Evening star. [volume] (Washington, D.C.) 1854-1972, 1944-01-02
Cartel System Looms Large
Among Postwar Problems
U. S. Antitrust Law Fundamental Policy, Will
Make Trade Collaboration Difficult
to Work Out
to Work Out
By Raymond p. Brandt.

Gates, was in England last summer he
found the great financial and industrial
leaders OF Great Britain distre-.ed about
the postwar effect of the Sherman anti
tru-t law which prevents America firms
from entering legally into the interna-
tional cartels that enable few corpora
items controlling raw materials, basic
patents or unequaled resources to mo-
nopolize trade, fix prices and divide
markets in various products.
Lord MCGOWAN, chairman OF the
board Of Imperial Chemical Industries,
Ltd, the British counterpart of the Du
Pont Co. and the German /. G. Farben-
industrie combination, expressed the
British viewpoint in these words at
London dinner in honor CT Johnston:
Il see no hope for collaboration be-
tween British and American business
unlc-s TIE United States repcals its
Sherman Artitru~t Act. Can We in Eng
land lock forward to tl2at?"
Johnston, who had urged in his
speech that the two countries study and
understand each other, candidly replied
that he could see no chance of such re-
peal, because Americans were against
artificial monopolies. He could have
gone further by pointing out that the
Antitrust Division of the Department OF
Justice Is making a pattern of indict-
ments and civil suits against American
companies with cartel connections with
the avowed purpose, among other things,
Of letting other countries know that the
antimonopoly laws are part of the
American business tradition, and that
any postwar economic agreements, off,
cial or private, must take account OF
these laws.
Fights Monopolies Is Years.
In charge of the present antimonopoly
drive is Assistant Attorney General
Wendell Berge, who left the New York
law firm of Root, Clark, Buckner g. Bal
lantine in 1930-before the New Deal
to join the Antitrust Division. Berge,
like his predecessor, Thurman Arnold,
now a Federal Court Of Appeals judge
in Washington, believes that American
freedom of enterprise should not be re-
stricted by international agreements de-
signed to limit production or to divide
markets among few self-chosen indus
trialists. Forty years old, Berge has
spent the past 10 years fighting monop-
olies and corporation corruption.
THE postwar period" Berge told the
writer, will be the crucial phase for
American economy. In the interna-
tional settlements we must make certain
that the conditions of free enterprise
are securely established otherwise we
shall risk losing one of the principal
detectives for which we are fighting.
THE solution of international trade
problems with countries whose internal
economic systems are different from oul
own is highly important. 1t will be
necessary for the United States to have
a definite economic program for which
We shall stand in conferences dealing
with postwar world organization This
program must be one which protects
free enterprise at home and which en-
ables us to trade in world markets with
out committing ourselves to restrictive
agreements which place this country at
q disadvantage.
"Cartels are the most dangerous and
serious threats to private enterprise. II
they are allowed to resume their system
Of private economic government and to
divide and rule strategic branches OF
world industry, we shall have slight
chance to achieve full production or full
employment.
THE significance of cartels to Ameri-
can economy has been demonstrated
time and again since the outbreak of the
war in the lists of shortages of vital
materials resulting from cartel restric-
ton. Strenuous exertion has been re-
CURED to remedy the artificial scarcity
imposed by cartels in many industries. -
Situation Different Abroad.
Berge pointed out that England. I'M
like the United States, has no antitrust
laws and does have a tradition of init
mate governmental participation in biz
business enterprises. In Soviet Russia,
government and business are the same
and foreign trade is carried on by gov
eminent monopoly corporations. French
Dutch. Belgians and Swiss companies
have participated in cartels with gov
ernmental sanctions and Nazi Germany
used cartels, particularly those of I. G.
Farben, as an instrument of govern
ment policy The japanese government
and japanese businessmen initiated the
Germans.
Judge Thurman Arnold was the trus,
buster extraordinary who vitalized the
Antitrust Division. He has an ardent
but less colorful disciple in Berge, who
has gone more into the international
agreements field than Arnold cid. al.
though cartels have always been an I'M
portant conern of the division.
The pattern of indictments and civil
suits filed during the past few years
particularly within the last few months
outlines the problems which will con-
front the postwar planners of this
country and our Allies. Some deal with
exotic products such as quebracho ex.
tract. found almost exclusively in Ar
gentina and Peru, which is used in tan.
ming leather while others deal witr
universal products such as dyestuffs OF
war materials such as synthetic rubber
and gasoline. Some deal with compare
lively small concerns which acquire a
world monopoly by cornering the supply
OF lttle-known but essential product
while others deal with gigantic corpora
tons, such as the Du Points, Standard
OIL OF New Jersey, General Aniline &,
Film Co., American Cynamid Co. and
Bendix Aviation Co., which, because of
their great canital can freeza o,,t co,,