Evening star., 1941-02-17

ism over period of 81 years, since
its founding, has never been ques-
toned. but which today finds itself
the victim of abuse and innuendo
by the antitrust division OF the
Department of Justice.
Testifying before the Temporary
National Economic Committee in
public session, Mr.. Arnold said:
Take our indictment of BauSch
& Lomb. There is something which
nobody knew anything about until
a large amount of money was spent
in a grand jury proceeding. -
Before a grand jury in New York
We are constantly uncovering star
ting instances of German control
of defense industries as we'll as IL
legal price fixing among American
concerns -
"At least 81 industries producing
vital war materials are awaiting in
vestigation because we do not have
the facilities to deal with them"
Mr.. Arnold was making an appeal
for additional funds and for more
grand juries and for more power
for his antitrust division and added
that the antitrust division has a
problem of economic preparedness
which is no less urgent than the
industrial program of the War and
Navy Departments"
Fashion in Fund Seeking,
It has become the fashion here
abouts for bureaus and Government
agencies engaged in normal civilian
pursuits to tack themselves on to
the defense program in some way in
order to get more funds for more
Jobs. But it is most unfortunate
that Congress is regarded as too
frugal to furnish such funds with
out a campaign of smearing OF
patriotic industries and executives.
There has come to hand today a
pamphlet issued by the Bausch d
Lonb Co., makers of optical inStru-
ments, in an attempt to defend
itself against the smears of Mr..
Arnolds department. 1t is amaz-
ing that American citizens whose
patriotism is publicly attested by the
Secretaries of War and Navy should
find it necessary to issue such
pamphlets. Says the company in
foreWord:
Although the case has been set
tied by consent of both parties and
neither the consent nor the decree
is held by the courts as an admls-
sion of guilt, untruthful and in
fammatory attacks on Bausch &
Lomb's patriotism have persisted"
Company's Statement.
The theory that Americans con-
spired with Germans to block the
production of essential instruments
which was the thesis Of the anti
trust division here is refuted by
the company as follows:
The original contract Q92D was
shown to the United States naval
observer in Berlin within month
of its execution, and through him
the Bureau of Naval Intelligence
and the Bureau of Ordnance were
informed Every naval inspector
stationed at the plant has known
about the contract. 1t was not
realized until 1926 that the provision
concerning the consulting of ZeisS
on foreign orders violated the Sher-
man Act and the clause was imme-
diately eliminated. The claims divl-
sion of the Department of Justice
received a copy of the revised con-
tract in 1929 With the first public
offering of B. & L. stock in 1887
a copy Of this contract was filed
with the Securities and Exchange
Commission. There it was discov-
cred by the antitrust division of
the Department of Justice in 1889
when it was seeking background for
indictments against the whole op-
tical industry " ..
1T has been intimated that
81 Lomb transmitted secret
designs and inventions to Germany.
Nothing could be farther from the
truth. The BauSch & Lomb military
operates as an adjunct
of the Army and Navy and no tech
nical information is available or
without their approval.
The flow of engineering service was
all from Germany ..
when war came again to Eu-
rope, Bausch & Lomb notified Zeiss
that it considered the contract sus-
pended Thus, to all intents and
purposes, the contract had been
for some time before
the Department of Justice brought
its action"
Department Got Publicity.
Yet the Department of Justice got
its publicity just the same. The
press announcements from the de-
partment resulted in such headlines
and innuendoes as United States
Industry Stocking Axis War Ma
chine" and German Monopoly on
Gun Lenses Ended" and Claim
Nazi, United States Firms in War
Pact" and UNITED States-Reich
Firms Accused Of Plot on War
Goods" and United States Breaks
Nazi Control"
One wonders why the War and
Navy Departments and their in
telligence services didn't know all
this before the Department Of JUS.
tice acted in March, 1910. The
truth Is they knew the exact op-
the companies were
patriotic. The Secretary of War
under date of August %, 1910, wrote:
The relations between the
BauSch & Lomb Co. and the War
Department, extending over a long
period of years, have been most
from every standpoint.
At this critical time the War De-
partment has complete confidence
in your company for excellence of
productive ability and
patriotic cooperation"
A similar letter was written by
the Secretary of the Navy last
but apparently there is no
letup by other persons In authority