Evening star. [volume] (Washington, D.C.) 1854-1972, 1942-05-14
Dye Monopoly
Laid toDu Pont,
I Other Firms
Leading Companies
Of World. 20 Aides
Listed in Indictment
STORY on Poee AID
BY the Associated Press.


The Justice Department an
nounced today that a Federal
grand jury at Trenton, N. j., had
indicted eight corporations and
20 Of their officials on a charge
of worldwide conspiracy to
monopolize the manufacture and
sale of dyestuffS.
The actual defendants, topped by
the giant E. I. du Pont de Nemours
d Co, are Americans, but the in
dlctment named as co-conspirators
the leading chemical companies in
Germany, France, Great Britain.
Switzerland and Japan, along with
some satellite corporations in South
America and Canada.
Thurman Arnold, head of the
Justice Department Antitrust
Division, said a worldwide cartel
had mot only resulted in high prices
to the American consumer, but also
has restricted the full development
of the chemical industry, which is
essential to our war effort"
Affected explosives.
"One of the principal means OF
the conspiracy" Mr. Arnold said in
a statement" has been restricting
production of chemical intermedi-
ates from which dyestuffs are made
and from which important NUM-
tons, particularly explosives and
plaStics, could be made"
Other officials said the case, an
outgrowth of the exhaustive inquiry
into patents and chemicals, was the
most far-fiung antitrust action thus
far and rivaled in Importance the
Standard Oil Co. New jersey case
which was settled recently by a con-
sent decree freeing thousands of
patents for general use during the
war.
These were named defendants:
Allied Chemical 81 Dye Corp, E.
I. du Point de Nemours & Co, Amer
lean Cynamid Co. General Aniline
& Film Corp, General Dyestuffs
Corp, Ciba Co., Inc; Sandoz Chem
ical Works, Inc, and Geigy Co., Inc.
all except Du Pont having head
quarters in New York. Du PonsT
are in Wilmington, Del.
Also Bertrand A. Ludwig, Charles
F. Weber and F. J. Emmerich. vice
presidents of Allied Chemical; E. r.
Ellis, foreign sales manager; G. w.
Talbert, general manager, and E. M.
Maxwell, domestic sales manager, of
National Aniline and chemical di-
vision of Allied Chemical: Lammot
du Pont, chairman; w. S. Carpenter,
jr., president; F.. w. Pickard, vice
president; CeSare Protto, director
of &c Dyestuffs Division, and AM
brose r. Chantler, director of sales,
Dyestuffs Division, of E. l. du Point.
Other Defendants.
Also Ernest K. Halback, president,
and Rudolph LEM, vice president,
of General Dyestuff; F. M. Fargo,
jr., vice president and director, and
Sidney C. Moody. sales manager.
Calico Chemical Division of Ameri-
can Cyanamid; Hans Aickelin, for
mer vice president of General AMI
line; Walter Saenger, vice president,
and William Zipse. vice president,
of Geigy; Edgar Gossweiler, vice
president and treasurer of Sandoz,
and Lichtenstein, president of Ciba.
The indictment alleges that a con-
spiracy was begun in 1929, with
agreements involving Du Pont and
the leading British, German and
Swiss companies, with the German
dye trust, l. G. Farbenindustrie--
largest corporation in the Reich
as the keystone.
Summing up the results of the al
legged conspiracy, the indictment de-
clared:
The defendants and co..
conspirators have eliminated COM
petition in the manufacture and sale
of dyestuffs in the United States.
They have restricted imports into
and exports from the United States.
They have eXacted exorbitant prices
from consumers of dyestuffs by fix
ing and maintaining uniform arbi-
trary prices.
They have also restricted the
(See MONOPOLY, Page 2-X.)