Evening star., 1942-05-15
Federal Jury Indicts
8 Big Dyestuff Firms
On Trust Charges
Worldwide Conspiracy
Laid to Du Pont ond
Seven Other Companies
~ the Associated Press.

TRENTON, N. j., May 15.-A
Federal grand jury indicted eight
nationally known firms and 20 Of
their officers and directors yesterday
for conspiracy to suppress competi-
ton and monopolize the manufac-
turs and sales Of dyestuffs.
The indictment, described by the
Government as the most far-fiung
antitrust action to date, alleged
that the conspiracy was worldwide
In scope and accused the defendants
OF acting In concert with some OF
the largest combines OF their kind
In foreign countries.
None but United States firms and
residents was named in the indict-
ment returned to Federal District
Judge Philip Forman, but 1t re-
ferred to the foreign corporations
rs co-conspirators.
Three OF the American -ovned
companies and the American aflli-
ates OF the foreign concerns sell
30 per cent OF thf yestuf1s con-
euned in the Uniud States, the
indictment said.
Exhaustive Inquiry.
The indictment was the out
growth Of an exhaustive inquiry into
patents and chemicals. Department
Of Justice spokesmen said.
Chemical manufacturers named
As defendants or co-conspirators
included:
Ell. Du Pont de Nemours A Co.,
with principal offices in Wilmington.
Del, largest In the United States
with assets in excess Of $500 900 900,
producers Of more than 80 per cent
OF the dyestufis made in this coun-
try; Allied Chemical & Dye Corp,
New York; I. G.. Farbenindustrie
Aktiengesellschaft, Germany; Mitsui
Trading Co. Japan: General AMI
line & Film Corp. plant at Linden,
N. j., and principal oflces IN New
York: American Cyanamid Co., In
New York: General Dyestuffs Corp.
New York; also Arms In Switzer-
land. England, France, Canada,
Argentina and Brazil
Prominent individual defendants
included Lammot du Pont OF VIII
minston, chairman Of the board OF
Du Pont; w. s. Carpenter, jr,
Wilmington, president; Ernest K.
Halbach of New York. president
of General DyestufI. and Alfred
Lichtenstein of New York, presi-
dent OF Ciba Co.. Inc.
The indictment charged that the
conspiracy dated back to April !,
1929.
Arnold's Statement.
In statement at Washington
Thurman Arnold. Justice Depart
naent antitrust chief. said:
This cartel has not only re-
suited in high prices to the Ameri-
can consumer but has also restricted
the full development Of the chemical
industry which is essential to our
war effort.
"One of the principal means OF
the conspiracy has been restricting
the production of the chemical in
termediates from which dyestuf1s
are made and from which important
munitions, particularly explosives
and plastics, could equally well be
made. The chemical industry has
been tbs principal means by which
Germany dominated the economy
Of many countries"
The National Aniline G Chem
Zeal di, sion Of Allied Chemical 81
Dye Corp, in q statement from New
York commenting on the indict-
ment. said I'VE are not aware OF
any such violations Of law by this
company"
Cysnamid Denies Charges.
In New York the American Cyan
amid Co. issued a statement In be-
helf of itself and its officers denying
the charges.
I'VE have not violated the anti
trust law" the statement said. I'VE
have not been party to any inter-
national cartel We have not at
tempted to limit production. We
have not charged exorbitant prices
for our products.
"As is we'll known the American
chemical and dyestuffs industry has
made greater progress since the last
war than that Of Germany, Great
Britain or any, other country. In
deed, its record in this field has
surpassed that Of any quarter CEN
tury in the worlds history. AS .
result, in contrast with its position
in World War I, the United States
has entered World War II with an
organic chemical industry capable
Of meeting the requirements Of
rapidly expanding production for
the war effort. These facts are we'll
known to the Government agencies
responsible for procurement"
In Wilmington, Du Pont offcials
made no immediate comment on the
Governments action.