
These arrangements, it is learned,
were made with the support OF
Walter Rice, Justice Department
attorney who has been directing
the Governments suit to break con-
troll of the Mellon-Davis interests
aluminium Co. of America) in this
vital defense industry"
The above set of facts is chronicled
not with the idea of suggesting that
there is any improperly in Mr..
Rices acceptance of a high-salaried
post with the Reynolds Metals Co.
because unquestionably Mr.. Rice
learned a good deal about the alumni
mum business when he studied up
for the antitrust suit and hence
becomes a valuable man to the
REYNOLDS company-but to draw at
tention to the chain of events
whereby the Justice Department, in
stead of combining itself to its tasks
under the law. plays an eXtralegal
role in trying to undermine the de-
PENDANTS whom it is prosecuting in
court.
Unusual Procedure.
Despite all the talk about mo-
nopoly, the Reynolds company is
about to produce 100000 pounds
a year and will doubtless 60 beyond
that figure. Mr.. Reynolds. president
of the company, is an active per-
sonality we'll liked in Washington
and he has had the good judgment
to select for his aides some of the
men who used to be employed by the
the aluminium company. He has
done this Notwithstanding the ad-
vice given the o. P. M. the other
day by some Senators that 1t must
not rely on the experience and
knowledge of aluminium company
executives and experts.
The Reynolds Metals Co. has not
hesitated, on the other hand, to
give jobs to officials who have been
part of the New Deal. taking a man
from the R. F. C. itself, too. So
there can be no criticism of the way
the Reynolds Metals Co. has played
It's cards in trying to get an efficient
staff.
The whole episode is interesting to
observe because it has not been the
function of Government heretofore
TO set companies up in business to
compete with stronger units in pri-
vate industry and to furnish the
capital for that purpose, The ex-
cuse, of course, is the defense stu
alton.
Free competition, even with Gov
eminent funds aiding one of the
competitors, can hardly be attacked,
especially at a time when it is de-
sirable to step up aluminium produc-
ton to the maximum figure possible.
But it is questionable whether
animus and prejudice inside the
Government should be carried to
the point of favoritism and special
privilege.
Thus recently the Secretary of
the Interior refused to give the
aluminium company additional cleo
trio power in the Northwest to ex-
pand its plants, arguing that he
must reserve the power for public
ownership districts. Likewise in
the proposed plants to be built with
Government funds and to be leased
to makers of aluminium, the Secre-
tary of the Interior is not going
to allow the new plants to be man.
aged under lease by either the
aluminium company or the Bonn
company, which have had wide ex-
perience, but is favoring the Rey-
nolds company.
Experience Is Disregarded.
At a time when there is supposed
TO be an aluminium shortage, the
principal producer of aluminium on
the North American continent is
harassed by lawsuit and given a
competitor with Government funds,
attacked in Senate debates with data
furnished by Justice Department at
torneys and now excluded from put
ting its experience at the disposal
of it's Government when additional
plants are to be built with Govern
ment funds.
1t Is known that the Federal
Power Commission recommended
that the new Government-owned
aluminium plants which are to be
furnished Government electric pow
or should be allocated for manage
ment to three companies - the
Aluminium Co. of America, the Bohn
Co. and the Reynolds Metals Co.
The projects for new aluminium
plants involve a Government ex-
penditure of about $250,00O, 900, but
Secretary IckeS has decided against
the recommendation of the Federal
Power Commission and is insisting
that the Reynolds Metals Co. man.
age all the new Government plants.
Thus in a time of crisis is expert
ence shunted aside and favoritism
allowed to rule.
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