Evening star., 1943-09-14
Standard Oil Named
By Wallace as Firm
curbino Rubber Plan
~ the Associated press.

~ the Associated Prssa
Controversy over foreign interests
formerly held by the Standard OH
co. Of New Jersey brought today !
second blast from Vice President
wallace charging that the corpora
tion had deliberately stalled some
Of the rubber and chemical COM
panies In order to keep them from
developing yynthetic rubber"
Mr.. Wallace issued . public state
ment in reply to Ralph w. Gal
lasfer, company president, who said
an attack Saturday by the Vice
President on international cartels
IN . Chicago speech was directed 1t
Standard Oil "by Implication"
Mr.. Gallagher commented after
the Vice Presidents speech that
Mr.. wallace has again resorted to
the label cartel to alarm the Amer
lean public. : Surely Mr.. wallace
should be in . position to know that
long before war came We had worked
with eight agencies OF our Govern
ment to establish synthetic rubber
production In this country: thst We
put to our country's use every hit
of technical knowledge We pos
sessed."
Charges Subterfuge.
In reply, Mr.. Wallace declared
"the cartel Of Standard OIL and
I. q. FArbenindustrie" had engaged
In "subterfuge, concealment and
double dealing" to prevent other
rubber companies from developing
synthetic tires from buna-S rubber.
He said Standard OIL had offered
competing firms license agreement
which would have, "for practical
purposes, prohibited the rubber
companies from making tires"
Mr.. wallace quoted at length from
testimony taken by the Truman
committee In It's synthetic rubber
inquiry.
Standard was forced to choose
between the interests OF the United
States and the cartel agreement
with I. g." the Vice Presidents
statement continued.
Quotes Documents.
"The choice that Standard made
i Indicated in the following quo.
tation from their own document. In
. letter dated April 20, 1898, 1t d
stated:
Until we have this permission
(from /. q. Farben) there is abso-
lutely nothing we can do :.
We know some Of the difficulties
they have, both from business COM
plications and tnterrelations with
the rubber and chemical trades in
the United States, and from . na-
tional standpoint in Germany, but
We do not know the whole situa-
tion-and since under the agree
ment they have full control over
the exploitation OF this process the
only thing We can do Is to continue
to press for authority to act, but
IN the meantime loyalty preserve
the restrictions they have put on
u.s."
Mr.. Gallagher declined to com.
ment on Mr.. Wsllace's newest state.
ment. but earlier yesterday Stand
ard OIL issued statement saying
Apparently scartels' are to become
. political issue" and asserted it was
: disbeliever in controlling produce
tion or combining to control price.
Oppose Price Control.
Through name calling the word
cartel has gathered to itself new
and strange connotations" and has
become the label OF something
bad" the statement said, adding
"as an emotional symbol, 1t calls
forth the response OF . secret 'un.
American. contract with foreign-
ers.'
I'VE do not believe in controlling
production" the companys state
ment said. whether it is done bv
bureaucratic expedient or by bust.
nessmen behind the locked doors
Of board rooms.
We do not believe In combina-
tions to control price. Quite aside
from any moral principle involved.
We think 1t is folly for q business
to believe that it can be secure in
such an arrangement"
Must Increase Trade.
But the company said it was for
business dealings with people in
foreign countries, adding "the bitter
experience Of two bloody and costly
wars has shown that international
trade must be increased, planned
more intelligently, made easier-not
frustrated or blocked"
In conclusion, Standard Oil said
1t was against secret agreements"
asserting:
We are ready to file with the
Department Of State-or some other
designated Government agency
copies OF all contracts that we make
with foreign corporations. If that
agency considers publication Of the
facts to be In the public interest, we
are for publishing them to the
world"