The people's voice. [volume] (Helena, Mont.) 1939-1969, 1941-05-21

Investigation by Senate Com
mittee ELECTS Information
That Priorities Are Fixed by
Representatives of Inter-
ested Industries.
wASHINGTON-( the time
that Edward r. Stettinius Jre director
of the priorities division, was telling
the country that production facllltles
for aluminium were more than ample,
tho Aluminium Co. of America was
unable to fill the orders on it's books.
This admission was wrung out OF
G. R. Gibbons, senior vice president
of the Aluminium company, May Ia
nv Hugh Fulton, attorney for the spe-
cial senate committee investigating
the progress of the defense program.
Fulton also nailed Gibbons down on
his declaration that the Aluminium
company withdraw an application fof
nermission to construct 100000 kilo-
watt power plant in North Carolina
after it was unable to get the FPC
to waive its regulations regarding
bookkeeping.
The letter of the Aluminium COM
pany's attorneys to the FPC said that
If the Tennessee Valley Authority was
not going to build the North Carolina
mower plant, mr. Holden of the OPM
is prepared to suggest that the plant
he built by the War department and
leased under the usual five year clause
TO the aluminium company with an OPP
ton to purchase"
In other words, it was brought out
at the hearing, after the Aluminium
company was unwilling to comply
with requirements of the Federal Pow
or Commission concerning the keeping
of financial records, the OPM was
prepared to suggest that the govern
ment virtually give the power plant
to the company.
Also brought out at the hearing
was the fact that the aluminium prior
tiles advisory committee, which con-
sists of a representative from the
army a representative from the navy,
R G. Farrell, chairman of the board
of the Fairmont aluminium Co, and
E. J. Barney, of the Frigidaire divi-
sion of General Motors, had awarded
priorities on a seemingly inequitable
basis.
It was charged that the committee
had given the dupont corporation
which manufactures Nylon stockings
a 6O96 priority on aluminium, used in
making frames for stockings, while
d, Of Gil
ton hose got only 1870 priority.
The auto industry got 500 prior
itv on aluminium while the food in
dustry. as represented by the Hershey
Co. got only a 1870 priority.
Sen. Ralph O. Brewster (R., Mo- |
said that the 500 priority granted the
auto industry amounting to 500 OF
1910 requirements - would meet all
the needs of the industry.
He said that 1910 production was
800 higher than 1889 production
while the promised reduction of 2O9o
in 1912 production would give the
auto industry enough aluminium to
meet it's needs.
1.-THE duPonts and General Motors
and people most interested in these
priorities'' compose the priorities COM
mittee. Sen. Harry s. Trumon d.,
MOI, chairman of the committee, ex-
claimed.
Frank b. Cliff, assistant comptrol-
Ter of General Electric who has do
mated his services to the OPM and is
with the priorities division denied
that there had been anything inn
proper in the ALLEGATION of priorities.
The final decision. he said is up to
the chairman, Ernest M. Hopkins,
president of Dartmouth college.
The committee heard Richard S.
Reynolds, president of the Reynolds
Aluminium Co., charge that during the
antitrust prosecution of the Aluminium
Co. his company found the Aluminium
Co. very cooperative"
AS soon as the evidence was in
last August, however, "the situation
changed entirely" he said, and the
company began cutting down on his
orders by so to COZ without any ex-
PLANTATION.
The antitrust suit which went to
the Judge last August after the long {
est trial in the history of the federal
courts is still awaiting decision.
It was suggested unofficially that {
one of the reasons for the continued
regarding the plentiful {
supply of aluminium was the necessity
of the Aluminium Co. to prove that I
it did not have control over the vital |
metal and that it did not restrict pro-
duction in order to hold prices up.
Asked why the Aluminium Co. did |
not correct the Stettinius statement s
Of November 1910 declaring that there
was enough aluminium for a 179o ex- 9
pansioD of civilian consumption, Glib t
bons said that ''it would be presump-
tuous of us to correct the OPM." |