Evening star., 1946-12-01
CONTINUED from Page CID

and have operated 8.9 billion of the
lis billion dollars of Federally f.
nanced facilities estimated to be
usable for peacetime production.
If. these $50 industrial giants ac-
ouire the SO billion dollars of usable
Federally financed facilities on
which they generally hold purchase
options, the report emphasizes,
holdings will come to 38.5 billion
dollars-comprising 66.5 per cent OF
the total usable facilities and almost
as much as the entire 1876 billion
dollars held before the war by more
than $4,000 manufacturing corpora
tions.
The report further high lights the
fact that 81 of the $50 largest manu-
featuring corporations are control
led by only five groups: Morgan
First National Bank, Mellon, Rookie
feller, Du Pont and Cleveland group
of financiers. The facilities of these
81 corporations total 1872 billion dol
lars, or 80 per cent OF the Nation 8
usable manufacturing facilities.
Aluminium Case an Exception.
OF plants constructed during the
war at public expense, the .SWPC
said: "The immense production cap
acity represented by these plants
and facilities makes of them the
most powerful instrument OF eco
nomic control which ever existed in
this country. Their disposal will do
more than anything else to deter
mine the future economic destiny OF
this country"
Many of the great corporations
engaged in war projects have ex-
ercised their options to buy Gov
ernment-built facilities which they
operated during the war.
One notable exception was the
refusal OF the Departmental Justice
to consider letting the Aluminium Co
Of America buy the Government
owned primary aluminium production
plants built during the war and
operated by ALCOA. Attorney Cen
eral Tom c. Clark said in this con-
nection: "As a general rule, the
disposal Of any Government-owned
aluminium plant to ALCOA would be
violative of the antitrust laws . : 81
Nevertheless, ALCOA, like most
other giant corporations, benefited
by the war. In addition to operating
most Of the Government-owned
aluminium plants, 1t nearly doubled
its ingot capacity and swelled Its
total assets from $251 ,000, 900 in 1888
to $474, 900 900 at the end Of 1874
As the war drew to close 1t owned
or operated 81 per cent OF primary
aluminium capacity.
Before the war, according to
report by the Senate Subcommittee
on War Mobilization, the Nation
spent between $500 ,000, 600 and $400,
O00, 900 a year on scientific research
of which one-fifth was provided by
the Government. With the outbreak
of war the total rose to more than
$500 900 900 a year, more than three
fourths of which was Federal ex-
penditure. Private funds on research
fell about one-half, while the Gov
ernment's outlay increased nearly
10 times. These figures are ekclu.
sive of funds spent for development
of the atomic bomb.
Patent Rights Retained.
Figures gathered by the Senate
Military Affairs Committee show
that 68 top corporations received
thirds of the Government con.
tracts for scientific research anc
development.
Investigations of the Senate Sub.
committee on War Mobilization
brought out that over, 80 per cen
| of the contracts for scientific de-
velopment placed the ownership O.
patents with the contractor, with
the Government receiving royalty
| free license. This means the largt
corporations that carried on mos
Of the Federally financed wartime
industrial research have control O
the commercial applications of tina
research. "In the long rum" com
mented the SWPC on this point
athe concentration of economic
power may be greatly strengthened
| as a result of this Capitalization O
research"
The Securities and Exchange
Commission reported that the 80:
manufacturing corporations listet
with it GALL large firms, increased
their net working capital from
Sc, 500 900 900 in 1889 to $14, LOO, ,0oo, ,oo'
at the end of the war-a rise OF s.
| per cent. Their net working capital
lit is anticipated. will increase furthel
by more than $4,000, ,000, 900 becaus'
of excess profits tax refunds ane
lother tax credits.
Working Capital Grows.
BY the beginning of this year, tht
I63 largest listed with SEQ manu-.
featuring corporations had increased
their net working capital to about
$40, 0,000, 900 900.
with this $4,000, 600 ooo," sale
the SWPC report, these So giants
could increase their power in 8
multitude of ways. They coule
launch sales and advertising cam
paigns on scale never before con-
templated. They could expand for
ward by obtaining sales outlets
backward by obtaining sources O
materials, and horizontally by en-
terinp into the production of q widt
variety of auxiliary or differen
products.
with this capital they could pur'
chase all of the llsuable Govern
ment-owned facilities at their option
price, or they could purchase tfa'
assets of 1,700 smaller manufactur'
ing corporations with assets Of les
than $3,00Q,0 900 each, which repre-.
.~..a "a ,.o,. Oe,,% ~ %tsa fo&a1 sssiss4leoi