Evening star., 1942-04-05

the handS OF the Hitler government
present shortage"
To a Nation accustomed to ride and
now facing long walks, the issue assumed
even more importance few hours after
the court action-in which Standard
paid fines totaling S50,0OO-when Thur
man Arnold, Assistant Attorney General
in charge of the antitrust division OF
the Justice Department who was re-
sponsible for the dissolution proceedings,
appeared before the Senate Defense
Committee to amplify the rubber charges
and enlarge upon standards participa-
ton in the German autarchy program"
Citing examples, he said that as late as
February and March of last year Stand
ard was selling gasoline that enabled
Axis sirlines operating out of South
America to defeat the British blockade.
II think this approaches treason" said
Senator Truman, Democrat, of Missouri,
as the Governments story was unfolded.
Standard See Benefits.
Then Standard took the stand. For
three days this past week, officials sat
before the Defense Committee, cate
gorically denying the rubber charges and
countering with the declaration that it
was due to the Standard tie-up with
Farben that the United States today is
able to push ahead with the production
of synthetic rubber, and has superior
brand of gasoline for airplanes, and of
explosives to drop from them.
Collateral charges likewise were ex-
planned away.
Then the committee dug a little deeper.
w. S. Parish, Standard Oil president,
had told the committee that the gaso-
line deliveries in Latin America had
been made "in conformity with the pol
icy" of the State Department. Later
testimony by Assistant Secretary of
State Berle was that this Government
had forced discontinuance of the de-
nveries by taking steps to put the Stand
ard subsidiary in Brazil on a blacklist
that was being applied to curb Axis trade
before this country entered the war.
There that matter rested over the
week end.
of\nearly dozen cartels involving great
American and European industries
against which the Government has
moved in the last three years. Invari-
ably they have concerned materials
which now are indispensable for this
country's war effort, and to several,
Farben has been party, the trail OF the
dye trust previously having been en-
countered in combinations dealing with
magnesium, pharmaceutical products,
dyes and photo supplies. Military opti-
cal glass, tungsten carbide for machine
tools, and sex-hormones, a product used
for aviators flying at high attitudes, are
some of the other fields where foreign
activity has been in evidence. Alloca-
ton to the participants of world trade
areas has been part and parcel of these
agreements, according to the Govern
ment.
Claims q. s. Production Stided.
These world cartels, Mr.. Arnold told
the Senate Committee, have made the
United States dependent on foreign ma
tions for many Of our most vital sup
plies by preventing production at home.
Sometimes, he said, the combinations
are justified by the participants on the
grounds that they enable this country
to have the advantage Of foreign in
ventions. That, he continued, Is equiv
alent to saying that by keeping Ameri-
can enterprise out of the field and sitting
American experimentation, foreign coun-
tries arer encouraged to do the work for
us.
THE drastic shortage OF critical mate
rials today Is proof OF how fallacious that
Justification is" he concluded
Describing the Standardization agree
ment, which was set up in 1929, Mr.
Arnold gave this picture: Standard, he
said, desired world monopoly in oil and
synthetic gasoline. Farben was interested
In chemicals. 1t was arranged that in
the chemical field, which included syn
thetic rubber, Farben would have con-
troll, with Standard turning over to its
German associate information or patents
covering any chemical processes it dis
covered not directly connected with oil
production. This included even the right
to sell in this country. In return, he
said, Farben agreed to give Standard
any patents or discoveries directly con-
cerning oil production, including syn
- thetic gasoline, but at the same time
reserved its own market in synthetic
gasoline.
The deal was effected through patent
pools, Mr.. Arnold explained, and it was
by this means, he added, that the restric-
tions were applied to American industry.
Revised Pact for War.
"At the direction of German inter-
ests," he charged, STANDARD refused to
license independent producers in the
United States for the production of
synthetic rubber. 1t turned over all its
discoveries to Germany even though
Germany declined to give anything in
return" An American development, he
said, was butyl a synthetic rubber, much
cheaper than buna, Farben develop
ment, and which he described as "su-
pertor TO natural rubber for inner tubes
and certain other purposes. Standard
MIR. Arnold told the committee, delayed
the introduction of buna rubber into
this country because the Hitler govern
ment, for military reasons, did not want
1t exploited. Concurrently, he said, the
company held up on exploitation Of its
own product. The impasse, he said, had
continued up to within a short time OF
the filing Of the decree.
Mr.. Arnold also, startled the com.
mittee with the information that the