Evening star., 1942-04-15
AIcoa and AffiIiaies
Fined $4,000 for
Magnesium Monopoly
Consent Decree Provides
Compulsory and Free
Licensing OF Potents
., the Assoeisted Press.

NEW YORK, April Is. - The
Aluminium Co. OF America, the
Magnesium Development Co.,
three other corporations and six
individuals were fined a total OF
$4,000 in Federal Court today
on their plea OF nolo contendere
mo contest) to q series OF Sher-
man antitrust indictments al
leging restraint of trade and mo-
nopoly Of magnesium.
At the same time, Assistant Attor-
ney General Thurman Arnold, in
charge OF the Antitrust Division.
filed a consent decree which pro-
vides for the compulsory free licens-
ing OF patents held by the defend
ants for the production and fabrica-
tion of magnesium.
The fines, imposed by Judge Henry
w. Goddard on the recommends
tion OF Samuel Z, Isseks. special as
sistant 10 the Attorney General
aggregated $4,000 for the corporate
defendants and $4,000 for the in
dividuals.
The indictments, dated January
80, i94i. alleged that the Aluminium
Co. of America and I. @. Farben
1ndustrie, A. @, better known as the
German dye trust, pooled in 1882
their patents relating to the pro-
duction and fabrication OF mag
nesium In their jointly-own COM
pany, Magnesium Development Co.
In 1882, the indictment alleged.
this corporation and the Dow Chem
tcal Co, then the only producer
of magnesium in the United States.
licensed their fabrication
patents and Dow Chemical obtained
n right to license fabricators of
magnesium under these patents,
The corporations which pleaded
nolo contendre, and the fines i'm
posed were
Aluminium Co. Of America, $25 900:
American Magnesium Corp. $25 900:
Dow Chemical Co. $25,000. Mag
nesium Development Corp. $4,000,
and General Analine a. Film Corp,
$4,000.
Individual defendants and the fines
imposed were:
Individual Defendants.
Arthur V. Davis. chairman of the
board Of Alcoa; Roy A. Hunt, vice
president of Alcoa; I. w. Wilson, a
vice president of Alcoa and presi-
dent of American Magnesium Corp.
$1,000 each: Willard II. Dow, presi-
dent, and Earl w. Bennett, vice
president of Dow Chemical, 5000
each. and Karl Hochschwender, pres
ident of Magnesium Development
Corp. 5000. His fine was remitted
by the court when Mr.. Isseks said
Mr.. Hochschwender was unable to
pay it.
The consent decree, besides en-
Joining specific processes of the de-
PENDANTS, made available to any ap-
plicant all OF the patents owned by
the defendants.
The Justice Department contend
ed that the production of mag
nesium was discouraged because the
Dow Co. allegedly licensed without
royalty fabricators who purchased
their magnesium from Dow.
No Consciousness OF Guilt.
Mr.. Wilson, speaking for the Of
ficerS OF Alcoa and the American
Magnesium Corp, said in a state
ment:
None of us Is conscious of any
wrong-doing whatever in connec-
ton with any of our activities In
the development of the magnesium
industry. However. we are mind
full of the fact that in the recent
antitrust suit in which the Alu-
minum Co. of America was a de-
fendant, officials and key employees
be away from their regular duties
and in attendance in court for many
months at a time.
I'VE feel that in the critical situ-
alton which confrontS us all to-
day, with the Aluminium Co of
America and American Magnesium
Corp. occupying the vital position of
supplying so much of the neceS-
sary aluminium and fabricated mag
nesium for the war effort, we must
settle this case at any cost as
quickly as possible so that all our
time can be entirely devoted to the
defeat OF the Axis powers
Magnesium Price Called Low.
Mr.. Dow said:
1T is generally known that the
Dow Chemical Co, has for many
years been the sole producer OF
magnesium in this country. The
reason was because the de-
mand was insufficient to attract
other producers at the price we were
quoting"
No magnesium was produced by
Aluminium Co of America or by
the I. G. Farben in this country
Their patents relating to magnesium
production, which has been assigned
20 the Magnesium Development
Corp, could not be licensed with
out the affirmative vote of ma
jority of the directors of that COM
pany, half of whom were elected
by Alcoa and the other half by
I. c. Farhen, whose interest now
has been taken over by the alien
yOrsNpprty custodian