Evening star., 1945-09-17
CLARK Proposes.
Dividing AIcoa;
itsMonopoIy
Says Firms Control
Hompered War Output
Of Aluminium
by the Associated Press.

by the Associated Press
Attorney General Clark tolc
Congress today the Aluminium
Co. OF America should be split
into a number of competing
companies.
He contended that more competi-
ton In the aluminium industry is
essential to national security and
business prosperity. In a report to
Congress on the industry's recon-
version and surplus property prob
lens, Mr.. Clark wrote:
Monopoly was a burden on war
production. Expansion was ham,
pered by the fact that there was
only one experienced company in
this strategic industry on which our
airpower depended"
Independent operators, the Attor-
ney General said, cannot survive in
a competitive struggle with ALCOA's
aggression of advantages in bauxite
and power supply, plant locations,
market and financial strength and
connections with foreign producers. f."
CBauxite is the commercial ore from
which aluminium is produced.
"The only solution" Mr.. Clark
said, "lies in the split-up Of ALCOA
into q number of competing COM
panies." He added:
Competition in the aluminium in
dustry can come only as result of
the Federal Governments efforts.
The industry cannot be expected to
transform itself after having ope-
rated on a noncompetitive basis for
over half century.
Wants Pattern Recast."
Furthermore, the Government is
today by far the largest owner of
plants and equipment In this indus
try and In disposing Of them can do
much to aid or hinder the rescue Of
this industry's future from the re-
strictions of monopoly.
"A vague expression by Govern
ment OF its preference for competi-
tion is not enough -. The pat
tern Of the industry must be recast
- =
"The task is so unprecedented that
Congress should consider how far
the Government shall 60 in making
the aluminium industry competitive.
The establishment of competition
requires the end of ALCOAs domi-
nation. Nothing less will be enough. /"
Asserting prompt action is i'm
perative," Mr.. Clark said war mar
kets for aluminium are gone and
civilian markets are slow to de-
velop, still being inhibited by the
expectation of ALCOA dominat ton. Z"
Unless necessary measures are
taken Immediately, independent
businessmen will not have a fair
opportunity in this industry, SO
full of chronological promise" Mr..
Clark declared.
Recommendations in Report.
The Attorney Generals report
made these recommendations:
l. The Surplus Property Board in
its disposal Of aluminium properties
should be guided by the necessity
of creating competition in the pro-
duction of aluminium" (The Re-
construction Finance Corp, on Sep
tember Z Cancelled ALCOA's lease
on Government-owned aluminium
smelling and alumina plants, effec-
tive November /, In order to make
these installations available to in
dependent operators on short notice.
RFC said the action was taken on
the Surplus Property Boards recon-
mendation to create competition in
the industry. The leases would have
expired in 1947 and 1948.)
2. A complete survey should be
made Of the Nations available
bauxite reserves, especially those
held by ALCOA and other large
companies. Mr.. Clark said ALCOA
has practically all Of the domestic
high grade bauxite available for
aluminium production.
8. Engineering studies are neces-
sary to determine power costs at
all Government aluminium plants
and the possibilities of relocating
and reducing the size of several Of
these plants. government financed
and owned plants have higher pro-
duction costs than ALCOA's plants
1See ATIJMTNTTM PAGE H-21