Evening star., 1942-07-18
Senate Group Probes
Drug Export Firm;
Plans Public HEARINGS
Coreoron Says He
Severed Connection
With Compony in Al
By BLAIR BOLLES.

The special Senate committee
created to investigate interna-
tional cartels which affect the
American war effort has sub
poenaed information relating to
the drug exporting firm known
as Sterling Products, Inc, which
was formerly represented in
Washington by Thomas G.. Cor
coran, former New Deal brain
truster, Chairman Bone said to-
day.
Mr.. Corcoran made it clear, mean
while, that he severed all connection
with Sterling after the reorganiza-
tion of its personnel was completed
last December. He has no connec-
ton either. he said, with the Sydney
Ross Co., on the Sterling's IS sub
sidiaries. David Corcoran. Mr..
Corcoran's brother, is president Of
Sidney Ross.
Il am interested in Sterling to
the extent that I am interested in
my brother" Mr.. Corooran said. He
added that an inquiry by the Bone
committee into the Sterling activ-
tiles would only reflect credit on
himself by demonstrating how much
was accomplished through the re-
organization managed by him.
Senator Bone added that he ex-
pected the committee later to hold
a series of public hearings on Ster-
ling Products. The address Of Ster-
ling and the Ross company Is ITO
Varick street, New York City. 1t is
understood the committee first will
hold hearings on the international
ramifications of Standard Oil Co. of
New Jersey.
S3,O00.0O0 Order.
The Board of Economic Warfare
yesterday corroborated reports that
the Sidney Ross Co. on Monday re-
ceived export licenses for shipping
&3,00OOO0 worth of drugs to South
American countries-Quinine, aspi-
rim. caffeine and epson salts. Last
week the American Quinine Co. OF
New York was refused its applica-
tion to the BEW for license to ship
$4,000 ounces of quinine to South
America.
The international fiscal associa-
tions of Sterling Products, Inc, led
last summer to the American Gov
ernment's refusing to grant the firm
licenses for export of goods to South
America after the first American
blacklist published the names OF
40 Sterling agents in Western Hemi-
sphere republics. On September S,
1941, Sterling entered a consent de-
cree by which it agreed to sever all
foreign association and which re-
suited in the creation Of Sidney
Ross Co.
Sterling formerly was connected
with I. G. Farbenindustrie OF Ger
: many. For the duration, its in
ternational patent properties are
controlled by the Treasury and by
Alien Property Custodian Crowley.
The license to Sidney Ross Co.
was issued by J. c. Fouls, assistant
chief of the Export Division, BEW,
in the absence of the divisions chief
Col. Royal B. Lord, who has gone to
Buenos Aires on official business.
Mr.. FOULS stated through BEW
spokesman that ofncial converse
tions about the Sidney Ross Co. Ii
cense applications were spread over
two months. The decision to issue
the license was made after con-
ference among representatives of
the Treasury, State Department,
Commerce Department, War Pro-
duction Board and ONCE OF the
Co-ordinator OF Inter- American
Affairs.
Thomas Corcoran never appeared
at the BEW in connection with the
Applicant Mr.. Fouls said.
Mr. FOULS made the point that
Sterling Products and Sidney Ross
Co. are wholly owned United States
concerns. He said that basis of
BEW policy with regard to export
business with South America is to
make it possible for United States
business houses to carry on COM
merce with our neighbor countries
so that this country can improve
its competitive position with respect
to the Axis.