Evening star., 1949-06-30
US. Files sAntitrua Suit
To Break Up du Pont
Industrial Empire
BY the Assoeicted Press

BY the Asseeie.sd Press
Attorney General Clark today
filed suit to break up the du Pont
industrial empire.
The Attorney General an
nounced that the action. under
the Sherman and Clayton anti
trust laws. was filed this morning
in the District Court at Chicago.
Among the major demands Of
the civil suit are a enforcement Of
8 z. I. du Pont de Nemours. Inc,
Of Wilmington. Del. from General
Motors Corp. of Detroit.
1t also asks that the du Pont
family be required to release its
holdings. described as controlling.
In the United States Rubber Co.
Of New York. -
Holding Companies Named.
The suit names as defendants:
z. I. du Pont de Nemours, Cen
eral Motors, U. 8. Rubber. Chris
tiana Securities Co. snd Delaware
Realty & Investment Corp.
Pierre s. du Pont. Lammot du
Pont. Irenee du Pont and all
members of the du Pont family
related by blood or marriage to
Pierre, Lammot, or Irenee du Pont
who hold voting stock IN either
u. s. Rubber, Christiana Securities
or Delaware Realty g. Investment
Corp.
Mr.. Clark's statement an
nouncing the suit said that Chris
tiana and Delaware Realty ARE
personal holding companies OF the
members of the Du Pont family" :"
!. Owned Entirely by Family.
!. Justice Department attorneys
said they understand that no one
!. outside Of the family holds stock
In these companies. which in turn
control e. I. du Pont de Nemours
Co.
! Mr.. Clark asserted:
This case is directed to the
breaking up of the largest single
concentration of industrial power
In the United States.
The growth OF Du Pont, Gen.
eral Motors and United States
Rubber to positions OF market
dominance in their respective
fields has been marked by the
elimination Of many independent
businesses and a decline in the
I strength and yigor of those that
survived. The relief sought in
this case will open the way for
small and medium sized manu-
facturers to compete for business
!. In markets which have long been
closed to them"
Sale of Stock Asked.
The Chicago court was asked
specifically to order:
/. The sale by the du Pont Co.
Of its 100000 shares Of stock
In General Motors Corp.
! O.. The sale by members of the
DUPONT family of all of their
] stock in United states Rubber. de-
scribed as representing Q II per
cent interest Sufficient to give
them control since the remaining
shares are held in small amounts
by about $4,000 stockholders"
ea3. The sale by the du Pont Co.
of its business Of making tetrae-
thyl lead. ethyl fluid and ethyl
chloride.
4. The sale by General Motors
Of its so per cent stock interest in
the Ethyl Corp. which makes
anti-knock fluid for blending with
gasoline.
S. The sale by du Pont and
General Motors of their respec-
tive interests in Kinetic Corp.
which manufactures refrigerants.
6. The cancellation of all exist
ing contracts between du Pont.
General Motors, and United States
Rubber relating to sales of prod
ucts. grants Of licenses, agree
ments to license under patents,
and agreements providing for the
exchange of know-how."
The suit alleged that the de-
! fendant corporations had violated
the antitrust laws through agree
ments to purchase supplies from
one another. by acquiring COM
peting concerns and by employ
ing secret rebates and preferen-
tial prices" among the du Pont
companies while selling the same
products Ito other customers at
higher prices"
The boyhood home Of Gen.
Dwight D. Eisenhower at Abilene.
Kans., was dedicated as a national