Evening star., 1942-08-20
Standard Oil Chiefs
Say MonopoIies
Do Not Pay
Deal With Germun Trust
Related to Senators
BY Forish and Howard
ey the Associated Press,

sy the Associated Press.
Two officials of Standard Oil Co.
tNew Jersey told the Senate Pat
ents Committee today their COM
pany was "one of the first to learn
that monopolies do not pay"
They were w. S. Parish. presi-
dent of the New Jersey company
and Frank Howard, president of
Standard Development Co, sub
sidiary.
Chairman Bone, questioning Mr.
Howard about Standards relations
with Germany's l. G. Farbenln-
dustrie, asked him if he did not
know of monopolies in various in
dustries in the United States.
Says Monopolies Don't Pay.
Our company found that mo-
nopolies didn't pay for the stock
holders" Mr.. Howard replied. Mr..
Parish confirmed this statement as
representing Standards position. -
Mr.. Howard qualified his previous
testimony that Standard had broken
off relations with I. G. Farbenindus-
trie of Germany in September, 1889,
after the outbreak of war.
Creekmore Faith, the committees
counsel, challenged Mr.. HoWard's
assertion yesterday that relations
had been suspended in 1889. He
charged that four patent and trade
agreements between the New Jer-
sey company and the German chem
ical trust were not terminated but
were in full effect until the consent
decree in March, 1912" which dis
solved the relationship.
Mr.. Howard then qualified his
statement to say that Joint opera
tions" were suspended but that
correspondence with IGF continued
while Standard tried to liquidate
the complicated financial relation
ship because of war conditions.
Rubber Program Aid Cited.
Mr.. Parish sought to show the
Senators that Standards prewar
contracts with IGF enabled antici-
patton of Americas need for syn
thetic rubber.
With certain German patents ac-
quired in a process-exchanging ar
rangement, Mr.. Parish said in
statement prepared for the COM
mittee that Standard spent millions
of dollars on rubber research and
production facilities before Pearl
Harbor.
AT the time of Pearl Harbor," 4"
the statement said, standard Oil
Co. had under construction entirely
with their own capital nearly 10000
tons per annum capacit of syn
thetic rubber and synthetic rubber
raw material, an amount almost
as great as the German government
had provided for itself before it
went to war.
Engineer Testifies.
Every oil synthetic rubber plant
now being built by the Government
is being built in large part with
our plans and as the result of our
engineering.
H. T. Haslam. a chemical engineer
who is vice president of Standard,
indicated yesterday that Standard
had spent S15,000,oOO of its own
money in developing German
processes which resulted in war
products.
From IGF, he said, Standard OBJ
tained information on buna rubber
in exchange for some information"
on its own butyl rubber expert
ments.
Mr.. Parish testified that Standard
had offered its butyl rubber patent
free to any one in the United States,
but only one company had applied
for it and consequently was given
the information.
Witnesses in earlier hearings of
the committee charged that Stand
ard, through a patent pool with the
German chemical trust, had tried
to control the synthetic rubber and
other developments.
Mr.. Haslam estimated that the
United States had saved years of
research in its own laboratories by
Standards arrangement to OBJ
tai the German inventions and
processes.