Evening star., 1942-04-26

In statements TO the press, officials
of Standard Oil and other domestic
partners in German syndi-
Gates have cried out against accusations
brought by the Justice Department and
particularly against Senator Truman S
charge that some of their operations
approached treason. But many of the
departments equity complaints and
criminal indictments, alleging conspiracy
in restraint of foreign and interstate
commerce, have been followed by con-
sent DEGREES, acceptance Of fines or pleas
of no contest
When rubber prices fell rapidly after
the first World War. Malayan planters
appealed to the British colonial office,
which appointed Sir James Stevenson
to investigate and report. The result
was the Stevenson plan of 1922 for re-
stricting acreage and stabilizing prices
The measures taken succeeded by 1925
in forcing up the price to more than
81 pound on the New York market.
But Dutch planters had refused to Join
the agreement, and multiplied their out
put with such energy that in 1928 the
British monopoly was broken and the
scheme came to an end.
Committee Formed In 1894
In 1882 and 1888, during the depres-
sion, rubber prices fell to less than 8
cents a pound in New York. The Inter-
national Rubber Regulation Committee
was formed in London on May 7. 1884
It's voting personnel was confined to
British Malaga, the Netherlands Indies,
Ceylon, French Indo-China, India,
Burma, North Borneo, Sarawak and
Thailand. The United States, which had
become the worlds largest consumer of
rubber, was represented by an advisory
panel of four members.
Restrictive basic quotas were estab-
hshed for each territory, shipments were
regulated, replanting and new planting
Of rubber were subjected to rigid con-
troll, and high export taxes on, nom
member producers were assessed for the
purpose of destroying competition. Lon
don was headquarters of the cartel, and
its moving spirit was Sir John George
Hay.
The United States Government COL
hded with the cartel in June, 1899, when
an agreement was signed to barter
American cotton for $4,000 tons of rub
ber. A year later. only 10000 tons had
been delivered. An r. F. c. defense
subsidiary, the Rubber Reserve Co., was
formed in June, 1910, with Jesse Jones
as chairman. Two agreements were
signed with International Rubber for
the purchase of 100000 tons at Ell
been delivered up to September, 1941.
Out of 10000 tons ordered for 1910,
only 10000 arrived
Himself under fire for delay in the
rubber procurement program, Mr.. Jones
told the Truman committee last month
that the rubber cartel was a private
agency, but that It had sufficient status
in the British government to make it
necessary for him to negotiate through
the State Department. He revealed that
Great Britain had rubber stockpile of
100000 tons or less, and declared that
the syndicate, while restricting ship
ments to the United States and United
Kingdom, continued to export rubber
to Japan, an Axis partner, in 1910 and
l94l.
Other Cartels Prosecuted.
In addition to synthetic rubber, the
Justice Department has conducted prose-
cutions, nearly all of which have been
settled without trial, against American
corporate and individual participants in
cartels controlling many other materials
essential to war. Among these are alum
mum, manganese, military optical in
struments, tungsten carbide, glass bulbs,
electric lamps, pharmaceutical products,
hormones for wound and surgical shock,
dye-stuffs, aspirin, cameras, photoprint-
ing materials, synthetic gasoline and fuel
oil, toluene, aviation gasoline and syn
thetic nitrates.
The evidence gathered provides over
whelming proof that Germany possessed
a commanding position in cartel affairs,
and that the system was largely one
way avenue, with profits flowing into the
Reich and disabilities recoiling on foreign
associates. Agreements usually limited
operations of American partners to the
United States and its territories, while
the Germans took over the rest of the
world, with particular emphasis on Latin
America
The Reich owed its predominance to
three colossal trusts. I. G. Farben resem-
bles combination Of Standard Oil, Gen.
eral Electric, Du Pont and the Aluminium
Co. OF America with controls of chemicals,
dye-stuffs, drugs, coal, fertilizers, public
utilities, banks and many other enter
prises thrown in. The Friedrich Krupp
Aktiengesellschaft Of Essen Is master of
munitions while Siemens-Halske of Ber-
lin is overload of electrical machinery.
The head of I. G. Farben is DR.. Her.
mann Schmitz, who cut his business
teeth as president of an American l. G.
subsidiary, the General Aniline & Film
Corp. He was succeeded in this post by
his brother, Dietrich A Schmitz, who
became an American citizen and has a
son in the United States Navy.
The chief of Friedrich Krupp is DR..
Gustav Krupp Won Bohlen und Halbach,
who in lsS9-1s00 was secretary of the
Germany Embassy in Washington.
Despite the number of prosecutions,
the Department Of Justice had scarcely
scratched the surface of hundreds of
cartel relationships between American
and alien firms, mostly Nazi
But the crusade was virtually halted