Evening star., 1941-02-09

The folloUing is digest of an
address deliuered BY Mr. LttteH
before the Indiana State Bar As
sociation.
TN SPITE of all that we have wit
l. messed since the outbreak of the
war on September 1, 1899, including the
fall OF nine capitals overwhelmed by
startling new techniques of conquest,
we are still learning and still unearthing
new and subtle methods OF invasion.
We are fairly well educated as to fifth
column" activities of the sort pursued by
the Federal Bureau of Investigation and
the Dies committee, but We must piece
together pattern of hobbing restric-
tions successfully manacled to American
industry by shreWdly legalistic methods
the 5000 miles of ocean separating us
from any possibility of bombing attacks
and invasion. Let us hope they are
right and leave the proof to history,
but We should note now, without further
delay, that the distinction between
bombing a vital plant out of existence
from an airplane and preventing that
plant from coming into existence in the
first place is largely difference in the
amount of noise involved
History has already shown that France
and England, rising in self-defense, dis
covered Gripping limitations on in
dustrial production when the demands of
mechanical and. scientific warfare
brought them to light What of the
situation here in our own country, which
we are accustomed to regard as the
greatest industrial nation on earth?
Infected by Cartel System Virus.
Let us make it quite clear as to any
American companies or individuals
which I may mention, that no charge is
made Of deliberate collaboration with
the military aims of Germany. You
may draw your own conclusions from
the facts, but I think the worst charge
which can be made against many COM
panies is that the virus of the German
cartel system has infected them Sub
Stantlal portions of American business
1ipfO dAi4uCotAOlloDly bCCl SCouSCu dIIu
tempted down the easy highroad to
profits by offer of ID exclusive pro-
duction rights, CD division of the world
markets and 80 controlled prices
Is it mere coincidence, however, that
German control or influence on pro-
ductive capacity, through contract, pat
ents or stock ownership-frequently
~ ,Lr;L
which are outwardly not under German
control-happen to be found at certain
nerve centers of armament production
for modern warfare? Let's look at the
record.
Do you know what magnesium is? The
Germans have known for long time
and lead the world in its production and
use. This vital metal, lighter than alum
mum, partially accounts for the success
of the Stuka dive bomber and the greater
carrying capacity of German bombing
planes. Three parts of aluminium are
equivalent to two parts of magnesium in
weight. 1t is said that the landing gear
of bomber made of magnesium is about
100 pounds lighter than one made of
aluminium.
Magnesium for Bombs.
The highly destructive German-made
bombs used in the Spanish Civil War
in the bombing of Barcelona were in
closed in a magnesium alloy shell The
magnesium bombs were lighter, thereby
increasing the carrying capacity of each
plane.
Seventy per cent of all magnesium
castings produced in 1887 were used in
aircraft. and in 1888 the consumption of
magnesium alloy castings and other
structural products of the aircraft in
dustry probably established a new peak.
Germany led the world in 1888 with r.
600 tons out of the total world production
of $4,000, the United States producing
only 2,400 tons. Germanys already ade-
quate raw material sources for mag
nesium were greatly increased by ac-
quisition of the magnasite reserves in
Veitsch Valley, Steirmark, Austria.
The holders of the principal patents on
the production of magnesium as we'll
as on aluminium, were in Germany, as
might be expected, in the I. c. Farben-
industrie of Bitterfeld, Germany.
The Aluminium Co. of America has
produced 100 per cent of the virgin
aluminium in the United States for the
last At years, as disclosed by trial of
the antitrust suit pending against this
company, and it has not been to the
interests of that company to encourage
production of magnesium in this coun-
try. Potential competing enterprises
have been obstructed or bought out and
the company has engaged in a series
of cartel agreements which have divided
world markets and fixed prices since
1886.
The Aluminium Co. of America en-
tered into a cartel agreement with the l.
G.. Farbenindustrie providing for the
joint control of domestic company to
hold patents relating to magnesium.
This company is known as the Mag
nesium Development Co. and is jointly
owned. $3.50, by the German company
and the American Aluminium Co.
One Producer in United States.
BY virtue of this ownership a German
company has controlled productive Ca
pacity in this country. The Magnesium
Development Co. has licensed only one
company-the Dow Chemical Co. This
company is the only producer of mag
nesium in the United States. Its pro-
ductive capacity in magnesium does not
exceed 5000 tons per year Q940, while