Evening star., 1947-12-14
Ce|Iophane Monopoly
By dupont and Cartel
Charged in U. 5. Suit
BY the Associated Press

The Justice Department yester-
day charged E. I. dupont de Ne
mours, Inc, with monopolizing the
cellophane industry "by the unlaw-
full employment of patent rights and
the fixing of arbitrary and non-
competitive prices"
A suit alleging violation of the
antitrust laws by the Wilmington
(DelD corporation was filed in Dis
trict Court here by Attorney General
Clark.
AS one remedial step, the Gov
ernment proposed that the DUPONT
company be required to sell at rea-
sonable prices such of its plants
as may be necessary to permit others
to enter the cellophane field"
Company Denies Charges.
The dupont company said in a
statement that it mot only denies
the charges of violations of the
antitrust laws but is unable to
figure out who stands to benefit
from the Governments action"
The concern said it had made pos
sible expansion by competitors
through granting licenses under its
patent to another American pro-
ducer.
Gross sales in 1916 of cellophane
were reported by the Justice Depart
ment to have been approximately
$62 100000
The dupont company. the depart
ment declared, had more than
sac, 100000 worth of that business.
Six foreign corporations were
named in the antitrust suit as CO.
conspirators with the dupont COM
pany, although not defendants.
Concerns Are Listed.
They were listed as:
Lacellophane, Societe Anonyme of
France, British Cellophane, Ltd. of
England; Canadian Industries, Ltd,
; of Canada; Kalle & Co., A. G., of
Germany; Societe de la Viscose
Francaise of France, Viscose De-
velopment Co., Ltd, Of England.
1t was alleged by the Government
that dupont acquired and sup
i ported its monopoly through various
cartel agreements allocating world
markets between it and leading for
eign cellophane manufacturers and
providing for the exclusive inter-
) change of technical information be-
tween dupont and its co-conspira-
!, tors.
: This is major case directed at a
serious monopoly condition where
avenues of competition are closed,'
the Attorney General stated.
Sonnet Tells of Program.
, For many years duPonts eel
lophane plants have produced in ex-
: cess of two-thirds of all of this COM
) modify used in this country. This
illegal monopoly power stiles free
enterprise and should be elimi-
) mated"
John F. Sonnet, Assistant Attor-
ney General in charge Of the anti
trust division, said the action
against DUPONT is part Of the con-
: tinuing program of the division,
aimed at the breaking up of the
uilldWIu1 Col1CellGl ldGloH VI eCOIlO1llC
power in the United States"
The dupont company statement
asserted:
Ever since 1t was first produced
by Du Pont in this country in 1923,
cellophane has had to fight for &C
ceptance against the competition Of
metal foils, Waxed paper and other
plastic film. BY granting licenses
under its patent to the other Ameri-
can producer of cellophane, Du Pont
. has made 1t possible for its COM
, petitor to expand.
FL Price Reductions Cited.
"In the course of establishing the
present position Of this product in
] the market, Du Pont has greatly
improved its quality, has created
JOBS through increased production
! and has made 81 price reductions
from the original price of $265 a
: pound to the current price of AZ
cents pound.
"It is true that there is not
/ enough cellophant today to meet the
' demand. How this suit will remedy
that condition is not clear for the
) field is open for anyone who is will