Evening star., 1942-03-26

States for the production Of syn
thetic rubber. It turned over all its
discoveries to Germany even though
Germany declined to give them any
thing In return. The effect Of this
arrangement continued during the
war and up to time shortly be-
fore the filing of the information
and the decree against Standard
OIL"
Mr.. Arnold said that Germany's
development of synthetic rubber re-
suited in . production which equaled
that nations former imports.
Industry Frustrated"
Meanwhile, he said, Standard &
activities frustrated the creation OF
an American synthetic rubber In.
dustry."
STANDARD Cil," Mr.. Arnold testi.
fed, delayed the use of Buna rub
Der in this country because the
Hitler government did not wish to
have this rubber exploited here fol
military reasons. Standard delayed
the introduction Of Buna rubber
even after it had received permis-
sion from I. G. to make suitable
arrangements. 1t is even more
astonishing that on Standards owr
development. namely, Butyl, Stand
ard has refused to license all but
two rubber companies, with the ex-
ception Of some speciality companies
The ramiflcations of this carte
arrangement are enormous and syn
thetic rubber is only a part of the
larger story. I cannot, within my
short time, sketch all of the cartel
arrangements which flow even from
the synthetic rubber portion of the
cartel. Nevertheless, it is impos-
sible to understand the synthetic
rubber situation unless it is viewed
as part Of a gigantic cartel structure
affecting Standards relationship to
numerous other companies.
Obligations to Du Pont.
For instance, there is no doubt
that one factor in the delay in
Standards synthetic rubber pro-
gram was Standards cartel obliga-
tions toward Du Pont.
STANDARD and 7. C. had obligated
themselves not to open the field
of synthetic rubber in the United
States without first offering a share
to Du Pont."
In reading the Standard docu-
mentS one has the feeling that 1t is
impossible to determine what con-
duct patriotic American companies
may be forced into by these cartel
arrangements.
Two methods will be available. the
Buna process or hydrogenation of
coal, and the Butyl process, which
uses natural gas. The Buna process
is used in Germany, the Butyl proc
ess was developed in this country
and Is the less expensive method.
Background Of Case.
The background of the case Is
this: In 1929 the American firm
reached an agreement with the Ger
man dye trust. Interessengemein-
schaft a. G. Farbenindustrie
Aktiengesellschaft. for an exchange
of interest in specified inventions
under which Standard Oil obtained
rights to a number of processes in
cluding a new method for making
T. N. T.
The Justice Department said that
despite this agreement I. G. Farben-
industrie had refused to turn over
the patents for the Buna rubber
processes until 1899, and that it
never transferred full manufactur-
ing information.
This was said to have been be-
cause "the Hitler government, for
reasons of military expediency, re-
fused to permit I. G. to do so. .
Standard, nevertheless, decided to
transmit samples and all informa-
ton regarding Butyl rubber tthe
petroleum gas process it had de-
veloped to I. G."
Conspiracy Charged.
The Government charged the
American company had "conspired
with I. G. to restrain trade in the
oil and chemical industries through
out the world. including synthetic
rubber and synthetic gasoline"
Mr.. Arnold. summoned before the
committee several weeks ago, asked
at that time for a suspension of the
inquiry until the Department of
Justice had completed its investi-
cation.
After the consent decree was filed
the company issued their state
ment:
The controversy arose out of GER
tain contracts made by the COM
pany and the I. G. Farbenindustrie
the chief chemical concern of Ger